Two Growth Stocks to Consider Amid Economic Uncertainty
Identifying reliable growth stocks in today’s market can be challenging. The ongoing trade war has added significant uncertainty to the stock market, while high valuations persisted even before the recent downturn.
With a cloud of tariffs and potential recession looming, some stocks are designed to endure economic pressure. These resilient companies often have international exposure and thrive without relying heavily on discretionary spending.
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In that spirit, let’s examine two stocks poised for long-term outperformance.
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1. Axon Enterprise
Axon Enterprise (NASDAQ: AXON) leads in law enforcement technology, producing Taser electrical weapons, body cameras, and a software division that manages evidence for police agencies.
Axon posted a remarkable $2.1 billion in revenue for 2024, a 33% increase from the previous year. Over the past decade, its stock has soared nearly 2,000%, demonstrating substantial market success.
Its distinctive business model helps drive success. For instance, the Taser business follows a razor-and-blades model, requiring customers to buy cartridges. Axon’s hardware and software are designed to work together, providing law enforcement with a comprehensive technological solution.
Innovatively, Axon has introduced Draft One, a generative AI product that streamlines police reporting by drafting documents from camera footage, showcasing its commitment to leverage new technology.
Looking ahead, Axon’s growth potential is significant. It secured its largest contract last year with a logistics firm, expanding its body camera usage to frontline workers. Additionally, its drone program, which allows for rapid response, is evolving after acquiring Dedrone.
Given its innovative approach and reliance on government contracts, Axon appears well-positioned to navigate current market volatility.
2. MercadoLibre
MercadoLibre (NASDAQ: MELI) has also demonstrated impressive market performance, achieving a return of 1,520% over the past decade.
In Latin America, MercadoLibre has constructed a robust e-commerce platform, integrating services such as its e-commerce marketplace, digital payments through MercadoPago, and logistics via MercadoEnvios. Additionally, its credit and asset management businesses enhance its competitive position.
The company receives approximately half of its revenue from Brazil, with Argentina and Mexico as significant markets as well. It thrives in a region where the adoption of e-commerce and digital payments still lags behind the U.S., providing substantial growth potential.
MercadoLibre recently reported a 37% revenue increase, reaching $20.8 billion. Its gross merchandise volume (GMV) exceeded $50 billion for the first time, and it achieved an operating margin above 13%. This trajectory highlights its increasing profitability amidst evolving competition.
Overall, MercadoLibre’s international presence and ongoing growth make it a solid contender in the current market landscape.
Analyzing Potential Investments in Axon Enterprise
Before proceeding with an investment in Axon Enterprise, consider the following:
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For context, consider Netflix’s recommendation from December 17, 2004. An investment of $1,000 then would amount to $594,046 today!*
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*Stock Advisor returns as of April 28, 2025
John Mackey, former CEO of Whole Foods Market, is a member of The Motley Fool’s board. Jeremy Bowman holds positions in Amazon, Axon Enterprise, and MercadoLibre. The Motley Fool recommends Amazon, Axon Enterprise, MercadoLibre, and Sea Limited and has a disclosure policy.
The views expressed here belong to the author and do not necessarily reflect the views of Nasdaq, Inc.
