Chewy's recurring revenue and customer loyalty are building a durable competitive advantage.
Dutch Bros is building a differentiated brand with a long growth runway.
The stock market has seen two major declines in the last five years. Through that volatility and economic uncertainty, the S&P 500 has returned 80%. This reinforces why buying strong businesses and giving them time to grow is the most reliable way to build wealth over the long term.
The best (no-brainer) stocks to buy are those that benefit from a clear advantage and offer plenty of expansion opportunities. With that in mind, here are two growth stocks that are compelling buys right now.
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Chewy (NYSE: CHWY) is a leading online retailer exclusively focused on pet supplies, and it continues to grow. The company has built a strong brand by offering thousands of products across food, pet supplies, and veterinary care. The stock has fallen about 13% over the past year, creating a timely buying opportunity amid the massive tailwind fueling Chewy's growth.
Pets are family, and this is fueling a large and growing industry. Pet owners spent $90 billion on their furry family members in 2018, and this was projected to reach $157 billion in 2025.
Chewy's brand strength is evidenced by its revenue growing much faster than the industry. Its annual revenue has increased from $2.1 billion in 2018 to surpass $12 billion on a trailing-12-month basis.
What's even more attractive is that this revenue is being driven by repeat purchases from 21 million active customers. About 84% of Chewy's sales come from its Autoship program, which lets customers schedule regular deliveries of pet food and other products.
This recurring revenue is highly beneficial to investors for two reasons:
The stock currently trades at 25 times 2026 earnings estimates. This is an attractive valuation for a company that analysts expect to grow earnings at an annualized rate of 24% over the coming years.
Those earnings will likely be driven by management's initiatives to boost margins through expanded pet health services, sponsored ad revenue, and Chewy Plus memberships. This is clearly a business on offense to gain market share in a large industry and deliver excellent returns to shareholders.
Image source: Getty Images.
Dutch Bros (NYSE: BROS) has the potential to rival Starbucks in brand power over the long term. This drive-thru beverage chain is still in the early stages of growth, with 1,081 shops open as of Sept. 30, 2025, and plans to reach 7,000.
The company is differentiating its brand with clever tactics. It is focusing on personalization, friendly service, promotional giveaways, and order delivery speed to keep customers coming back -- and it's working. Same-store sales grew 5.7% year over year -- consistent with historical trends. This indicates that existing shops that have been open for more than a year continue to attract customers.
The menu itself is great marketing, featuring drinks with eye-catching names like Cotton Candy Shake and Dragon Slayer Rebel. Coffee-based beverages make up around half of its menu mix, along with a range of options such as shakes, sparkling sodas, and smoothies.
After transaction volumes declined in 2023 and 2024, Dutch Bros has returned to form, with transactions accelerating in 2025, up 4.7% year over year in the recent quarter.
Combining sales from new and existing shops, revenue grew 25% year over year last quarter. The company also shows potential to earn healthy profits as it opens more locations. Analysts forecast earnings growth of 32% annually over the next several years.
On a price-to-sales basis, the stock trades at a multiple of 5, which is within the range Starbucks traded at during its early growth years. This is a uniquely positioned brand with attractive long-term return potential for investors.
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chewy and Starbucks. The Motley Fool recommends Dutch Bros. The Motley Fool has a disclosure policy.