The stocks mentioned in this article have increased their share prices between 14% and 41% annually since their IPOs.
Each company increased its sales between 16% and 48% in its last quarter.
Despite the success of the past few years (or even further back), every stock has fallen recently, making them excellent candidates to buy on the dips.
These 10 stocks could generate the next wave of millionaires ›
As we head into a new year, it’s the perfect time to add some new money to some of the most promising growth stocks on the market. While the widest S&P 500 Although the index remains a couple of percentage points from its all-time high, the stocks in this article are down between 22% and 55% from their 52-week highs.
Despite their recent declines, these companies have shown strong price appreciation in the past (long-term) and generated revenue growth of between 16% and 48% in the last quarter. Plus, each stock is driven by what could be decades-long megatrends, making them five of the best growth stocks to double down on in 2026.
Image source: Getty Images.
Since its initial public offering (IPO) in 2021, the end-to-end space company US Rocket Laboratory (NASDAQ: RKLB) It has quickly become a top five bag for investors. However, during the same time, their sales have increased almost tenfold, so I don’t think investors have “missed their chance.”
Driven by this growth, the company led by its founder has become the third player in the launch services and space systems industry, only behind SpaceX and Blue Origin. However, with its first medium-launch Neutron rocket scheduled to lift off in the first quarter of next year, Rocket Lab could become a bigger competitor to its larger peers.
Vertically integrated, Rocket Lab is positioned for decades of growth in its business segments: launch, spacecraft and payloads. Furthermore, the company’s operations continue to scale beautifully.
YCharts data.
McKinsey and Company projects the space industry will grow from $630 billion in 2023 to $1.8 billion By 2035, Rocket Lab could surpass its relatively minuscule market capitalization of $28 billion. Ultimately, the company’s growth optionality is unfathomably considerable as large-cap technology companies and governments experiment with new space concepts.
As long as Rocket Lab’s sales growth and scale margins persist, I’m happy to continue adding to the company over time, especially with shares down 20% from their high.
If space companies don’t interest you, let’s try the opposite end of the enthusiasm spectrum and look Kinsale Capital Group (NYSE: KNSL) and its best-in-class excess and surplus insurance operations. Kinsale may be the most efficient insurer on the market, with a total return to investors of 39% since its 2016 initial public offering.
With a combined ratio of 77%, the company’s profitability is higher than its peers, who maintain an average combined ratio of 92%. What makes this industry-leading profitability even more incredible is that Kinsale produced it while also generating revenue growth of 39% annually over the past decade.
By focusing on small, hard-to-assess risks that its mega peers typically try to avoid, Kinsale has carved out a lucrative niche. That said, Kinsale’s revenue growth slowed to 19% in the latest quarter, as price competition intensified and management opted to prioritize profitability over sales growth.
With its shares falling 24% due to this growth slowdown, it seems like the perfect time to buy these growth stocks.
Since its IPO in 2007, the Latin American e-commerce and financial technology giant MercadoLibre (NASDAQ: MELI) has become a 70-bagger. During the same time, the company’s sales grew from $85 million to $26 million. billion today. Despite this market defeat, MercadoLibre’s brightest days may still be ahead, even though it is already the largest business in Latin America.
While the company has become synonymous with e-commerce in the countries it serves, the online shopping penetration rate in Latin America is still only half that of the U.S. Additionally, Brazil, Mexico and Argentina account for 96% of MercadoLibre’s sales, proving that there are many more chapters left in the company’s growth story as it experiments in new countries.
Home to a huge flywheel that supports its logistics network, which in turn facilitates e-commerce transactions, generates payments for its fintech unit, which helps fuel its lending business, etc., MercadoLibre remains my favorite growth stock to buy after its 23% drop from July 2025 highs.
SPS Trade (NASDAQ:SPSC) is a leading provider of cloud supply chain services that has generated an 18% annualized return for investors since 2010. Growing sales by 26x in value over that time, the company’s solutions have become mandatory for many retailers, third-party logistics providers, and suppliers as the world continues to move toward omnichannel sales.
SPS’s offerings have become so popular that the company has had 99 consecutive quarters of positive sales growth. However, after seeing its sales growth rate slow slightly and forecasting sales growth of “only” 8% in 2026, the company’s shares have plummeted more than 55% over the past year.
Ultimately, I believe this decline is a byproduct of the company previously being priced to perfection at over 70 times free cash flow (FCF).
YCharts data.
Now available at just 23 times FCF and planning to buy back shares with at least half of the FCF it generates, this niche market leader looks like a bargain.
Image source: Dutch Bros.
Flourishing craft beverage chain dutch brothers(NYSE: BROS) has seen its stock price rise 14% annually since 2021. With 1,089 locations in 17 states, Dutch Bros has a cult following and is rapidly expanding throughout the rest of the U.S. Management’s goal for the company is to reach 2,029 locations by 2029, and they are on track after increasing store count by 14% in 2025.
However, Dutch Bros is not just an expansion story. Its same-store sales have grown for 10 consecutive quarters and the company now funds expansion plans almost entirely internally with cash generated from its operations. This marks a major turning point for the company as it previously relied on issuing new shares to grow, thereby diluting shareholder value.
Dutch Bros shares, trading at 40 times cash from operations, aren’t cheap. However, if it gets closer to its goal of 2,029 stores by 2029, it could be on its way to becoming its own multibagger.
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Josh Kohn-Lindquist has positions at Dutch Bros, Kinsale Capital Group, MercadoLibre, Rocket Lab and SPS Commerce. The Motley Fool holds positions and recommends Kinsale Capital Group, MercadoLibre and Rocket Lab. The Motley Fool recommends Dutch Bros. The Motley Fool has a disclosure policy.
The 5 Best Growth Stocks to Buy Right Now for 2026 was originally published by The Motley Fool
