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News  ›  The Motley Fool

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

The Motley Fool Logo The Motley Fool By Anders Bylund
2 Growth Stocks Wall Street Might Be Sleeping On, but I'm Not

The article highlights Dutch Bros and Duolingo as undervalued growth stocks that Wall Street is overlooking. Dutch Bros has achieved 243% trailing revenue growth since its 2021 IPO with rapid expansion to 1,081 locations across 24 states, while trading down 26% from highs with a reasonable PEG ratio of 1.8. Duolingo posted 41% year-over-year revenue growth and 51% higher free cash flow in its latest quarter, though the stock is down 66% from record highs, now trading at attractive valuation multiples of 23.5x trailing earnings and 24x free cash flow.

Insights
CMCSA   neutral

Mentioned for opening Epic Universe theme park, potentially competing with Disney's theme park business


BROS   positive

Company demonstrates exceptional 243% trailing revenue growth (36% CAGR) since IPO, rapid store expansion from 503 to 1,081 locations, efficient drive-thru business model with low maintenance costs, and reasonable PEG ratio of 1.8 despite rich P/E multiples. Stock down 26% from highs presents attractive entry point.