3 Stocks to Buy Without Hesitation if the Market Fall Continues

A market downturn is never fun, but savvy investors know that it can also be an opportunity. Once you’ve gotten over your initial concerns, your next step should be to start looking for bargains.

If the market continues to decline in the coming weeks and months, Costco Wholesaler (NASDAQ:COST), Free Market (NASDAQ: MELI)And Shopify (NYSE: BOUTIQUE) Here are three stocks to watch closely. They may look expensive right now, but if they drop, be ready to pounce.

1. The King of the Warehouse Model

If you’re one of the 134 million cardholders who shop at Costco Wholesale, you’ve probably been lured by the warehouse giant’s low prices and service. More and more customers continue to jump on the Costco bandwagon, leading to increased sales and profits. despite inflation.

Membership increased 7.8% year over year in the third quarter of fiscal 2024 (ended May 12), and membership revenue increased 7.6%. Sales increased 9.1% in the quarter, driven by a 6.6% increase in comparable sales (comps). Earnings per share (EPS) also increased 29% to $3.78.

The retailer’s strong momentum continued into the current quarter. Costco provides monthly updates on some metrics, and sales rose 7.1% year over year in July, with comparables up 5.2%. E-commerce is growing rapidly for the company, with sales in that channel up 20% last month.

Although Costco has faced some pressure from customers who are hesitant to buy larger, more expensive items, shoppers continue to flock to its warehouse clubs to get the most out of their memberships. That’s why traffic increased 6.1% in the quarter, while the average ticket was roughly flat.

The company received positive media coverage when it announced a special dividend The company recently raised its membership fee from $60 to $65. Management had pushed back on the price increase while consumers struggled with inflation, but the company believes it can provide greater value to members by using the proceeds of the increase to improve the business.

The factor that typically holds investors back is Costco’s valuation. Its shares trade at a premium of 53 times trailing 12-month earnings. If Costco is dragged down by a market selloff, the stock will undoubtedly be attractive.

2. Boosting e-commerce in Latin America

MercadoLibre is a global leader in e-commerce, but its focus on Latin America means you may not have heard of it. It serves 18 countries with an online business similar to Amazonand also offers popular fintech services to complement its e-commerce business.

The story continues

Although it’s only celebrating its 25th anniversary, MercadoLibre continues to thrive as a smaller, younger company. It benefits from operating in a huge market that’s still under-tapped when it comes to e-commerce. And after years of building a vast distribution network, the company can get its products to shoppers quickly and at low cost.

Gross merchandise volume (GMV) grew at a staggering compound annual rate…