Prediction: These 2 Stocks Could Beat the Market in the Next Decade

Those concerned about recent market volatility can take comfort in the fact that equity markets will likely deliver competitive returns over the next decade. Selling shares of top companies now may result in lower stock market gains than investors might have otherwise earned over the long term if they had held on. The better strategy is to stick to your holdings and be on the lookout for companies that can perform well, perhaps even better, than the market given enough time. Two stocks that might have what it takes are Roku (ROKU 5.32%) and MercadoLibre (MELI -3.85%). Here’s more on these potential market beaters.

1. Roku

Although Roku started 2025 strong, its shares have been in free fall for the past few weeks, partly due to somewhat disappointing financial results and guidance. Potential tariff-related headwinds are also not helping. Despite these concerns, the company’s financial results remain strong, and its ecosystem continues to grow and strengthen. In the first quarter, Roku’s revenue increased by 16% year over year to $1 billion. Streaming hours were 35.8 billion, 5.1 billion more than in the comparable period of the previous fiscal year.

As more people spend more time on Roku’s platform, the company’s ecosystem becomes more valuable to advertisers, a classic example of the network effect. During the first period, Roku’s platform revenue, which includes ad-related sales, increased by 17% year over year, compared to 11% year-over-year growth for its device segment, where it reports sales of its namesake streaming devices. Roku remains unprofitable, but it also made some progress on this front in the quarter, reporting a net loss per share of $0.19, which is better than the $0.35 reported in Q1 2024.

Roku could feel some volatility in the near term, and the impact of tariffs remains somewhat uncertain. However, Roku has sold its devices at a loss before when faced with the choice. The company prioritizes deepening engagement within its ecosystem — that’s where the long-term opportunity lies. So, if tariffs lead to higher manufacturing costs for its devices, Roku will likely adopt the same strategy as before.

Meanwhile, television viewing time is expected to continue shifting away from cable and toward streaming in the long run. And whichever giant in the industry wins the race makes little difference to Roku, which grants its users access to most of the big players in the streaming market. Advertising dollars will follow viewers wherever they go, providing Roku with plenty of revenue growth opportunities.

Lastly, Roku’s shares look reasonably valued. The company’s forward price-to-sales ratio is just 2.3. The official undervalued range starts at 2, but the leader in the connected TV market in North America, even ahead of some tech giants, is worth the slight premium, in my view. Though the stock has dipped in the past few weeks, investors focused on the long game should seriously consider picking up the company’s shares and holding on to them for the next decade.

2. MercadoLibre

MercadoLibre is the undisputed leader in e-commerce in Latin America. The company has successfully fended off competition from local players and international powerhouses, including Amazon. But MercadoLibre isn’t just an e-commerce platform — it provides a comprehensive suite of services to merchants. The company’s fintech platform also looks promising. MercadoLibre’s dominance in these markets is leading to strong performances and financial results.

The stock has increased by 48% this year. In the first quarter, the company’s net revenue increased by 37% year over year to $5.9 billion. MercadoLibre’s net income came in at $494 million, up 43.6% compared to the year-ago period. Other important metrics trended up, including gross merchandise volume, fintech monthly active users, and more.

Those are the kinds of performances investors are used to with MercadoLibre. It arguably justified its forward price-to-earnings (P/E) ratio of 52.2, nearly twice the 27.9 average for the consumer discretionary sector. Here’s the flip side: If MercadoLibre fails to perform in line with market expectations, its shares will drop significantly. Furthermore, although it does business in Latin America and won’t suffer directly from the impact of tariffs, general economic instability that could result from President Donald Trump’s trade policies would still have an impact on the stock.

These are all legitimate concerns, but long-term investors should still consider buying the stock. There is massive whitespace in the e-commerce market in Latin America. Nobody is better positioned to benefit from it. MercadoLibre’s revenue and profits should grow rapidly in the next 10 years. Even if the stock experiences a correction due to its valuation, in the long run, it should still outperform the market, just as it has in the past, despite some volatility and steep valuation metrics. MercadoLibre remains a strong candidate to outperform the market through 2035.