As the all time S&P 500 highs are just a few scant weeks away, the main question that many investors are posing is whether to cash in and play it safe or is there money to be earned in the market?
Although it may seem like the safe move to consider cutting back some jobs, long-term investment is not about trying to play the game of get rich and get poor, but owning good companies during good and bad times. The most successful stocks usually continue up the ladder and those who panic and sell early may be losing years of growth in the future.
With a long-term orientation and a certain amount of patience, now could be an excellent time to invest, not in any stock, but in businesses that are strong, expanding, and become part and parcel of our daily existence. Personally, Uber, Costco, and MercadoLibre are three companies (Stocks to Buy) that address all the boxes at the moment.
Let’s break down which Stocks to Buy.
1. Uber (NYSE: UBER)
Uber has traveled long way since its start up days. The world now has the biggest ride-hailing platform – but it is not only rideshare.
By June 2025, Uber will support 180 million monthly active users compared to 171 million at the conclusion of 2024. In comparison, this was only 93 million in 2020. That is, the number of users has almost doubled within a span of five years. Its sales increased at a rate of 41 percent per annum between 2020 and 2024 – remarkably high in a firm its size.
And the kicker is that Uber is now profitable. It finally broke the turn in 2023 with slim operations and cost reductions after years of heavy investment (and heavy losses). In 2024 its net income grew five times. Not a lot of technology companies can say that.
A major growth driver? Uber One – its subscription service, which currently boasts 36 million members. Such users pay 3 times higher than non-subscribers, and this provides Uber with a sticky, recurring stream of revenue that makes its business model more predictable.
Moving forward, analysts project a 15 percent revenue growth in Uber until 2027 and a 28 percent growth in EBITDA. However, the stock is currently selling at only 18x next year earnings before interest and taxes, so it is fair to say it is under-priced given such high growth potential.
Uber is a good bet in case you want tech growth, profits, and a massive user base.
2. Costco (NASDAQ: COST)
Costco can be considered as stable as possible. It is a retail giant with 905 warehouse sites in the world – compared to 795 five years ago.
This is what is unique about Costco, it does not take advantage of what it sells. It, instead, derives most of its profits through membership fees whose margins are very high. In 2024, it increased its charges after seven years and no one turned a hair. In 2020 memberships stood at 105.5 million and renewed to 136.8 million in 2024 with a world-wide renewal rate of 90.5%. That’s unheard of in retail.
Members-first model is the reason why Costco can sell products at bottom-rocking prices, (near cost) and has repeat customers coming back and referrals high. Despite inflation and supply chain issues, Costco has managed to stand up very well.
Its revenue increased 11% per year, and its EPS increased 16% per year between 2020 and 2024. Analysts believe it will keep growing, projecting 8% growth in revenues and 10% growth in EPS by 2027.
Of course, the share could be costly at 49 times the 2012 earnings, but quality can be very costly, and Consistency costs you very little, and Costco can be very consistent with a few other business organizations.
3. MercadoLibre (NASDAQ: MELI)
MercadoLibre is sometimes referred to as the Amazon of Latin America, but even that description cannot capture the entire picture.
Yes, it is the biggest e-commerce in the region, which works in 19 countries – however, it is a full-scale fintech powerhouse. Its digital payments platform Mercado pago and Mercado Credito consumer lending platform and ecosystem platform has over 60 million monthly active users.
By the end of 2024, MercadoLibre had more than 100 million unique annual buyers, and the annual rate of revenue growth between 2020 and 2024 was simply staggering at 51%. That’s some serious scale.
What’s powering that growth? The increased Internet application, the increased level of income, and the absence of conventional access to banks, which precondition the significant role of fintech services in such markets. In addition, it has the first-mover advantage, good logistics, and local know-how, which can assist it to ward off international rivals such as Amazon and local competitors such as Americanas.
Analysts project 28 percent increase in revenue and 34 percent growth in the EPS by 2027. The share is trading at 35 times the following year earnings which is not very high since the company has that potential, when you compare it with other high growth world-technology companies.
With Latin America still in the process of digitalization, MercadoLibre is poised to surf the wave several years to come.
Final Thoughts which Stocks to Buy
The current market environment may seem risky to invest at its highest point in recent times but timing the market has never been a winning game. Rather, consider time in the market – and select companies that have a long shelf life.
- Uber has rounded the profitability corner and is cashing in on its users like never before.
- Costco remains brilliant with its original membership structure and unparalleled customer loyalty.
- MercadoLibre is an online behemoth in a rapidly evolving internet market of the world.
Each of these businesses has something to differentiate them – a technology advantage, a sustainable moat, or access to a high growth market. However, they all have one thing in common, they are well-managed companies with good growth prospects.
These three stocks(Stocks to Buy) would be of serious interest to a long-term investor who is interested in adding a few strong names to his portfolio.
Bonus Tip Stocks to Buy: You should always research before you buy. A good stock(Stocks to Buy) is not necessarily the one that suits your financial needs. And do not forget, it is a marathon, not a sprint when it comes to investing. Need some assistance creating your long-term stock watchlist? I will assist you with other powerful companies according to your ambitions. Let me know!
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