3 Growth Stocks to Buy Right Now Without Hesitation

For decades, the stock market has generated average annual returns of about 10%, enough to double your money every seven years. But it’s not that hard to grow your money faster with smart investments. growth values.

To give you some ideas, three Motley Fool contributors think On hold (NYSE: ONON), Free Market (NASDAQ: MELI)And Dutch Brothers (NYSE: BROS) can help you achieve Above-average returns. Here’s why.

Outperform the competition

Jennifer Saibil (On hold) : We have distinguished ourselves as a premium brand that challenges names like Nike And Lululemon Athletica. It stands out for its stellar growth despite inflation, and that’s just the beginning. It has a massive growth runway as it builds its brands and attracts loyal fans, and growth-minded investors should take a look.

First, the numbers. Phenomenal results were announced for Q2 2024, starting with a 29% increase in sales compared to the previous year (currency neutral). Profitability was exceptional, with gross margin increasing from 59.5% to 59.9% and net income increasing by 834%.

The results were so good that Wall Street was willing to forgive its disappointing results: It expected earnings per share (EPS) of $0.18, while On’s EPS was $0.17. A penny may not seem like much, but Wall Street has crushed stocks for results below that amount.

Then there’s the opportunity. The On brand still has a small presence almost everywhere, and it’s impressing consumers by building its name through marketing efforts, new direct-to-consumer stores and wholesale distribution deals. It’s tuned into current shopping trends, and sales are growing roughly equally through both direct-to-consumer and wholesale channels.

While On is best known for its footwear, many of which feature a unique sole that has become its signature, its high-end brand is gaining a following and generating interest in its apparel and accessories. All of those categories are growing rapidly, but apparel stood out in the second quarter, up 66% year over year, and it’s an opportunity On is capitalizing on. It recently launched a partnership with celebrity Zendaya, for example, as a lifestyle and fashion icon, as well as a branded tennis collection.

Full-year sales growth is expected to reach at least 30%, which is likely behind the positive market reaction following the earnings release, and the company is implementing new efficiency models in the second half of the year. Expect On stock to continue to climb this year and over the long term.

The story continues

This stock returned 1,600% and is still undervalued

John Ballard (MercadoLibre): Latin America is one of the fastest growing e-commerce markets globally, and MercadoLibre has capitalized on this to deliver phenomenal returns to shareholders over the past several years.

It generates revenue in several ways, which is a testament to the growth opportunities it has. It operates a marketplace for buyers and sellers where it earns…