The Best Stocks to Buy After This Year's Sell-Off

Source Motley_fool

Key Points

  • Uber will continue to dominate the ride-hailing market.

  • MercadoLibre has plenty of room to expand in Latin America.

  • Opendoor’s business will recover once the housing market stabilizes.

  • 10 stocks we like better than Uber Technologies ›

The S&P 500 has rallied nearly 80% over the past five years, and it looks historically expensive at 32 times earnings. Therefore, it wouldn't be surprising if the market crashes this year and reduces that multiple to more sustainable levels.

If that happens, investors shouldn't panic and blindly sell all their stocks. Instead, they should recall Warren Buffett's maxim of being "greedy when others are fearful" and buy some promising long-term plays. I'd personally load up on these three stocks if the market crashes: Uber (NYSE: UBER), MercadoLibre (NASDAQ: MELI), and Opendoor (NASDAQ: OPEN).

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Uber

From 2021 to 2025, Uber more than doubled its gross bookings from $90.4 billion to $193.5 billion, grew its monthly active platform consumers (MAPCs) from 118 million to 202 million, and increased its total trips from 6.4 billion to 13.6 billion. That expansion cemented its position as the world's top ride-hailing company and one of its largest food delivery companies.

Uber's growth was driven by its expansion into the suburbs and overseas markets, its growing number of trips per user, and Uber Eats' integration of grocery and retail deliveries. It locked in more customers through Uber One, its subscription-based platform launched in late 2021, which reached 50 million subscribers in its latest quarter. It's also expanding its higher-margin advertising business with sponsored listings, merchant promotions, and in-car and in-app ads.

From 2025 to 2028, analysts expect Uber's revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at CAGRs of 13% and 23%, respectively. Yet its stock still looks surprisingly cheap at 13 times this year's adjusted EBITDA, and it should have plenty of room to grow as its platform expands and evolves.

MercadoLibre

MercadoLibre, Latin America's leading e-commerce and fintech company, operates its online marketplace across 19 Latin America countries. It generates most of its revenue in Brazil, Argentina, and Mexico, but is gradually expanding into smaller, higher-growth markets.

From 2021 to 2025, MercadoLibre's net sales more than quadrupled as its net income grew over 24 times. Its e-commerce business served over 120 million annual unique active buyers at the end of 2025, while its fintech business -- which houses its Mercado Pago payments platform and other digital banking services -- continues to challenge conventional banks.

From 2025 to 2028, analysts expect MercadoLibre's revenue and adjusted EBITDA to grow at CAGRs of 29% and 24%, respectively. Those are impressive growth rates for a stock that trades at 18 times this year's adjusted EBITDA -- and it should continue to grow as the region's economic stability, income levels, and internet penetration improve.

Opendoor

Opendoor is the largest instant home-buyer (iBuyer) in the United States. It makes instant AI-driven cash offers for homes, repairs them, and relists them on its own marketplace.

That business flourishes when low interest rates generate tailwinds for the housing market, but it fizzles out when interest rates rise -- as they did throughout 2022 and 2023. Even though the Fed cut its benchmark rates in 2024 and 2025, the housing market stayed chilly as mortgage rates remained high and macro headwinds throttled sales of new homes.

That's why Opendoor's revenue plunged from a peak of $15.6 billion in 2022 to just $4.4 billion in 2025. It's also unprofitable. However, its stock looks undervalued at just over one times this year's sales -- so it might generate some massive gains over the next few years.

From 2025 to 2028, analysts expect Opendoor's revenue to grow at a 21% CAGR. They also expect its adjusted EBITDA to turn positive in 2027 and grow 47% in 2028. It's still a speculative stock, but it could be an underappreciated play on the stabilizing housing market.

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Leo Sun has positions in MercadoLibre. The Motley Fool has positions in and recommends MercadoLibre and Uber Technologies. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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