The S&P 500 index has rocketed to new highs this year, but not all companies in all industries have seen their shares hit new highs. The retail sector has underperformed the broader market over the last three years, but that means there are compelling retail growth stocks selling at very reasonable valuations relative to their future potential.

Below are three companies that operate in growing markets like beauty and athletic wear. The S&P 500's historical average annual return is about 10%, but these hot brands are growing their revenue at much higher rates, and their stocks trade at fair valuations that should allow an investor buying shares today to easily outpace the broader market.

Investors that identify brands before they become household names can make a fortune. E.l.f. Beauty (NYSE: ELF) is one of the fastest-growing consumer brands right now. The stock soared 424% over the last three years as the company's blend of value, product innovation, and savvy marketing continues to fuel robust revenue growth.

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Source Fool.com