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

Three growth names are pitched as buy‑and‑hold ideas attractive to value investors: Interactive Brokers, Oscar Health and Nintendo. Interactive Brokers is taking share with client accounts up 32% YoY to 4.13m (from 1m at end‑2020), commission revenue +23% and net interest income +21% last quarter, an unusually high pre‑tax margin of 79% and a P/E around 30, implying substantial earnings leverage as it scales. Oscar Health faces near‑term profitability pressure—medical loss ratio rose to 88.5% from 84.6% and it will likely lose money in 2025 with the risk of reduced Obamacare subsidies in 2026—but with ~2m members and $11bn LTM revenue the company could return to profitability if loss ratios and operating expenses normalize (a 2.5% margin would imply ~$275m in earnings, or a P/E near 14); Nintendo is the nearer‑term growth play, lifting hardware guidance for Switch 2 from 15m to 19m units and raising revenue/earnings forecasts, with franchise game releases and upcoming films (Mario 2026, Zelda 2027) supporting multi‑year upside.

Analysis

Interactive Brokers is showing durable share gains with customer accounts up 32% year‑over‑year to 4.13 million (from 1.0 million at end‑2020), commission revenue +23% and net interest income +21% last quarter, delivering an unusually high pre‑tax margin of 79% and trading at a P/E of ~30. Those metrics indicate strong earnings leverage as client balances scale, making further margin contraction the primary risk to the current valuation if client acquisition slows.

Oscar Health faces near‑term profitability pressure after insurers underpriced 2025 premiums: medical loss ratio rose to 88.5% from 84.6% a year ago, and the company expects to lose money in 2025; it serves ~2 million individual‑market members and generated $11 billion LTM revenue. Management can reprice for 2026 and reduce operating expense ratios, and a conservative scenario of a 2.5% margin implies ~$275 million in earnings and a prospective P/E near 14, but political risk around Obamacare subsidies could reduce membership.

Nintendo has tangible demand momentum: Switch 2 hardware guidance was raised from 15 million to 19 million units for the fiscal year ending March and the company upgraded revenue and earnings guidance; upcoming franchise games and movies (Mario 2026, Zelda 2027) provide multi‑year content catalysts. With recent share weakness, the stock presents a timing opportunity tied directly to Switch 2 sell‑through and IP monetization execution.

Key Decisions for Investors

• Consider overweighting Interactive Brokers for secular account growth and exceptional margins while monitoring quarterly account additions and margin stability as valuation is premised on continued scale
• Take a selective, smaller speculative position in Oscar Health for long‑term upside but avoid sizing large exposure until 2026 repricing actions and medical loss ratio trends are demonstrably improving
• Add or accumulate Nintendo on weakness given the upgraded Switch 2 guidance and franchise monetization runway, but track hardware sell‑through and cadence of major game releases as execution catalysts
• Manage portfolio risk by hedging or limiting exposure to Oscar until subsidy and loss‑ratio uncertainty resolves, and use IBKR and NTDOY positions to express concentrated growth-with-value themes