A Bull Market Is Here: 2 Brilliant Stocks Down 31% and 12% to Buy Right Now

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The S&P 500 (SNPINDEX: ^GSPC) has soared nearly 26% higher so far across 2024’s trading, and its level sits quite near a record high. The stock market has benefited from improving macroeconomic conditions, excitement surrounding artificial intelligence (AI), and the possibility that next year could bring a new round of corporate tax cuts.

But while many high-profile stocks have managed to reach new highs this year, some high-quality companies still trade at substantial discounts compared to previous valuation highs. If you’re looking for investment opportunities that look poised to bound higher over the long term, read on to see why two Fool.com contributors think that adding these stocks to your portfolio would be a smart move right now.

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Jennifer Saibil: Dutch Bros (NYSE: BROS) stock still trades about 30% off of its all-time highs, but it’s up 68% year to date. The company has been demonstrating phenomenal performance for quite some time, and many of the risks the market was factoring into its stock price are being alleviated.

Revenue increased 28% year over year in the third quarter. Most of that comes from new stores, and the company has a long growth runway in new store openings, which should lead to continued high revenue growth for the foreseeable future. It has 950 stores right now and plans to open 150 stores total in 2024, and expects to have as many as 4,000 stores by around 2035. For perspective, that’s still only a fraction of coffee giant Starbucks (NASDAQ: SBUX), which has more than 18,000 stores in North America alone.

Stores are still concentrated on the West Coast, where Dutch Bros is headquartered, but it’s been entering new states at a steady clip. It now has stores in 18 states, including some lower East Coast states, and it’s going to travel upward.

The opportunities in new stores are extremely compelling because customers love its beverages. It has developed a differentiated approach to coffee, which helps it stand out from a crowded market of what aren’t really very different products — coffee is coffee, after all. But at Dutch Bros, customers get their customized drinks from “broistas,” and there’s a dedicated culture of speed and service. Many of the chain’s locations have drive-thrus, or even double drive-thrus, and runners can take and deliver orders even before a car gets to a window.

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