The market’s starting to claw its way back up, but things are looking iffy, and they’ve been changing on a moment’s notice.
What to do in these kinds of situations? One thing you can do is use the opportunity to buy fantastic growth stocks that are on sale. That’s with the caveat that you have a long time horizon and some appetite for risk, and that you won’t panic-sell if the market eventually crashes.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
If that fits your investing style and timeline, I have three great stocks to recommend. Nu Holdings (NYSE: NU), Dutch Bros (NYSE: BROS), and e.l.f. Beauty (NYSE: ELF) are excellent candidates for top growth stocks to buy right now.
Nu is a digital bank based in Brazil and also serving Mexico and Colombia. It’s growing by leaps and bounds, and there’s no end in sight as it launches new products and builds its presence in new markets.
Take the 2024 fourth quarter as the most recent example. Revenue increased 50% year over year to $3 billion, and net income rose from $361 million to $553 million.
A combination of adding new members and cross-selling existing members new products is creating this financial powerhouse. It added 4.5 million new customers in Q4, ending the year with 114 million. Although most of those customers are in Brazil — more than 101 million, or 58% of the country’s adult population — it’s still adding more than a million customers there monthly. The rate is faster in Mexico, where membership increased 91% year over year in 2024, and Colombia, where it’s still a small but growing presence.
Average revenue per active customer increased 23% year over year (currency neutral) in the quarter, and the engagement rate exceeded 83%, indicating a platform with momentum.
Nu stock is up 15% this year as investors flee toward international stocks, and it still trades at a cheap forward 1-year P/E ratio of 15. This is a stock that should reward investors for years as the company harnesses its vast opportunity.
Dutch Bros is a relatively young coffee shop chain that’s quickly expanding across the U.S., gaining new, loyal members who love its down-to-earth branding and better prices. Although based in Oregon, it recently opened a new operational center in Arizona to support its eastward movement, and it’s live in 18 states as of the end of 2024.
Most of Dutch Bros’ stores are drive-thru only, but as it opens more than 30 stores per quarter, it’s structuring store formats to meet location-based needs. Some stores do have sit-in dining areas, and many are being developed with walk-up windows.
The company rolled out mobile ordering in late 2024, and as it’s integrated into its membership program, management is seeing strong momentum. Many of its newer members are already using the mobile program at high rates, implying strong upside as it opens stores in areas where people are highly engaged with digital processes.
At an investor meeting last month, management unveiled a new expansion strategy envisioning a 7,000-store chain. With the store rollouts going as well as they are, future opportunities look very compelling.
Dutch Bros stock is up 21% this year, crushing the market, but it’s expensive, trading at a forward, 1-year P/E ratio of 78. The market obviously sees tons of potential for this stock, which you can buy today and hold for years.
E.l.f. is a mass cosmetics brand that acts like a luxury brand. It has a fine-tuned message that speaks to its young, value-driven client base, and it sells branded products at a low price point. It is easily capturing market share as it beats out legacy mass brands, especially during the economic downturn, as customers are switching down to save on costs.
Despite the economic downturn, when other companies are dealing with soft sales, and despite what it looks like considering e.l.f. stock’s recent plunge, sales are increasing at a brisk pace. They were up 31% year over year in the 2025 fiscal third quarter (ended Dec. 31, 2024), which is admittedly a slowdown, but also quite robust. It’s feeling pressure in the bottom line as expenses grow, and the market has not been happy with e.l.f. stock.
But seeing the negative story here is missing the forest for the trees. E.l.f. is growing quickly and expanding its market share. It’s the No. 1 brand in color cosmetics unit share and No. 2 in dollar share in the mass segment, and it has some of the top-selling products in 18 different categories. In mass cosmetics, it continues to grow and gain market share while its legacy competitors continue to slide, even though they should theoretically be doing better in an inflationary environment when consumers are trading down. There’s short-term pressure, but the future looks incredible.
E.l.f. stock is down a brutal 51% this year, but it looks like a massive bargain, trading at only 15 times forward 1-year earnings. As long as you have some appetite for risk, now is a great time to buy shares.
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Jennifer Saibil has positions in Nu Holdings. The Motley Fool has positions in and recommends e.l.f. Beauty. The Motley Fool recommends Dutch Bros and Nu Holdings. The Motley Fool has a disclosure policy.
3 Brilliant Growth Stocks to Buy Now and Hold for the Long Term was originally published by The Motley Fool
