Here are companies to invest in right now which have reasonably attractive growth potential based on their past history. These companies’ current performance and valuation metrics standouts.
Key Takeaways:
- Advertising is performing well for many companies.
- Chip demand is driving Taiwan Semiconductor’s stock higher.
- Subscription growth and platform improvements show promise.
- Explosive growth in commercial AI; major defense contracts; Q2 revenue >$1B for Palantir.
Alphabet
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is one of the best values in the market right now. It is delivering consistent and strong growth, with revenue and diluted earnings per share (EPS) rising 14% and 22% in the second quarter, respectively.
Normally, that would cause a company like Alphabet to trade at a premium to the market, but that’s not the case.
Alphabet trades at 19.7 times forward earnings, and the S&P 500 (SNPINDEX: ^GSPC) trades for 23.8 times forward earnings. That’s a significant discount to the broader market, and makes Alphabet an excellent stock to buy now before the market bids the stock up.
Meta Platforms
Meta Platforms (NASDAQ: META) delivered a knockout earnings report in Q2. Its revenue was up 22% year over year, despite it only guiding for 13% growth. It expects that strength to continue throughout Q3, with revenue growth expected to be about 20%.
While Meta is investing heavily in building out its artificial intelligence (AI) capabilities, its existing advertising business is thriving. Some of Meta’s AI investments are starting to pay off, with AI ad creation becoming more popular and various AI initiatives driving increased interaction and conversion rates on its platforms.
Meta is more pricey than Alphabet at 27.6 times forward earnings, although it has earned that premium with its rapid growth. Meta is growing significantly faster than the market’s long-term average (about 10%). It’s not that much more expensive, which makes today’s price reasonable.
Taiwan Semiconductor
The AI race wouldn’t be possible without cutting-edge chip technology from Taiwan Semiconductor (NYSE: TSM). Taiwan Semiconductor is a chip foundry and produces chips for big-time clients like Nvidia (NASDAQ: NVDA) and Apple (NASDAQ: AAPL).
Essentially, if a company doesn’t have chip production capabilities, it needs to find a supplier for its chip production. Taiwan Semiconductor has risen to become the top option in this field, and has the growth to show for it. In Q2, TSMC’s revenue rose by 44% year over year in U.S. dollars. Despite its strong growth rate, Taiwan Semiconductor doesn’t have a massive valuation like one may expect.
Amazon
At first glance, Amazon (NASDAQ: AMZN) looks a bit pricey for its growth and valuation. In Q2, Amazon’s revenue increased by 13%, yet it’s the most expensive stock on this list at 32.5 times forward earnings.
However, this is the wrong way to look at Amazon’s stock. Amazon is an earnings growth story, not a revenue growth story.
Amazon’s operating income has been growing at a far faster pace than revenue over the past few quarters. This rise is due to multiple factors, including increased efficiency. But the biggest driver has been from the rise of two segments: Amazon Web Services (AWS) and advertising. Both of these are much higher-margin businesses than the base commerce business Amazon is known for. Additionally, each is growing rapidly, with AWS’ revenue rising 17% and advertising service revenue rising 23% in Q2.
Based on current performance and valuation metrics, here are four standout companies that offer attractive growth potential for a $50K investment right now:
Top Stocks to Consider
| Company | Ticker | Why It’s Attractive | Forward P/E Ratio | Q2 Revenue Growth |
|---|---|---|---|---|
| Alphabet | GOOG / GOOGL | Strong earnings growth, undervalued vs. S&P 500, resilient ad business | 19.7 | 14% |
| Meta Platforms | META | Rapid revenue growth, thriving AI and ad segments, premium justified by performance | 27.6 | 22% |
| Taiwan Semiconductor | TSM | Critical to AI chip supply chain, high growth, reasonable valuation | 23.8 | 44% |
| Amazon | AMZN | Earnings growth story, AWS and advertising driving high-margin expansion | 32.5 | 13% |
Why These Picks Make Sense
- Alphabet is trading at a discount to the broader market despite solid growth in both revenue and EPS. Its core advertising business remains strong, and its investments in AI are beginning to show promise.
- Meta Platforms is outperforming its own guidance and growing faster than the market average. Its AI-driven ad tools are increasing engagement and conversion, making it a compelling long-term play.
- Taiwan Semiconductor is the backbone of the AI hardware boom, supplying chips to giants like Nvidia and Apple. Its 44% revenue growth is impressive, and its valuation remains reasonable.
- Amazon may look pricey, but its operating income is surging thanks to AWS and advertising—both high-margin segments. This makes it more of an earnings growth story than a revenue one.
Here’s a breakdown of these additional companies—Booking.com, Costco, Snapchat, Pinterest, and Palantir—and how they stack up as potential investments right now:
Investment Snapshot: August 2025
| Company | Ticker | Growth Highlights | Valuation Notes | Analyst Sentiment | Key Risks |
|---|---|---|---|---|---|
| Booking.com | BKNG | EPS up 32% YoY; revenue $6.8B; strong AI-driven features | Forward P/E ~24 | Moderate Buy (32 ratings) | Limited upside (~7%); travel cyclicality |
| Costco | COST | Revenue up 8.5% YoY; strong comps; 93% renewal rate | Forward P/E ~46 | Mostly Buy/Outperform | High valuation; margin pressure |
| Snapchat | SNAP | Revenue up 9%; DAUs 469M; Snapchat+ up 42% YoY | Price ~$7.76; PT avg ~$10 | Hold (majority of 29 analysts) | Ad platform missteps; weak ARPU |
| PINS | Revenue up 17%; MAUs 578M; strong international monetization | Forward P/E ~21 | Mixed (Buy to Neutral) | Tariff-related ad concerns; EPS miss | |
| Palantir | PLTR | Revenue >$1B; U.S. commercial up 93%; EPS up 78% | Price ~$173; PT avg ~$150 | Mixed (some Street-high targets) | High valuation; regulatory risk |
Deeper Insights
Booking.com (BKNG)
- Why it’s compelling: Strong Q2 performance and AI-enhanced services like OpenTable’s concierge are driving engagement.
- Upside: Analysts forecast ~7% upside, with some projecting as high as 18–24%.
- Caution: Travel stocks can be cyclical and sensitive to macroeconomic shifts.
Costco (COST)
- Why it’s compelling: Recession-resilient, strong membership model, expanding internationally.
- Upside: Analysts see continued growth, but valuation is steep (P/E ~46).
- Caution: Limited margin of safety at current price; consider dollar-cost averaging.
Snapchat (SNAP)
- Why it’s compelling: Subscription growth and platform improvements show promise.
- Upside: Some analysts forecast 50–300% upside, but consensus is cautious.
- Caution: Ad revenue volatility and platform changes have hurt short-term performance.
Pinterest (PINS)
- Why it’s compelling: Strong ARPU growth internationally; Gen Z traction; AI-powered shopping tools.
- Upside: Forecasts suggest rebound to ~$42–$44 (from ~$35), with long-term potential.
- Caution: EPS miss and tariff concerns triggered recent sell-off—could be a buying opportunity.
Palantir (PLTR)
- Why it’s compelling: Explosive growth in commercial AI; major defense contracts; Q2 revenue >$1B.
- Upside: Some analysts project $200/share; AI and defense tailwinds are strong.
- Caution: Valuation is very high (forward P/E >250); regulatory and competitive risks loom.
Portfolio Strategy Tips:
If you’re working with $50K, consider this allocation for a balanced growth portfolio:
- Core Growth (40%): Alphabet, Meta, Amazon
- AI & Defense (20%): Palantir, Taiwan Semiconductor
- Consumer Resilience (20%): Costco, Booking.com
- Speculative Upside (20%): Pinterest, Snapchat
Here are some recommendations past results:
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $636,563!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,108,033!*
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