3 Magnificent Growth Stocks to Buy in July

The market just had its best quarter in six years, with the S&P 500 (SNPINDEX: ^GSPC) up 14% and the Nasdaq-100 up 26%.

Many of the gains were driven by chip stocks as artificial intelligence (AI) continues to advance. But there are plenty of magnificent stocks in other industries, too, and with earnings season upon us, now could be a great time to buy. Consider Axon Enterprise (NASDAQ: AXON), Dutch Bros (NYSE: BROS), and MercadoLibre (NASDAQ: MELI).

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1. Axon Enterprise

Axon is known for its Taser device, but it also offers a full data-driven AI-based platform that supports law enforcement. All its products, including the Taser and body cameras, are integrated into the platform for quick and accurate insights, and it's cloud-based, accessible, and easy to manage.

As of the 2026 first quarter, Axon has more than 1 million customers and has sold more than 1 million Tasers. Its products have become a part of the fabric of U.S. law enforcement and public safety, and a Taser is used every 30 seconds in the country. Management believes that it contributed to a 10% decline in gun-related deaths last year, and its short-term goal is to cut deaths between police and the public in half by 2033.

Revenue increased 34% year over year in the first quarter, with a 35% increase in software-as-a-service (SaaS) revenue, which is sticky, supporting net revenue retention of 125%. Axon is also highly profitable, with adjusted earnings per share (EPS) rising from $1.47 last year to $1.61 this year and a 19.9% margin.

Axon stock had been falling on concerns about SaaS stocks, but it's climbing back. The war in Iran is highlighting its opportunity, and now's the time to buy before it soars again.

2. Dutch Bros

Dutch Bros is a small coffee chain with big ambitions. It's actually a misnomer to call it a coffee chain, though, because it's mostly known for its exuberant, exclusive line of customized beverages, including all kinds of flavors and syrups, and 90% of its drinks are cold.

Fans are loving the concept, and Dutch Bros is growing quickly in multiple ways. It has just over 1,000 stores right now but plans to reach 2,029 by 2029, nearly doubling over the next four years. That's a huge amount of potential increased revenue right there. It also sees a long-term opportunity of 7,000 stores.

Additionally, same-store sales have been growing rapidly despite threats from inflation and a pressured economy. Dutch Bros' beverages are cheaper than those of coffee giant Starbucks, and loyal customers are willing to spend on these small luxuries.

In the 2026 first quarter, sales growth accelerated to 31% year over year, while same-store sales were up 8.4%. Profits are also rising, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 26% year over year to $79.4 million.

Dutch Bros is also rising again after a drop, so investors should grab it on the way up.

3. MercadoLibre

MercadoLibre is the leading e-commerce site in Latin America and has been demonstrating strong, sustained growth for years. Its region is underpenetrated in e-commerce and fintech, which is its other segment, providing a long growth runway.

In the 2026 first quarter, revenue increased 49% year over year, with gross merchandise volume (GMV) rising 42% and total payment volume increasing 50%. These were the best results in almost four years, underscoring the continued opportunity and company dominance in its categories.

The company is leaning into AI and data to identify distinct opportunities. In Mexico, for example, one of its largest markets, more than half of the population relies on informal sources of credit, while 85% uses cash for purchases of less than $30. These activities are ripe for disruption by an easy-to-use digital platform like MercadoLibre's.

In Brazil, the company lowered its free shipping threshold last year and continues to see a ripple effect of positive results, including acceleration in GMV growth to 38% and acceleration in items sold to 56% in the first quarter. It's planning to replicate the success in other markets, and there are many levers to pull to stay in growth mode.

MercadoLibre stock is down 14% year to date, but it isn't likely to stay there, and it could start to climb again if profitability looks better when it reports second-quarter earnings on Aug. 5.

Jennifer Saibil has positions in Dutch Bros and MercadoLibre. The Motley Fool has positions in and recommends Axon Enterprise, Dutch Bros, MercadoLibre, and Starbucks. The Motley Fool has a disclosure policy.