Three Rising Growth Stocks Surpassing the Acclaimed 'Magnificent Seven'

While the most prominent tech giants continue to shape the world, there comes a point where the savvy investor must shift their focus towards discovering the next wave of market disruptors. Indeed, companies such as Roku, On Holding, and Dutch Bros might not hold the colossal market caps akin to trillion-dollar behemoths, but they brim with potential, all sporting market capitalizations under $10 billion.

Roku: The New Era of Ad-Driven Entertainment

At the forefront of streaming, Roku combines hardware sales with ad-supported content to offer a unique dual service. Dominating the streaming OS market in North America, Roku is the primary platform for accessing diverse streaming networks. Despite the competition from tech giants, Roku's platform thrives — its 2023 ad revenue was an impressive 87% of its total. With the relentless migration from traditional TV to streaming platforms, Roku's opportunity to expand its ad revenue is significant, with active user accounts and streaming hours consistently on the rise.

Even with its stock price experiencing a 30% drop in 2024, which has alarmed profit-focused investors and raised eyebrows with Walmart acquiring a competitor, Roku's improving profitability metrics mean that now may be the ideal time to invest in a resilient growth stock at a lower cost.

On: Redefining Athletic Elegance

Swiss-based On Holding seeks nothing less than to be crowned the most luxurious sportswear brand globally. Famed for its CloudTec shoes, which have already claimed marathon victories, On is rapidly capturing the market. Beyond its famous footwear, On's comprehensive range of athleisure products spells out an ever-expanding branding and sales footprint.

On's financials show a company in robust health, with substantial sales increases, soaring gross margins, and rising net income. Yet, with low brand recognition in key affluent U.S. demographics, On is poised for breakout growth, making it a timely addition to any high-growth portfolio.

Dutch Bros: Brewing Nationwide Ambition

From its Western U.S. roots, Dutch Bros Coffee is on an aggressive expansion quest, targeting a presence in every state. This ambition is backed by solid numbers: new store openings, rising comparable sales, and improving profitability. Their rapid national rollout and the unique appeal of their coffee products hint at an extended runway for growth, with the potential to become a staple in American coffee culture. Dutch Bros' trajectory suggests that even in its early growth stage, with fluctuating performance, it presents an exciting investment prospect.

Investing in companies during their ascent to prominence offers a unique opportunity. While present risk is inherent in the nature of growth stocks, Roku, On, and Dutch Bros showcase the characteristics of potentially high-reward investments. They embody the essence of early-stage opportunities with significant room to flourish.

growth, stocks, potential