Two Undeniable No-Brainer Growth Stocks That Deserve Your Attention

The past five years have reminded investors of an important truth: market downturns create opportunity. Despite two significant selloffs, the S&P 500 has generated an 80% return. This validates the core investment principle that strong businesses, given sufficient time, reliably create wealth. The real challenge is identifying which companies represent no-brainer opportunities—enterprises with clear competitive advantages and substantial room to expand. Let’s examine two growth stocks that fit this profile perfectly.

Dutch Bros: A Coffee Powerhouse in Formation

Dutch Bros (NYSE: BROS) is executing one of the most compelling growth strategies in consumer discretionary. With just 1,081 locations as of September 30, 2025, this drive-thru beverage chain has mapped out a path to 7,000 shops. That scale-up represents a no-brainer thesis: a differentiated brand with runway for years of expansion ahead.

What makes Dutch Bros’ differentiation strategy so effective? The company focuses relentlessly on personalization, rapid service execution, friendly interactions, and promotional creativity. The results speak clearly: same-store sales grew 5.7% year-over-year, a rate consistent with historical performance. More importantly, transaction volumes—a key health indicator—accelerated in 2025 to 4.7% growth, reversing the declines of 2023 and 2024.

When you combine new-shop openings with existing-location strength, total revenue surged 25% year-over-year in the most recent quarter. The drink menu itself serves as marketing genius, featuring eye-catching names like Cotton Candy Shake and Dragon Slayer Rebel alongside coffee-based beverages (roughly 50% of the mix) and complementary products like sparkling sodas and smoothies.

The profitability angle adds another compelling layer. As Dutch Bros scales, management has demonstrated the potential to drive healthy margins. Analysts project 32% annual earnings growth over the coming years. On a price-to-sales basis at 5x, this stock trades at valuations Starbucks commanded during its own early-growth phase—a no-brainer metric suggesting significant appreciation potential.

Chewy: The Recurring Revenue Fortress

Chewy (NYSE: CHWY) demonstrates a textbook case of how to build a moat in e-commerce. This online-only retailer has carved out dominance in pet supplies through scale, selection, and customer obsession. The 13% pullback over the past year has created an attractive entry point.

The tailwind behind Chewy is structural. Pet owners aren’t discretionary about their companions’ care—they’re family. Total U.S. spending on pets reached $90 billion in 2018 and was projected to hit $157 billion by 2025, reflecting double-digit industry growth. Chewy has outpaced this industry trajectory significantly, growing annual revenue from $2.1 billion in 2018 to over $12 billion on a trailing-12-month basis.

The no-brainer element here is Chewy’s Autoship program. Approximately 84% of revenue comes from customers scheduling regular deliveries of pet food and supplies. This isn’t random strength—it’s engineered loyalty. Two factors make this a competitive fortress: First, recurring delivery creates convenience that transforms customers into loyal repeat purchasers. Second, Wall Street rewards recurring revenue models with premium valuations due to superior revenue predictability.

At 25x forward 2026 earnings, Chewy trades at a reasonable multiple given management’s execution. Analysts expect earnings to expand at a 24% annualized rate as the company drives margin expansion through three channels: pet health services, sponsored advertising revenue, and Chewy Plus membership tier. This is a business aggressively capturing market share while generating shareholder value.

Why These Are No-Brainer Additions

Both companies exemplify what intelligent investors hunt for: durable competitive advantages meeting a secular growth trend. Dutch Bros commands customer affinity through brand differentiation and consistent execution in a resilient beverage category. Chewy commands customer behavior through convenience and has engineered a recurring-revenue model that Wall Street rewards.

The valuations on both represent no-brainer entry points for patient capital. The combination of manageable multiples, high growth rates, and expanding market opportunity creates an asymmetric risk-reward profile. When market volatility offers these opportunities, recognizing and acting on them has historically been the difference between good and exceptional long-term returns.

Neither requires a crystal ball to understand. Both are executing proven business models in large, growing markets. For investors building a durable portfolio, these represent exactly the kind of compelling long-term holdings that produce wealth over time.