Investors have noted that the stock indexes are near record highs. Nonetheless, those same indexes are heavily tech-weighted, meaning they are not necessarily a reflection of other types of stocks.
Indeed, consumer discretionary stocks are ones that have not always benefited from the gains in the indexes. Fortunately, this means investors can find bargains, making it increasingly likely that they can benefit by investing $5,000 in these two stocks.
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1. MercadoLibre
Since its 2007 IPO, MercadoLibre (MELI 1.94%) has amazed investors. The Latin American conglomerate has built leadership positions in e-commerce, fintech, and logistics by turning the region's challenges into competitive advantages.
Currently, the stock is off by about 18% from the highs of last summer. It suffered amid increasing competition and rising bad loan expenses.
Despite those challenges, revenue grew by 37% yearly in the first nine months of 2025. Still, with the rise in the provision for doubtful accounts (meaning bad loan expenses), its net income of $1.4 billion in the first three quarters of 2025 increased by just 13%.
However, improving economic conditions in Argentina and Venezuela increase the potential for higher revenue growth. MercadoLibre has also turned to technological solutions to address the rapid rise in bad-loan expenses. With that, the stock has risen by about 13% since its November low.
NASDAQ: MELI
Key Data Points
Investors should also consider its P/E ratio of 52. While that is well above the S&P 500 (^GSPC 0.24%) average of 30, it compares well to its North American peer, Amazon, which traded at higher valuations in past years.
At around $2,150, investors can still buy one share. As mentioned, MercadoLibre has historically prospered by turning challenges into advantages and should continue to do so as it cements its position as an ultimate growth stock.
2. Dutch Bros
Coffee company Dutch Bros (BROS +0.67%) has made inroads in the heavily competitive coffee industry as it continues to pull off a rapid regional-to-national expansion. It operated 1,081 shops as of the end of the third quarter of 2025, up from 950 one year ago. That expansion should accelerate, considering its goal to operate 2,029 shops by the year 2029.
Customers have responded well to its wide array of drink offerings. Dutch Bros also gives back to the communities it serves, which likely increases the company's visibility.
To that end, revenue rose by 27% annually in the first nine months of 2025. That included a 5% increase in same-shop sales over the same period. Moreover, the $58 million in net income that it generated in the first three quarters of 2025 surged by 85% over the same time frame. Dutch Bros managed to keep cost and expense growth below that of revenue, resulting in rising profits.
Additionally, amid a stock pullback, Dutch Bros stock is down 35% from its high, a pullback likely caused by high valuations. Still, while its current 112 P/E ratio may appear high, a forward P/E of 63 implies its growth is helping to justify its stock price.
NYSE: BROS
Key Data Points
With that, the remaining $2,850 will allow investors to buy about 51 shares at its recent price. Since the company's expansion is almost certain to continue, the added stores should foster the growth needed to boost the stock price over time.
