The S&P 500 continues its rebound, up 26% because it bottomed out in April. Should you had been too nervous to purchase when the market was down, you might have missed the very best offers.
However shares are nonetheless climbing, and if you happen to’re able to make some strikes with extra confidence, listed here are three superb shares that may preserve going up.
Picture supply: Amazon.
1. Amazon: Tops in two development industries
Amazon (AMZN -0.67%) is driving the synthetic intelligence (AI) wave, but it surely’s a lot greater than AI. Its e-commerce and cloud computing companies are each the most important companies of their variety, and these are each development companies.
Based on the U.S. Division of Commerce, e-commerce elevated as a proportion of retail gross sales from 15.9% to 16.2% within the 2025 first quarter, and that is a continuation of a sample. Amazon has a large lead in e-commerce, commanding about 40% of the U.S. market. Because the chief, it retains unimaginable expertise and has leverage in expertise and with suppliers, giving it the means to constantly improve its platform and provide aggressive pricing. That is the way it can preserve its prospects and get them to depend on its platform for an rising quantity of their necessities, plus extra.
As for cloud companies, Amazon has almost a 3rd of your entire world cloud market, and its investments in AI make it much more engaging to new shoppers. It is investing greater than $100 billion in AI developments, providing extra options and choices than the competitors, which builds up the AI enterprise and likewise generates better curiosity in cloud companies, the place AI is occurring.
That is to not point out Amazon’s different companies, like promoting and streaming. Amazon ought to proceed to develop and create shareholder worth for the foreseeable future.
2. E.l.f. Magnificence: The brand new chief in cosmetics and skincare
E.l.f. Magnificence (ELF 4.00%) has change into the favored cosmetics model amongst a youthful era of customers, and its cheaper costs are resonating much more beneath pressured financial situations. It is already the highest firm in mass shade cosmetics unit share, and it is in second place in greenback share. But it surely’s not completed, as a result of it is nonetheless rising its model within the general cosmetics market, comparable to not too long ago buying luxurious cosmetics model Rhode, and it is rising its skincare enterprise, which is already high 10 however has extra room to develop.
Gross sales development has slowed down, but it surely’s been that approach throughout the trade as customers minimize down on discretionary purchases. The corporate remains to be reporting development and capturing market share, since lots of its rivals are reporting declines, as is the cosmetics trade general.
Gross sales had been up 4% within the 2025 fiscal fourth quarter (ended March 31) and 28% for the total yr. Fourth-quarter earnings per share (EPS) had been $0.78, beating Wall Avenue’s expectations of $0.72.
E.l.f. inventory is down 34% over the previous yr, and it is a inventory you may nonetheless purchase on the dip.
3. Carnival: Sturdy demand, declining debt
Carnival (CCL 0.34%) (CUK 0.40%) inventory continues to rise, but it surely’s nonetheless 59% off its highs, and it is not prone to keep down for an excessive amount of longer.
It retains breaking information each quarter, and its enterprise has fully recovered from its pandemic shutdown. Within the 2025 fiscal second quarter (ended Could 31), income elevated 9% yr over yr, beating steering, and adjusted web earnings almost tripled from final yr. Adjusted EPS had been $0.35, crushing Wall Avenue expectations of $0.24.
The superior reserving place remained at historic highs, with excessive occupancy charges and ticket costs. It is also having fun with robust engagement with nonticket income sources like meals and leisure. Administration is investing for the long run, launching new ships and locations to generate new demand, in addition to improve repeat frequency charges.
Carnival inventory stays down as a result of excessive debt it took on when it needed to shut down its cruises. Though that ended up being a brief period of time, the debt piled up, and it should take some time to repay. The excellent news is, it has been in a position to pay it again at an environment friendly tempo, and it is inside one rung of investment-worthy, in accordance with two score companies. As quickly because it hits the subsequent rung, the worth is prone to bounce, and contemplating its robust efficiency and continued demand, that is prone to occur quickly.
John Mackey, former CEO of Entire Meals Market, an Amazon subsidiary, is a member of The Motley Idiot’s board of administrators. Jennifer Saibil has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Amazon and e.l.f. Magnificence. The Motley Idiot recommends Carnival Corp. The Motley Idiot has a disclosure coverage.
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