Artificial intelligence stocks have surged recently, but consumer growth stocks are struggling amid concerns over the Iran conflict and rising oil prices. This market uncertainty presents an opportunity for savvy investors to acquire undervalued growth stocks. Two notable candidates are e.l.f. Beauty (NYSE: ELF) and Celsius Holdings (NASDAQ: CELH), both trading at attractive forward price-to-earnings ratios of 16 and 17, respectively.
E.l.f. Beauty is capitalizing on its recent acquisition of the Rhode skincare brand, which has already generated significant sales with a limited product line. This move, combined with its established influencer marketing strategy, positions e.l.f. for robust growth. Similarly, Celsius is leveraging its distribution agreements, including a partnership with PepsiCo, to expand its reach with acquired brands like Alani Nu and RockStar, which should drive future revenue growth.
Investors looking to diversify their portfolios could split a $5,000 investment between these two stocks, taking advantage of their growth potential as they enhance their distribution capabilities.
Source: fool.com