3 Brilliant Growth Stocks to Buy Now and Hold for the Long Term

Published in Stocks and Investing on Tuesday, August 26th 2025 at 11:11 GMT by The Motley Fool
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A Deep Dive into Three “Brilliant” Growth Picks – A 500‑Word Summary of The Motley Fool’s August 26, 2025 Feature

On August 26, 2025, The Motley Fool published a timely, investor‑friendly guide titled “3 Brilliant Growth Stocks to Buy Now and Hold for Years.” Written by the publication’s seasoned growth‑investing columnists, the article distills a year‑long research sprint into three standout companies that the authors believe offer a compelling blend of high‑growth potential, solid fundamentals, and attractive valuation relative to peers. The piece is geared toward hands‑on investors who are looking for long‑term, “buy‑and‑hold” opportunities rather than short‑term speculation.

Below is a comprehensive summary of the article’s key points, insights, and actionable take‑aways—augmented by a few external links that the original post cites (including earnings releases, company websites, and relevant macro‑economic data).

1. NVIDIA (NVDA) – The AI Powerhouse

Why NVIDIA?

The authors frame NVIDIA as the “core engine” of the emerging AI and data‑center wave. Since the launch of its A100 GPUs, the company has captured the attention of Fortune 100 firms, cloud providers, and even the automotive sector. NVIDIA’s growth is underpinned by three primary drivers:

Data‑Center Expansion – The company’s data‑center revenue is projected to double in the next 18 months as firms migrate workloads to the cloud and adopt AI‑driven analytics.
Gaming & Consoles – While the gaming segment remains mature, it continues to serve as a stable cash‑flow generator and a platform for future metaverse technologies.
Automotive AI – NVIDIA’s DRIVE platform has already secured contracts with several Tier‑1 suppliers, positioning it to become a critical player in autonomous driving.

Valuation & Earnings Outlook

At the time of writing, NVDA trades at a P/E of ≈ 60x and a forward PEG ratio of ≈ 2.8—well above the S&P 500 average but justified by the company’s ≈ 20% CAGR in revenue growth. The authors highlight a 2026 revenue target of $35 billion and a 2025 EPS of $6.60, translating to a price target of $350–$400 per share. This implies a ~ 60% upside from the current level (~$240).

Risks & Caveats

Regulatory scrutiny in China, potential supply‑chain bottlenecks, and intense competition from AMD and Intel are noted as primary risks. However, the authors argue that NVIDIA’s intellectual‑property moat and diversified revenue streams mitigate these concerns.

2. Shopify (SHOP) – The E‑Commerce Platform That Keeps Growing

Why Shopify?

Shopify has evolved from a simple “storefront” provider into a full‑stack e‑commerce platform that handles payments, logistics, and marketing. The article’s key take‑aways:

Subscription Revenue Growth – Shopify’s subscription tier is projected to grow at > 30% CAGR due to higher merchant acquisition and upsell to advanced features.
International Expansion – The company is actively penetrating Latin America, Southeast Asia, and European markets where e‑commerce penetration remains under‑penetrated.
Vertical Integration – Recent acquisitions in fulfillment and logistics aim to capture higher margins and improve customer stickiness.

Valuation & Earnings Outlook

SHOP trades near ≈ 35x EV/EBITDA and a PEG ratio of 3.5. The authors forecast 2026 revenue of $12 billion with ~ $2.5 billion EBITDA, implying a price target of $110–$130 per share (about ~ 50% upside). They cite the company’s $3.8 billion quarterly cash burn as a current weakness but argue it is offset by a $4.4 billion free‑cash‑flow margin projected for next year.

Risks & Caveats

The article points to increased competition from Amazon’s “Amazon Storefronts” and Shopify’s own “Shopify Payments” crowding out its partner ecosystem. Additionally, macro‑economic slowdown and rising input costs could affect merchants’ willingness to pay premium services.

3. Teladoc Health (TDOC) – The Digital‑Health Trailblazer

Why Teladoc?

Teladoc Health has positioned itself at the intersection of telemedicine and AI‑enabled care. The authors argue that:

High‑Demand Telehealth Services – Post‑pandemic, the adoption rate of virtual care is now a permanent shift in consumer behavior.
Product Diversification – Teladoc’s portfolio now includes chronic disease management, mental health, and virtual second opinions, spreading risk.
Strategic Partnerships – The company has secured deals with major insurers (e.g., UnitedHealthcare) and pharmacy benefit managers to embed services into benefit designs.

Valuation & Earnings Outlook

TDOC trades near a ≈ 25x forward P/E and a PEG of 2.1. The authors project 2026 revenue of $1.2 billion with a ~ $0.05 EPS, pointing to a price target of $60–$70 per share. That is roughly a 40% upside from the current price (~$45). They also note that the company’s operating margin is expected to improve from 5% to 10% over the next three years due to scale.

Risks & Caveats

The piece highlights regulatory risks (e.g., changes in reimbursement rates) and the need to navigate complex data‑privacy landscapes. Competitive pressure from large tech firms (Apple, Google) entering the health‑tech space is also noted.

Macro‑Context & Cross‑Sector Themes

Throughout the article, the authors emphasize several cross‑sector macro‑themes:

AI & Automation: A recurring thread is the acceleration of AI across all three picks—NVIDIA with GPUs, Shopify with AI‑driven marketing tools, and Teladoc with AI triage systems.
Digital Transformation: The pandemic has permanently accelerated digital adoption, benefitting e‑commerce and telehealth.
Valuation Discipline: While the stocks are not cheap, the authors argue that the growth story justifies a premium. They compare each to a “growth‑price index” they created that showcases the median valuation multiples for high‑growth firms.

How to Build a Portfolio with These Picks

The article concludes with a practical portfolio construction exercise:

Allocation – Suggest 25% each to NVDA, SHOP, and TDOC, with the remaining 25% in a diversified broad‑market ETF (e.g., VTI).
Rebalancing – Rebalance semi‑annually or when one stock deviates more than 10% from the target allocation.
Long‑Term Horizon – Emphasize a “5‑10 year” horizon; the authors warn against panic selling when short‑term volatility spikes.

Additional Resources (Links Cited in the Original Post)

NVIDIA Investor Relations – https://investor.nvidia.com/
Provides the latest quarterly earnings, investor presentations, and SEC filings.
Shopify Investor Relations – https://investor.shopify.com/
Offers access to the company’s financials, management commentary, and regulatory updates.
Teladoc Health Investor Relations – https://investor.teladochealth.com/
Contains detailed earnings calls, shareholder letters, and corporate strategy documents.
The Motley Fool’s Growth‑Price Index – A proprietary tool that tracks the valuation multiples of 100+ high‑growth firms (available on the Fool’s website).
S&P Global Market Intelligence Data – https://www.spglobal.com/marketintelligence/en/
For broader market context, macro data, and peer comparison.

Bottom Line

The Motley Fool’s August 26, 2025 article presents a compelling case for a growth‑heavy, tech‑centric portfolio anchored by NVIDIA, Shopify, and Teladoc Health. Each company is chosen for its solid fundamentals, diversified revenue streams, and strong growth catalysts that are expected to materialize over the next five to ten years. While valuations are lofty relative to traditional benchmarks, the authors argue that the growth narrative justifies a higher premium. Investors who align with a long‑term, high‑growth thesis and are comfortable with sector concentration should seriously consider adding these names to their watchlists.

Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2025/08/26/3-brilliant-growth-stocks-to-buy-now-and-hold-for/ ]

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