🎯 Best Buys - October 2025
3 stocks ready for takeoff this October — don’t miss them
Every month, we search for great companies trading at a fair price and highlight three stocks that we believe are particularly interesting based on our analysis.
Since December 2024, we’ve highlighted 19 Best Buys — and the results have been exceptional!🔥
Our Best Buy picks delivered an average return of 19.9% and our top performer has already gained an impressive +74% 🚀 in just a few months!
In our selection process, we look at both fundamentals and valuation. But we believe it’s better to buy a wonderful company at a fair price than a fair company at a wonderful price. That’s why fundamentals weigh more heavily in our assessment than valuation alone.
Now let’s dive into our Top 3 Best Buys for October 👇 — spoiler:
#1 is embedding AI into its platform, now trading at historic lows! 🤖🤫
Disclaimer:
The information and opinions provided in this article are for informational and educational purposes only and should not be considered as investment advice. Please consult the general disclaimer for more details.
#3: MercadoLibre (NASDAQ: MELI)
MercadoLibre joins our Best Buys list for the first time. The stock trades less than 15% below its all-time high from late May, but we see today as a strong entry point — both for new investors or for those looking to expand their position.
What Happened?
In recent days, MercadoLibre’s share price has come under pressure for a few reasons:
Amazon’s big push in Brazil – Brazil is MercadoLibre’s largest and fastest-growing market. Amazon announced it would temporarily waive Fulfillment by Amazon (FBA) fees — including inbound, storage, and last mile — effectively making its marketplace free for many sellers during the holiday season. This raised concerns about tougher competition.
Cheaper goods from China – Platforms like Temu and Shein are flooding the region with ultra-low-priced products, putting pressure on prices and margins.
Currency problems in Argentina – The central bank stepped in to support the peso, new FX rules were introduced (including a 90-day limit after buying dollars), and e-wallets — including Mercado Pago — were blocked from selling official dollars through their apps. These measures hit MELI’s fintech arm and created uncertainty around money flows and exchange rates.
Even with these “headwinds”, MercadoLibre is the clear leader in Latin America. The company keeps investing heavily in logistics, technology, and marketing. In August, it expanded its free shipping program in Brazil, which boosted items sold by 34% year-over-year in June. Looking ahead, MELI plans to increase investment in Brazil by almost 50% in 2025 to $5.8 billion, while also scaling up in Mexico and rolling out a new B2B wholesale platform across the region.
Why MercadoLibre looks attractive now?
Despite these challenges, we see the pullback as a great chance to invest in one of the strongest companies in the world. MercadoLibre combines its core e-commerce platform, the fast-growing fintech arm Mercado Pago, and new initiatives in logistics, advertising, and B2B — building an ecosystem that puts it far ahead of competitors.
Growth remains very strong: revenue is expected to increase by +36% in 2025 and +27% in 2026 (source: Yahoo Finance) — numbers you rarely see from a company of this size. And from 2026 onward, profits are expected to grow even faster, showing how much potential lies ahead.
The valuation makes this moment even more attractive. While the current P/E of ~55 looks high, the forward P/E for 2026 drops to just 34 (source: GuruFocus), very reasonable for a company in high-growth mode. With a PEG ratio of 1.2 and trading at only 15x Free Cash Flow (source: GuruFocus), MercadoLibre is near its cheapest levels in the past decade.
In our Fundamental Framework, MercadoLibre scores 86 points, ranking it as a high-quality company — with only Nvidia scoring higher today.
For long-term investors, this is a rare setup: a dominant market leader with visionary management, a wide moat, and years of growth still ahead. That’s why MercadoLibre is the first of our Best Buys for October. And with its track record and ambitions, we believe its own words say it best: “The best is yet to come.”
The Future Investors (Vincent & Stefan) currently hold a position in MercadoLibre.
Fundamental score: 86 🔵 → High-Quality
Current stock price: $2,246.60
The next two? Both are world-class businesses available today at rare valuations.
💎 One is a high-margin powerhouse, priced like a value stock.
🤖 The other is integrating AI into tools millions use, now at its lowest valuation ever!
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