My 2 Favorite Stocks to Buy Right Now

With the stock market around an all-time high, it might not feel like the easiest time to pull the trigger on new buys.

After all, both the signs and the talk of a bubble seem to be mounting. The labor market has flatlined, and auto delinquencies are climbing, a sign that consumers, and those toward the bottom of the income spectrum, are struggling to pay basic bills.

Meanwhile, valuations continue to get stretched, and pre-revenue and development-stage companies in emerging technologies have exploded as investors angle to find the next disruptive technology after artificial intelligence.

However, there are still some well-priced stocks as well as companies that can keep growing no matter what happens with the broader economy. Keep reading to see two of them.

Image source: Hoka.

1. Deckers Outdoor

Few sectors have been hit harder by the Trump tariffs than the footwear and apparel sector, and Deckers Outdoor (NYSE: DECK), which owns the Hoka and Ugg brands, has plummeted since the beginning of the year, before the tariffs rolled out.

In fact, after the company issued disappointing full-year guidance in its second-quarter earnings report, the stock is now down 60% from its peak in January. That sell-off is driven by a combination of a stretched valuation after a blockbuster run by the Hoka brand and near-term concerns about pressure from tariffs and weak consumer discretionary spending due in part to inflation.

While the stock fell by double digits on the recent report, the second-quarter numbers were solid. Overall revenue rose 9.1% to $1.43 billion, which essentially matched estimates at $1.42 billion. Gross margin remained strong at 62%, and it recorded 11% growth at Hoka and 10% at Ugg. On the bottom line, earnings per share rose from $1.59 to $1.82, which topped the consensus at $1.58.

The U.S. business is clearly struggling as revenue was down 1.7% to $839.5 million, but the international business is shining, showing the broader strength of the Hoka and Ugg brands, as international revenue rose 29.3% to $591.3 million.

The main reason for the sell-off was Deckers' decision to cut full-year guidance. Management now sees full-year revenue of $5.35 billion, which reflects just 7.2% growth, indicating a slowdown in the second half of the year. On the bottom line, it expects EPS of $6.30 to $6.39, which was slightly below estimates at $6.40 and implies flat growth for the year.

Management now expects tariffs to cost $150 million this year, or about 3% of total revenue, though it's taking steps to mitigate the impact.

If you can look past the short-term headwinds facing Deckers, this is a company with a long track record of outperformance on the stock market. It has two well-established, popular brands that continue to grow, and attractive opportunities in the wholesale channel and in international markets. Based on the full-year forecast above, the stock trades at a forward P/E of just 14, roughly half that of the S&P 500.

Deckers is still growing. Demand is still solid, and it's maintaining its price points. As the macroeconomic environment improves and the impact of tariffs wanes, the stock should recover over the next few years.

Image source: Netflix.

2. Netflix

Netflix (NASDAQ: NFLX) might fall into the consumer discretionary category, but the streaming giant seems to function more like an entertainment utility with more than 300 million subscribers around the world.

That's one reason why the stock looks like a great buy at a time when the rest of the market is volatile, but there are plenty of others. Netflix is delivering rock-solid growth around the world, while its legacy media peers continue to struggle. Its advertising tier has proven effective at creating a new revenue stream and has given price-sensitive customers a way to keep costs down.

Netflix stock is also trading near a six-month low after a one-time expense dinged its latest earnings report. It's now down nearly 20% from its recent peak, and trades at a price-to-earnings ratio of 34 based on 2026 expected earnings.

However, the best reason to buy Netflix may be the explosive success of KPop Demon Hunters, which could help the streaming leader expand its business meaningfully beyond video entertainment. It's tapped Hasbro and Mattel to help create branded toys, and live entertainment like concerts seems like a good bet to follow.

Netflix has long held ambitions of building a Walt Disney-like business model, and this could be the key to unlocking that opportunity.

Meanwhile, Netflix's global diversification makes it more resistant to any macroeconomic woes in the U.S. than American companies, and its growth has been remarkably steady since a post-pandemic hiccup that led to a number of changes, including the launch of an advertising tier. It looks like a great bet to keep winning.

Jeremy Bowman has positions in Netflix and Walt Disney. The Motley Fool has positions in and recommends Deckers Outdoor, Netflix, and Walt Disney. The Motley Fool recommends Hasbro. The Motley Fool has a disclosure policy.