Investors encountered increased market volatility in the first quarter of 2025, resulting in the S&P 500 index decreasing by 5.2% year to date. Simultaneously, the Nasdaq Composite entered correction territory, with a decline of approximately 10.3% over the same period.
Although short-term market fluctuations are expected to persist, numerous stocks are anticipated to provide strong long-term returns. Capitalizing on valuation declines could enable patient investors to achieve significant gains.
For those interested in growth investment strategies, two contributors from Motley Fool recommend considering Dutch Bros (BROS) and Impinj (PI) as promising long-term investments in 2025.
Small coffee chain, big ambitions
Contributor Jennifer Saibil discusses Dutch Bros, noting that despite a general market downturn following two years of over 20% gains, certain stocks are still performing well. Dutch Bros has seen its stock rise by 19% in 2025, indicating investor confidence in the company.
While Dutch Bros only operates in 18 states, its rapid expansion and customer approval are noteworthy. The company reported a 33% revenue increase in 2024 and opened 151 new stores. Plans for 2025 include adding at least 160 more stores, with a long-term goal of operating 4,000 locations in the next 10 to 15 years, suggesting an acceleration in store openings.
Revenue growth at Dutch Bros is not solely dependent on new store openings; the company is also experiencing an increase in same-store sales, which grew by 5.3% in 2024. Management projects same-store sales growth of approximately 3% in 2025.
Dutch Bros differentiates itself through a focus on speed and customer service. Although it is a relatively new public company, its history rivals that of Starbucks. Dutch Bros is modernizing its store formats to meet customer demand, with many locations being drive-thru-only, while others offer dining rooms and walk-up windows.
A mobile ordering program has been introduced across its network, yielding positive results as mobile orders accounted for 8% of transactions in the fourth quarter. Mobile customers are also increasing their purchase frequency. The company is optimistic about the program’s potential to bolster brand presence in new locations.
As Dutch Bros expands, its profitability is increasing. In 2024, the contribution margin for company-operated shops grew by 1.5 percentage points to 29.7%, and net income rose from $10 million to $66.5 million. Dutch Bros is viewed as a top growth investment for 2025.
This company could help you profit from the rise of robots
Contributor Keith Noonan highlights Impinj, a company that stands to benefit from advancements in artificial intelligence (AI), manufacturing, supply chain, and retail automation. Although Impinj is not directly involved in AI, its technologies are set to play a substantial role in these transformative areas over the next decade, potentially delivering significant returns for long-term shareholders.
Impinj specializes in radio frequency identification (RFID) technology, producing chips, tag readers, and software that enable efficient tracking of objects without the need for human intervention. These capabilities are already improving retail and supply chain operations and are expected to become increasingly valuable as AI and robotics influence these sectors further.
Despite recent stock declines, with shares down approximately 37% year to date and 62% from their peak, the company’s growth potential remains viable. Impinj attributed its conservative first-quarter revenue guidance, predicting a 22% sequential and 6% year-over-year decline, to customers managing existing inventory and geopolitical challenges.
Considering its current market capitalization of roughly $2.6 billion, Impinj still has significant growth potential, making the recent valuation drop appear as an investment opportunity in the face of broader market pressures on growth stocks. The company is poised to capitalize on substantial growth factors over the coming decade.