Every investor can find monster winners in the stock market. The important thing to remember is that Wall Street can be slow to give excellent growth stocks the value they deserve. But if you persistently buy shares of high-growth businesses, you’ll almost certainly stay ahead of the game in the long run.

To get you started on your search, three Motley Fool contributors are here to discuss three topics. growth stocks It is poised to provide extraordinary returns to investors. Here’s why elf beauty (ELF -2.02%), Toast (TOAST 3.16%)And Deck Outdoor (DECK -1.72%) There may be timely purchases right now.

The new leader of the old industry

Jennifer Saibil (elf Beauty): Elf is a small player in the beauty industry compared to industry giants, but it is rapidly growing and gaining market share. More importantly, there are great opportunities.

Social media and digital shopping play a big role in Elf’s success. It has developed a differentiated brand with “clean” ingredients and great prices that appeal to its core target market of young, environmentally conscious shoppers. Customers can’t get enough of their products.

The results speak for themselves. Achieved 2.6 percent market share in color cosmetics in 2025 first quarter of fiscal year While all of the market leaders lost share, it rose from 5th place last year to 2nd place in dollar share this year. It has now become the best-selling brand Aim. In skin care, it gained 0.6 percentage points in market share, rising from 13th to 9th place. It’s just getting started and rolling out in international markets, and international sales were up 91% year-over-year in the quarter.

Although elf has reported staggering growth for several quarters, this appears to be starting to weaken. Sales were up 50% year-over-year in the first quarter, but management expects that to fall to about 26% for the full year. This implies a significant slowdown in the next three quarters. To make matters worse, net income was lower year over year in the first quarter, and management’s guidance on earnings per share (EPS) for the full year was below Wall Street’s expectations.

This may turn out better than expected, as inflation slows and the economy picks up. But investors need to focus on the long-term story. elf has a growing, differentiated brand that continues to outperform industry leaders for a long time. Elf shares are down 24% this year, and although it may take some time to recover, in a few years patient investors will thank themselves for buying today.

An undervalued software stock

John Ballard (Toast): Toast is a leading restaurant management software provider that consistently delivers high double-digit revenue growth, and its stock has recently soared to new highs. Investors can expect excellent returns over the next few years as Wall Street begins to reward the stock.

Tost continues to see strong momentum in its offering. The total number of locations using its product increased by 29% on an annual basis in the second quarter, reaching a total of 120,000. This has led to a similar increase in gross payment volume and revenue, and more importantly, the company is starting to see increased net income.

Toast outperforms its competition in the restaurant software market with its easy-to-use platform and ability to innovate with new solutions. Their tools help restaurants save time on payroll management, marketing, and order preparation. That’s why the number of restaurants using the platform has doubled since 2021.

Toaster is in the early stages of growth and its shares are still trading at an attractive valuation. Shares bring one price-sales ratio 3.8 is a low number for a software business. If the company continues to surprise to the upside with higher margins, Wall Street may continue to offer a higher valuation to the shares.

This shoe expert continues to rise even higher

Jeremy Bowman (Deckers Outdoor): It may not be a household name, but Deckers Outdoor is one of the market’s best-performing stocks. garment industry in the last five years.

Shares are up nearly 600% in the past five years, thanks to the rapid growth of popular running shoe brand Hoka and the continued success of its branded sheepskin boot, Ugg.

Deckers’ strength was on display in its last fiscal quarter earnings report. Revenue rose 20% to $1.31 billion, and earnings per share rose 39% as margins widened.

The Hoka brand continues to grow rapidly, increasing its revenue by 35% compared to the previous quarter to $570.9 million. But Ugg is still its biggest brand. It continues to deliver solid growth, with sales up 13% to $689.9 million this quarter.

In addition to consistently strong sales growth, Deckers’ margins are also impressive. Gross profit margin increased from 53.4% ​​to 55.9% in the quarter. This is well ahead of the industry leader Nike On par with high-end brands such as and Lululemon Athletica And PendingAlthough Deckers is much more reliant on the wholesale channel than those two brands.

Its 23% operating margin over the last four quarters matches Lululemon’s and easily outpaces both Nike and On.

Deckers appears well priced in terms of its growth rate, with a price-to-earnings ratio of 30, and given its success with both Hoka and Ugg, there is potential for the company to add a third breakout brand to its portfolio in the future. We expect Deckers to continue to outperform in the coming years.