Talking yourself into buying stocks priced at highs isn’t easy. It’s even tougher when a stock is outright soaring. The risk of an imminent correction just feels too great.

Sometimes, though, the reason for a rally — and the odds of it continuing — are bigger than the risk. To this end, here’s a closer look at three soaring stocks I’d buy without a second thought. There’s still more than enough upside potential on the table to justify taking a swing at their lofty levels.

1. Costco Wholesale

If membership-based retailer Costco Wholesale (NASDAQ: COST) has an effective limit to its reach, it’s nowhere in sight. The company now boasts 76.2 million paid memberships, providing 136.8 million total cardholders the right to enter its stores, up 7.3% year over year for the three-month stretch ending in early September. That’s yet another record.

Granted, the penetration of new markets helped. In addition to opening 10 new stores in the United States during the quarter in question, it opened another four outside the U.S. There’s no slowdown on the horizon, either. Costco plans on opening 26 new locales in the fiscal year that just got underway, pushing its count up to 916 stores. About half of these openings will be overseas.

Being able to deliver real value here and abroad, however, is the biggest driver of this growth.

People all over the developed world are becoming more cost-effective shoppers. A poll performed by YouGov last year indicates that in the wake of soaring inflation, 94% of the planet’s consumers made a point of employing money-saving tactics when making purchases. More price comparisons and couponing were the most-newly embraced approaches, but switching stores as well as switching brands were popular strategies as well. Given that costs of discretionary goods as well as consumer staples have only grown since then, the sentiment certainly still applies.

It’s a dynamic that plays right into the hand Costco is holding. While buying in bulk hasn’t always been everyone’s preferred method of shopping for basic goods, when budgets are stretched as tightly as they are now — and likely will be for the foreseeable future — consumers are willing to adapt.

That’s what the analyst community appears to believe, anyway. They’re expecting Costco Wholesale’s top line to grow by more than 7% this fiscal year, and improve by nearly as much again next year. This is the key reason Costco shares are just off of record highs hit in early September.

2. Toast

The restaurant business is not only wildly competitive, but incredibly complicated. Restaurant managers routinely deal with short-lived employees, constantly depleted supplies, regulatory inspections, and (hopefully) a steady flow of new customers. In the midst of the madness, they’re also supposed to improve and grow their restaurant’s revenue. It’s a lot to tackle!

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A company called Toast (NYSE: TOST) makes it all at least a little easier to manage.

In simplest terms, Toast offers software built from the ground up to specifically serve the restaurant industry. From point-of-sale solutions to online ordering to payroll to marketing, Toast can handle it all. These tools are all integrated into a singular platform, too, making it easy and fast to use them all.

And to date, 120,000 different restaurants are utilizing the Toast platform. For perspective, there are over 700,000 restaurants in the United States alone. Clearly there’s a multitude more outside the U.S., which are just as addressable by Toast as domestic restaurants are.

Restaurants are signing up in droves, too. Toast’s top line improved 27% during the second quarter of this year, extending growth trends that are likely to persist at least for a few more years. At its current growth trajectory, the company’s expected to swing to a full-year profit in 2025 — one of the reasons shares recently reached a new 52-week high, more than doubling its value in less than a year.

But it’s a business model with a limited lifespan? Not so fast.

Toast’s software is rented rather than outright purchased. Its customers are gladly willing to pay this ongoing fee, however, since it provides them with a constantly updated cloud-based platform that meets their unique business needs. Toast is very much a partner with its customers, growing its top and bottom lines as restaurants themselves grow theirs.

3. Apple

Last but not least, add Apple (NASDAQ: AAPL) to your list of soaring stocks to buy. Like Costco, it recently reached a record high, and is up more than 300% for the past five years.

There’s arguably more upside in store dead ahead, though.

Yes, this call has everything to do with the recent launch of the iPhone 16 that’s capable of handling generative artificial intelligence (AI) functions directly from the device itself (as opposed to punting this work to the cloud, which is where most of it is currently handled). While some concern has been raised about the tepid initial demand for the latest iteration of the popular smartphone, that doesn’t eliminate the prospect of a so-called supercycle eventually whipping up some serious demand for the device.

It could just take some time for consumers to come around; they may be waiting for the early reviews of the tech. Indeed, the software that turns the latest iPhones into full-blown artificial intelligence devices isn’t even available yet, and even once it is, the rollout will be gradual in terms of features as well as regions. All this means there’s no particular hurry to purchase new iPhones just yet, if AI is the motivating force.

There’s also no doubt that consumer interest in such a tool is real. Technology market research outfit IDC anticipates worldwide sales of more than 230 million generative AI-capable smartphones this year alone, en route to over 900 million such devices in 2028, when this tech will be the norm.

Given Apple’s brand notoriety, it’s arguably better positioned than any other player to capture more than its fair share of this growth.

More (along with more engaged) iPhone owners of course means sales of more apps, streaming music, and streaming video from Apple’s app store. This in turn translates into more services revenue, which at more than 70% boasts considerably higher gross profit margin rates than the 37% gross profit margin rate on sales of iPhones, iPads, and Mac computers.

Should you invest $1,000 in Costco Wholesale right now?

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James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Costco Wholesale, and Toast. The Motley Fool has a disclosure policy.

3 Soaring Stocks I’d Buy Now With No Hesitation was originally published by The Motley Fool