The S&P 500 has notched report highs not too long ago, pushed on by sure AI-related shares. But beneath the floor, there are literally plenty of high-quality companies whose share costs are struggling.
Naturally then, there shall be profitable long-term alternatives, whatever the index’s loftiness. Listed here are two S&P 500 shares that I feel deserve nearer consideration.
Uber
Let’s begin with Uber (NYSE:UBER), the world’s largest rideshare firm. Shares have dipped 24% over 12 months as traders fret about Tesla and Waymo robotaxis.
To be truthful, the dangers might be actual. As a result of if I can get a self-driving taxi from both, probably at a lower cost, then why trouble with Uber? Robotaxis are reportedly turning into fashionable amongst ladies as a result of they really feel safer using alone.
Factor is although, there are a great deal of gamers coming into this trade: Wayve, WeRide, Pony.ai, Nuro, Motional, and extra. So it appears more likely to me that robotaxis ultimately change into commoditised.
Uber has partnered with all of the corporations talked about above to supply clients entry to robotaxis in main cities worldwide. It’s additionally partnered with Rivian to deploy as much as 50,000 totally autonomous robotaxis by 2031.
The plan is evident: to be the place the place individuals ebook robotaxis. My view is {that a} main aggregator like Uber, with over 200m clients worldwide, is positioned to seize the vast majority of on a regular basis client demand.
If that’s the case, the expansion inventory seems to supply great worth at the moment, buying and selling at simply 16 instances subsequent yr’s forecast earnings. The truth is, it seems to be on sale to me.
Star hedge fund supervisor Invoice Ackman definitely thinks so. He estimates that Uber’s earnings per share will develop at a compound annual charge of 25% over the subsequent three-to-five years — roughly double the speed of the broader S&P 500.
Uber continues to exhibit very sturdy working and monetary efficiency… valuation is more and more disconnected from its fundamentals.
Pershing Sq..
Intuitive Surgical
The second S&P 500 struggler is Intuitive Surgical (NASDAQ:ISRG). It’s down 30% to this point in 2026, placing the robotics inventory on target for its worst yr since 2008.
Much like Uber, traders are apprehensive about rising competitors. In Intuitive’s case, it’s rising rivals within the robotic-assisted surgical area, notably Medtronic and Johnson & Johnson.
Nevertheless, I feel the corporate’s entrenched aggressive place constructed over three many years makes it tough for others to take significant market share. For starters, there are over 70,000 surgeons skilled on its da Vinci surgical techniques. So there’s naturally hesitation to modify to completely new machines.
In Q2, the agency’s put in base reached 11,710 techniques. Past excessive recurring income from the common alternative of devices and equipment, this large put in base produces big quantities of surgical knowledge which is used to gasoline innovation.
Talking of which, Intuitive’s state-of-the-art da Vinci 5 has raised the bar, with force-feedback expertise and 10,000 instances the computing energy of earlier variations. In Q2, the corporate positioned 246 da Vinci 5 techniques.
Admittedly, the inventory isn’t low cost at 36 instances ahead earnings. If progress disappoints, there may nonetheless be valuation danger right here. However it is a massive low cost to the inventory’s 10-year common of fifty instances ahead earnings. And Intuitive stays the chief in a worldwide surgical robotic market that’s poised to continue to grow for a very long time.
These are simply two shares the place I see plenty of alternative price contemplating at the moment.
Must you make investments £5,000 in Uber Applied sciences proper now?
When investing skilled Mark Rogers and his crew have a inventory tip, it could possibly pay to pay attention. In spite of everything, the flagship Twelfth Magpie Share Advisor e-newsletter he has run for practically a decade has offered hundreds of paying members with prime inventory suggestions from the UK and US markets.
And proper now, Mark thinks there are 6 standout shares that traders ought to think about shopping for. Need to see if Uber Applied sciences made the checklist?
Ben McPoland owns shares of Intuitive Surgical and Uber.
