The S&P 500 has been on an upward trajectory, with a rise of approximately 26% since its lowest point in April. If you found the market too unsettling to invest during its decline, you might have passed up some attractive opportunities.
However, stock prices continue to rise, and if you feel more assured about taking action, consider these three outstanding stocks that have potential for further growth.
1. Amazon: Tops in two growth industries
Amazon (AMZN), while significantly involved in artificial intelligence (AI), represents a lot more than just that. In terms of size, its e-commerce and cloud computing sectors lead their respective markets, and they continue to expand. These two segments are dynamic and growing sectors.
In the first quarter of 2025, e-commerce represented a slightly higher share of total retail sales in the United States, rising from 15.9% to 16.2%. This trend seems to be ongoing. Notably, Amazon dominates the U.S. e-commerce market, accounting for approximately 40%. As the leading player, it has an impressive pool of talent and significant control over technology and suppliers, enabling it to continually enhance its platform and provide competitive pricing. This strategy helps retain customers and encourages them to rely on Amazon for a growing portion of their essentials, as well as additional purchases.
I’m absolutely captivated by the realm of cloud services! Amazon dominates approximately one-third of the global market, making it a go-to choice for many. What sets it apart is its substantial commitment to Artificial Intelligence (AI), investing over $100 billion into this technology. This investment translates into an array of unique features and options that outshine competitors. The growth in AI not only bolsters Amazon’s AI business but also stirs up excitement for their cloud services, where the future of AI is being shaped.
Beyond its existing ventures such as advertising and streaming, it’s clear that Amazon will persist in expanding and generating substantial returns for its shareholders over a prolonged period of time.
2. E.l.f. Beauty: The new leader in cosmetics and skincare
ELF Beauty (ELF) has garnered a strong preference among younger shoppers due to its budget-friendly cosmetics line, which has found even greater appeal in economically challenging times. Currently leading in market share for mass color cosmetics and ranked second in dollar share, ELF isn’t resting on its laurels. The company is continuously expanding its brand presence across the broader cosmetics industry, such as by acquiring luxury cosmetics brand Rhode recently. Moreover, it’s also strengthening its skincare division, which already ranks among the top 10 but holds potential for further growth.
Despite a general industry-wide slowdown in sales growth due to consumers reducing discretionary spending, the company continues to show growth and expand its market presence. This is notable because many other companies in the same sector are experiencing declines, as is the case with the broader cosmetics industry.
In the last quarter of the financial year 2025, which ended on March 31, sales increased by 4%. For the entire year, they rose by an impressive 28%. Notably, the fourth-quarter earnings per share (EPS) surpassed projections, coming in at $0.78 instead of the anticipated $0.72 predicted by Wall Street.
E.l.f. stock is down 34% over the past year, and it’s a stock you can still buy on the dip.
3. Carnival: Strong demand, declining debt
The shares of Carnival (CCL) (CUK) keep climbing, yet they are currently 59% lower than their peak values. It seems unlikely that they will remain at this level for a prolonged period.
Year after year, it consistently sets new benchmarks, and its business has fully bounced back following the pandemic-induced halt. In the 2Q of fiscal year 2025 (ending May 31), revenue surged by 9%, outperforming expectations, and adjusted net income nearly trebled compared to the previous year. Adjusted earnings per share (EPS) came in at $0.35, significantly surpassing Wall Street’s forecast of $0.24.
The current booking status maintains its record-breaking levels, boasting high occupancy rates and expensive tickets. It’s also thriving in non-ticket areas such as food and entertainment. The management is focusing on future growth by introducing new vessels and locations to stimulate fresh demand and boost repeat customer visits.
Carnival’s shares continue to drop because of the substantial debt accumulated when their cruises had to temporarily halt operations. Despite this interruption being brief, the accumulated debt has been mounting and will take some time to repay. However, they’ve managed to handle the payments effectively, and according to two rating agencies, they’re nearly ready for investment-grade status. Once they reach that level, their stock price is expected to rise significantly, given their robust performance and high demand, which seems imminent.
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2025-07-23 03:39