While technology stocks get all the press, there are also some great growth stocks in the consumer products space. Let's look at five of my favorites in the sector to buy right now.
1. Amazon
Amazon (AMZN -0.91%) remains the dominant player in e-commerce, where it's been leveraging artificial intelligence (AI) to improve varied tasks ranging from logistics to ad targeting. Sponsored ads have become a key growth driver for the company, and AI is helping advertisers better target and convert potential buyers. This is a high-margin business that's growing strongly.
Management has even created AI-powered robots that not only lift and sort packages but also identify damaged items to cut down on returns. All of these AI investments are already paying off, driving strong operating leverage across its retail segment.
Meanwhile, the company's Amazon Web Services (AWS) cloud computing unit is its biggest profit center, and demand continues to surge. Customers are using AWS tools like Bedrock and SageMaker to build their own AI apps and models, and then run them on Amazon's infrastructure.
The company is investing heavily to meet growing demand, building new data centers and developing its own custom chips like Trainium and Inferentia to give customers performance and cost advantages.
Despite the stock's recent rebound, its valuation is still reasonable given the growth Amazon is seeing in both its core retail operations and AWS.
Image source: Getty Images.
2. e.l.f. Beauty
E.l.f. Beauty (ELF -0.21%) just took a big swing with its $1 billion acquisition of Rhode, the skincare brand started by Hailey Bieber. Rhode did $212 million in sales over the past year with just a handful of items and limited paid marketing.
With that kind of traction, the opportunity to scale it up across retailers is significant. Sephora was already slated to start selling Rhode products, and e.l.f. brings strong relationships with retailers like Target and Ulta to the table.
The timing of the acquisition could not be better. After a red-hot run through the first three quarters of its last fiscal year, e.l.f. saw fourth-quarter sales growth slow to 4%. Tariff concerns also loom due to its China-based manufacturing.
But with Rhode soon to be in the mix, e.l.f. has a premium brand with room to grow both its assortment and distribution. That's a powerful combination.
Buying into a consumer brand right before it scales up distribution is typically a good move. With strong retail partnerships, a proven marketing playbook, and now a premium brand to work with, e.l.f. looks positioned for its next growth phase.
3. Dutch Bros
Dutch Bros (BROS 0.61%) has one of the best growth runways in the restaurant space. With just over 1,000 locations in 18 states, it's still in the early innings of expansion. The drive-thru coffee chain is targeting 2,029 shops by 2029 and sees the potential for 7,000 locations across the U.S.
But it's not just about opening new stores; its comparable-store sales (comps) have been strong, too. Last quarter, systemwide comps rose 4.7%, and comps in company-owned stores climbed 6.9%.
Mobile ordering and food give Dutch Bros even more upside potential. Digital transactions accounted for 11% of sales last quarter, while food remains under 2% of the mix. That compares to food representing 19% of sales at Starbucks, so the gap is large. Early tests of its expanded food offerings have been encouraging.
Between its expansion and comps growth opportunities, Dutch Bros looks like a high-upside name worth holding for the long term.
4. Philip Morris International
Philip Morris International (PM 0.21%) is the best story in the tobacco space. Unlike most tobacco companies, Philip Morris doesn't sell cigarettes in the U.S., which insulates it from the secular volume declines seen in that market. Throw in stable overseas cigarette volumes, solid pricing power, and a localized manufacturing base that limits tariff risk, and you have a strong core business.
Meanwhile, it's leaning into products like its nicotine pouch Zyn and heated tobacco product Iqos to drive growth. Best of all, both have better unit economics than traditional cigarettes.
Zyn continues to be the standout, with U.S. volumes up 53% in the first quarter. And Iqos is seeing strong traction in Europe and Asia and early success in newer markets like Seoul; Mexico City; and Jakarta, Indonesia.
With its recent buyback of U.S. Iqos rights from Altria, Philip Morris also can now bring the product stateside. That could be a major growth driver in the years ahead.
5. JAKKS Pacific
JAKKS Pacific (JAKK 1.90%) has been one of the toy industry's best turnaround stories. After hiring former Disney and Mattel executive John Kimble as chief financial officer, the company has reshaped its operations, returned to profitability, and delivered a roughly 140% return over the past five years. Despite that, it still trades at a forward price-to-earnings ratio (P/E) of just 6.3 times 2026 analyst estimates and has no debt on its balance sheet.
A weak slate of kids' movies early last year hurt the stock, but movie-related momentum has been picking up. Sonic 3 and Moana 2 both performed well at the box office, and JAKKS' tie-ins to the movies helped power a 26% increase in sales in the first quarter.
Also, the company has launched toys and costumes for the Dog Man and Minecraft movies, which were released earlier this year, and it has secured the costume rights for the upcoming Paw Patrol movie next year.
Beyond licensed intellectual property, the company is also building its non-licensed portfolio and expanding into evergreen categories like beach and outdoor gear. Its deal with Authentic Brands to produce items under the Roxy and Quiksilver labels is a step in this direction.
With an improved content slate, a growing non-licensed business, and a dirt cheap valuation, JAKKS is an under-the-radar name worth a look for value-focused investors.
