Dutch Bros (BROS) and FreshPet (FRPT) Are Aggressive Growth Stocks
In This Article:
As the aggressive growth stock strategist at Zacks Investment Research Brian Bolan usually looks for stocks that have a strong Zacks Style Score for Growth and a weak Style Score for Value. This week he has two food related stocks that have a strong growth and value divergence.
Dutch Bros BROS is a Zacks Rank #1 (Strong Buy) and it has an A for Growth and an F for Value. This is a restaurant chain that doesn’t have a lot of Florida locations so Brian doesn’t really have the chance to visit. They are primary a west coast based chain. A quick consultation of the website for the company shows 3 stores in the Orlando area and one just south of Jacksonville, so maybe Brian will do a road trip.
In the video Brian takes a look at the growth for this company and while he wants to see a year over year acceleration in growth Dutch Bros (BROS) is getting a pass since it will post revenue growth of 27% this year and just about 20% next year. The valuation is a little stiff here with a 91x forward earnings multiple but as long as the growth continues and the company continues to improve the margin profile the stock should be fine. Brian is adding this stock to his list of aggressive growth stocks to watch.
Next up is FreshPet FRPT Which is also a Zacks Rank #1 (Strong Buy) and also sports the growth divergence with an A for Growth and an F for Value in the Zacks Style Scores. Brian selected this stock as it is a “food” company that provides pet food and plenty of other pet based accessories. The stock did really well in the pandemic as a lot of people probably got a pet in that time, but Brian shows on the Price, Earnings and Consensus chart the reason the stock came back down so much. Things have changed and Brian believes that this is a good stock to watch.
Just as in all of his Aggressive Growth Zacks Rank Buy videos, Brian reviews the earnings history, earnings estimates, growth projections and valuation before taking a look at the chart.
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Freshpet, Inc. (FRPT) : Free Stock Analysis Report
Dutch Bros Inc. (BROS) : Free Stock Analysis Report