My 5 Favorite Stocks to Buy Right Now

The market is up only 3% so far this year, although that's a big climb from the depths of its earlier declines. Investors as a group may be feeling pessimistic, but that doesn't mean you have to be. As Warren Buffett once said, "When investing, pessimism is your friend, euphoria the enemy." A gloomy market means lower prices, and that's exactly the time to buy.

If you're looking for some investing inspiration today, my five favorite stocks to buy right now are Realty Income (NYSE: O), MercadoLibre (NASDAQ: MELI), Dutch Bros (NYSE: BROS), Carnival (NYSE: CCL)(NYSE: CUK), and On Holding (NYSE: ONON).

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

1. Realty Income: The dividend play

Realty Income is one of the biggest real estate investment trusts (REITs) in the world, and companies of that type are obligated to distribute at least 90% of their taxable income to their shareholders via dividends every year. This one pays a monthly dividend, and has an incredible track record of payout hikes. It has distributed its dividend for 660 straight months, or 55 years, and it has raised its payouts for 111 consecutive quarters.

REITs buy properties and lease them to tenants. Of Realty Income's 15,600 properties, 80% are leased to retailers, and it has a stellar lineup of clients like Walmart and Lowe's that sell essentials and can succeed and thrive even in difficult economic times. Around 20% of its properties are in groceries and convenience stores, both stable business segments. However, it has expanded into new segments like industrials and gambling, providing its portfolio with some beneficial diversification.

Realty Income's dividend yields 5.5% at the current share price, a high yield for a dividend that's reliable and growing. Though the stock is up year to date, over the past three years or so, the stock price has come down due to higher interest rates and a suppressed real estate market, making this a great time to buy shares.

2. MercadoLibre: The other e-commerce giant

MercadoLibre is an e-commerce powerhouse operating in 18 countries in Latin America. That region's population is underpenetrated in e-commerce, but it's growing at a rapid pace, and MercadoLibre has reported quarter after quarter of phenomenal growth.

In the first quarter, its gross merchandise volume was up 40% (on a currency-neutral basis) from the prior-year period. That growth is being driven significantly by new shoppers on the site, as its unique active buyers increased 25% year over year.

Image source: Getty Images.

Management recognized years ago that in order for the many underbanked citizens of its markets to shop online, they'd need digital wallets, so it developed a payments platform that has become a full-fledged and fast-growing fintech business. Total payments volume increased 72% year over year in the first quarter, and the credit portfolio was up 75%.

Total company sales increased 64% in the first quarter, and the company is also highly profitable, with $763 million in operating income at a 12.9% margin.

MercadoLibre has huge opportunities ahead as its market continues to go digital, and it's expanding with new segments and products. MercadoLibre stock is beating the market this year, and it should continue to for the foreseeable future.

3. Dutch Bros: The new name in coffee

Dutch Bros is a mid-sized coffee shop chain that is expanding quickly and making a name for itself as it opens in new regions. It recently opened its 1,000th store, up from 500 when it went public almost four years ago, and it's aiming to double its footprint again over the next five or so years. Over the long term, management sees the opportunity to expand to more than 7,000 stores, giving it a long growth runway and offering a compelling investing thesis.

It's not just winning by opening new stores, though. Same-store sales increased 4.7% year over year in the first quarter, driving revenue growth of 29%. It's also become profitable, and net income increased by 39% in the first quarter.

From a valuation perspective, Dutch Bros stock is the most expensive stock on this list, trading at 88 times next year's expected earnings. But the market is giving the company a premium due to its strong growth and ample opportunities, and buying the stock today should be a rewarding choice for patient investors. Dutch Bros is also crushing the market this year, up 34%.

4. Carnival: The comeback play

Carnival is an oldie but goodie that's still recovering from the moves it had to make during the early part of the pandemic, when all of its cruise ships were idled for more than a year. It has made an incredible comeback from those difficult times, and it's fielding record-high demand for spots on its cruises today.

In its fiscal 2025 first quarter (which ended Feb. 28), revenue increased 7.4% year over year to $5.8 billion, and operating income nearly doubled to $543 million. Bookings for fiscal 2026 increased to record levels for a period this far in advance, and its bookings through the rest of 2025 are also near the best the company has seen. It's also averaging historically high ticket prices, and generating strong revenue from preboarding sales of non-ticket items.

The company is preparing new ships, with several in line to launch over the next few years, and it's investing in its touring assets, such as the opening of its exclusive Celebration Key resort this summer. In other words, Carnival has many levers to pull to generate demand and sales.

Carnival stock is trading at a low price-to-sales ratio of only 1.2. The market is still pricing in the hefty debt load the company accrued to stay solvent during the pandemic. But it has been doing an excellent job of paying its debts down, and that appears set to continue as demand for cruises is staying strong despite the complicated macroeconomic backdrop. As its debt load decreases, Carnival's stock should climb.

5. On Holding: The new name in sneakers

On Holding is challenging the top names in activewear and athletic footwear with its uniquely designed sneakers and premium apparel. It has been building its brand and rolling out in new markets across the world, and it has developed a huge and devoted fan base where shoppers already know it.

The company has demonstrated incredible performance over the past few years, and the first quarter showed the positive trends continuing. Sales increased 43% year over year, with strength in both direct-to-consumer and wholesale channels. Its gross margin was an industry-leading 59.9%, up from 59.7% last year.

This growth came at a time when most of its competitors were feeling pressure as consumers cut back on discretionary spending, and it bodes well for On Holding's future as it captures more interest from an affluent and resilient customer base.

On Holding has a long growth runway as it continues to launch in new regions and attract new shoppers to its platform. On Holding stock is roughly flat this year as the market has priced in concerns about tariffs, but the long-term outlook is strong, and now is a great time to buy.

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Jennifer Saibil has positions in MercadoLibre and Walmart. The Motley Fool has positions in and recommends MercadoLibre, Realty Income, and Walmart. The Motley Fool recommends Carnival Corp., Dutch Bros, Lowe's Companies, and On Holding. The Motley Fool has a disclosure policy.