2 Unstoppable Growth Stocks to Buy and Hold for 20 Years

As an investor, it's essential to identify growth stocks with strong long-term prospects. In this article, we'll explore two unstoppable growth stocks that have the potential to deliver massive returns over the next 20 years: Dutch Bros (BROS) and Lululemon Athletica (LULU). These companies have unique business models, competitive advantages, and growth opportunities that make them stand out in their respective industries.

Dutch Bros (BROS)

Dutch Bros is a specialty beverage retailer that has been rapidly expanding across the United States. The company's unique menu, which includes lemonade, energy drinks, smoothies, and other specialty beverages in addition to coffee, has resonated with consumers. Dutch Bros' growth can be attributed to several factors:

1. Growing demand for specialty beverages: As consumers seek out unique and innovative beverage options, Dutch Bros' offerings have gained popularity. The company's menu caters to this growing demand, setting it apart from traditional coffee shops.
2. Positive same-shop sales and revenue growth: Dutch Bros has consistently reported positive same-shop sales and strong revenue growth. In the fourth quarter of 2024, the company's revenue grew by 35% year over year, driven by new shop openings and a 6.9% increase in same-shop sales.
3. Improving margins and adjusted net income: Dutch Bros' margins have steadily improved over the last year, and the company closed 2024 with adjusted net income of $88 million, up from $50 million in 2023. This demonstrates the company's ability to generate profits and grow its bottom line.
4. Expansion potential: Dutch Bros is currently operating in only 18 states, leaving ample room for growth in the coming years. As the company continues to open new shops, it can tap into new markets and increase its customer base.



Lululemon Athletica (LULU)

Lululemon Athletica is a high-end athletic apparel retailer that has experienced remarkable growth over the past decade. The company's unique brand, high-quality products, and strong customer loyalty have contributed to its success. Some key factors driving Lululemon's growth include:

1. Strong brand and growth potential: Lululemon has built an incredibly powerful brand that resonates with consumers. With only 749 company-operated stores as of Oct. 27, 2024, the company has ample room to expand worldwide.
2. Revenue growth and earnings growth: Lululemon's revenue has grown close to 20% per year over the last decade, with earnings growing slightly faster. This consistent growth demonstrates the company's ability to generate profits and drive shareholder value.
3. International expansion: Lululemon has a significant opportunity to grow in Europe and China, with revenue from the Americas region making up 74% of the business in the fiscal third quarter. As the company continues to expand internationally, it can tap into new markets and increase its customer base.
4. Growth in men's products: Lululemon has a huge opportunity to win more business from men, as its women's products generated over $1.5 billion in revenue in fiscal Q3, 65% of the company's total revenue. As the company continues to innovate and expand its men's product offerings, it can capture a larger share of the market.



In conclusion, Dutch Bros and Lululemon Athletica are two unstoppable growth stocks that have the potential to deliver massive returns over the next 20 years. Their unique business models, competitive advantages, and growth opportunities make them strong candidates for long-term investment. By focusing on these companies' long-term prospects and ignoring short-term market fluctuations, investors can build a diversified portfolio that generates significant wealth over time.