2 Good growth stocks to buy now and hold for the long term

Buying growth stocks can lead to better market performance. However, the challenge lies in identifying businesses with the innovation, financial strength, and competitive edge to sustain long-term growth into the future. Not surprisingly, the above characteristics are commonly found in tech companies.

In addition, index funds have bucked this trend, accounting for more than a third S&P 500 consists of technical companies. It is even more controversial for that Nasdaq CompositeEspecially with artificial intelligence (AI) stocks grabbing most of the headlines.

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However, some opportunities are emerging in other sectors as well, and choosing these can help diversify a stock portfolio and lead to long-term returns. Right now, two consumer discretionary stocks have the potential to outperform the stock market over the long term. One has a wonderful movement, while the other seems to be regressing.

The TJX Companies (NYSE: TJX ) It has established itself as the preferred choice in the retail and home goods industry. TJ Maxx, Marshalls, and HomeGoods are some of the most popular brands under this corporate umbrella. Retail stocks have doubled over the past five years, with an average annual return of nearly 18.5%, while offering a dividend yield above 1%.

The company offers affordable essentials, making it an attractive place to shop during any economic cycle. TJX reported surprising Q4 results, continuing its strong momentum. Comparable sales increased by 5% year over year, which was better than the company expected. Comparable sales indicate that customers frequently shop TJX Companies’ brands and buy more products.

13% dividend growth and a stock buyback program demonstrate significant financial flexibility. All of its business segments achieved mid-single-digit year-over-year growth through the 2026 fiscal year, which ended on January 31.

TJX Companies isn’t the type of growth stock that dominates the headlines, but it has outperformed the S&P 500 for several years while growing profit margins.

Deckers out (NYSE: DECK ) One of the hottest consumer goods stocks was. Despite the stock’s 17% fall over the past 12 months, its cumulative gain of 84% over the past five years and outperforming the S&P 500 is a testament to its strong fundamentals.

Deckers Outdoor is the corporate behemoth behind footwear and apparel brands HOKA and UGG. The company isn’t really struggling. Deckers Outdoor generated record revenue in Q3 FY26, with HOKA and UGG showing strong global demand.

The concern comes from a slowdown in income growth. Deckers Outdoor has a five-year CAGR of 18%, but revenue increased just 9.8% year-over-year in the first nine months of fiscal 2026. This includes a 7% revenue increase in Q3 of the fiscal year, which is slightly below the full-year average.

Despite the slow growth rate, the stock appears to be undervalued compared to historical averages. At a trailing P/E ratio of 14.2, Deckers’ stock is trading below its five-year average of 23.4, and its lowest valuation in four years, which makes it worth a close watch.

HOKA sales, which now account for one-third of Deckers’ revenue, rose 18.5% year-over-year, suggesting Deckers’ growth engine is still intact, and the low valuation may be a buying opportunity.

Before you buy stock in TJX Companies, consider this:

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*Stock Advisor returns on March 15, 2026.

Marc Goberti has no position in any of the listed stocks. The Motley Fool holds and offers positions at Deckers Outdoor and TJX Companies. Motley Fool has a disclosure policy.

2 Great Growth Stocks to Buy Now and Hold for the Long Term Originally Posted by The Motley Fool