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My 3 Favorite Stocks to Buy Right Now

By Leo Sun | October 07, 2025, 8:00 AM

Key Points

  • Costco’s evergreen business model justifies its premium valuation.

  • Coupang has plenty of room to expand domestically and internationally.

  • Lyft is an underdog in the ride-hailing market, but it’s still growing in Uber’s shadow.

As the S&P 500 hovers near its record highs, it might seem risky to buy more stocks. After all, the index is historically expensive at 31 times earnings, and plenty of unpredictable headwinds -- including tariffs, trade wars, geopolitical conflicts, and the government shutdown -- could compress those valuations and drive the bulls out of the market.

But if you can tune out that near-term noise and focus on holding your stocks for at least a few more years, then there are still plenty of buying opportunities in this wobbly market. Let's review three of them -- Costco (NASDAQ: COST), Coupang (NYSE: CPNG), and Lyft (NASDAQ: LYFT) -- and see why they're my favorite stocks to buy right now.

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Image source: Getty Images.

1. Costco

Costco, the world's top warehouse club retailer, operated 914 warehouses across the world at the end of fiscal 2025 (which ended this August). That's up from just 795 locations at the end of fiscal 2020. During those five years, its year-end cardholders rose from 105.5 million to 140.6 million, while its global renewal rate climbed from 88% to 90.5%.

Costco can afford to sell its products at low margins because it generates most of its profits from its high-margin membership fees. As long as it keeps opening new stores, gaining new cardholders, and maintaining high renewal rates, its business should keep growing. It further differentiates itself from its competitors and increases the stickiness of its stores with its private label products, bulk discounts, and ancillary services. It's also been expanding its e-commerce marketplace to reach more customers.

From fiscal 2025 to fiscal 2028, analysts expect Costco's earnings per share (EPS) to grow at a CAGR of 11% as it maintains that positive growth cycle. Its stock isn't a bargain at 46 times forward earnings, but its evergreen business arguably deserves that premium valuation.

2.Coupang

Coupang, the largest e-commerce company in South Korea, served 23.9 million active customers in the second quarter of 2025. That's up from 14.8 million at the end of 2020. It operates first-party and third-party marketplaces, and it also offers food delivery, ride sharing, and streaming video services. It acquired the struggling online luxury retailer Farfetch to expand its overseas reach in early 2024.

Coupang established its early mover's advantage by building an expansive network of fulfillment centers within seven miles of 70% of South Korea's population. It also locked in its customers with its Rocket Wow subscriptions, which provide faster delivery options, free returns, access to streaming videos, food and grocery deliveries, and other exclusive perks. A whopping 14 million of its shoppers were subscribed to Rocket Wow in early 2025.

From 2024 to 2027, analysts expect Coupang's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at a CAGR of 48% as it consistently gains new customers in South Korea, expands in Taiwan, and right-sizes Farfetch's struggling business. It still looks reasonably valued at 23 times next year's adjusted EBITDA -- and it could have a bit more upside potential than mature e-commerce leaders like Amazon.

3. Lyft

Lyft is the second-largest ride-hailing company in the U.S. after Uber (NYSE: UBER). It suffered a severe slowdown during the pandemic, but its total number of year-end active riders still rose from 12.6 million in 2020 to a fresh high of 24.7 million in 2024.

Lyft's business recovered as it rolled out more flexible features (including its Lyft Pass for businesses, a Price Lock service for recurring trips, and its rebooted Lyft Pink membership plans). It also expanded its higher-margin Lyft Media segment -- which streams sponsored media content and digital ads within its app and in-car tablets -- as it pruned its tech workforce, increased its incentives for its drivers, and streamlined its spending.

From 2024 to 2027, analysts expect Lyft's adjusted EBITDA to grow at a CAGR of 30% as it gains more riders, expands overseas with its acquisition of the German mobility app Freenow, expands its ecosystem with new services, and rolls out more autonomous vehicles to keep pace with Alphabet's Waymo, Tesla's Robotaxi, and other competitors in the nascent market for driverless ride-hailing services. If Lyft can achieve those long-term goals, its stock still looks like a bargain at 11 times next year's adjusted EBITDA.

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Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, Costco Wholesale, Tesla, and Uber Technologies. The Motley Fool recommends Coupang and Lyft. The Motley Fool has a disclosure policy.

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