Three hot stocks that have the potential to outperform the market

The S&P 500 has reached new highs this year, but not all companies in all sectors have seen their stocks rise. The retail sector has lagged the broader market for the past three years, but that means there are some interesting growth stocks that analysts say are selling at very reasonable prices compared to their future potential.

Below we look at three companies that operate in growth markets such as cosmetics and sportswear. The historical average annual return of the S&P 500 is roughly 10%, but these brands have much higher revenue growth, and their stocks trade at fair prices, which should allow investors to easily outperform the broader market.

E.l.f. Beauty $ELF

Analysts often point out that investors who can recognize brands before they become household terms can reap huge profits. E.l.f. Beauty is currently one of the fastest growing consumer brands. Its share price has risen by a staggering 420% over the past three years, thanks to a combination of favourable pricing, product…