2 Stocks To Count On For Next Decade

Trade wars and tariffs are taking their toll but that also translates to opportunity among some quality names that have taken a hit, such as Dutch Bros. Even after a market dip, the share price is still up 14% this year, far outpacing the broader market.

The relative outperformance stems from Dutch Bros’ long-term growth story. This isn’t just another coffee chain but a place with a loyal following thanks to its unique drink menu and wallet-friendly prices.

Plus, it’s been ahead of the curve with most of its locations set up as drive-thrus, a huge advantage over the past few years. Yet Dutch Bros isn’t the only stock to consider for a long-term hold. Let’s dive into it further and share the details on another potential skyrocketer.

Key Points

• Fast-growing coffee chain targeting 7,000 locations, with strong brand loyalty and improving margins, though shares are expensive.

• Latin America’s top e-commerce and fintech player, growing rapidly in an underbanked region, trading at a reasonable valuation.

• Both offer strong long-term upside for patient investors as they expand into massive, still-underserved markets.

1 Overlooked Coffee Maker

Unlike the bigger, slower competitors, Dutch Bros is still nimble and expanding at a rate of knots with a focus on technology, omnichannel options, and fast service. Best of all, customers are loving it.

Management forecasts it can eventually scale from about 1,000 locations today to around 7,000, a massive 6,000 runway for growth when you compare it to Starbucks’ global footprint.

The numbers are impressive too with revenue climbing to $343 million, up more than a third. Same-store sales popped by almost 7% and contribution margins improved to 28.9%, a nice bump from last year.

At today’s price, Dutch Bros isn’t exactly a steal, and trades at about 213x earnings. But that high multiple reflects big growth expectations. If the leadership team delivers on its promise, and you’re willing to hold your shares for the next decade, there’s a good chance you’ll be very happy with the results.

MercadoLibre Is Tapping Into a Massive Growth Market

While most of us think of digital payments as an ordinary part of life, they’re still growing fast outside the USA. That’s where MercadoLibre comes in because it’s a fintech goliath and it’s still growing rapidly after 25 years in business.

Incredibly, MELI is up 15x in the past 10 years and, in the most recent quarter, the top line mushroomed by 37% year-over-year and there are still big opportunities in Brazil, Mexico, and Argentina.

It now sports 67 million active buyers and that’s not stopping anytime soon. Plus it has under its umbrella a financial services arm, including mobile payments and credit cards, is expanding fast.

Last year, MercadoLibre generated $21 billion in revenue and turned that into $1 billion in free cash flow, a wildly impressive feat. And with new projects like issuing more credit cards and opening additional fulfillment centers on the horizon, it’s planting seeds for even bigger growth down the road.While these investments may weigh on margins short-term, they’re likely to pay off handsomely over time.

Right now, it sits at 59x earnings and 5x trailing revenue, suggesting investors aren’t overpaying for this kind of growth potential.

With 650 million people in the region and digital adoption still gaining steam, MercadoLibre looks poised to deliver strong returns for patient investors.