3 Top Stocks That Look Like Bargains Today

The S&P 500 is hitting new highs again, and it’s becoming expensive again, trading at a cyclically adjusted price-to-earnings ratio of 38. There are many theories about why this time is different and why we’re not in a boom-and-bust cycle. The artificial intelligence (AI) stocks that are driving the gains are predominantly profitable and thriving, and many of them, including Amazon and Alphabet, have solid businesses beyond AI.

However, you can’t escape the fact that many shares have premium valuations with a lot of growth already baked in. If you’re looking for bargains in this lofty market, Carnival (CCL), MercadoLibre (MELI), and Chipotle Mexican Grill (CMG) are all top stocks that look priced to buy.

1. Carnival
Carnival is the world’s largest cruise operator, with 90 ships and growing. It operates under several banners and to many global destinations, and it has demonstrated resilience over the past few years.

It continues to manage through various challenges, such as inflation, which the market has been worried would negatively affect its business. So far, though it’s been going on for a while, it hasn’t. Cruises attract the affluent, and they also appeal to people who have been saving up for this experience of a lifetime.

Carnival also continues to upgrade its business so keep repeat travelers coming back, with new, exclusive destinations and onboard entertainment. It also recently launched a membership club with perks for loyal customers.

All these moves are resulting in record metrics every quarter. Not only have sales rebounded from pandemic lows, but net income is back to new highs as well. In the 2026 fiscal first quarter (ended Feb. 28), Carnival generated record revenue, record operating income, and record customer deposits. It outperformed management’s guidance across every measure and achieved its highest booking levels ever.

What’s been dragging the company down is its high debt, taken on to stay in business early in the pandemic. It’s been paying the debt off carefully, but it will take time until it’s back to normal historical levels, and the market is worried that sales will taper off before that can happen.

While that’s a reasonable worry, it’s been worried for several years already, and it hasn’t happened. In the meantime, Carnival stock trades at a P/E ratio of 11, a bargain for a top stock.

2. MercadoLibre
MercadoLibre continues to demonstrate incredible growth quarter after quarter, but it’s coming at a price. Although the Latin American e-commerce giant has gone through periods of soaring profitability, it’s deepening its investments in its platform right now to maintain its leadership position as more competition sprouts up, and that’s affecting the bottom line.

For example, it has lowered the free-shipping threshold in Brazil, one of its largest markets, from 79 Brazilian reais to 19, and that has generated all kinds of positive results. It had the highest customer add-ons ever of 17 million in the 2026 first quarter, items sold increased 56% over last year, and daily users are growing faster than monthly users. The company is planning to replicate the success in some of the other 18 countries in which it operates.

Beyond Brazil, there was tremendous momentum in the first quarter. Revenue increased 49% year over year, an acceleration, and the number of unique active customers increased 26%. Gross merchandise volume was up 42%, and items sold were up 47%.

The fintech business is also booming. The number of monthly active users increased by 29% year over year, and assets under management increased by 77%, suggesting deeper engagement from existing users. The credit portfolio rose 87%, driven by the credit card business, which added 2.7 million new cards.

What displeased the market was a major decline in profitability. Operating income fell 20% from last year, and the margin was nearly cut in half, from 12.9% to 6.9%. Management explained that it’s investing to position itself to win in the future. Its margins are also under pressure as the credit business grows, since younger cohorts have lower spreads. But the market wants to see better.

The good news is that it’s likely to get better. This isn’t the first time management has sacrificed short-term pain for long-term gain, and investors who maintained confidence in the past have been well rewarded. MercadoLibre stock trades at a P/E ratio of 41, touching its 10-year low, and now is a great time to buy.

3. Chipotle Mexican Grill
Chipotle stock had lost some of its cachet since the departure of CEO Brian Niccol, and that coincided with a drop in momentum as inflation finally hit this fast-casual leader. However, it made progress in the first quarter, and it looks to have the right formula for a rebound.

First, let’s define “rebound,” because the company has continued to deliver strong revenue growth over the past few years. The problem has been that it’s coming from new stores — it has struggled with growing comparable sales (comps). However, in the first quarter, revenue increased 7.4% over last year, with a 0.5% increase in comps. That’s a turnaround from the declines it reported last year, and it beat Wall Street’s expectations.

Management has done a fine job identifying what can draw back its fans in the inflationary environment, and it has relaunched several flavors as well as introduced new dishes. Although it’s dealing with its own rising costs, the comps increase in the first quarter came from more transactions, not higher prices.

As the company navigates this challenge, it’s focusing on keeping its customers engaged, and margin pressure should begin to ease as the macroeconomy improves. For now, Chipotle stock trades at 29 times trailing-12-month earnings, close to a 10-year low. That’s a great entry point for new investors.

— Jennifer Saibil

Source: The Motley Fool