Stock price pullbacks in leading companies offer a great opportunity for long-term investors to scoop up their stocks at a discount, further compounding their growth potential. A $1,000 buy-in can be a great starting point to take an initial position. If there are additional pullbacks in the future, an investor can potentially add more shares.
Let's look at three stocks for great companies you might want to consider buying while they are still on sale.
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1. Amazon
Amazon (AMZN 2.93%) shares retreated following its second-quarter earnings report after the company issued cautious guidance. However, this could be a great time to pick up shares of the stock on the pullback. The stock is trading down about 8% from all-time highs hit earlier this year.
Amazon keeps finding new ways to make its already well-oiled e-commerce machine run more efficiently. Artificial intelligence (AI) is now built into nearly every part of its logistics network, from deciding which warehouse should hold a product to guiding drivers to the exact spot for delivery. More than a million robots are at work inside its facilities, speeding up order flow and cutting costs. These efficiency gains were on full display last quarter when its North America operating income climbed 47% on just 11% revenue growth.
At the same time, Amazon Web Services (AWS) remains the global leader in cloud computing, and it's now playing a key role in the AI boom. Developers and enterprises are using Amazon's Bedrock and SageMaker tools to build and run AI models, while new offerings like Strands and AgentCore make AI agents easier and safer to deploy.
Infrastructure spending will trim margins in the short run, but those investments should pay off for years. Between a leaner retail business and a market-leading cloud unit, Amazon has two powerful growth engines that make it a stock worth owning for the long haul. A $1,000 investment will net you roughly 4.5 shares.
2. e.l.f. Beauty
After taking a tremendous share in the mass-market cosmetics industry, e.l.f. Beauty (ELF -2.70%) shares slipped following a quarter where growth slowed. The stock trades about 45% below its all-time high set last summer and about 10% of its 2025 high in January.
However, with its pending $1 billion acquisition deal for Rhode, the company is set to add a fast-growing premium skincare brand to its lineup. Rhode has racked up over $200 million in annual sales with barely any marketing, a small set of products, and sales only through its own website.
The brand's upcoming debut at Sephora will expand its reach, and e.l.f. can use its retail relationships to increase its distribution even more. Hailey Bieber, Rhode's founder, will stay on as chief creative officer, keeping the brand's voice intact as the product range grows.
Premium skincare carries better margins than mass-market color cosmetics, and Rhode's early results show the potential for rapid growth. After a brief slowdown in sales, the Rhode acquisition puts the company back in growth mode. With its history of shaking up the beauty business, e.l.f. is well-positioned for its next chapter. A $1,000 investment will get you just over 8.25 shares.
3. Roku
Roku (ROKU -0.61%) has built the most widely used operating system for streaming, but for years it struggled to turn that scale into meaningful profits. As a result, the stock is down about 82% from all-time highs hit in 2021. That's starting to change. Management now expects to post positive operating income in the fourth quarter, well ahead of earlier projections, with more margin improvements in store in the coming years. The stock price is up about 62% in the past year.
While the company is known for its streaming devices, its real focus is on its platform segment revenue. Roku is driving more subscription signups through bundles and curated content recommendations, while attracting performance advertisers through its Roku Ads Manager. It's also deepening its ties with major demand-side platforms like Amazon and The Trade Desk, making it easier for advertisers to buy Roku inventory.
Its own Roku Channel continues to grow, and the acquisition of Frndly TV adds over 50 budget-friendly live channels that should boost ad sales. In its most recent quarter, revenue rose 15% to $1.1 billion, beating expectations. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 79% year over year, demonstrating that the company is still growing strongly.
Roku's ad platform still has plenty of room to grow, and the shift toward profitability changes the story for investors. With shares still well below past highs, now can be a great time to pick up the stock while it's still on sale. A $1,000 buy-in will get you 11.5 shares.
