There’s really only one thing I don’t like about Shopify: Its price. Shopify stock trades at a forward 1-year price-to-earnings (P/E) ratio of 71 and a price-to-sales ratio of 17. That’s rich even for a top stock. If there’s a market correction, it would be an excellent opportunity to grab shares.

Costco has been steadily beating the market for years. It has a proven membership model that’s reliable and steady, and the company even pays a dividend.

The story just keeps getting better. In the 2024 fiscal fourth quarter (ended Sept. 1), traffic increased 5.6% over last year in the U.S. and 6.4% globally. Paid household members were up 7.3% to 72.1 million, with about half of those members under the age of 40. That’s a young cohort to grow with Costco and keep up its growth.

Paid executive memberships, which cost double the standard version at $130, increased 9.6% over last year. Executive members accounted for 73.5% of sales in the third quarter, and more executive members mean greater loyalty and increased engagement.

Costco offers stable and steady growth. It isn’t the hot stock to follow, but it has made some newsworthy moves over the past few months. The company issued a special dividend of $15 per share last year, its highest-ever payout, and it raised the price of the annual membership from $60 to $65 for a standard membership.

It’s a no-brainer stock to have in your portfolio, but Costco stock is trading at its highest-ever levels at 58 times trailing 12-month earnings. It might be worth it to buy even at the current price if you have a long time horizon, but you should definitely buy it if the price goes down.

Cava is a small but fast-growing restaurant chain that serves fast-casual fare with a Mediterranean flavor. It’s been compared to Chipotle Mexican Grill, and considering that stock’s meteoric rise over the past few years, it’s not surprising that investors have piled into this stock trying to imitate the same gains.

It opened 11 stores in the third quarter for a total of only 352, but it’s growing quickly. The combination of high growth and a long runway looks very enticing. Revenue increased 39% year over year in the quarter, driven both by the new stores and comparable sales growth of 18%. That’s an excellent showing, especially in an economy that’s still facing pressure. It implies that customers like what they’re getting, and that Cava has a real, viable business.

It’s also demonstrating healthy profitability. Average unit volume increased from $2.6 million last year to $2.8 million this year, and net income more than doubled to $18 million. It had a fabulous quarter all around, and Cava could be a star over the next few years.

However, Cava stock is already up 237% this year at this writing and trades at a P/E ratio of 315. That’s more astronomical than many hot tech stocks, and there’s a ton of growth built into that price. If the market corrects, it could be an excellent growth stock to add to your portfolio.

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $352,678!*

• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $44,102!*

• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $466,805!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of November 25, 2024

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Berkshire Hathaway, Chipotle Mexican Grill, Costco Wholesale, and Shopify. The Motley Fool recommends Cava Group and recommends the following options: short December 2024 $54 puts on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.

Warren Buffett’s Stockpiling Cash. 3 Incredible Stocks to Buy If There’s a Market Correction. was originally published by The Motley Fool