2 Growth Stocks Wall Street Might Be Sleeping On, but I'm Not | The Motley Fool

Growth stocks don't always come with helpful neon-sign guidance. Sometimes they're busy doubling revenue, racking up loyal customers, and printing cash while the Street fixates on shinier objects. Here are two names I think deserve a closer look today. 1. Dutch Bros is brewing up a growth storm Dutch Bros ( BROS +0.91%) is a classic growth story with a couple of unexpected twists. First and foremost, the company is optimized for maximal revenue growth. Trailing-12-month sales are up by 243% since Dutch Bros entered the public stock market in September 2021. The compound annual growth rate (CAGR) in this four-year span is 36%. By contrast, rival coffee chain Starbucks saw just a 6.4% top-line CAGR in the same period. Dutch Bros is stomping on the gas pedal by building a ton of new locations. Before the 2021 initial public offering (IPO), the company was a popular staple around the West Coast, with 503 active locations. The $521 million net proceeds from the IPO were used to expand the store network. Alongside a secondary stock offering in 2023, Dutch Bros jumped from 11 states to 1,081 shops across 24 states in September 2025. NYSE: BROS Key Data Points Despite favoring company-owned locations over franchise agreements , this coffee chain can grow faster than most due to its focus on drive-thru operations. That's the secret sauce in Dutch Bros' rapid growth plans. Sure, every location has a walk-up ordering window, but there's almost never an indoor seating area or a lot of parking spaces. This design promotes quick transactions, but also results in a smaller physical footprint. That's quick and cheap to build, with minimal maintenance costs. But the company's ambitious strategy and steady stream of analyst-stumping earnings reports haven't driven the stock to market-stomping gains. As of Dec. 22, share prices are down 26% from February's all-time highs. About 11% of the stock is sold short , as an above-average portion of Dutch Bros investors expect price drops instead of gains. And the price-to-earnings-to-growth ratio (PEG) is a fairly reasonable 1.8 today. So I would argue that Wall Street is missing out on Dutch Bros, even if the stock trades at rich price-to-earnings multiples. The coffee chain earned its price tag via high-octane sales growth -- and then some. Image source: Getty Images. Duolingo's growth streak is longer than mine Duolingo ( DUOL +0.80%) is basically a pocket-sized polyglot with a business degree. The gamified language app has grown into a real subscription machine over the years. In the recent third-quarter report, Duolingo continued its breathless growth. Revenue rose 41% year over year to about $272 million. The online learning service sported 135 million monthly active users (MAUs) and 11.5 million paid subscribers, both up approximately 35%. At the same time, free cash flow soared 51% to $77.4 million -- 28% of revenues. The green owl is becoming a cash machine. Still, the stock got dinged with a 25% price drop the next day, as management prioritized teaching efficacy and...

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