3 Brilliant Growth Stocks to Buy Now and Hold for the Long Term

Growth stocks have a lot going for them. Growth stocks can compound revenue and earnings for long periods, leading to fantastic stock performance. That's as long as you buy at a reasonable price, of course. In fact, even though famous investors like Warren Buffett are deemed value investors, a lot of their huge winners come from companies with consistent revenue growth.

With this in mind, here are three growth stocks that even value investors will appreciate that you can buy and hold for the long term.

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Interactive Brokers: A brokerage taking market share

Interactive Brokers (NASDAQ: IBKR) is a digital-only stock and asset trading brokerage that serves advanced investors. It allows customers to trade in many different countries, currencies, commodities, and more, which you cannot get on most stock trading platforms, such as Robinhood. Serving individuals and professional teams, Interactive Brokers has built up a great brand in the brokerage space that convinces stock traders to switch to its service every quarter.

In the third quarter, Interactive Brokers customer accounts grew 32% year over year to 4.13 million. This is up from just 1 million at the end of 2020. Account growth correlates with revenue growth. Commission revenue was up 23% last quarter, with net interest income on client balances up 21%.

The best part about Interactive Brokers is its incredible profit margins. Last quarter, it had a pre-tax profit margin of 79%, which is rare in a publicly traded company. A profit margin this high cannot expand forever, but Interactive Brokers is in a premier spot to keep stealing new clients and double or triple its active accounts over the next 10 years. With a current price-to-earnings ratio (P/E) of 30, the stock is trading at a reasonable price compared to its long-term growth potential.

Oscar Health: Near-term woes, long-term opportunity

A company that is not profitable today but still a fantastic long-term growth stock is Oscar Health (NYSE: OSCR). The upstart health insurer that targets the Affordable Care market (Obamacare) keeps growing users, but has faced stock price headwinds in 2025 due to growing costs impacting its insurance loss ratios and the potential for Obamacare subsidies to be severely scaled back in 2026.

Growing costs have impacted Oscar Health's profitability. A health insurer sets its rate annually for customers, which Oscar Health does, serving its 2 million members on the individual market.

However, in 2025, insurers calculated wrong and underpriced their insurance premiums versus the utilization rates of customers, which led medical loss ratios to rise. Last quarter, Oscar Health's medical loss ratio -- which measures claims paid divided by premiums earned -- hit 88.5%, compared to 84.6% in the same quarter a year ago. This is clearly not ideal, but is something Oscar Health can quickly fix by repricing its plans for 2026, with it, along with other health insurers, planning to greatly increase rates to get back to profitability.

Depending on which way the political winds sway in the United States, extra subsidies for individual health insurance members may expire in 2026. This could put a dent in Oscar Health's paying members, but should only be a temporary headwind to the business, which has grown its members by close to 10x since 2019.

This year, Oscar Health will likely lose money. But if it can regain its trajectory on its medical loss ratio back to 80% (the maximum Obamacare insurers can earn) and keep decreasing its operating expenses as a percentage of revenue, the company will turn a profit. With $11 billion in revenue over the last 12 months, a measly 2.5% profit margin would get Oscar Health to $275 million in annual earnings in 2026, or a P/E ratio of just 14, compared to the current stock price.

Data by YCharts.

Nintendo: A resurgent gaming business

Readers will likely know this last company well. Nintendo (OTC: NTDOY), the entertainment and gaming giant from Japan, owns characters such as Mario and Zelda, and has a licensing agreement with Pokémon.

This summer, Nintendo released its latest gaming hardware, the Nintendo Switch 2. It has begun selling like hotcakes, leading Nintendo to update its full fiscal year forecast for hardware sales from 15 million to 19 million (for the year ending in March). It also raised its full-year revenue and earnings guidance for shareholders.

Growing hardware sales will help Nintendo grow its earnings again as the original Switch slowly loses popularity. New games are coming to the Nintendo Switch 2 from the Mario and Pokémon franchises, which should lead to high levels of overall game sales.

What's more, Nintendo is now consistently releasing visual content like movies. A new Mario movie is coming out in 2026, with a Zelda movie slated for 2027. This revenue diversification will feed back into the gaming business, hopefully building more fans of Nintendo around the globe.

We are just at the start of a multiyear growth story around the Nintendo Switch 2. With Nintendo stock down in recent months, now looks like a good time to hop back on the Mario train and add it to your portfolio, along with Interactive Brokers and Oscar Health.

Brett Schafer has positions in Nintendo. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends Nintendo and recommends the following options: long January 2027 $43.75 calls on Interactive Brokers Group and short January 2027 $46.25 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy.