My 2 Favorite Stocks to Buy Right Now
Key Takeaways
These under-the-radar consumer companies can deliver solid returns while the market is close to all-time highs.
Article Overview
Quick insights and key information
5 min read
Estimated completion
investment
Article classification
June 28, 2025
08:37 AM
The Motley Fool
Original publisher
These under-the-radar consumer companies can der solid returns while the market is close to all-time highs
The stock market is nearing all-time highs again, with the S&P 500 index just barely below where it traded earlier this year and its average price-to-earnings ratio (P/E) soaring back close to 30
This is, without debate, an expensive index earnings ratio compared to history
It is tough to find bargain stocks to invest in, as investors are drawn to fast-growing artificial intelligence (AI), cloud, and nology stocks that trade at premium prices
I have two stocks that break the mold today
Both Nintendo (NTDOY 1. 76%) and Portillo's (PTLO -0. 13%) have fantastic long-term upside from today's prices
Here's why they are my two favorite stocks to buy right now
A restaurant brand with national expansion plans Portillo's has been a mainstay in Chicago for decades, selling Chicago-style street food such as hot dogs and Italian beef sandwiches
After going public in 2021, the company has now embarked on a national expansion plan to bring its restaurants to other regions of the United States
Right now, this includes Arizona, Texas, and Florida
Management is sticking to a Sun Belt strategy to maximize openings in areas with population growth
At the end of last quarter, Portillo's had 94 restaurants oprating around the country and plans to open 12 more this calendar year
This 10%+ annual unit growth can help Portillo's reach its long-term target of mid-teens annual revenue growth, which translates to around 15% per year
One blem Portillo's has dealt with -- and the main reason why the stock is in the dumps -- is its weak same-store sales growth
Same-store sales growth measures revenue growth in existing restaurants and can help investors analyze whether a restaurant is keeping up with inflation on its labor and food costs
In 2024, Portillo's posted negative same-store sales growth every quarter, which is not a good development
However, the company is in a bit of a unique situation when it comes to restaurant openings compared to most brands
When a Portillo's opens up in a location with a lot of ex-Chicagoans, it can gain huge unit volumes immediately, making it tough in the years ing to post consistent same-store sales growth and muddying the financial figures for holders
A better metric to track is average unit volume (AUV), which measures annual revenue per restaurant
Portillo's AUV was $8. 7 million last quarter, similar to Chick-fil-A
This makes it a leading restaurant operator by this metric in the fast-casual chain space
Now, in 2025, Portillo's is beginning to see imvement in its same-store sales growth, posting 1. 8% growth in the first quarter
Combine imving same-store sales and new locations opening up with large unit volumes, and I think 15% annual revenue growth for Portillo's is doable as it expands around the country
Today, you can buy Portillo's stock at a P/E ratio of 27
I believe the company can grow its earnings at a faster clip than revenue as it gains more operating leverage with greater national scale, making this P/E cheap for this durable growth stock
Buy Portillo's and wait patiently as the restaurant brand expands around the United States
Image source: Getty Images
Nintendo's blockbuster new gaming system Nintendo is a much larger and well-known brand compared to Portillo's, but its stock does not get much attention in financial media
It should, as it is one of the best entertainment brands in the world
The company just launched its new game hardware, the Nintendo Switch 2, which sold 3. 5 million units worldwide in four days, the fastest-selling console in history
The Nintendo Switch 2 should see huge unit sales in the years to come, as its predecessor sold 150 million total units over its life
This new version has better online playing capabilities and third-party game support
Its stronger hardware specifications also make it a superior gaming experience, if reviews are any indication
Plus, it sells at a higher price of $500 vs. $300 for the original Nintendo Switch, which will support more revenue growth for the company
Nintendo's true fit generator is not gaming hardware, but its blockbuster games Mario Kart
In conjunction with the Switch 2 release, Nintendo released a new Mario Kart title that it bundles with hardware sales
Mario Kart is the best-selling franchise from Nintendo, and No. 2 is the Animal Crossing franchise
According to a recent social media post from Nintendo, it looks the company is hinting at an upcoming release from Animal Crossing, which combined with Mario Kart should drive huge sales growth for games purchases on the Nintendo Switch 2 over the next five years
Revenue for Nintendo peaked at just over $16 billion when the original Switch was coming into mass ity during the COVID-19 pandemic
The Nintendo Switch 2 sells for more than the original Switch, while games such as Mario Kart World now have higher price points compared to previous versions
Total unit sales for the Nintendo Switch 2 are outpacing the early figures for the original Switch as well
Higher price points and more unit volume mean Nintendo should shortly surpass $20 billion in annual revenue within the next few years, especially once we lap the December holiday season
Even though Nintendo's stock price has risen, investors are still underrating the potential of the Switch 2 console
Buy Nintendo and hold on tight for the long term -- this is a fantastic to own today
Brett Schafer has positions in Nintendo
The Motley Fool recommends Nintendo
The Motley Fool has a disclosure policy.
Related Articles
More insights from FinancialBooklet