My 3 Favorite Stocks to Buy Right Now

Key Points

• Amazon has a competitive lead in e-commerce and cloud services, and it's investing to keep it that way.

• E.l.f. Beauty has become the top mass color cosmetics company by unit share.

• Carnival is generating strong demand while efficiently paying off its debt.

• 10 stocks we like better than Amazon ›

The S&P 500 continues its rebound, up 26% since it bottomed out in April. If you were too nervous to buy when the market was down, you may have missed the best deals.

But stocks are still climbing, and if you're ready to make some moves with more confidence, here are three amazing stocks that can keep going up.

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 »

Image source: Amazon.

1. Amazon: Tops in two growth industries

Amazon (NASDAQ: AMZN) is riding the artificial intelligence (AI) wave, but it's so much more than AI. Its e-commerce and cloud computing businesses are both the largest businesses of their kind, and these are both growth businesses.

According to the U.S. Department of Commerce, e-commerce increased as a percentage of retail sales from 15.9% to 16.2% in the 2025 first quarter, and that's a continuation of a pattern. Amazon has a massive lead in e-commerce, commanding about 40% of the U.S. market. As the leader, it retains incredible talent and has leverage in technology and with suppliers, giving it the means to consistently upgrade its platform and offer competitive pricing. That's how it can keep its customers and get them to rely on its platform for an increasing amount of their essentials, plus more.

As for cloud services, Amazon has nearly a third of the entire global cloud market, and its investments in AI make it even more attractive to new clients. It's investing more than $100 billion in AI developments, offering more features and options than the competition, which builds up the AI business and also generates greater interest in cloud services, where AI is happening.

That's not to mention Amazon's other businesses, like advertising and streaming. Amazon should continue to grow and create shareholder value for the foreseeable future.

2. E.l.f. Beauty: The new leader in cosmetics and skincare

E.l.f. Beauty (NYSE: ELF) has become the favored cosmetics brand among a younger generation of shoppers, and its cheaper prices are resonating even more under pressured economic conditions. It's already the top company in mass color cosmetics unit share, and it's in second place in dollar share. But it's not finished, because it's still growing its brand in the overall cosmetics market, such as recently acquiring luxury cosmetics brand Rhode, and it's growing its skincare business, which is already top 10 but has more room to grow.

Sales growth has slowed down, but it's been that way across the industry as shoppers cut down on discretionary purchases. The company is still reporting growth and capturing market share, since many of its competitors are reporting declines, as is the cosmetics industry overall.

Sales were up 4% in the 2025 fiscal fourth quarter (ended March 31) and 28% for the full year. Fourth-quarter earnings per share (EPS) were $0.78, beating Wall Street's expectations of $0.72.

E.l.f. stock is down 34% over the past year, and it's a stock you can still buy on the dip.

3. Carnival: Strong demand, declining debt

Carnival (NYSE: CCL) (NYSE: CUK) stock continues to rise, but it's still 59% off its highs, and it isn't likely to stay down for too much longer.

It keeps breaking records every quarter, and its business has completely recovered from its pandemic shutdown. In the 2025 fiscal second quarter (ended May 31), revenue increased 9% year over year, beating guidance, and adjusted net income nearly tripled from last year. Adjusted EPS were $0.35, crushing Wall Street expectations of $0.24.

The advanced booking position remained at historical highs, with high occupancy rates and ticket prices. It's also enjoying strong engagement with nonticket revenue sources like food and entertainment. Management is investing for the future, launching new ships and destinations to generate new demand, as well as increase repeat frequency rates.

Carnival stock remains down due to the high debt it took on when it had to shut down its cruises. Although that ended up being a short amount of time, the debt piled up, and it's going to take a while to pay off. The good news is, it's been able to pay it back at an efficient pace, and it's within one rung of investment-worthy, according to two rating agencies. As soon as it hits the next rung, the price is likely to jump, and considering its strong performance and continued demand, that's likely to happen soon.

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

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and e.l.f. Beauty. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy.