3 Brilliant Growth Stocks to Buy Right Now

Key Points

• Strong growth in free cash flow could fuel this top e-commerce stock over the next several years.

• This e-commerce giant is making it sweet for its target population to start buying online.

• This footwear stock is growing rapidly and trading at a discount.

• 10 stocks we like better than Shopify ›

Building wealth in the stock market is not difficult. Stocks can be volatile in the near term, but what matters is growth in a company's revenue and profits over a long period of time.

To help you on your wealth-building journey, three Motley Fool contributors recently picked three compelling growth stocks to add to a long-term investment portfolio. Here's why they picked Shopify (NASDAQ: SHOP), MercadoLibre (NASDAQ: MELI), and On Holding (NYSE: ONON).

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 »

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1. Shopify still going strong

John Ballard (Shopify): Shopify provides a user-friendly platform to set up an online storefront and connect with millions of consumers. With the global e-commerce market valued at $6 trillion and still only comprising around 20% of retail spending, according to eMarketer, Shopify can grow for a long time and deliver market-beating returns to shareholders.

Shopify continues to deliver strong financial results that point to the opportunity ahead. It reported a stellar 31% year-over-year increase in revenue to reach $2.7 billion in its second quarter. Merchants access Shopify's platform through subscriptions that provide recurring revenue for the company, but more than $2 billion of its quarterly revenue came from payment processing and other services that make it easy for merchants to manage their businesses.

The stock's high price-to-sales multiple shows that investors are expecting a lot more revenue growth from the company. But Shopify could also see explosive growth in profits. The company's free cash flow continues to grow faster than the top line, increasing by 31% year over year to $422 million in Q2.

Shopify's free cash flow margin has been trending up the past few years, currently at 16% as of Q2 2025. The company should see rising margins as it rolls out artificial intelligence (AI) tools that increase personalization for consumers. This should drive more purchases across Shopify's merchant base, driving higher gross merchandise volume and revenue.

The consensus analyst estimate on Wall Street calls for Shopify's revenue and free cash flow to roughly double over the next three years. That would put its revenue and free cash flow at more than $16 billion and $3 billion, respectively, in 2027. Shopify's AI-driven growth strategy makes it a smart investment for investors looking to profit off the growing e-commerce market. The stock is up 5,400% since its initial public offering 10 years ago and should keep growing value for a long time.

2. Latin America is shifting to digital e-commerce and banking

Jennifer Saibil (MercadoLibre): MercadoLibre is an e-commerce giant in Latin America, and it continues to expand its platform, gain new customers, and increase its revenue. It's also crushing the market.

It's easy to see why. MercadoLibre is constantly upgrading its platform to offer better value, faster delivery, and new services that are changing the financial landscape in its region.

For example, management is honing in on its value proposition in free delivery, and it lowered the bar for free delivery in Brazil last quarter, as well as reduced shipping costs for suppliers on its fulfillment network. That generated accelerated growth in items sold in the second quarter, which has remained above 30% for eight straight quarters. Total gross merchandise volume increased 37% year over year (currency neutral), and total items sold were up 31%. Unique active buyers increased 25% year over year to hit more than 70 million.

Things are going equally splendidly on the fintech side of things. MercadoLibre has released a full financial services app that complements its e-commerce business, and it's working on opening full digital banks in several of its operating countries, starting with Mexico.

Monthly active user (MAU) growth stayed at 30% in the second quarter, and it was the seventh consecutive quarter of MAU growth at 30% or higher. Assets under management more than doubled, and the total credit portfolio was up 91% more than last year.

On top of that, it operates in a region that's underpenetrated and underbanked. E-commerce penetration is about a decade behind the U.S., and according to the World Economic Forum, 70% of the population is either unbanked or underbanked. That gives it tremendous organic opportunity, and it's working on making the shift happen.

MercadoLibre is still a relatively small company, but it's growing quickly, and it has years of growth ahead.

3. A growth stock on the run

Jeremy Bowman (On Holding): The apparel and footwear sector has been challenging over the last year as a combination of weak discretionary spending and pressure from tariffs have weighed on most sector operators, but one company has stood head-and-shoulders above the rest.

That's On Holding, the Switzerland-based based footwear and apparel company that's best known for its running shoes. On has gained a following thanks to its Cloudtec cushioning, a patented design that's both lightweight and provides for a soft landing.

The numbers illustrate the growing popularity of the brand as it reported 32% revenue growth, or 38.2% in its second-quarter report, to 749.2 million Swiss Francs (CHF).

It also has attractive margins, with gross profit margin improving to 61.5% in the quarter, which is very strong for any footwear or apparel company. And it reported operating income of 92.8 million CHF in the second quarter, or an operating margin of 12.4%.

The company is also expanding beyond running into categories like tennis, with the help of Roger Federer (who is an investor in the company), as well as cross training, casual wear, and apparel.

It's also expanding in Asia, looking to build a formidable presence in China, a market that's been kind to similar brands like Lululemon and Nike.

Right now also looks like a good time to buy On Holding stock because it's pulled back by 29% from its peak earlier this year. While the stock still trades at a premium compared to its peers, that looks deserved considering its superior growth rate. If it can continue to deliver solid growth, the stock should move higher over the coming years.

Should you invest $1,000 in Shopify right now?

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Jennifer Saibil has positions in MercadoLibre and On Holding. Jeremy Bowman has positions in MercadoLibre, Nike, and Shopify. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lululemon Athletica Inc., MercadoLibre, Nike, and Shopify. The Motley Fool recommends On Holding. The Motley Fool has a disclosure policy.