My 3 Favorite Growth Stocks to Buy Right Now

There are various methods for successful investing, but even if you're risk-averse, given a long-term horizon, it's a good idea to own excellent growth stocks. Not all growth stocks are high-risk, and over many years, if you choose the right ones, they can generate life-changing wealth. You don't have to invest in artificial intelligence (AI); if you already do, you should make sure to diversify to other categories as well.

If you're looking for some candidates, MercadoLibre (NASDAQ: MELI), Dutch Bros (NYSE: BROS), and Global-E Online (NASDAQ: GLBE) are great picks.

1. MercadoLibre

MercadoLibre is the Latin American answer to Amazon, though with a twist. It's the leading e-commerce provider in its region and is still growing rapidly, with a 50% year-over-year sales increase in the second quarter. Gross merchandise volume increased 36%.

Image source: Getty Images.

Management highlighted several metrics that demonstrate consumer engagement and point to the long-term opportunity. Items per buyer increased 14% over last year, even though active users increased 26%, which could dilute the number of items per buyer. In Brazil, where the company lowered its free shipping threshold, items per buyer were up 19%.

It also has a major advertising business, and sales increased 62% over last year in the quarter. MercadoLibre now has more than 10% of the digital advertising market. It recently launched an AI advisor that can be used in WhatsApp to analyze campaigns and make suggestions. And it added HBO Max (a service from Warner Bros. Discovery) to its platform, which increases its addressable video audience by about 50%.

In addition to its e-commerce business, MercadoLibre also has a robust financial technology business with an equally compelling opportunity. Total payment volume increased 56% year over year in the second quarter, and monthly active users were up 30%. Assets under management rose 68%, and the total credit portfolio was up 75%.

MercadoLibre's stock dropped earlier this year after the company reported decreasing operating income and lower overall profitability. Still, it says that it continues "to set the dial in a way that prioritizes long-term value creation over short-term profitability." The lower price looks like an excellent chance to buy on the dip.

2. Dutch Bros

Dutch Bros is a young and growing coffee-shop chain with tons of long-term potential. It had 1,225 stores as of the end of the second quarter, but management sees the opportunity for 7,000 stores over the next several years.

Image source: Dutch Bros.

That would be an enormous sales driver, but just as importantly, it's driving higher same-store sales. Total comparable sales increased 5.8% year over year in the second quarter, with company-owned comps up 8.3%. Dutch Bros also operates a franchise business, which is why there are two numbers, and it's taking over more franchise locations and incorporating them into company-owned locations.

The founder-leaders recently handed over the reins to new CEO Christine Barone, a seasoned food executive who has been improving the company's real estate structure and, overall, positioning it better for complete domestic expansion. Dutch Bros is now in 25 states. Most stores are drive-thru-only, but it tailors each location to fit demand. They're all set up to be quick, agile, and customer-friendly, and the company's exclusive customized beverages and models are gaining popularity.

Total revenue increased 32% year over year in the second quarter, an impressive showing in the high-inflation environment, and earnings per share (EPS) were up from $0.20 last year to $0.28 this year. Dutch Bros stock could be a multibagger for investors who hold it long-term.

3. Global-E

Global-E is one of the most exciting e-commerce companies in the world, but you could be forgiven for never having heard of it -- it doesn't sell any products to end consumers. Instead, it provides cross-border services for e-commerce retailers. Clients who sign up can start selling globally simply by integrating Global-E's platform into their digital channels, increasing their addressable markets manifold.

Image source: Getty Images.

It's known for working with A-list clients like LVMH Moët Hennessy Louis Vuitton and Walt Disney, and it has a constant pipeline of new business and expanded partnerships. In the second quarter, it signed on many new brands, including Ferrari and J.M. Weston, and it added French brand Officine Universelle Buly to the LVMH deal, in addition to other expanded relationships.

After several years of rapid growth, Global-E has become fully profitable while continuing to generate higher sales. Revenue increased 39% year over year in the second quarter, while adjusted net income rose from $37.9 million to $64.9 million. It also generated $73.2 million in free cash flow, up from $63.5 million last year.

The company also has a working relationship with Shopify, which offers services to its millions of merchants under the white-label name of Shopify Managed Markets. Global-E is in an excellent position to keep growing and rewarding investors for many years.

Jennifer Saibil has positions in Dutch Bros, Global-E Online, and MercadoLibre. The Motley Fool has positions in and recommends Amazon, Dutch Bros, Ferrari, Global-E Online, MercadoLibre, Shopify, Walt Disney, and Warner Bros. Discovery. The Motley Fool recommends Lvmh Moët Hennessy - Louis Vuitton, Société Européenne. The Motley Fool has a disclosure policy.