3 Hypergrowth Stocks That Could Make You a Ton of Money

Any investor can find monster winners in the stock market. The important thing to remember is that Wall Street can be slow to give great growth stocks the valuation they deserve. But if you consistently buy stocks of high-growth companies, you’re almost certain to stay ahead of the game for the long term.

To give you a head start, three Motley Fool contributors are here to discuss three growth stocks which are ready to offer exceptional returns to investors. Here’s why elf Beauty (ELF -2.02%), Toast (TOAST 3.16%)and Outdoor deckers (DECK -1.72%) they could be timely purchases right now.

The new leader in an old industry

Jennifer Saibil (elf beauty): Elf is a small player in the beauty industry compared to the industry giants, but it is growing rapidly and gaining market share. More importantly, it has massive opportunities.

Social media and digital shopping play a big role in Elf’s success. It has developed a differentiated brand with “clean” ingredients and great prices that resonates with its target market of younger, environmentally conscious shoppers. Customers can’t get enough of its products.

The results speak for themselves. It gained 2.6 percentage points of the color cosmetics market share in 2025 first fiscal quarter while the market leaders all lost share and rose from 5th place last year to 2nd place this year in dollar share. It is now the best selling brand at Aim. In skin care, it gained 0.6 percentage points in market share, moving from no. 13 at no. 9. It’s just getting started in international markets, where it continues to roll out, and international sales were up 91% year-over-year in the quarter.

Although elf has reported staggering growth for several quarters, it appears that this is starting to wane. Sales rose 50% year-over-year in Q1, but management expects that to fall to around 26% for the full year. That implies a serious deceleration over the next three quarters. Worse, net income was lower year-over-year in Q1, and management’s guidance for full-year earnings per share (EPS) was below Wall Street expectations.

With moderate inflation and a growing economy, this could end up better than expected. But investors should focus on the long-term story. elf has a differentiated, growing brand that continues to eat away at longtime industry leaders. Elf shares are down 24% this year, and while it may take some time to recover, in a few years patient investors will thank themselves for buying today.

An undervalued software stock

John Ballard (Toast): Toast is a leading provider of restaurant management software that has consistently seen high double-digit revenue growth, and the stock recently hit new highs. With Wall Street starting to give stocks their due, investors could be looking at excellent returns over the next few years.

Toast continues to see strong momentum for its offering. The total number of locations using its product rose 29% year over year in the second quarter, bringing the total to 120,000. This has led to similar growth in gross payment volume and revenue, and importantly, the company is starting to see net income grow.

Toast beats out its competition in the restaurant software market with its easy-to-use platform and ability to innovate with new solutions. Its tools help restaurants save time in payroll management, marketing and order preparation. That’s why the number of restaurants using the platform has doubled since 2021.

Toast is in the early stages of growth, and its stock still trades at an attractive valuation. Actions take a the price-to-sales ratio of 3.8, which is on the low side for a software business. Wall Street may continue to bid the stock up to a higher valuation if the company continues to surprise on the upside with higher margins.

This footwear specialist continues to move higher

Jeremy Bowman (Outdoor Deckers): It may not be a household name, but Deckers Outdoor is one of the best performing stocks in the the clothing industry in the last five years.

Shares have risen nearly 600% over the past five years, driven by the explosive growth of Hoka, the popular running shoe brand, and the continued success of Ugg, its sheepskin boot.

Deckers’ strength was on display in its recent Q2 earnings report. Revenue rose 20% to $1.31 billion and earnings per share rose 39% as its margin expanded.

The Hoka brand continues to grow rapidly, with revenue up 35%, accelerating from the previous quarter to $570.9 million. However, Ugg is still its biggest brand. It also continues to deliver solid growth, with sales up 13% to $689.9 million in the quarter.

In addition to consistently strong top line growth, Deckers’ margins are also impressive. It posted a gross margin of 55.9% in the quarter, up from 53.4%. It is way ahead of the industry leader NIKE and on par with high-end brands such as Lululemon Athletica and On Holdingeven though Deckers relies much more on the wholesale channel than the two brands.

Its 23% operating margin over the past four quarters matches Lululemon’s and easily beats both Nike and On.

Deckers looks well priced for growth at a price-to-earnings ratio of 30, and given its success with both Hoka and Ugg, the company has the potential to add a third growth brand to its portfolio in future. Expect Deckers to continue to outperform for years to come.