Investors can often position themselves for success in the stock market by focusing on industry leaders that are consistently reporting strong revenue growth. These are usually companies that are benefiting from major tailwinds and have a long runway of growth in their respective industries.
The following growth stocks fit that profile, and despite recently hitting new highs, they still offer excellent long-term return potential.
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Roblox (NYSE: RBLX) is a popular interactive gaming platform that has seen its stock take off in 2025. Shares are up nearly 60% year to date, supported by strong financial results. Management is aiming to capture 10% of video game spending, and its track record of growth indicates the company is well on its way.
Video games are one of the largest, if not the largest, entertainment markets. Newzoo estimates annual spending across all gaming platforms is $180 billion, so Roblox believes it can reach $18 billion in annual revenue, up from its trailing-12-month revenue of $3.8 billion. In the first quarter, daily active users increased 26% year over year to 97.8 million. Revenue was up 29% to $1.0 billion. This momentum points to a big opportunity.
Roblox has a unique business model where the company invests in technology and services to support revenue growth, but its user community creates the games and other experiences on its platform. Roblox is on pace to pay out $1 billion in compensation to content creators this year, but it's still seeing healthy increases for key financial metrics like free cash flow. In the first quarter, free cash flow more than doubled over the year-ago quarter and reached $876 million on a trailing-12-month basis.
Total hours spent on the platform continue to position Roblox for growing monetization opportunities over the long term. Players logged 21.7 billion hours last quarter, up 30% year over year. Meanwhile, management is working to grow the advertising business, where it has a partnership with Alphabet's Google to offer video ads through the platform. Ads could drive even more engagement and revenue for the company too. For example, Roblox could offer players free access to premium experiences that are usually locked behind a paywall if they watch an ad.
In the video game industry, Roblox is one of the best picks for investors. It has a large and growing user base, engaging experiences, improving ad-tech capabilities, and growing free cash flow. This combination should make the stock a rewarding investment over the next decade and beyond.
MercadoLibre (NASDAQ: MELI) is a fast-growing fintech and e-commerce company operating in Latin America. The company is helping bring digital financial services to millions of people in the region that don't have access to basic services like bank accounts.
The company's revenue has grown from $652 million in 2015 to $22 billion on a trailing-12-month basis. That growth has fueled the stock's 1,700% gain over the last 10 years. Yet, even after surging to a new high this year, the stock is trading at a reasonable valuation (more on this later).
MercadoLibre offers a complete ecosystem of financial and e-commerce services. It generates revenue from its online marketplace, which has 67 million unique active buyers, in addition to advertising services, shipping, lending, payments, and credit. A new credit card offering is scaling quickly and could become a valuable tool to attract users to the online marketplace. Its credit portfolio grew 75% year over year last quarter.
What's clear is that MercadoLibre is solidifying itself as the leading option for key services in a region with 650 million people. The long-term opportunity is massive. Revenue grew 64% year over year in Q1 on a currency-neutral basis. The consistency of its growth over the last decade is remarkable and highlights just how much upside exists for the business.
The stock's price-to-sales ratio is currently at the lower end of its historical range. As recently as five years ago, MercadoLibre traded consistently above 15 times trailing revenue. But as of this writing, investors can buy shares at less than 6 times sales. At the rate MercadoLibre is still growing, this reasonable price point sets the stage for excellent long-term returns.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Ballard has positions in MercadoLibre. The Motley Fool has positions in and recommends Alphabet, MercadoLibre, and Roblox. The Motley Fool has a disclosure policy.