John Ballard, Jeremy Bowman, and Jennifer Saibil, The Motley Fool

Sat, May 24, 2025, 5:00 AM6 min read

• At least one retailer is reporting strong demand for its products despite pressure in the industry.

• One restaurant chain continues to report impressive growth that could lead to tremendous gains for investors.

• This e-commerce company is delivering solid growth and expanding into new businesses.

• 10 stocks we like better than RH ›

Finding stocks with enormous growth potential that are trading at reasonable valuations is one way to access potentially monster gains in the stock market. Promising consumer brands like RH (NYSE: RH), Cava Group (NYSE: CAVA), and e-commerce specialist Coupang (NYSE: CPNG) are trading at prices that Wall Street analysts see as attractive buying opportunities for investors.

Are these stocks truly good buys now? Here's what three Fool.com contributors think about these companies' prospects.

Jennifer Saibil (RH): RH is an upscale furniture retailer. That's not necessarily a great business to be in when the real estate industry is tanking and consumers are cutting back on discretionary spending.

RH (formerly Restoration Hardware) operates a varied omnichannel business that includes a limited number of freestanding galleries in upscale neighborhoods, a strong digital presence, and offers several luxury experiences involving restaurants, yachts, jets, and a guesthouse. It's looking to become a top luxury brand rather than a simple furniture seller. Despite the pressure in the economy right now, it's launching new design concepts and opening new galleries.

It released 42 new collections over the past few months, and CEO Gary Friedman said that the company is developing a new concept that will expand its market opportunity, coming up for release toward the end of the year.

RH's results for the fiscal 2025 fourth quarter (ended Feb. 1) were mixed, with a 10% year-over-year increase in revenue and a 9% increase in operating income. Demand, which measures the dollar value of orders placed, increased 17%, and for the RH brand, it was up 21%. That indicates a strong brand with potential, and it's an impressive feat considering the pressured economy. However, RH came in below Wall Street's expectations for earnings per share by $0.33, which sent its stock plummeting.

Friedman originally said the company wouldn't be affected by tariffs on Chinese goods, but it expected uncertainty as the situation remains dynamic. Earnings were released on "Liberation Day," when President Donald Trump announced his tariffs, and management followed that up with an explanation about how it's well diversified with suppliers and doesn't think it's at any disadvantage compared with similar companies.