Amazon and Chewy are two attractively valued, fast-growing e-commerce operators.
Philip Morris International is a defensive growth stock.
Dutch Bros is a pure growth play, while JAKKS Pacific is a cheap turnaround play with a catalyst.
10 stocks we like better than Amazon ›
With the market being roiled with talks of Greenland and tariffs, the consumer space is the one that always seems to take the brunt of it. However, there are now some really attractive stocks in that segment.
Here is a rundown of my five favorite stocks at the moment.
Image source: Getty Images.
Amazon(NASDAQ: AMZN), the world’s largest e-commerce company, has admitted that tariffs are starting to lead to increased prices on its platform. However, sales have held up well for the company, and more importantly, it has been seeing strong operating leverage in its e-commerce due to its investments in robotics and artificial intelligence (AI).
This was on full display in the third quarter, when its North American revenue rose 11%, while its adjusted operating income soared 28%. Meanwhile, AWS, the company’s cloud computing unit, is seeing strong revenue growth, up 20% year over year in the third quarter.
Trading at a forward price-to-earnings ratio (P/E) below 24, the 2026 analyst consensus, the stock is cheap.
If you want a defensive stock with good growth at an attractive valuation, Chewy(NYSE: CHWY) is the stock for you. The bulk of the company’s sales comes from pet food and other pet essentials that are auto-shipped to customers.
This is a very stable business, and revenue growth has been strong, rising by more than 8% each quarter recently. Despite that, the stock trades at a forward P/E of just 21 times 2026 analyst estimates.
The company has also taken some pages from Amazon’s book to help drive growth and increase gross margins. This includes launching a paid membership program and offering sponsored ads. It’s also pushing more into private-label products and pet pharmacy items, both of which also carry significantly higher margins.
Another great defensive growth stock is Philip Morris International(NYSE: PM). The company doesn’t have to worry about the U.S. tariff war, since it largely relies on regional manufacturing that isn’t impacted. It also benefits from not selling cigarettes in the U.S., which is a rapidly declining market.
The company’s smoke-free portfolio, highlighted by the nicotine pouch Zyn and heated tobacco brand Iqos, is driving strong growth. Zyn has become a sensation, with U.S. shipments up 37% and international growth outside its established Nordic markets more than doubling in the third quarter.
Sales volumes for Iqos climbed more than 15% last quarter. Both products carry better unit economics than cigarettes, also helping boost gross margins.
At a forward P/E of 18 and a price/earnings-to-growth ratio (PEG) of 0.65 (with less than 1 considered undervalued), this is a stock to buy now.
For investors looking for a pure growth story, Dutch Bros(NYSE: BROS) is a great option. The coffee shop operator is growing its same-store sales, and that should continue with the rollout of hot food items scheduled for three-quarters of its locations. Thus far, the locations that have tested food items have seen about a 4% lift in sales.
The company is also rapidly expanding. At the end of the third quarter, it had fewer than 1,100 locations, with plans to increase that to more than 2,000 by 2029. Overall, it thinks it can support around 7,000 locations in the U.S., leaving a long runway of expansion growth.
For investors looking for a cheap turnaround play, JAKKS Pacific(NASDAQ: JAKK) could be just the ticket. The toymaker has been hurt by tariff worries, but a strong 2026 slate of children’s movies bodes very well. And the stock trades at only six times 2026 analyst earnings estimates.
While JAKKS has been working to become less reliant on its licensed portfolio and the impact that movies have on these product lines, it is still very much beholden to blockbuster kids’ movies to generate interest in product tie-ins. For 2026, that’s a very good thing.
There are plenty of potential blockbuster movies this year across age cohorts, including Toy Story 5, The Mandalorian & Gogu, The Super Mario Galaxy Movie, Masters of the Universe, Paw Patrol: The Dino Movie, and Minions 3, to name a few. JAKKS, a cheap stock with a catalyst, is worth buying here.
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Geoffrey Seiler has positions in Amazon, Chewy, Dutch Bros, JAKKS Pacific, and Philip Morris International. The Motley Fool has positions in and recommends Amazon and Chewy. The Motley Fool recommends Dutch Bros and Philip Morris International. The Motley Fool has a disclosure policy.
My 5 Favorite Stocks to Buy Right Now was originally published by The Motley Fool
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