58% of Americans Own Stock, but Most Are Doing It Wrong. I'd Start With These 2 Names Instead.
Key Points
Most people are invested in the stock market, but will only get index returns.
MeracdoLibre is a promising growth opportunity in Latin America.
Sprouts Farmers Market is a cheap grocery concept.
- 10 stocks we like better than MercadoLibre ›
58% of Americans own stocks. This figure has been steadily rising over the past 100 years due to the proliferation of 401(k) s, personal retirement accounts, and free-trading brokerages accessible on mobile devices.
Around 200 million people in the United States own stocks in some form. But I think most are doing it wrong. Many simply own broad-based index funds like the S&P 500 index, which is trading at a price-to-earnings ratio (P/E) near all-time highs and can bore investors. Others stick only to the hottest names discussed in financial media, which can crowd you into thematic trades such as artificial intelligence (AI), adding unnecessary risk to your portfolio.
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Instead, start by investing in these hidden gems. Your returns will thank you 10 years from now.
E-commerce and personal finance giant
One stock rarely discussed on financial TV that has delivered fantastic long-term returns is MercadoLibre (NASDAQ: MELI). It has delivered 6,200% returns since going public around two decades ago.
MercadoLibre is an e-commerce platform and financial services company in Latin America, focused on the Brazilian, Mexican, and Argentinian markets. Similar to Amazon, it offers a wide selection and fast shipping to customers, along with other bundled services through its membership. Last quarter, its gross merchandise volume (GMV) grew 36% to $22 billion, and it still has a long way to run.
What makes MercadoLibre special in Latin America is that it provides payment infrastructure and financial services for shoppers, which are necessary given the region's underdeveloped banking systems. Through the MercadoPago app, customers can obtain loans, direct deposits, and shop with a credit card to earn discounts through MercadoLibre. For merchants, it offers payment processing solutions and loans. Last quarter, fintech revenues grew 49% year over year, a blistering rate that reflects MercadoLibre's impressive market share gains.
With such a nice growth runway ahead, MercadoLibre looks like a fantastic stock to buy and hold for the long haul.
Image source: Getty Images.
A niche grocery store growth concept
A company even more off the beaten path for investors is Sprouts Farmers Market (NASDAQ: SFM). This is an organic/health-focused grocery chain steadily growing in the United States. Last quarter, it opened 7 new stores and now has 490 across the United States, with ample room for expansion in the years ahead.
Sprouts is winning with customers by offering an abundance of fresh food, vitamins, and niche items at reasonable prices. This differentiates it from regular grocery stores, capturing the portion of the population that cares about healthy eating for at-home use.
Right now, Sprouts' stock is in a drawdown because of slowing comparable store sales. It is guiding for comparable store sales growth of 0% in 2026, after producing 7.3% growth last year. This is not due to any core customer traffic changes, but rather because Sprouts Farmers Market had a few items in stock last year that went viral on TikTok, driving some short-term boosts in sales. This has now disappeared in 2026.
Long-term, I think Sprouts will do just fine by expanding to new markets in the United States while returning cash to shareholders through repurchases. Shares outstanding are down 35.5% in the last 10 years, making Sprouts one of the best buyback stocks out there.
Today, Sprouts trades at a price-to-earnings ratio (P/E) below 13, which is cheap for a business that has such a long runway to expand nationwide. Plus, at a lower P/E ratio, its buybacks will work that much better. This combination of lower share count and steady growth has enabled Sprouts to significantly grow its earnings per share (EPS), which is up around 500% in the last 10 years. Repeat that over the next 10, and Sprouts will be a great stock to buy today and hold for the long-term.
Should you buy stock in MercadoLibre right now?
Before you buy stock in MercadoLibre, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and MercadoLibre wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Brett Schafer has positions in MercadoLibre. The Motley Fool has positions in and recommends MercadoLibre and Sprouts Farmers Market. The Motley Fool recommends the following options: long January 2028 $75 calls on Sprouts Farmers Market and short January 2028 $85 calls on Sprouts Farmers Market. The Motley Fool has a disclosure policy.
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