Investing in Unstoppable Stocks
It seems like nearly everything has a weakness—after all, even Superman has his Kryptonite. Yet, when we talk about investing, some stocks truly stand out as much harder to overcome. What sets these companies apart? Well, things like a competitive advantage, resilient branding, and switching costs—basically, how tough it is for customers to ditch them for a competitor.
If you’re looking to add to your long-term stock portfolio, there are some strong contenders worth noting. Each of these companies shows solid production and, surprisingly, they’re still reasonably valued.
Where should you invest $1,000 right now? Experts suggest several top stocks that could be worth considering.
Nvidia (NASDAQ:NVDA) is currently the largest semiconductor company by market value, which sits around $4.6 trillion. One analyst even believes it could hit $10 trillion by 2030. This potential growth includes partnering with others to expand into the AI sector, combining chips with software and networking solutions.
Nvidia has shifted from focusing solely on gaming chips. Now, it’s a major player in the graphics processing unit (GPU) market for data centers—where a lot of AI action happens. If you’re optimistic about AI’s future and foresee a rise in data centers, Nvidia might be a compelling option for you. Its recent figures show a remarkable 62% increase in year-over-year revenue and a 65% rise in net income for the third quarter.
On top of that, Nvidia’s stock seems reasonably priced. The current forward price/earnings ratio (P/E) is 24, notably lower than its five-year average of 37.
MercadoLibre (NASDAQ:Meri) is a significant player in Latin America, valued at about $116 billion. You can think of it as an amalgamation of Amazon.com and PayPal. It dominates both the online marketplace and the fintech arena.
Operating in 18 countries, the company offers a “complete ecosystem” that allows individuals and businesses to buy, sell, and manage transactions seamlessly—both online and offline. Lately, their fintech services have seen 77 million unique active buyers and around 72 million monthly active users, both up more than 25% year-over-year. In the third quarter, net revenue rose by 39%, with a net profit margin of 5.7%.
MercadoLibre stock also appears attractively priced, trading at 31 times forward earnings, which is a drop from its five-year average of 64 times. Considering that e-commerce penetration in Latin America is about 15%, there’s a lot of potential for growth.
It’s worth taking some time to consider these companies—there are plenty of other promising growth stocks around, too.
Before jumping into an investment in Nvidia, it’s important to take note that other analysts from Motley Fool Stock Advisor have highlighted a list of the 10 best stocks to invest in now—Nvidia isn’t on that list, though. These stocks are believed to offer considerable returns over the coming years.
If we look back, for instance, at Netflix, which began its journey on December 17, 2004, $1,000 invested back then would now be worth around $450,256! Similarly, with Nvidia, if you’d invested $1,000 when it was recommended, you’d be sitting at about $1,171,666! That’s significant.
The key takeaway? Stock Advisor has posted a total average return of 942%, outpacing the S&P 500’s 196%. Don’t overlook the current Top 10 list—be part of a community designed by retail investors, for retail investors.
