Plenty of stocks are still worth buying despite the S&P 500 sitting around all-time highs.
Even though the broader market recently set new all-time highs (measured by the S&P 500 and Nasdaq-100) within the past month, there are still plenty of buying opportunities within the stock market.
I've identified three stocks that look like great buys, and you should consider these for your next investment.
1. Alphabet
Alphabet (GOOG 0.37%) (GOOGL 0.35%) is a giant in many industries. The Google family of products has long been successful, with the search engine still dominating the global market share despite competitors introducing generative AI-powered options.
It also has a thriving cloud computing business, a product line that is vital as artificial intelligence (AI) grows. About 70% of generative AI unicorns (private companies worth more than $1 billion) utilize Google Cloud, which shows that it is the platform of choice for any company looking to create an AI model on the cloud.
Even though Alphabet notched a new all-time high just a few days ago, I still think it looks attractive at these levels.
When Alphabet's forward price-to-earnings (P/E) is considered, the stock doesn't look too pricey.
GOOGL PE Ratio (Forward) data by YCharts
At just under 23 times forward earnings, it's slightly more expensive than the S&P 500, which trades at 21.3 times forward earnings. Furthermore, compared to other "Magnificent Seven" members, it also looks cheap.
| Company | Forward P/E |
|---|---|
| Microsoft | 35.4 |
| Apple | 26.3 |
| Nvidia | 34.5 |
| Amazon | 43.7 |
| Tesla | 58.1 |
| Meta Platforms | 25 |
Data source: YCharts.
With Alphabet still performing well and much cheaper than its big tech peers, I think it's a no-brainer buy right now.
2. MercadoLibre
MercadoLibre (MELI -1.98%) is a powerhouse in Latin America. It has a thriving e-commerce and logistics business (similar to Amazon) but also has elements like digital payments and consumer credit. Essentially, if it's vital for e-commerce to occur, then MercadoLibre likely has its hand in it.
It has also been growing at an unbelievable pace, with net revenue increasing by a currency-neutral 83% in the fourth quarter to $4.3 billion. It's also improving its profitability, which faltered while MercadoLibre quickly expanded to secure new opportunities.
MELI Profit Margin (Quarterly) data by YCharts
Although its profit margin dipped to around 4% this quarter, if not for a one-time charge, it would have been 9%. Even with strong success, MercadoLibre's stock has had a poor 2024, with it down nearly 10% this year. This pullback has also caused its price-to-sales (P/S) valuation to drop to historically low levels.
MELI PS Ratio data by YCharts
As a result of MercadoLibre's strong business and sizable pullback, I think right now is an excellent time to buy some shares of MercadoLibre.
3. UiPath
Lastly, there is UiPath (PATH -0.42%). Its software is vital to implementing robotic process automation (RPA) tasks. When combined with AI, RPA allows its users to automate a significant number of repetitive tasks. By eliminating these workflows from employees, they can do other jobs that require original thinking, which makes companies more efficient and improves employee morale.
UiPath has been quite successful, with its annual recurring revenue (ARR) rising 22% to $1.46 billion in Q4 of fiscal year 2024 (ended January 31). UiPath also converted around 4% of revenue into an operating profit. This will be a key metric to watch in future quarters, as it shows investors it's starting to value profits over its growth rate.
Still, UiPath has a massive market opportunity ahead of it. Grand View Research projects the U.S. RPA market will expand from $2.9 billion in 2023 to $30.9 billion by 2030. As a major player in this industry already, UiPath has a ton of growth ahead of it.
Despite that, UiPath's stock doesn't trade for a premium as many software companies do.
PATH PS Ratio data by YCharts
At just 8.4 times sales, UiPath is a reasonably priced software stock with strong growth. Because of that, I'm taking the downturn as an opportunity to buy more UiPath stock now.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Alphabet, MercadoLibre, Meta Platforms, Tesla, and UiPath. The Motley Fool has positions in and recommends Alphabet, Apple, MercadoLibre, Meta Platforms, Microsoft, Nvidia, Tesla, and UiPath. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
