The 2026 stock market sell-off could be a rare opportunity to build wealth in an ISA

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Over the last month or so, global stock markets have taken a hit due to geopolitical and economic uncertainty. As a result, many stocks are currently miles off their 52-weeks highs.

For long-term investors, this could be a major opportunity. If someone has cash sitting in their Stocks and Shares ISA right now, it could be time to consider putting some of it to work.

At first glance, stocks haven’t taken too much of a hit from the Iran war and the subsequent spike in the oil price. At index level, the FTSE 100 and the S&P 500 indexes are only down around 5%.

If we dig deeper however, and take a look within the indexes, the story’s very different. At individual stock level, there are names that are down 10%, 20%, 30% or even more from their recent highs.

This is where I think the real opportunities are. Because there’s scope for big rebounds when market conditions improve.

Plenty of these shares look very oversold. By buying now, investors could see strong gains when geopolitical and economic uncertainty dies down.

One stock I think looks very interesting right now is Uber (NYSE: UBER), the well-known rideshare and food delivery company that operates globally.

Listed in the US, it’s currently trading in the low $70s. That’s about 30% below its 52-week highs.

In my view, this stock has all the right ingredients to be a great long-term investment. For a start, its name’s a verb – that’s a powerful competitive advantage.

Second, it has a near monopoly in many of the markets it operates in. Here in the UK, it has around 70% market share of the ride-hailing industry.

Next, it’s growing at a fast pace. Last year, revenue rose around 18% to $52bn.

Note that it has partnerships with a ton of self-driving taxi companies (eg Waymo, Zoox, Wayve). This is a source of growth for the future.

Additionally, it’s profitable and has a strong balance sheet. It’s also buying back a lot of its own stock.

Finally, the valuation is very reasonable today. At present, the forward-looking price-to-earnings (P/E) ratio is only about 21.

Of course, it’s not perfect. Looking ahead, competition from self-driving car companies like Tesla and Waymo is a threat. Another risk is a severe consumer slowdown. This could lead to less spending on travel and transportation.

I should also point out that some people believe that agentic AI will disrupt this company. I’m not convinced it will but it’s a risk to consider.

Overall though, I see a lot of potential at current prices. If an investor has capital to deploy, I believe this stock’s worth a look.

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