A bull market has pushed the S&P 500 up 22% over the past year, but historically, it has averaged about 10% returns annually. To beat the index, investors can focus on companies with growing revenue and earnings. Three Motley Fool contributors recommend Uber Technologies (UBER), MercadoLibre (MELI), and Cava Group (CAVA) as long-term winners.
Uber Technologies is a leading ride-hailing company with accelerating growth in revenue and profits. Despite a stalled share price, the stock offers an attractive buying opportunity due to its low valuation and high return prospects. Analysts forecast earnings growth of 41%, making Uber’s stock more likely to outperform the S&P 500.
MercadoLibre is a twin powerhouse business in e-commerce and fintech with incredible performance. The company has demonstrated consistent high growth, driven by increasing demand for online commerce in Latin America and its innovative products disrupting traditional financial operations. MercadoLibre’s robust fintech and credit businesses complement its commerce business, offering digital payments and financial solutions.
Cava Group is a restaurant chain that has pulled back after posting blowout earnings in 2024. The stock now offers a better entry point due to its low valuation and high growth potential. Cava’s product resonates with consumers, generating buzz among customers who are spreading the word to their friends and going back to the restaurants more frequently. With a long runway for growth, Cava could easily double or triple in value by 2030.
Investors can look forward to these companies’ potential to outperform the S&P 500 over the next five years, driven by their strong growth prospects and increasing demand for their services.
Source: https://www.fool.com/investing/2025/01/18/3-brilliant-growth-stocks-outperform-sp-500-2030