E.l.f. Beauty, Rubrik, and GoDaddy are all growing their respective top lines by double digits, which is what I like to see.
All three companies are also profitable, which pairs nicely with the cheap valuations of the stocks.
I like finding bargains. Of course, finding a good investing deal is more complicated than finding a bargain at the store. But good bargain stocks exist.
In my view, cosmetics company e.l.f. Beauty (NYSE: ELF), cybersecurity specialist Rubrik (NYSE: RBRK), and website pioneer GoDaddy (NYSE: GDDY) are three bargain stocks for 2026 and beyond. Allow me to give a brief investment thesis for each one.
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Selling beauty products for eyes, lips, and face, e.l.f Beauty is taking market share in a recession-proof category. The company gains market share through low-priced products and a strong social media presence. Moreover, management keeps expenses in check, leading to an 11% operating margin, which is quite strong for a growth company.
E.l.f Beauty is guiding for about 22% year-over-year net sales growth in fiscal 2026 (which ends in March). Profits are expected to take a small step back due to tariff pressure. But that headwind could go away now that the Supreme Court has ruled on tariffs.
Tariffs will likely be a small speed bump for e.l.f. Beauty long-term. The company continues to gain new customers. And the stock trades at about 3.5 times sales, which is a good deal if e.l.f. Beauty continues growing at this strong pace.
I believe that cybersecurity threats are becoming increasingly sophisticated, making it more likely that bad actors will succeed at times. That's why I like Rubrik's business. It helps enterprises secure their data so that they can get back to business after a cybersecurity attack.
Enterprises seem to like this idea as well, as evidenced by Rubrik's growth. As of October, the company had over 2,600 customers paying $100,000 or more annually. That's about 600 more than the same time last year. Accordingly, its revenue growth is sensational, notching 48% revenue growth in the fiscal third quarter of 2026.
Rubrik is a relatively small player in the cybersecurity space. And it's growing fast. But this hasn't prevented management from taking profitability seriously. The company is on pace for roughly $200 million in free cash flow this year, which is remarkable for a company growing this fast.
Rubrik stock trades at just 8 times sales. Investors are hard-pressed to find a cheaper cybersecurity stock growing at this pace, which is why I think it's a bargain.
GoDaddy helps customers buy a web domain, build a website, and even build a business. It's the slowest grower of these companies, with only 10% revenue growth in the third quarter of 2025. But it's also the cheapest of the three, trading at only 15 times earnings, which is quite the bargain.
The bargain valuation for GoDaddy stock is particularly advantageous here. Management is repurchasing shares, and a cheaper stock price helps it buy back more than it could have otherwise. Management has reduced the share count by 12% in the last three years.
GoDaddy is also using artificial intelligence to lower its operating expenses and stimulate growth with new products. Its ongoing growth and low valuation are why I call this a hidden-value stock. And it might be the best value of the three mentioned here.
Depending on the size of one's investment portfolio, investing $1,000 in any of these three stocks could be a good move.
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Jon Quast has positions in e.l.f. Beauty. The Motley Fool has positions in and recommends Rubrik and e.l.f. Beauty. The Motley Fool recommends GoDaddy. The Motley Fool has a disclosure policy.