My 2 Favorite Stocks to Buy Right Now

As the market thrives, it could be easy to get caught up in all of the artificial intelligence (AI) hype that's gripping investors.

There are some incredible AI stocks to buy today, but don't miss the opportunities in other sectors that are screaming buys right now. There are great stocks in every sector, and many of them are much safer than any hyped-up tech stock.

Consider MercadoLibre (NASDAQ: MELI) and Dutch Bros (NYSE: BROS), both of which have massive long-term opportunities.

Image source: Dutch Bros.

1. MercadoLibre: An e-commerce and fintech superstar

E-commerce continues to increase as a percentage of retail sales all over the world, but it's not growing at the same pace in every region. Countries like the U.S. and China are already heavily penetrated, but Latin America is about a decade behind, and the opportunities are huge.

MercadoLibre is the dominant e-commerce player in 18 Latin American countries, and the company is always developing its value proposition to help move the shift toward e-commerce. It's adding new customers at a healthy pace, and the longer a customer is on the platform, the more it increases engagement on average.

Unique active buyer growth accelerated in the third quarter to 26%, and there are now 76.8 million on the platform. However, e-commerce penetration is only at 15%. Items sold increased 39% year over year in the quarter, driving a 35% increase in gross merchandise volume. Items sold per unique buyer increased 11%, which is an impressive feat considering how many new buyers there were in the quarter.

The shift was more pronounced in Brazil, the company's largest market, where it recently lowered the free shipping threshold from R$79 to R$19. Active buyers increased 29%, and items sold were up 42%. This demonstrates the opportunity ahead as MercadoLibre refines its model.

It has a robust fintech segment that grew out of its underbanked customers' need to pay for purchases, and total payment volume increased 54% over last year in Q3. Monthly active users increased 29% year over year to 72.2 million in the quarter, and assets under management were up 89%. The company has expanded this business from a digital payments wallet to encompass a wide assortment of financial management tools like savings accounts and even credit cards, and it's planning to open a full digital bank in Mexico as a pilot for other countries.

The opportunity here is enormous, and MercadoLibre should reward investors for years to come.

2. Dutch Bros: Growing the old-fashioned way

Dutch Bros is a small but growing coffee chain based in Oregon. It has developed a distinctive coffee shop culture, where its mission "is to be a fun-loving, mind-blowing company that makes a massive difference one cup at a time." Customers love its exclusive custom beverages, friendly service, and focus on speed.

Because its stores are small, with a design that's almost entirely drive-thru only, it can serve customized drinks quickly and cost-efficiently. The model also emphasizes customer relationships, which management believes is what keeps customers coming back every day.

And they are coming back. In Q3, revenue increased 25% year over year, with a 5.7% increase in same-shop sales. Same-shop sales growth can come in a few ways, including price increases. But transactions increased 4.7% over last year, implying that customers are increasing frequency, or more customers are coming in (probably both).

Management is opening stores across the U.S. as this model resonates with Americans everywhere. What started as a small group of stores on the West Coast has bloomed into a 1,000+ enterprise, and management thinks it can reach 2,029 stores by 2029. That implies accelerated store openings, and the company is on track to achieve that, with 160 stores expected for 2025 and 175 in 2026.

Longer term, management thinks it can reach 7,000 shops, or seven times today's count. That should create enormous sales growth, and Dutch Bros stock should reflect that.

Jennifer Saibil has positions in Dutch Bros and MercadoLibre. The Motley Fool has positions in and recommends MercadoLibre. The Motley Fool recommends Dutch Bros. The Motley Fool has a disclosure policy.