2 Top Stocks to Double Up On Right Now

Over time, investors often notice that certain companies in their portfolio consistently outperform the others over the long term. And sometimes it makes the most sense to double up on these proven winners instead of hunting for the next best thing.

Let's discuss some reasons why e-commerce giant Amazon (NASDAQ: AMZN) and healthcare disruptor Hims & Hers Health (NYSE: HIMS) could outperform in 2026 and beyond.

1. Amazon

With its market cap of $2.56 trillion, e-commerce and cloud computing giant Amazon has consistently rewarded its long-term shareholders. The company's edge has come from its focus on customer satisfaction and ability to quickly dominate new opportunities as they open up. Management's latest focus is generative artificial intelligence (AI) -- a technology that could help unlock the company's next leg of growth.

Amazon's AI strategy is twofold. On one hand, its Amazon Web Services (AWS) division serves a pick-and-shovel role where it provides the infrastructure other enterprises need to train and run their large language models (LLMs). This strategy generally involves "renting out" cloud-based computing services. But Amazon is also investing heavily in its custom chip design capabilities to challenge industry leaders like Nvidia.

Amazon's AI infrastructure could help support high-margin AWS growth and boost the company's diversification. But the real game changer may come from incorporating AI tools into Amazon's own operations.

In June, CEO Andy Jassy released a memo claiming the new technology would allow Amazon to get more office work done with fewer employees. The company also plans to implement AI alongside robotics in its massive warehouse and fulfillment network -- potentially replacing a jaw-dropping 600,000 positions it would otherwise need to fill by 2033. For a company that spent roughly $162.75 billion in operating expenses in the third quarter alone, potential savings could transform the bottom line.

Amazon's forward price-to-earnings (P/E) multiple of 29 gives it a slight premium over the market average. But this looks reasonable, considering the company's ability to use generative AI tools to significantly improve its operating efficiency over the coming years.

2. Hims & Hers Health

Over the last few years, growth stock investors have been laser-focused on the technology sector because of its ability to benefit from generative AI. But there are still other opportunities capable of delivering multibagger returns if you know where to look.

Telehealth start-up Hims & Hers Health is an excellent example. The company leverages marketing and product selection to stand out in a highly competitive industry.

According to analysts at McKinsey, an estimated $250 billion of current U.S. spending has the potential to be virtualized. And this includes routine doctor's visits for nonscheduled prescription drugs. While hundreds of companies are tackling this opportunity, Hims & Hers aims to set itself apart through an edgy millennial and Generation Z-focused brand image.

Image source: Getty Images.

The company specializes in arguably embarrassing medical needs that people might not be comfortable seeing an in-person doctor for, such as sexual health, mental health, and hair loss. It also formulates generic drugs in unique delivery modes like chewables and gums.

However, the market is most excited about the company's potential in weight management. And Hims & Hers is in active talks with Danish pharmaceutical giant Novo Nordisk to offer Wegovy injections and potentially oral Wegovy (pending FDA approval) on its platform.

With a forward P/E multiple of 48, Hims and Hers trades at a substantial premium over the S&P 500 (SNPINDEX: ^GSPC) average of 22. That said, the premium makes sense considering the company's impressive business momentum. Third quarter revenue surged 49% year over year to $600 million, driven by an increasing subscriber count and more spending per subscriber. The company is yet to demonstrate consistently growing profits as it continues to spend a significant amount on marketing, which will be essential for establishing a long-term economic moat.

Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Hims & Hers Health. The Motley Fool has a disclosure policy.