Key Points
-
Amazon has grown to become one of the world’s largest companies because it isn’t afraid to innovate and it invests to win.
-
Dutch Bros and Cava are two of the best restaurant expansion stories out there.
-
Philip Morris International transformed its business with an acquisition, and e.l.f. Beauty is looking to do the same.
When it comes to consumer-facing businesses with long-term growth potential, a few companies stand out. While technology stocks get a lot of attention, and deservedly so, the consumer space is also full of solid companies with long growth trajectories.
Here’s a look at five consumer-focused stocks built for growth to buy and hold for the the long haul.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Amazon
There is a reason why Amazon (NASDAQ: AMZN) has grown to become one of the world’s largest companies: It isn’t afraid to innovate and it invests to win. Years of heavy investment in logistics and automation continue to pay off, and artificial intelligence (AI) is only making the company more efficient. The company has built out a regionalized fulfillment network designed to cut shipping distances and reduce costs, and now it is using AI to enhance this even more.
The company is using AI to predict the best routes and even to make it easier for drivers to navigate complex drop-offs at places like large apartment buildings. It’s also using AI to predict the best warehouses to store items in order to reduce shipping mileage and times. On top of that, it has invested heavily in robots, that with advancements in AI are now able to take on increasingly complex tasks. Its robots aren’t just moving boxes and lifting heavy items, some have a sense of touch and can grab items in tough-to-reach places and others can spot damaged items, helping the company save money on costly returns.
At the same time, Amazon continues to be a cloud computing leader with Amazon Web Services (AWS). It has created software tools that make it easy for developers to build and deploy AI models and tools, while the company has also developed its own proprietary chips for AI training and inference that give it a cost advantage over off-the-shelf graphics processing units (GPUs).
Put it all together, and Amazon is building one of the most powerful and defensible platforms on the planet.
e.l.f. Beauty
e.l.f. Beauty (NYSE: ELF) already rewrote the playbook on mass-market cosmetics, taking massive share over the past few years. Now, the company is going the premium route with its acquisition of Rhode, and the upside is substantial. Rhode has grown to $212 million in sales over the past year with minimal distribution and almost no paid marketing. Plug that into e.l.f.’s distribution network, which includes strong relationships with retailers like Ulta Beauty and Target, and it should be able to take the brand to new heights.
Rhode brings with it higher price points and a strong skincare portfolio. That complements e.l.f.’s mass-market cosmetic lines and opens up cross-sell opportunities, as it’s common in the beauty industry for consumers to use both prestige and mass products. Meanwhile, Hailey Bieber will stay on as chief creative officer, and e.l.f. will surely want to ramp up Rhode’s product offerings.
E.l.f. has already shown it knows how to gain share in a crowded market. It continues to expand internationally, and it should have opportunities in other adjacent markets down the road, like fragrance. With its brand-building track record and influencer marketing, e.l.f. has plenty of growth ahead.
Dutch Bros
One of the best themes to invest in in the consumer space is expansion, and Dutch Bros (NYSE: BROS) has a big opportunity in front of it. The company now has over 1,000 locations and a clear roadmap to grow that to 7,000 over time. But this isn’t just an expansion story, as Dutch Bros is also seeing strong traction with same-store sales, which climbed 4.7% last quarter.
The company just rolled out mobile ordering, which should boost throughput, and it is finally looking to roll out more food options, an area where it’s been notably absent. Breakfast is a massive category, and Dutch Bros has acknowledged that not offering food items during this important daypart has likely cost it sales. If its food pilot proves successful, it could be a significant driver of same-store growth.
Between new food offerings and expansion, this is a stock to own for the long haul.
Image source: Getty Images.
Cava Group
Another great restaurant expansion story in progress right now is Cava Group (NYSE: CAVA). The company is replicating what Chipotle Mexican Grill did a decade ago with Tex-Mex, but with Mediterranean food. Its Mediterranean-focused menu is fresh, healthy, and customizable, and consumers are responding. The company has posted four straight quarters of double-digit same-store sales growth, including a 10.8% gain last quarter, powered largely by a 7.5% jump in traffic.
The introduction of grilled steak to its menu last year was a game changer, and its menu continues to evolve and improve. Its added higher-margin items like fresh juices, and add-ons are already boosting average tickets. Cava is also experimenting with new dishes and a loyalty program to keep customers coming back.
The big story, though, is still geographic expansion. With under 400 locations at the end of last quarter and a target of 1,000 by 2032, Cava’s growth runway is wide open. Its “coastal smile” expansion strategy has worked well, and now it’s starting to enter major Midwest markets like Chicago and Detroit.
Cava has plenty of growth in front of it.
Philip Morris International
Philip Morris International (NYSE: PM) is executing one of the most successful consumer product transitions in recent memory. While other tobacco companies are struggling trying to manage declining cigarette volumes, Philip Morris is growing thanks to its smokeless portfolio, led by Zyn and Iqos. These products don’t just appeal to consumers looking for alternatives, they also carry much better unit economics than traditional cigarettes.
Zyn has become the breakout nicotine pouch brand in the U.S., with volumes up over 50% last quarter. The company acquired the brand when it bought Swedish Match in 2022, in what has to be one of the best deals in the consumer space over the past several years.
Meanwhile, Iqos continues to take share overseas, especially in Europe and Japan, and is making inroads in newer markets like Mexico City and Jakarta. The company also bought back the U.S. rights to Iqos, giving it another potential growth driver in one of the world’s biggest markets.
At the same time, Philip Morris still runs a profitable legacy cigarette business overseas, where pricing remains strong and volumes are more stable. Importantly, the company typically uses local manufacturing, including with Zyn, meaning it faces little tariff risk.
All in all, Philip Morris is a great growth stock in a defensive industry.
Should you invest $1,000 in Amazon right now?
Before you buy stock in Amazon, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $694,758!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $998,376!*
Now, it’s worth noting Stock Advisor’s total average return is 1,058% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of July 7, 2025
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Geoffrey Seiler has positions in Philip Morris International and e.l.f. Beauty. The Motley Fool has positions in and recommends Amazon, Chipotle Mexican Grill, Target, Ulta Beauty, and e.l.f. Beauty. The Motley Fool recommends Cava Group, Dutch Bros, and Philip Morris International and recommends the following options: short June 2025 $55 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.