Success in the stock market isn’t complicated. The occasional bouts of volatility can make it feel challenging, but it comes down to patiently owning shares of a great business with a long runway for growth.
The companies below have delivered market-beating returns over the past decade, and their recent pullbacks could be a gift for patient investors. Here’s why MercadoLibre (MELI +2.97%), Deckers Outdoor (DECK +0.93%), and Take-Two Interactive (TTWO +6.83%) look like compelling buys on the dip.
Image source: Getty Images.
MercadoLibre
MercadoLibre runs a powerful e-commerce and fintech ecosystem in Latin America. It’s essentially a blend of Amazon and PayPal Holdings for a region with more than 650 million people.
The stock is down 23% year to date even as the business continues to add users. In the first quarter, it reported 84 million marketplace-unique buyers (up 26% year over year). On the fintech side, it reported nearly 83 million monthly active users (up 29%), which include those using mobile payments, credit cards, savings accounts, and loans.
Revenue jumped 49% year over year in Q1, driven by a 42% increase in gross merchandise volume and a 50% rise in total payment volume. The company has consistently posted these kinds of numbers for years.
Today’s Change
(2.97%) $46.41
Current Price
$1608.41
Key Data Points
Market Cap
$79B
Day’s Range
$1543.00 – $1619.00
52wk Range
$1495.00 – $2645.22
Volume
32K
Avg Vol
592K
Gross Margin
43.86%
Still, the stock slid as margins narrowed and earnings missed expectations. Some worry about competition in Brazil, but management specifically noted that user retention remains strong. And the margin pressure reflects investments in initiatives that can strengthen its competitive position, including free shipping and improvements to its logistics infrastructure.
Overall, this looks like an attractive entry point. The stock is trading at a price-to-sales multiple of 2.5 — its lowest in roughly 20 years. This could set the foundation for excellent compounding returns for the next decade.
Deckers Outdoor
Deckers Outdoor owns UGG and Hoka (plus Teva). Hoka, in particular, has major global potential to become a multibillion-dollar brand. The stock is down 8% year to date and 21% over the past year on concerns about consumer spending and softer growth.
Deckers has spent decades building UGG into a fashion staple. A $10,000 investment 10 years ago would be worth $107,000 today, and there’s still upside if Hoka continues scaling globally.
Today’s Change
(0.93%) $0.87
Current Price
$94.80
Key Data Points
Market Cap
$13B
Day’s Range
$94.10 – $95.75
52wk Range
$78.91 – $131.58
Volume
74K
Avg Vol
2M
Gross Margin
56.02%
In the most recent holiday quarter, Deckers posted record revenue of nearly $2 billion, up 7% year over year. Earnings rose 11%, though macro fears continue to pressure sentiment around the stock.
However, UGG and Hoka demonstrated strong pricing power, with earnings growth outpacing revenue growth. This reflects brand strength and disciplined full-price selling. Hoka is also expanding beyond running into everyday wear, with sales up 18% to $629 million — about a third of Deckers’ business.
With plenty of runway, the stock looks inexpensive at a forward price-to-earnings multiple of 13.
Take-Two Interactive
Shares of Take-Two Interactive have bounced back over the last month but are still down 11% year to date. The company owns one of entertainment’s most valuable franchises. Grand Theft Auto V (2013) remains a perennial fan favorite, with more than 225 million copies sold.
Take-Two is more than just Grand Theft Auto. It has a portfolio of mobile games following its acquisition of Zynga (2022), and NBA 2K continues to sell millions of copies with a new release every year.
Last quarter, net bookings rose 28% year over year to more than $1.7 billion, fueled by NBA 2K26 and continued Grand Theft Auto player spending, including GTA+ memberships, which nearly doubled.
Take-Two Interactive Software
Today’s Change
(6.83%) $15.49
Current Price
$242.49
Key Data Points
Market Cap
$42B
Day’s Range
$236.75 – $246.04
52wk Range
$187.63 – $264.79
Volume
191K
Avg Vol
1.8M
Gross Margin
52.92%
The biggest catalyst is the planned Nov. 19, 2026 release of Grand Theft Auto (GTA) VI. Management expects fiscal 2027 net bookings (ending in March) to rise about 18% to more than $6.6 billion.
GTA VI will launch into a larger fan base than prior releases. While delays and lower-than-expected sales are always risks for new releases, Take-Two has a long record of creating games that keep players engaged for years. This makes the stock a compelling buy heading into the upcoming launch.
