Watch 3 Monster Stocks That Can Crush the S&P 500 Over the Next 5 Years @themotleyfool #shares $ELF $SBUX $AMZN $PEP $MNST $CELH $BROS Stocks News

The S&P 500 index has averaged 10% annualized returns all over the previous half-century, however it isn’t that tricky to outperform that focus on in case you spend money on a bunch of well-chosen enlargement shares.

To come up with some concepts, a staff of Motley Fool members see promising possibilities in e.l.f. Beauty (ELF 1.07%), Dutch Bros (*3*)(BROS -0.64%), and Celsius Holdings (CELH 3.86%). Here’s why those shares must ship awesome returns.

This is certainly one of the fastest-growing client manufacturers

John Ballard (e.l.f. Beauty): Shares of e.l.f. Beauty have rocketed 275% all over the previous 3 years. The corporate’s center of attention on handing over worth in colour cosmetics has enabled the corporate to realize important marketplace percentage towards trade leaders. The corporate nonetheless has super enlargement doable international, however traders can purchase the inventory at a extra affordable valuation with the stocks down greater than 50% from their excessive in February.

High inflation strengthened e.l.f.’s worth proposition. In the 2025 fiscal first quarter ended June 30, gross sales jumped 50% from the year-ago quarter. It is now the No. 2 mass logo in the U.S., with 12% marketplace percentage, and control is operating to increase the logo globally. International gross sales make up handiest 16% of the trade, however grew an outstanding 91% yr over yr closing quarter.

e.l.f. Beauty has promising enlargement doable, and control sees worth in the inventory after the sell-off. The corporate just lately introduced a $500 million percentage repurchase program. The inventory has declined on expectancies that upper advertising investments will weigh on revenue and margins in the close to time period. However, revenue are nonetheless anticipated to be up 10% this yr prior to accelerating to 26% in fiscal 2026.

Given the monumental runway in global markets, the inventory must outperform the broader marketplace over the subsequent 5 years and past.

Great espresso, rising gross sales

Jennifer Saibil (Dutch Bros): How do you open a sequence of eating places that principally sells espresso however creates a message unique sufficient to tell apart it from Starbucks and achieve an enormous following? Ask Dutch Bros. This small-town, down-to-earth espresso chain is increasing impulsively, producing high-sales enlargement and growing a rising base of dependable lovers.

Dutch Bros has been round for many years as a small, native espresso store chain in Oregon. After honing its symbol and tradition and growing a line of in style drinks, it changed into a public corporate with large enlargement plans. It has effectively entered new states on the West Coast and throughout most commonly Southern states, for now, and it has grown from a complete of 415 shops in 2020 to 912 by way of the finish of Q2. It opened 159 shops in 2023, and it is chasing a possibility of four,000 shops all over the subsequent 10 to fifteen years, which is a purpose that means accelerating enlargement.

With new shops come upper gross sales. Sales enlargement has been sturdy and secure, coming in at 30% yr over yr in Q2. With upper gross sales and environment friendly operations come earnings, and it is been reporting rising web source of revenue.

One vital new building is virtual ordering. Despite the seeming want for everybody to head virtual nowadays, Dutch Bros has discovered nice good fortune with out it. Now, alternatively, it has examined cellular ordering in a few of its shops, and it is set to head reside by way of the finish of the yr. That units it up for additional good fortune. Between its in style beverages and tradition, new shops, and virtual release, Dutch Bros must simply be capable to stay up sturdy enlargement for the foreseeable long run.

Dutch Bros inventory is up 38% all over the previous yr, outperforming the marketplace, and it can be a market-crushing inventory all over the subsequent 5 years and longer.

This beverage inventory has extra upside

Jeremy Bowman (Celsius Holdings): Celsius Holdings was once certainly one of the largest breakout shares of the pandemic, surging after the calories drink stuck hearth on Amazon all over the lockdown duration.

From the get started of 2020, the inventory won greater than 5,000% at one level prior to falling sharply in contemporary months on issues about slowing enlargement, a maturing energy-drink class, and information that Pepsico overstocked on Celsius stock, which means it hyped up call for after turning into a distribution spouse.

Celsius inventory is now down just about 70% from its top this yr, however that units up a excellent purchasing alternative for traders. While the corporate’s days of triple-digit proportion beneficial properties are almost definitely over, the enlargement tale is a long way from useless, and the inventory appears to be like fairly priced now at a price-to-earnings (P/E) ratio of 31.

In Q2, income jumped 23% to $402 million, and its gross margin persevered to make stronger, widening 320 foundation issues to 52%, appearing the trade continues to grow to be extra environment friendly, taking advantage of freight optimization and decrease fabrics prices.

Though there are indicators that enlargement in the general energy-drink class is slowing as marketplace chief Monster Beverage reported simply 6% constant-current enlargement in its Q2, Celsius continues to realize marketplace percentage with retail-dollar percentage up 1.4 proportion issues to 11% in Q2, whilst enlargement stays sturdy at the warehouse-club stage and on Amazon.

The upshot is that Celsius appears to be like oversold after the contemporary pullback. Investors can take benefit as the trade nonetheless has a promising runway of enlargement forward of it.