2 Top Growth Stocks to Buy Right Now

Growth stocks may not be at their peak like they were in the earlier days of the pandemic, but that doesn’t mean all companies in this space have reached their long-term growth potential. On the contrary, even companies whose share prices are falling in the current environment are still seeing steady business growth that hints at future recovery.

Here are two such stocks to add to your portfolio in 2023 and hold for at least the next three to five years.


Amazon (AMZN 3.01%) has faced its share of murky economic waters in the past, but it shouldn’t come as a surprise that the current environment, in which both corporate and consumer spending remains broadly subdued, has brought growth shifts for this tech giant . Despite this, the company’s long-standing and ongoing leadership in industries with superior growth opportunities such as e-commerce and cloud computing can help it weather these near-term changes while remaining well-positioned for the future to invest in these recovering areas.

Amazon’s sales of $514 billion for full-year 2022 represented a 9% increase from 2021 but were up 83% from 2019, a sign that growth is still strong from pre-pandemic levels is even as it normalizes after the period of supercharged profits experienced its core businesses during the pandemic. Meanwhile, one of the company’s fastest-growing segments — Amazon Web Services — posted 30% year-over-year revenue growth in 2022. Consider that Amazon controls about 34% of the entire global cloud infrastructure industry, more than any other player in the field.

And lest anyone think the company has exhausted its growth potential in cloud computing, I want to take note of a statement from CEO Andy Jassy on the 2022 earnings call:

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90% to 95% of global IT spending stays on-premises. And if you think that equation is going to shift and flip, I don’t think on-premises will ever go away, but I do believe that in the next 10 to 15 years most of it will be in the cloud when we continue to have the best customer experience which is something we need to work really hard on at an event we are working on. That means we have a lot of growth ahead of us in the AWS business.

Even with the current shifts in consumer spending, the U.S. e-commerce industry alone — a space where Amazon has a 40% market share — is still on track to be valued at $1.1 trillion in 2023 – reach dollars. Amazon has plenty of cash and available investments ($70 billion at the end of 2022), and even the net loss that deterred so many investors wasn’t operational, instead relating to common stock losses from its longstanding investment in Rivian. Now could be an excellent time to buy more stocks while they’re still trading at discounts.

2. Tough

Chewy (CHWY 0.75%) continues to pursue new growth avenues within the multi-billion dollar pet care industry, and its rapid diversification strategy is already paying off. In the first nine months of 2022, Chewy reported net sales of $7.4 billion, up 14% from the same period last year. In the same nine months, the company generated a profit of $43 million compared to a net loss of $10 million for the same period in 2021.

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While the pet care space has its fair share of players, Chewy continues to differentiate its online-only brand with a rapidly evolving collection of services, products and solutions that make it a one-stop shopping destination for pet owners. From staples to non-prescription pet wellness products (the company even just launched its own line of pet supplements) to compound medications to a growing selection of pet health insurance plans, there are so many potential sources of consumer spending in the market for pet care, and Chewy is targeting more of them.

Chewy also creates other incentives for vendors to sell on its platform. While the company sells its own private label products, many of the products on its platform come from outside vendors. In its third-quarter earnings report, management noted that the company had recently launched a beta of a new sponsored ads initiative that would allow certain advertisers to pay to advertise their products to the more than 20 million users who Chewy currently has on its platform .

While this initiative is still in its infancy, the fact that Chewy is diversifying its revenue streams beyond pure consumer spending and into the lucrative advertising space is just another green signal for this profitable, ever-growing business. Even if a recession hits and spending slows, pet owners will still buy essentials like food and medicine for their pets, and Chewy’s wide range of products and services can help offset delays in more discretionary aspects of the business.

For investors looking for a growth stock to buy and hold for the long term, Chewy’s leadership position in the lucrative pet supplies industry and the continued development of its business well past the pandemic’s growth spurt could make it a compelling pick for a well-diversified portfolio.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Rachel Warren has positions at Amazon.com. The Motley Fool has positions in and recommends Amazon.com and Chewy. The Motley Fool has a disclosure policy.