Image source: Getty Images <\/p>\n
I have lots of stocks in my ISA and Self-Invested Personal Pension (SIPP) that I consider to be \u2018no-brainers\u2019. From online shopping giant Amazon<\/strong> to payments powerhouse Visa<\/strong>, there are plenty of world-class companies with significant long-term growth potential in my portfolio.<\/p>\n As for the biggest no-brainer, I reckon it\u2019s rideshare and food delivery champion Uber<\/strong> (NYSE: UBER). Here\u2019s why.<\/p>\n One reason I categorise Uber thus is that the company\u2019s name\u2019s a verb. That\u2019s a powerful competitive advantage.<\/p>\n Because it means the company\u2019s always at the forefront of consumers\u2019 minds. When I arrive at an international airport and need a ride to my accommodation, for example, I always look to \u2018Uber\u2019 it.<\/p>\n Another is that the company has a near-monopoly in many major markets. In London, for instance, there are no other rideshare companies that come close to Uber in terms of market share (I can\u2019t remember the last time I used Bolt!).<\/p>\n Another key part to the investment thesis here is that Uber\u2019s very scalable. It\u2019s continually expanding into new cities, getting bigger and bigger all the time.<\/p>\n It\u2019s also continually offering new services. Some examples here include Uber Courier in London, Uber Shuttle (local shuttle services) in several US cities, and Uber Caregiver (this lets caregivers book rides for care recipients).<\/p>\n Of course, it\u2019s also partnering with a ton of autonomous driving companies to offer self-driving taxis. Recently, I used the Uber app to grab a ride in one of Google\u2019s self-driving Waymo taxis in the US.<\/p>\n Finally, its financials look great. Revenue\u2019s growing by around 15%-20% a year while profits are expanding at a healthy rate too.<\/p>\n The company\u2019s also buying back a ton of its own shares (it announced a $20bn buyback in August). This is boosting earnings per share (EPS).<\/p>\n Now, with so much going for it, you\u2019d expect Uber to have a sky-high valuation. But right now, it doesn\u2019t. For the current year, analysts expect the company to generate EPS of $5.24. That puts the stock on a price-to-earnings (P\/E) ratio of just 17.4.<\/p>\n At that earnings multiple, I see a lot of value. I\u2019ll point out however, that earnings this year have been boosted by a $4.9bn tax valuation release. So earnings next year are likely to be lower.<\/p>\n Of course, there are risks to consider with this stock. One is competition from Tesla<\/strong>\u2019s robotaxis. Personally, I don\u2019t see this as a major threat given Uber\u2019s self-driving partnerships, but some investors do.<\/p>\n Another is regulatory interference. This could potentially lead to fines that hit profits.<\/p>\n It\u2019s also worth pointing out that recently the stock has struggled to break clear of the $100 mark. Right now, this area\u2019s acting as \u2018resistance\u2019 for the share price.<\/p>\n I think it\u2019s only a matter of time until it hurdles this barrier (and keeps rising). So I think it\u2019s worth considering today.<\/p>\n It\u2019s not the only stock I like at the moment though.<\/p>\n The post The biggest \u2018no-brainer\u2019 stock in my ISA and SIPP as we approach 2026 is\u2026<\/a> appeared first on The Motley Fool UK<\/a>.<\/p>\n More reading<\/strong><\/p>\n Edward Sheldon has positions in Uber, Amazon, and Visa. The Motley Fool UK has recommended Uber Technologies, Amazon, Visa, and Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.<\/a><\/p>\n Motley Fool UK 2025<\/p>\n","protected":false},"excerpt":{"rendered":"Image source: Getty Images I have lots of stocks in my ISA and Self-Invested Personal Pension (SIPP) that…\n","protected":false},"author":2,"featured_media":622686,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,18336,474,2499,176134,7573,34362,15600,16,15],"class_list":{"0":"post-622685","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-earnings-per-share","10":"tag-finance","11":"tag-personal-finance","12":"tag-sipp","13":"tag-stock","14":"tag-the-company","15":"tag-uber","16":"tag-uk","17":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115691119102753027","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/622685","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=622685"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/622685\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/622686"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=622685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=622685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=622685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}