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Shares of Nvidia, BBB Foods, and Trex are compelling right now for very different reasons.
Nvidia's 15% pullback along with rising profit targets find the market cap king trading at forward earnings multiple that is a big discount to its current growth rate.
BBB Foods may be hitting new highs, but the Mexican grocer just put out another blowout quarter.
The clock is ticking on 2025. You still have time to make stock moves that can help you beat the market in 2026 and beyond. There are some obvious -- and some not so obvious -- names that you may want to consider adding to your portfolio.
Nvidia (NASDAQ: NVDA), BBB Foods (NYSE: TBBB), and Trex (NYSE: TREX) are three of the top stocks to buy now. Let's take a closer look at these three stocks and today's opportunity.
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Image source: Getty Images.
Kicking off this list with the country's most valuable stock by market cap may seem like the easy way out. It's too obvious. You want diamonds in the rough, but this is the market's brightest jewel. I should probably flip this argument around, starting with the opportunity.
As high as Nvidia has gone over time -- a 10-bagger over the past three years -- it has pulled back 15% since peaking in late October. The maker of data center chips that is fueling the artificial intelligence (AI) revolution never goes straight up, and when it retreats, it doesn't stay that way for long.
Nvidia is cheaper than you probably think. It's fetching 44 times trailing earnings, but that multiple drops to just 24 if we go with the $7.46 per share in earnings that analysts are modeling for the new fiscal year, which started near the end of last month. If recent trends are any indicator, Nvidia will ultimately earn a lot more than that, bringing down today's multiple. After all, just three months ago, those same Wall Street pros were forecasting a profit of $6.32 a share.
Paying 24 times forward earnings starts to look even more appealing when you consider Nvidia's near-term growth projections. Analysts expect revenue and earnings to rise 48% and 59%, respectively, in the year ahead. Keep in mind that this growth is occurring despite trade restrictions with the world's second-largest economy. If this is what a sandbagged Nvidia looks like, you can imagine the numbers it can generate in a future without border limits for its best-in-class chips.
Let's shift from the country's favorite growth stock to a far more obscure player south of the border. BBB Foods (NYSE: TBBB) operates Tiendas 3B, a fast-growing chain of 3,162 small-box grocery stores in Mexico. It's the country's leading hard discounter, providing supermarket essentials primarily through low-cost house brands. If you're looking for a stateside equivalent, think Aldi, only with a convenience store footprint that can be fully staffed with as few as three employees.
I buried the lede in fleshing out the concept. BBB Foods is growing faster than any grocer you know. Revenue rose 37% in its latest quarter, the combination of a 20% increase in its store base over the past year stacked on top of a 17.9% surge in same-store sales.
Unlike Nvidia, there hasn't been a recent pullback here. The shares hit a fresh 52-week high last week, coming within a nickel of that mark on Wednesday. BBB Foods doesn't trade at a surprisingly cheap forward earnings multiple because it's reporting losses as it aggressively builds out its empire. It's still the right business model for today's economic reality. The concept is booming, and at least one analyst believes that the store count could grow fivefold in Mexico alone.
Now for something completely different. Trex is currently out of favor. The leader in composite decking has seen its share value cut in half this year. The biggest hit happened last month, with Trex plummeting 30% in a single day following disappointing financial results.
It wasn't the third quarter itself that rattled the shares. Revenue rose 22%. Earnings climbed 28% higher. The nail in the wood-alternative plank was guidance. Trex sees an 11% to 16% decline in sales for the current quarter. That's not as scary as it seems, since this is the seasonally sleepy part of the year for the business. However, Trex also warned that margins would shrink next year as it would have to ramp up marketing to combat rising competitive threats. All of this would be remedied with lower interest rates and a recovery in the housing market. Let the winter season come and go. If the snapshot is more favorable when the peak season starts for Trex in the springtime of next year, now would be a great time to buy the stock at a deep historic discount.
Before you buy stock in Nvidia, consider this:
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*Stock Advisor returns as of December 1, 2025
Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends BBB Foods, Nvidia, and Trex. The Motley Fool has a disclosure policy.
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