The S&P 500 is down so far in 2025, and this might be the opportunity to be greedy in the way that Warren Buffett is so famous for talking about. Investors are fearful because of economic uncertainty, but many companies are performing well and have huge opportunities.
Instead of focusing on what's been happening over the past few weeks, consider how well some excellent stocks have been performing over the past 12 months and what's happening up ahead. MercadoLibre (MELI +0.98%), Shopify (SHOP 6.43%), and On Holding (ONON +1.86%) are three soaring stocks that I'd buy right now.
1. MercadoLibre Stock: Up 41%
MercadoLibre stock is up 41% over the past year, and it's the only stock on this list that's up in 2025. It operates an e-commerce platform in Latin America serving 18 countries, and it's been growing by leaps and bounds.
E-commerce is still underpenetrated in its region at about 13%, compared with 24% in the U.S. As the largest e-commerce companies in the region, MercadoLibre is benefiting from the shift, and customers are joining MercadoLibre's platform at a fast pace. Revenue increased 96% year over year (currency neutral) in the 2024 fourth quarter, with gross merchandise volume (GMV) up 56%.
This is leading to a flywheel effect; as more people discover and join MercadoLibre's platform, they engage at higher rates. The number of customers who shop in three or more categories increases every year, as does average quarterly purchase frequency.
NASDAQ: MELI
Key Data Points
The company has also developed a fintech infrastructure to support digital payments on its website, and that's grown into a full-service financial app offering credit cards, investing tools, and more. Total payment volume increased 49% year over year in the fourth quarter, and the credit portfolio increased 74%. MercadoLibre is the top fintech company in three of its four largest markets by monthly active users, and it's No. 2 in the fourth, Brazil, likely behind Nu Holdings.
MercadoLibre has huge opportunities as it creates a digital revolution in its region. Despite superlative performance, there's a lot more to expect.
2. Shopify Stock: Up 25%
Shopify stock is up 25% over the past year as it continues to report strong growth and increasing profitability. It's the premier e-commerce platform in the U.S., and more clients are turning to its services to improve their e-commerce infrastructure and manage more efficiently.
But Shopify has become much more than a company that makes e-commerce websites. Most of its sales come from payment processing, and it's expanded into a full commerce platform combining digital and physical retail solutions. It also offers single components to large enterprises, bringing high sales drivers into its ecosystem.
NASDAQ: SHOP
Key Data Points
Another area where it's focusing its attention is international. Although Shopify controls 30% of the U.S. market for its kind of services, it's only No. 4 globally. International sales climbed 33% year over year in 2024 and accounted for 30% of total revenue. Shopify is rolling out more services in more international markets, like launching its point-of-sale terminal in eight countries last year.
Shopify has reported seven straight quarters with revenue growth of at least 25%, and its free-cash-flow margin continues to expand, reaching 22% in Q4. It has massive long-term opportunity, and this could be an attractive entry point.
3. On Stock: Up 45%
On is a premium activewear company recognized for its unique sneaker soles. It has attracted a large and loyal following, and it's growing quickly. More than that, it's increasingly profitable and has a wide-open opportunity as it builds its brand presence globally.
On is still relatively unknown in many regions, but it's attracting an affluent and resilient clientele that can pay its higher prices despite inflation. On has been reporting robust growth at the same time that most of its peers have been experiencing pressure.
In 2024's Q4, revenue increased 41% year over year (currency neutral), driven by direct-to-consumer sales, which were up 48%. As customers get to know its brand, they're leaning into the full line of merchandise, not just the shoes. Apparel and accessories sales grew even faster than footwear.
NYSE: ONON
Key Data Points
Its premium, higher prices are leading to stronger margins and more profits. Gross margin expanded from 60.4% to 62.1% year over year in Q4, and net income increased 435%, turning positive.
Management has a four-pillar strategy to drive brand awareness, leverage an omnichannel strategy, expand its product assortment, and operate efficiently. So far, On is meeting its goals, and it has a long and bright future ahead.
