Link copied
By Jeremy Bowman
Investors can get exposure to a wide range of industries in consumer goods.
Some stocks, like Deckers and Lululemon, are beaten down due to concerns about tariffs.
There are some promising restaurant stocks available like Cava, Sweetgreen, and Dutch Bros.
Consumer goods stocks might not get the hype that the tech sectors or other high-growth stocks get, but there are plenty of hidden gems in the industry as well as big winners.
Stocks like Home Depot and Nike have transformed the lives of early investors, and there are others lurking in the consumer goods sector that could deliver blockbuster returns over the coming years. Keep reading to see 10 of them.
Deckers (NYSE: DECK), the footwear company that makes brands like HOKA and UGG, has already skyrocketed since its initial public offering (IPO) in 1993, up 8,550% overall. However, now is an opportune moment to buy the stock as it's down roughly 50% from its peak earlier in the year on headwinds related to tariffs and slowing growth at HOKA.
The stock now trades at a price-to-earnings (P/E) ratio of just 16 and has the ability to accelerate its growth again.
Like Deckers, RH (NYSE: RH) stock is trading down significantly from its peak. The high-end home furnishings seller has also struggled with a weak housing market, though its business performance has improved in recent quarters.
The company is expanding in Europe and is extending its luxury brand into areas like restaurants and guesthouses, giving it significant upside potential, especially if the housing market cooperates.
Sweetgreen (NYSE: SG) is another high-growth-potential stock that's pulled back from its recent peak. The company is the leading fast-casual salad chain and expects to grow from its current footprint of around 250 stores to at least 1,000.
The restaurant chain is also rolling out more of its Infinite Kitchen automation assembly system, which should help it save money on labor and improve throughput. If the company can overcome the recent challenges it's faced, the stock could soar.
Lyft (NASDAQ: LYFT) has been a historical laggard on the stock market, but the company has streamlined its business and is now delivering solid growth. It's innovated with new features like Price Lock, which allows commuters to lock in daily prices, Women+, which allows female drivers and riders to match with other women, and Lyft Silver with features targeted toward senior citizens.
That commitment to improvement should help drive the stock higher over the coming years
Williams-Sonoma (NYSE: WSM) has been a top operator in the home furnishings market, delivering operating margins above 15% even in a weak housing market.
Williams-Sonoma has effectively managed shareholder capital, buying back stock and steadily raising its dividend, and the company is growing both through comparable sales growth, mostly in the online channel, acquisitions, and in-store "marketplace," and expanding into the B2B channel.
Another beaten-down apparel stock worth taking a look at is Lululemon Athletica (NASDAQ: LULU), the company that popularized athleisure. Like Deckers and some of its other peers, the company has struggled with slowing growth and pressure from tariffs, but it's experiencing strong growth in China, and it has the leading brand in the industry, and its reputation for quality and luxury has allowed it to earn wide operating margins.
At a P/E ratio of just 16, the risk/reward looks favorable for investors here.
Another attractive restaurant stock with long-term growth potential is Cava Group (NYSE: CAVA), a Mediterranean fast-casual chain that is similar to Chipotle in a number of ways, including its menu concept and its store design.
Cava is also delivering red-hot growth with revenue up 28.2% in the first quarter and a restaurant-level profit margin of 25.1%. The company is also expanding quickly and still has less than 400 locations, meaning it could easily multiply its store base from here.
Viking Holdings (NYSE: VIK), the operator of Viking River Cruises, went public a little more than a year ago, and the stock is already delivering impressive growth. Viking benefits from a differentiated business model that avoids typical cruise fare like casinos and buffets and goes for a more refined, intellectual approach, including lectures.
All of its rooms come with windows, and it doesn't allow children on board. It's earned high customer-satisfaction scores and can continue to capture an increasing share of the travel market.
Starbucks has long dominated the U.S. coffee shop business, but Dutch Bros (NYSE: BROS) is the most serious challenger to Starbucks in years.
While Dutch Bros is still much smaller than Starbucks, with roughly 1,000 locations, it's growing quickly, and the large coffee market gives it a long runway for growth.
The company reported 29% revenue growth in Q1, and the company is now profitable.
Dutch Bros has shifted away from a franchise model to a company-operated store model, seeking to capture more of the profits from its stores, and sees potential in the market for at least 7,000 stores over the long term.
Sprouts Farmers Market (NASDAQ: SFM) has been a longtime outperformer on the stock market thanks to its differentiated business model that features products not found in conventional supermarkets, an emphasis on fresh produce, competitive pricing, and an open layout.
That formula has led to success, and the company should be able to gain market share as it expands in the massive supermarket category.
Before you buy stock in Sprouts Farmers Market, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sprouts Farmers Market wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $694,758!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $998,376!*
Now, it’s worth noting Stock Advisor’s total average return is 1,058% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of July 7, 2025
Jeremy Bowman has positions in Cava Group, Chipotle Mexican Grill, Home Depot, Nike, RH, and Sweetgreen. The Motley Fool has positions in and recommends Chipotle Mexican Grill, Deckers Outdoor, Home Depot, Lululemon Athletica Inc., Nike, and Williams-Sonoma. The Motley Fool recommends Cava Group, Lyft, RH, Sprouts Farmers Market, Sweetgreen, and Viking and recommends the following options: short June 2025 $55 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.
10 Under-the-Radar Consumer Goods Stocks With Incredible Growth Potential was originally published by The Motley Fool