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

<p>Buying growth stocks can lead to market outperformance. However, the challenge lies in identifying businesses with the innovation, financial strength, and competitive edge to keep expanding long into the future. Not surprisingly, the above qualities are usually found in tech companies.</p>
<p>Moreover, index funds have conditioned this trend, with more than one-third of the S&amp;P 500 consisting of tech companies. It's even more lopsided for the Nasdaq Composite, especially with artificial intelligence (AI) stocks capturing plenty of headlines.</p>
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<p>However, some opportunities are emerging in other sectors as well, and these picks can help diversify stock portfolios and produce compelling long-term returns. Right now, two standout <a href="https://www.fool.com/investing/stock-market/market-sectors/consumer-discretionary/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=5e61fdd9-aeab-44f8-8141-de2ed6d5fb25">consumer discretionary</a> stocks have the potential to outperform the stock market in the long run. One has enticing momentum, while the other looks due for a rebound.</p>
<h2>TJX Companies dominates affordable retail</h2>
<p>TJX Companies (NYSE: TJX) has established itself as a top choice in the retail and home goods industries. T.J. Maxx, Marshalls, and HomeGoods are some of the most iconic brands under this corporate umbrella. The <a href="https://www.fool.com/investing/stock-market/market-sectors/consumer-discretionary/retail-stocks/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=5e61fdd9-aeab-44f8-8141-de2ed6d5fb25">retail stock</a> has more than doubled over the past five years, with an annual average return of nearly 18.5%, while offering a dividend yield above 1%.</p>
<p>The company offers affordable essentials, making it a compelling shopping destination during any economic cycle. TJX reported stellar Q4 results, continuing its strong momentum. Comparable sales increased by 5% year over year, which was well above the company's expectations. Comparable sales indicate that customers are shopping at TJX Companies' brands more frequently and buying more products.</p>
<p>A 13% dividend boost and a stock buyback program demonstrate substantial financial flexibility. All its business segments achieved mid-single-digit year-over-year growth rates throughout fiscal 2026, which concluded on Jan. 31.</p>
<p>TJX Companies isn't the type of growth stock that dominates headlines, but it has outperformed the S&amp;P 500 over several years while boosting its profit margins.</p>
<h2>Deckers Outdoor looks ready for a rebound</h2>
<p>Deckers Outdoor (NYSE: DECK) used to be one of the hottest consumer goods stocks. Despite the stock's 17% fallover the last 12 months, its overall gain of 84% over the past five years and outperforming the S&amp;P 500 is testament to its solid underlying fundamentals.</p>