3 Beaten-Down Consumer Stocks to Hold for the Next 10 Years

The best brands can keep growing for decades, but sometimes the market offers investors a chance to buy them at a discount. As of premarket trading on Nov. 5, Celsius Holdings (NASDAQ: CELH), Hershey (NYSE: HSY), and Dutch Bros (NYSE: BROS) traded roughly 26% to 53% below their 52-week highs.

Inflation and high gas prices have taken their toll on these brands this year. Here's why these three beaten-down stocks are worth buying now and holding for the next 10 years.

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Celsius

Celsius shares are down about 51% from their 52-week high as sales of the flagship Celsius brand slipped and higher aluminum and fuel costs squeezed margins. Still, the energy drink market remains a long-term tailwind for leading brands. Management expects Celsius to return to growth in 2027 as it prepares to launch new flavors and products. The stock's sell-off is a great opportunity to buy shares at a modest valuation.

The company holds a 21% share of the U.S. energy drink market. Each of its three brands serves a different market: Celsius for health-conscious consumers, Alani Nu as an entry point for new female consumers, and Rockstar for traditional energy drinkers.

Alani Nu is leading the charge. Core Alani Nu sales grew about 50% year over year in the third quarter, and its category share rose nearly three percentage points to about 10%. Management says Alani Nu remains under-penetrated in channels where Celsius is already strong, suggesting it can sustain strong growth.

International markets remain a big opportunity. Non-U.S. revenue grew about 56% last quarter, and management expects markets outside the U.S. to exceed 15% of total revenue within five years. Aided brand awareness has roughly doubled in the U.K. and France since early last year.

The stock trades at about 18 times analysts' 2027 earnings estimate, with analysts expecting 10% annualized earnings growth over the long term. That's a fair valuation for a portfolio that's still attracting new consumers to a growing energy drink market.

Hershey

Hershey shares are about 26% below their 52-week high. Price increases to cover higher cocoa costs have cut into sales volumes, and management noted higher gas prices are pressuring consumers. But this is a top consumer brand that should continue to pay dividends and reward patient investors.

Hershey owns some of the most recognizable candy brands, including Hershey's, Reese's, KIT KAT, and Kisses. That brand loyalty gives it pricing power. Even after raising prices last quarter, its flagship Hershey's brand grew 7% over the last 13 weeks.

New releases promise higher sales over the next few years. CEO Kirk Tanner said Reese's Oreo was "the largest innovation over the last 52 weeks," and the innovation pipeline for 2027 is 50% bigger. Management expects to deliver revenue growth of 2% to 4% for 2027 -- consistent with its long-term target.

Profits should follow and support dividend growth, as management remains focused on improving margins over the long term through factory digitization and other productivity gains.

Meanwhile, the stock yields about 3.2%, which is well covered by free cash flow. Hershey just declared its 387th consecutive regular dividend. At about 19 times analysts' 2027 earnings estimate, the stock is reasonably priced for brands that should continue to grow for decades.

Dutch Bros

Dutch Bros shares are about 53% below their 52-week high and fell further in early trading on Nov. 5 after management trimmed its 2026 outlook, citing consumer headwinds like higher gas and coffee prices. But nothing has changed Dutch Bros' long-term growth trajectory.

The drive-thru chain "continues to gain share in the high-growth beverage category," according to CEO Christine Barone. It posted the 14th consecutive quarter of positive same-shop sales and its 9th consecutive quarter of customer visit growth. About 74% of visits now go through its Dutch Rewards loyalty program, which encourages repeat spending.

The brand continues to reach new consumers who were not previously aware of Dutch Bros, yet management said unaided brand awareness remains well below competitors, leaving a significant opportunity for growth. That's why Dutch Bros has opened shops at a record pace, with new shops earning a high 45% cash-on-cash return by year two.

The stock trades at about 2.4 times its 2027 revenue estimates, as of Nov. 5, which is on the low side for a fast-growing restaurant business. Management's 2029 shop target implies about 15% annual unit growth. That's a reasonable price for a brand with years of expansion still ahead.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Dutch Bros and Hershey. The Motley Fool recommends Celsius Holdings. The Motley Fool has a disclosure policy.