<div id="readability-page-1">There's still plenty of growth in the consumer space if you know where to look. And while tariffs are still a potential headwind, right now the U.S. economy seems to be holding up well. Let's look at five of my favorite stocks in the consumer goods sector right now. <div><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84Mjc0MjcvZ2V0dHlpbWFnZXMtMTQ3MjI5MjM0OS5qcGcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84Mjc0MjcvZ2V0dHlpbWFnZXMtMTQ3MjI5MjM0OS5qcGcmdz03MDA"/>Image source: Getty Images. </div> <h2>1. Amazon</h2> Amazon (AMZN -8.09%) has built one of the most defensible platforms in any sector. Its edge is simple -- it invests to win. Whether it's with logistics, robotics, or artificial intelligence (AI), the company spends big to win big. That continues to be the story today. Amazon long ago built a regionalized fulfillment network to become a leader in e-commerce. However, it didn't stop there. The company has become one of the leading robotics companies in the world, deploying robots to make its warehouse operations more efficient. Meanwhile, it's also deploying AI to improve delivery routes, give drivers better navigation tools for complex drop-offs, and predict the best warehouses to store items to reduce delivery times. Combined, this is leading to a lot of operating leverage, helping drive earnings growth. At the same time, Amazon Web Services (AWS) continues to be the market-share leader in cloud computing. Amazon's custom AI chips give it a cost advantage, and its software solutions help customers build and run AI models on its infrastructure. Between its e-commerce operation and cloud business, Amazon has two powerful growth drivers -- and it keeps improving both. This is a name to own for the long haul. <h2>2. E.l.f. Beauty</h2> E.l.f. Beauty (ELF -3.77%) helped reshape the mass cosmetics market, and now it's going upmarket with its impending Rhode acquisition. Rhode was already doing more than $200 million in sales with almost no retail footprint, little to no paid marketing, and a small product assortment. Expect that to change under e.l.f. Rhode was already set to start being sold at Sephora, and e.l.f. has strong retail distribution at stores like Target and Ulta. The brand also brings higher price points, better margins, and a strong skincare lineup. That pairs well with e.l.f.'s core cosmetics products and opens the door to cross-selling. Rhode founder Hailey Bieber will stay on board to help with product development, but also expect e.l.f. to look to expand Rhode's product assortment. E.l.f. also knows how to grow without throwing money at the problem. Its influencer marketing strategy works, and is a big reason why it was able to take such a huge market share in the mass cosmetics space over the past few years. Add in international expansion and the potential to move into new categories, such as fragrance, and the company should have a long runway of growth ahead of it. <h2>3. Dutch Bros</h2> If you don't live on the West Coast, you might not be familiar with coffee shop operator Dutch Bros (BROS -4.30%), but it is one of the best growth stories in the restaurant space. The company just crossed 1,000 locations and has a long-term goal of 7,000. Its units have a small footprint and are largely just drive-thru, making expansion very affordable. But this isn't just about new units, it's also seeing solid same-store sales, and it has an opportunity to grow them even more. Dutch Bros is pretty new to mobile ordering, which should help speed up service and boost peak-hour volume. It's also testing breakfast items -- a move that could unlock a big new revenue stream. The company has admitted that not offering food has likely held back sales, especially during key breakfast hours. The brand connects well with younger customers and doesn't rely on heavy marketing to drive traffic. It's generally cheaper than rival Starbucks and has built a real following. Between expansion, tech upgrades, and new offerings, Dutch Bros has multiple ways to grow. It's a long-term growth story that's still early. <h2>4. Philip Morris International</h2> Philip Morris International (PM -0.64%) is pulling off one of the best transitions in the consumer goods space. While other tobacco companies are seeing rapidly shrinking cigarette sales in the U.S., Philip Morris' international markets are holding up much better. Meanwhile, it is seeing strong growth in its smoke-free portfolio, led by its Zyn nicotine pouches and Iqos heated-tobacco units. Zyn shipment volumes jumped 40% last quarter in the U.S., and the brand is now in 44 countries. Iqos, meanwhile, continues to gain share across Europe and Japan and is making progress in newer markets. The company now owns the U.S. rights and is waiting on FDA approval to launch its latest device here. If that happens, it adds another potential growth lever. The stock sold off after the company reported solid Q2 earnings. This was largely due to it forecasting a steeper decline in cigarette sales volumes in the second half. However, about half of that decline is due to a temporary issue around its Turkish supply chain. Meanwhile, the real story centers around the growth of Zyn and Iqos. Philip Morris offers a rare combination of growth and defense, and the recent pullback in the stock offers a solid entry point. <h2>5. Toast</h2> Toast (TOST -4.26%) is becoming one of the most important players in the restaurant industry. It's not just a payment processing platform; it's become the central operating hub for more than 140,000 restaurants. The company has always been an innovator, and it just keeps rolling out new tools to help restaurants improve sales and operate more efficiently. This includes modules for staffing optimization, menu planning, marketing, and more. It's also embraced AI, introducing AI solutions like ToastIQ and Sous Chef to help restaurants make adjustments in real time. Restaurants are under pressure to do more with less, and Toast helps them do exactly that. Its platform gets stickier as it grows, and it benefits when its customers increase sales through its payment processing. That alignment matters, and with a large market still up for grabs, Toast has a long growth runway ahead. </div>

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The article discusses five recommended stocks in the consumer goods sector: 1. Amazon, which excels in e-commerce and cloud computing through significant investments in logistics and AI; 2. E.l.f. Beauty, poised for growth with its Rhode acquisition and strong marketing strategies; 3. Dutch Bros, a coffee chain expanding rapidly with a focus on drive-thru and mobile ordering; 4. Philip Morris International, successfully transitioning to smoke-free products with strong international growth; and 5. The overall positive outlook for the consumer space despite potential tariff challenges.

- The article discusses five promising stocks in the consumer goods sector, highlighting their growth potential despite economic challenges.  
- Amazon leads with its investments in logistics and AI, while E.l.f. Beauty is expanding through strategic acquisitions and influencer marketing.  
- Dutch Bros, Philip Morris International, and Toast are also noted for their innovative strategies and market opportunities, indicating a robust outlook for these companies.

My 5 Favorite Stocks to Buy Right Now