My 3 Favorite Stocks to Buy Right Now

The consumer space can still be a great place to find some top growth stocks. Let's look at three of my favorites to buy right now.

1. Amazon

The market leader in e-commerce, Amazon's (NASDAQ: AMZN) stock is trading at a big discount to rivals Walmart and Costco Wholesale despite growing its retail sales more quickly. At the same time, the company's retail operations are seeing strong operating leverage, helped by its robotics and artificial intelligence (AI) initiatives. This was seen last quarter when its North American sales rose 11%, while its operating income shot up 28%.

AMZN PE Ratio (Forward 1y) data by YCharts

This, in and of itself, is a great reason to buy the stock right now. However, there is even more to like about the Amazon story. The company has become one of the largest digital advertising platforms on the planet, and its high gross margin sponsored ad business is growing quickly off a substantial base, with revenue up 24% last quarter.

Meanwhile, its cloud computing unit, Amazon Web Services (AWS), is its largest business by profitability. AWS is benefiting from the robust demand for compute power stemming from AI. AWS revenue rose 20% last quarter, and that could continue to accelerate as its large data center built for Anthropic continues to ramp up and it increases its capital expenditures to capture this large opportunity.

2. Chewy

Online pet supply retailer Chewy (NYSE: CHWY) is another undervalued and underappreciated stock right now. Trading at a forward price-to-earnings (P/E) ratio of 21 based on 2026 analyst estimates, it too is much cheaper than Walmart and Costco. However, its largely auto-ship model selling pet food and other pet essentials is one of the most resilient in the retail space.

The company has also been growing its sales at a brisk pace and expanding its gross margin. Sales have risen by more than 8% each quarter so far this year as customers spend more, on average, and it has added new customers. Meanwhile, it has also taken a page out of Amazon's book, offering a paid membership program and driving growth through sponsored ads.

An underrated part of Chewy's strategy is that it is also leaning into both higher-margin health and pharmacy items and private-label brands. It has one of the largest pet medication compounding businesses in the country, and with less than a quarter of its customers using its pharmacy services, it has plenty of room to grow this business. Private-label offerings, meanwhile, can carry an up to 700-basis-point higher gross margin, and last year it launched a healthy, fresh dog food line called Get Real.

Image source: Getty Images.

3. e.l.f. Beauty

Cosmetics maker e.l.f. Beauty (NYSE: ELF) admittedly had some missteps in 2025, but its overall growth story remains on track, and the acquisition of premium skincare brand Rhode looks like a potential game changer. Meanwhile, the stock is also attractively valued, with a forward P/E of under 25 and a price/earnings-to-growth ratio (PEG) near 0.4. Stocks with positive PEG ratios below 1 are generally considered undervalued.

The company has done a great job over the years increasing market share and gaining shelf space in the mass cosmetics market (mass refers to affordable, widely available cosmetics sold at locations like drugstores and general merchandise retailers), and now it has an opportunity to do the same with Rhode. The Hailey Bieber-founded brand has been a fast grower, selling just a handful of SKUs online with little paid marketing. e.l.f. now has the opportunity to increase brand awareness, distribution, and its assortment. That should all help drive robust revenue growth in the coming years.

Rhode has already expanded into LVMH Moët Hennessy - Louis Vuitton's Sephora, and with e.l.f.'s strong presence at Ulta Beauty and Target, those are natural outlets to expand Rhode into down the line. Meanwhile, it still has a long international runway for both its namesake brand and Rhode. A recent $1 increase of each of its products to help offset tariff impacts should also help drive sales growth this year.

Geoffrey Seiler has positions in Amazon, Chewy, LVMH Moët Hennessy-Louis Vuitton, and e.l.f. Beauty. The Motley Fool has positions in and recommends Amazon, Chewy, Costco Wholesale, Target, Ulta Beauty, Walmart, and e.l.f. Beauty. The Motley Fool has a disclosure policy.