4 Stocks to Buy Now‼️ May 2026

Key Concepts

• Growth Investing: A strategy focused on companies expected to grow at an above-average rate compared to the market.
• SaaS (Software as a Service): A business model based on recurring subscription revenue, often characterized by high customer retention.
• Consumption-Based Business Model: Companies where products are frequently repurchased (e.g., beverages, cosmetics), creating recurring revenue streams.
• CAGR (Compound Annual Growth Rate): The mean annual growth rate of an investment over a specified period of time longer than one year.
• Valuation Metrics: Key indicators like P/E (Price-to-Earnings) ratio, NII (Net Interest Income), and Free Cash Flow used to determine if a stock is "cheap" or "expensive."
• TAM (Total Addressable Market): The overall revenue opportunity available for a product or service.

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1. SoFi Technologies (SOFI)

• Overview: A fintech company acting as a "one-stop shop" for banking, loans, and investing.
• Financial Performance: The speaker highlights an A+ income statement with 39% year-over-year growth in Net Interest Income (NII) and 43% growth in total net revenue. Despite a 279% increase in income tax expense, net income grew by 135%.
• Growth Strategy: SoFi is scaling its member base rapidly (from 5,200 in 2022 to 14.7 million in Q1). The speaker argues that SoFi’s "asset-light" tech platform model allows it to be more profitable than traditional banks like JP Morgan or Bank of America.
• Buy Zones: Under $15 is a "great buy zone"; $15–$20 is "very good"; $25–$30 is a "maybe" zone; over $30 is a "hold."

2. ServiceNow (NOW)

• Overview: A software company that helps large corporations automate tasks and organize workflows.
• Current Challenges: The stock is down 52% over the past year due to an "awkward phase" involving high integration costs from recent acquisitions, AI implementation expenses, and market fears regarding AI disruption.
• Business Moat: The speaker describes ServiceNow as a "holy grail" business model. Once integrated into a large corporation, the software is difficult and expensive to replace, ensuring high customer retention.
• Projections: Even under a "bear case" (12% revenue/net income growth), the speaker expects to outperform the S&P 500. The "base case" projects a 30% CAGR, targeting a stock price between $237 and $277.

3. E.L.F. Beauty (ELF)

• Overview: A cosmetics and skincare company known for high-quality, affordable products.
• Key Brands: Beyond the core E.L.F. brand, the company owns "Naturium" (skincare) and "Rhode" (the brand by Hailey Bieber), which the speaker identifies as one of the hottest brands in the beauty space.
• Investment Thesis: The speaker views this as a consumption-based model similar to SaaS, where customers repeatedly purchase products.
• Valuation: With a forward P/E under 20, the speaker considers the stock "way too cheap."
• Buy Strategy: "Anything under $100 is a buy until you cry."

4. Celsius Holdings (CELH)

• Overview: An energy drink company that has secured a major distribution deal with PepsiCo.
• Market Opportunity: The speaker compares Celsius to the early days of Monster Beverage. With an $8.62 billion market cap, it is still in the early stages of its growth cycle, particularly regarding international expansion.
• Analyst Sentiment: Mentions that major institutions like JP Morgan and Croup have maintained "overweight" ratings with price targets between $60 and $67.
• Projections: The base case assumes a 25–30% CAGR, while the bull case suggests a 43–48% CAGR as the company scales internationally.

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Synthesis and Conclusion

The video emphasizes a long-term, growth-oriented investment philosophy. The speaker argues that short-term market volatility—often driven by fear of AI, interest rates, or sector-specific "awkward phases"—provides buying opportunities for high-quality companies. The core strategy involves identifying businesses with "holy grail" models (recurring revenue, high switching costs, or high consumption rates) and holding them for 5–10 years to achieve life-changing wealth. The speaker consistently advocates for looking past quarterly fluctuations to focus on the fundamental growth trajectory of the underlying businesses.