You can build incredible wealth in the stock market, and it’s not as difficult as you 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 that have huge return potential.
Dutch Bros (NYSE: BROS) is a fast-growing beverage chain that is building a unique brand. About half of its menu items are coffee-based beverages, but it’s different from its peers Starbucks with a range of other drinks on their menu including lemonade, smoothies and fizzy drinks.
The company was founded in 1992 by brothers Dane and Travis Boersma and went public in 2021. After underperforming over the past few years, the stock has become more reasonable value a range that sets attractive return prospects as the company continues to expand across the US
Revenues rose 28% year over year in the third quarter. It has reached 950 locations in 18 countries, which leaves 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 over the past few years.
Moreover, Dutch Bros remains disciplined in opening new locations without being too aggressive. It is expanding profitably, with net income of $22 million in each of the last two quarters.
Investing in profitable and growing restaurants while they are 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 to fuel monster returns over the next 20 years.
Coupang (NYSE: CPNG) is a leading e-commerce store in South Korea. It is often described as Amazon 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 are up 30% over the past year.
Coupang had 22.5 million active customers who placed at least one order during the last quarter. Active users grew 11% year-over-year in the third quarter, which, along with increased spending by existing customers, fueled high double-digit revenue growth.
A key strength for Coupang is its delivery 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 by midnight and have it delivered by 7am the next day. The ability to serve thousands of customers with fast delivery in a densely populated area can work in Coupang’s favor as it expands into other geographies.
