My 2 Favorite Stocks to Buy Right Now

Key Points

• Autonomous driving could make Uber a more critical part of the transportation ecosystem.

• Nu Holdings is transforming the financial lives of Latin Americans.

• 10 stocks we like better than Uber Technologies ›

Investors may feel like good buys are hard to come by in today's market. With all the indexes at or near record highs, many bargains have indeed disappeared.

Still, upon closer inspection, the market continues to offer stocks with apparent opportunities for continued expansion. With these remaining growth opportunities in mind, these stocks are two of my favorite buys in the current environment, as they pursue likely gains in expanding markets.

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Image source: Getty Images.

Uber

One of my favorites is rideshare giant Uber (NYSE: UBER), which has orchestrated an impressive turnaround. After its initial public offering (IPO) in 2019, investors soured on the stock as profitability appeared out of reach. However, the company turned profitable on an annual basis in 2023 and has now reported a positive net income for five straight quarters.

These profits come as Uber consolidates its market lead globally in its mobility business. It also earns more revenue from deliveries than any other company, though it lags rival DoorDash in the U.S.

Nonetheless, the most likely catalyst for investors is Uber's pivot into autonomous driving. The company has already partnered with companies like Alphabet's Waymo, Volkswagen, and Cruise, which is a part of General Motors.

Uber's role in those partnerships revolves around its platform. Building a comparable rideshare infrastructure to Uber's would cost a prospective competitor in terms of both money and time. Instead, they can have such a network instantly by partnering with Uber, and the company's shareholders benefit by having what could become a lucrative source of revenue.

Uber has started testing this business in Los Angeles, Austin, Atlanta, and other places. In the meantime, its existing business continues to log double-digit revenue growth. In the first half of 2025, revenue increased by 16% to $24 billion compared to the same period last year. That includes a 17% rise in mobility revenue and a 21% increase in delivery revenue during that timeframe.

Also, Uber kept cost and expense growth at 8%. That allowed net income to surge to more than $3.1 billion, up from $361 million in the same period last year. Investors have already begun to take notice, and Uber's stock is up by nearly 60% since the beginning of the year.

Nonetheless, investors likely have time to buy. Indeed, a one-time benefit skewed its price-to-earnings (P/E) ratio down to 16. However, with its rapid growth, the forward P/E ratio of 26 is unlikely to deter investors. When also considering Uber's critical role in autonomous driving, investors could see considerably higher returns over the next few years.

Nu Holdings

My other favorite is in the fintech realm. Amid the advanced fintech ecosystem in the developed world, investors can likely find a greater opportunity serving markets with primarily cash-based customers. This is where NuBank parent, Nu Holdings (NYSE: NU), offers an intriguing value proposition for its shareholders.

NuBank is the world's largest digital bank outside of Asia, serving customers in Brazil, Mexico, and Colombia. Admittedly, Latin America is a difficult business environment, and before the rise of digital banks, a small number of institutions dominated banking in Latin America. This effectively froze large portions of their populations out of the financial system.

Although fintech products have become increasingly available, millions of people in these countries still lack a bank account or credit card. NuBank has made significant strides in addressing this issue, and as of last year, nearly 21 million Brazilians had received their first credit card through Nu.

Consequently, 60% of adult Brazilians now hold at least one Nu account. Moreover, even though NuBank did not enter Mexico or Colombia until 2020, it serves 13% and 9%, respectively, of these countries' adult populations.

Over the last 12 months, its total customer count has increased to 123 million, a 17% rise from the previous year. Unsurprisingly, that took revenue for the first half of 2025 up to $6.9 billion, a 24% increase compared to the same period in 2024.

Indeed, a 25% increase in Nu's credit loss allowance weighed on its financial growth. Still, it cut operating expenses during that time, allowing its net income to rise to almost $1.2 billion for the first two quarters of the year. This was 38% more than the $866 million it earned during the same timeframe in 2024.

Additionally, this is an opportunity that may just be taking off. The stock is up nearly 40% year to date, and considering its profit growth, the 30 P/E ratio and 24 forward earnings multiple start to appear more reasonable.

Ultimately, Latin America is a complex business environment, but it also offers the opportunity to bring millions into the financial system, something fintech stocks focused on the developed world cannot match. With a rapidly growing business and relatively muted valuation, investors could earn outsized returns as Nu's Latin American expansion continues.

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Will Healy has positions in Nu Holdings and Uber Technologies. The Motley Fool has positions in and recommends Alphabet, DoorDash, and Uber Technologies. The Motley Fool recommends General Motors, Nu Holdings, and Volkswagen Ag. The Motley Fool has a disclosure policy.