Top Growth Stocks to Consider for May Investing

Key Points

• Dutch Bros is outperforming Starbucks in profitability per individual store.

• E.l.f. Beauty is looking to expand distribution for its recently acquired skincare brand, Rhode.

• MercadoLibre is investing heavily to enhance its e-commerce and fintech operations in Latin America.

Dutch Bros (NYSE: BROS) is proving to be a strong growth stock, with individual stores generating approximately 30% contribution margins, significantly higher than Starbucks’ (NASDAQ: SBUX) 16%. Both companies have a similar forward price-to-sales multiple of 3.3, but Dutch Bros benefits from a more extensive growth potential.

E.l.f. Beauty (NYSE: ELF) is capitalizing on distribution opportunities, leveraging its acquisition of Rhode, a premium skincare line founded by Hailey Bieber, which is already generating $200 million in sales within three years. The company aims to increase Rhode’s presence in retail locations in the near future, which could drive significant growth.

MercadoLibre (NASDAQ: MELI), the leading e-commerce platform in Latin America, reported a 49% revenue growth in Q1 and trades at a forward P/E of 24.5 times. The company is focusing on enhancing its logistics and fintech services to capture a larger share of a fragmented market.