The Market Is Shaky, But These 2 Stocks Are Built for the Long Haul
Key Points
Costco's retention is extraordinary -- 9 out of 10 customers renew their memberships.
MercadoLibre is building an e-commerce and financial services ecosystem throughout Latin America.
Both companies have competitive advantages and solid growth strategies.
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The markets have been on a wild ride the past few months, but uncertainty is often where the best long-term opportunities are found. Short-term traders may flinch at every scary headline, but disciplined investors look to buy businesses with durable advantages, growing industries, and strong execution.
Two consumer goods stocks built for the long haul are Costco (NASDAQ: COST) and MercadoLibre (NASDAQ: MELI). Although they are fundamentally different businesses, they are similar in their growth strategies and execution.
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One is a global warehouse retailer, and the other is Latin America's dominant e-commerce and fintech platform. Each has a compelling story for long-term investors. They are strong enough to endure across any market cycle, and their fundamentals are bullish even among short-term volatility.
Image source: Getty Images.
Costco is recession-resistant
Even as people tighten their belts, they keep their Costco memberships. Retention remains above 90%. This loyalty provides a terrific level of consistency and visibility with the company's revenues and cash flow.
Costco's growth is impressive as well. The company's second-quarter earnings showed that net sales increased 9.1% year over year. Costco is also expanding globally, with more than 600 warehouses in the U.S. and nearly 300 abroad.
On April 15, Costco announced an increase in its quarterly dividend, raising the payout to $1.47 per share. The stock does trade at a premium, but the company's consistent execution largely justifies it. Costco has risen 14% since the start of 2026.
MercadoLibre is building an ecosystem
MercadoLibre is drawing comparisons to Amazon, but the massive Latin American e-commerce platform is also growing a powerful second arm in the fintech sector. Mercado Pago, the company's burgeoning financial services platform, grew its credit portfolio 90% year over year as of the fourth quarter of 2025.
MercadoLibre overall is growing rapidly. Net revenue increased 45% in the final quarter of last year, reaching $8.76 billion.
MercadoLibre's stock has fallen 7% year to date, but is poised for long-term growth. The stock is trading with a forward price-to-earnings (P/E) ratio slightly above 30. The company is expanding into emerging markets, and there are regulatory and political risks, but the opportunity is immense.
The consensus on Wall Street is quite bullish on MercadoLibre as it continues building an ecosystem throughout Latin America.
Two companies built to endure
Costco and MercadoLibre are different businesses, each with its own approach to global expansion. Yet in times of turbulence and uncertainty, it's companies like these two that shine. Their durability, competitive moats, and track record will withstand any tumultuous times.
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Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, and MercadoLibre. The Motley Fool has a disclosure policy.
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