You can build incredible wealth in the stock market, and it’s not as hard as you might think. The key is to patiently hold shares of a growing company that still has a large market to expand into. Here are two stocks with great return potential.
Dutch brothers (NYSE: Bros) It is a fast-growing beverage chain that is building a unique brand. About half of the menu items are coffee-based drinks, but it sets itself apart from its ilk Starbucks With a range of other drinks on its menu, including lemonades, juices and sparkling soft drinks.
The company was founded in 1992 by brothers Dane and Travis Boersma, and went public in 2021. After poor performance over the past few years, the stock has stabilized at a more reasonable level. evaluation The range sets out attractive return prospects as the company continues to expand across the United States
Revenue grew 28% year over year in the third quarter. It has reached 950 locations in 18 states, leaving plenty of room for further growth. Same-store sales, which measures growth in existing stores open at least 15 months, rose 2.7% year over year, consistent with single-digit increases over the past few years.
Furthermore, Dutch Bros remains disciplined in opening new locations without being too aggressive. It is expanding profitably, with Net income $22 million in each of the last two quarters.
Investing in profitable, growing restaurants while they’re still small is a great way to build wealth in the stock market, and Dutch Bros clearly looks like a very promising opportunity. With 32 states that haven’t seen a Dutch Bros store yet, there’s plenty of growth that could fuel huge revenues over the next 20 years.
Coupang (NYSE: CPNG) It is the leading e-commerce store in South Korea. It is often described as Amazon in South Korea, but the company is building a unique advantage in serving densely populated areas that could give it an advantage as it expands. The stock is up 30% over the past year.
Coupang had 22.5 million active customers who placed at least one order during the last quarter. The number of active customers increased 11% year-over-year in the third quarter, which, coupled with increased spending from existing customers, is driving significant double-digit revenue growth.
Coupang’s main advantage is its fulfillment infrastructure, which management says can deliver 99% of orders within a day.
This is not easy: there are more than 15 thousand people per square kilometer in Seoul, South Korea. But with Coupang’s Dawn delivery service, a customer living in a large apartment complex can place an order by midnight and have it delivered by 7 a.m. the next day. The ability to serve thousands of customers with quick delivery in a densely populated area could work to Coupang’s advantage as it expands into other geographies.
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