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You can build incredible wealth in the stock market, and it’s not as difficult as you might think. The key is to patiently hold onto the stock of a growing company that still has a large market to expand into. Here are two stocks that have monstrous return potential.
Dutch brothers (NYSE: BROS) is a rapidly growing beverage chain that is building a unique brand. About half of its menus are coffee-based drinks, but it stands out from the rest starbucks with a variety of other drinks on their menu including lemonade, milkshakes and sparkling sodas.
The company was founded in 1992 by brothers Dane and Travis Boersma, and went public in 2021. After underperforming in recent years, the stock has settled at a more reasonable level. assessment range that sets attractive return prospects as the company continues to expand across the US
Revenue grew 28% year-on-year in the third quarter. It has grown to 950 locations in 18 states, leaving plenty of room for further growth. Same-store sales, which measure growth at existing stores open at least 15 months, rose 2.7% year over year, in line with single-digit increases in recent years.
Also, Dutch Bros remains disciplined in opening new locations without being too aggressive. It is expanding profitably, with net income of 22 million dollars in each of the last two quarters.
Investing in profitable, growing restaurants when 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 yet to see a Dutch Bros. store, there’s plenty of growth that can fuel monster returns for the next 20 years.
Coupang (NYSE: CPNG) is South Korea’s leading e-commerce store. It is often described as the Amazon of South Korea, but the company is building a unique advantage in serving densely populated areas that could give it an edge as it expands. Shares have soared 30% over the past year.
Coupang had 22.5 million active customers who placed at least one order in the last quarter. Active customers increased 11% year-over-year in the third quarter, which, along with increased spending by existing customers, is driving high double-digit revenue growth.
A key advantage for Coupang is its fulfillment infrastructure, which management says can deliver 99% of orders within a day.
This is not easy: in Seoul, South Korea, there are more than 15,000 people per square kilometer. But with Coupang’s Dawn delivery service, a customer living in a large apartment complex can place an order before midnight and receive it at 7am the next day. Being able to serve thousands of customers with fast delivery in a highly populated area can benefit Coupang as it expands into other geographies.
