These three consumer stocks appear to be excellent investment options.
With $2,000 available for investment, provided it’s not earmarked for emergencies or ongoing bills, there are several promising stocks worth considering. In the consumer sector, specifically, the following three stocks stand out as worthy of your attention.
1. MercadoLibre
Investing $2,000 in MercadoLibre (MELI 0.62%) may only net you a single share, but it’s a smart pick at this time. The Latin American equivalent of Amazon (AMZN +0.11%) has shown rapid growth and is currently trading at one of its lowest historical valuations. Its forward price-to-earnings (P/E) ratio stands at 33 times, yet it drops to 23.5 times based on 2027 forecasts.
MercadoLibre has consistently increased its revenue by over 30% each quarter for almost seven years, showcasing robust growth. The company benefits from a mature logistics network that allows it to deliver approximately 75% of its products within 48 hours, strengthening its competitive advantage.
2. Amazon
If investing in a Latin American company seems too risky, Amazon provides another compelling choice. The irony is that the Amazon River is located in South America, where MercadoLibre operates.
Amazon is experiencing solid revenues from its e-commerce operations and showcasing remarkable operating leverage. With the world’s largest logistics network, combined with advancements in robotics and AI, the company is enhancing its efficiency and driving significant operating income growth.
Furthermore, Amazon leads the cloud computing sector with its Amazon Web Services (AWS), which has become its most lucrative and fastest-growing area due to the soaring demand for computing power and AI services. The company plans to significantly invest in expanding its data centers and has begun creating its own AI chips to maintain a competitive edge.
3. e.l.f. Beauty
Despite a turbulent year, e.l.f. Beauty (ELF +2.78%) remains an intriguing growth potential in the consumer market. The stock is currently trading at a forward P/E of 26 times 2026 estimates, with a price/earnings-to-growth (PEG) ratio below 0.45, indicating it may be undervalued.
The e.l.f. brand continues to gain market share in mass cosmetics, recently increasing its share in the U.S. by 130 basis points. With growing presence at Ulta Beauty and plans for expansion into Germany, along with the Naturium skincare line launching at Walmart, the brand has a bright future ahead.
Moreover, the recent acquisition of the Rhode brand presents a significant opportunity. With sales hitting $200 million in just three years and minimal marketing, e.l.f. can develop Rhode through increased distribution and product expansion. This potential growth trajectory makes the stock a solid investment choice.
