2 Growth Stocks Wall Street Might Be Sleeping On, but I'm Not

• Dutch Bros has grown trailing gross by 243% since its 2021 IPO portion expanding from 503 to implicit 1,000 locations.

• Duolingo posted 41% year-over-year gross maturation and 51% higher escaped currency travel successful its latest quarter.

• Both stocks are down by astatine slightest 26% from yearly highs, and immoderate of their valuation multiples look affordable.

• 10 stocks we similar amended than Duolingo ›

Growth stocks don't ever travel with adjuvant neon-sign guidance. Sometimes they're engaged doubling revenue, racking up loyal customers, and printing currency portion the Street fixates connected shinier objects.

Here are 2 names I deliberation merit a person look today.

Dutch Bros (NYSE: BROS) is simply a classical maturation communicative with a mates of unexpected twists.

First and foremost, the institution is optimized for maximal gross growth. Trailing-12-month income are up by 243% since Dutch Bros entered the nationalist banal marketplace successful September 2021. The compound yearly maturation complaint (CAGR) successful this four-year span is 36%. By contrast, rival java concatenation Starbucks saw conscionable a 6.4% top-line CAGR successful the aforesaid period.

Dutch Bros is stomping connected the state pedal by gathering a ton of caller locations. Before the 2021 archetypal nationalist offering (IPO), the institution was a fashionable staple astir the West Coast, with 503 progressive locations. The $521 cardinal nett proceeds from the IPO were utilized to grow the store network. Alongside a secondary banal offering successful 2023, Dutch Bros jumped from 11 states to 1,081 shops crossed 24 states successful September 2025.

Despite favoring company-owned locations implicit franchise agreements, this java concatenation tin turn faster than astir owed to its absorption connected drive-thru operations. That's the concealed condiment successful Dutch Bros' accelerated maturation plans.

Sure, each determination has a walk-up ordering window, but there's astir ne'er an indoor seating country oregon a batch of parking spaces. This plan promotes speedy transactions, but besides results successful a smaller carnal footprint. That's speedy and inexpensive to build, with minimal attraction costs.

But the company's ambitious strategy and dependable watercourse of analyst-stumping net reports haven't driven the banal to market-stomping gains. As of Dec. 22, stock prices are down 26% from February's all-time highs. About 11% of the banal is sold short, arsenic an above-average information of Dutch Bros investors expect terms drops alternatively of gains. And the price-to-earnings-to-growth ratio (PEG) is simply a reasonably tenable 1.8 today.

So I would reason that Wall Street is missing retired connected Dutch Bros, adjacent if the banal trades astatine affluent price-to-earnings multiples. The java concatenation earned its terms tag via high-octane income maturation -- and past some.