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Additional Reading from MarketBeat Media 3 Stocks Well Off 52-Week Highs Ready for a Q4 ComebackWritten by Gabriel Osorio-Mazilli. Published 10/20/2025. Technical analysis has many uses, but here's the most important one: gauging where a stock trades relative to its 52-week high. The 20% discount mark — roughly 20% below that high — is a critical threshold. Wall Street often treats it as the divide between a bull and a bear market. Below are three stocks currently trading well into bear market territory. MercadoLibre Inc. (NASDAQ: MELI), Rocket Companies Inc. (NYSE: RKT), and On Holding (NYSE: ONON) all sit below that threshold. Because these names are exposed to the consumer discretionary sector, some of the declines may reflect sector pressure rather than company-specific problems. Either way, investors should focus on two questions going forward. First, have these stocks already priced in fears of a consumer slowdown driven by inflation or tariff concerns? Second, is there sufficient evidence that their shares could materially recover by the end of the fourth quarter of 2025? Each company has a different business model and product mix, so combining them can offer diversified upside potential for a portfolio. MercadoLibre's Bottoming Sent Bears Running Something unusual is unfolding inside the Republican Party — from Marjorie Taylor Greene breaking ranks to Ted Cruz calling the White House a "mafia," and even Trump's approval rating slipping. But veteran analyst Porter Stansberry says this isn't really about politics at all. It's part of a much larger shift he calls The Final Displacement — a historic economic and social realignment already impacting millions of Americans. His new documentary explains what's driving it and how to prepare before it accelerates further. Watch The Final Displacement to see what's really happening behind the scenes Key Points - These three stocks trade well below their 52-week highs, making their setups carry a high chance of pricing in downside while leaving all the upside potential intact.
- There is enough EPS growth set up for the fourth quarter of 2025 to land these names on an upswing.
- Wall Street analysts believe this can be the case as their recent upgrades suggest.
Over the past month, short interest in MercadoLibre declined by 13.8%, a sign that some bearish traders may be capitulating. The Latin American e-commerce platform has delivered a year-to-date gain of 23.6%, enough to create a meaningful inflection point. MercadoLibre now trades at roughly 79% of its 52-week high — close to crossing into bullish momentum, yet still far enough below its highs to give buyers room to benefit from further upside. With that risk/reward in mind, investors shouldn't be surprised by Wall Street's outlook for the stock. The consensus price target is $2,810.88, implying about 33.7% upside from the current price. There are outliers, too: in October 2025, Susquehanna analyst James Friedman set a $2,900 target (revised down from $2,975). Institutional activity supports the bullish case. In October, Swedbank increased its position by 11.9%, bringing its stake to $321.5 million. It appears many consumer worries were already priced into the selloff, but Q4 will be a key proving ground. The MarketBeat consensus for EPS is $13.79, about a 34% increase from the company's most recently reported $10.31. That expected jump largely explains the optimism around MercadoLibre heading into year-end. Rocket's Beatdown Appears to Be Running Out of Steam With some U.S. housing indicators — such as falling building permits and growing listings — showing weakness, it wasn't surprising to see a mortgage lender like Rocket Companies slide to 76% of its 52-week high. Still, that price is near cyclical lows given the current state of industry indicators. That makes Rocket an interesting risk-to-reward play. Eric Hagen of BTIG Research now projects $25 per share in his Buy rating — a bold call well above the consensus target of $17.12. There are reasons the higher target could be attainable. If the Federal Reserve begins cutting interest rates, mortgage rates could fall, potentially drawing buyers back into the piled-up housing inventory. Q4 will be important for Rocket not only because of possible rate cuts but also because of expected earnings improvement. The MarketBeat consensus calls for $0.12 in EPS for Q4, roughly triple the current $0.04. Given how deeply the stock has sold off, much of that growth may not be priced in, offering investors an opportunity to ride a potential upswing. Tariff Concerns May Have Been Overdone for On Holding On Holding's exposure to China — as both a market and part of its supply chain — prompted a selloff amid tariff concerns. The stock now trades at about 65% of its 52-week high, well into bear market territory, increasing the likelihood that future earnings growth remains unpriced. The consensus price target of $63.65 implies roughly 53.5% upside. Markets have also assigned the stock a 92.2x price-to-earnings (P/E) ratio, a steep premium to the retail sector's 18.8x average. That premium can be explained by the setup's perceived low risk and by the potential for a strong payoff: Zacks forecasts annual EPS growth of just over 110% for On Holding. If that growth materializes into Q4 2025, it could help close the valuation gap and validate the bullish case.
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