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2 Growth Stocks Wall Street Might Be Sleeping on, But I'm Not
Dutch BrosDutch Bros(US:BROS) The Motley Foolยท2025-07-27 15:51

Core Insights - The article highlights two growth stocks, Roku and Dutch Bros, that present investment opportunities before they gain wider recognition in the market [1][2]. Group 1: Roku - Roku has demonstrated strong sales growth, averaging 14.7% year-over-year over the last two years, outperforming Tesla and Apple [3]. - The stock has increased by 45% over the past year, yet it trades at a low valuation of 3.1 times sales, compared to Apple and Tesla at 8.0 and 11.0 times sales respectively [4]. - Roku is at a pivotal moment, focusing on international growth, enhancing advertising tools, and making acquisitions in the streaming market, which could lead to further stock appreciation [5]. Group 2: Dutch Bros - Dutch Bros has a high price-to-sales ratio of over 7.1 and a price-to-earnings ratio in the triple digits, with the stock gaining 52% over the last year [6]. - The stock has a significant short-selling ratio of 6.8%, indicating bearish sentiment among some investors, and has seen a 32% decline in share price since February [7]. - The company is expanding aggressively, aiming for 2,029 locations by 2029 and potentially up to 7,000 in the long term, which supports its growth narrative despite its current high valuation [10][11].