Not many things are unstoppable. Even Superman can be stopped with Kryptonite. Still, when it comes to investing and stocks, some stocks are far more unstoppable than others. Characteristics of such stocks include competitive advantages such as strong brands and switching costs (the difficulty for customers of switching to a rival), and optionality -- a company's ability to move in different, profitable directions.
Here are a few companies to consider for your long-term stock portfolio. Each has been a powerful grower, each has plenty of room for further growth, and, perhaps surprisingly, each is still reasonably valued.
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1. Nvidia
Nvidia (NVDA 1.53%) is the world's largest semiconductor company in terms of market value. It recently sported a market cap of $4.6 trillion. One of my colleagues sees it growing to $10 trillion by 2030 -- in part by signing deals with other companies to help it encompass not just chips, but also software and networking equipment, becoming vertically integrated in the AI realm.
NASDAQ: NVDA
Key Data Points
Once known for its gaming chips, Nvidia has morphed into a leader in graphics processing units (GPUs) for the data centers where much artificial intelligence (AI) activity happens. If you're bullish on the growth potential of AI and you see far more data centers in the future, you should be optimistic about Nvidia's prospects. It's already growing briskly, reporting third-quarter revenue up 62% year over year and net income up 65%.
Better still, Nvidia's stock seems rather appealingly priced. It has a recent forward-looking price-to-earnings (P/E) ratio of 24, well below the five-year average of 37.
2. MercadoLibre
MercadoLibre (MELI 5.20%), with a recent market value of $116 billion, is a major presence in Latin America. A lot like a combination of Amazon.com and PayPal, it encompasses both a dominant online marketplace and a major fintech (financial technology) business.
NASDAQ: MELI
Key Data Points
It operates in 18 countries, offering a "complete ecosystem of solutions for individuals and businesses to buy, sell, advertise, obtain credit and insurance, collect, send money, save, and pay for goods and services both online and offline." It recently sported 77 million unique active buyers and 72 million monthly active users of its fintech services -- with both figures growing by more than 25% year over year. Its third quarter featured net revenue up 39% year over year and a net profit margin of 5.7%.
It, too, has an attractively priced stock at recent levels, with a forward P/E of 31, well below the five-year average of 64. MercadoLibre has a lot of room to grow in Latin America, as e-commerce penetration there was recently only around 15%.
Give these companies some consideration, and know that there are plenty of other compelling growth stocks out there, as well.
