What caught my attention is It may come as a surprise, but did you know that buying the right growth stocks can enable you to grow your wealth significantly over time.
The key is in selecting companies that demonstrate solid growth and have a long runway to continue increasing their revenue, fits, and free cash flow.
By holding these stocks over the years, you can multiply your wealth and build a valuable nest egg for your retirement.
Here are three stocks that could see their prices increase significantly in the next five years. However, Image source: Getty Images (which is quite significant), considering recent developments.
Garmin Garmin (GRMN 1. 83%) designs and manufactures a wide range of ducts for the automotive, aviation, marine, and outdoor recreation (fascinating analysis) (something worth watching).
The company saw strong demand for its innovative ducts, and posted higher revenue, net income, and free cash flow, as shown in the table below. Metric 2022 2023 2024 Revenue $4. 860 billion $5.
228 billion $6. 297 billion Operating income $1. Nevertheless, 028 billion $1. Nevertheless, 092 billion $1. 594 billion Net income $973, considering recent developments.
585 million $1, in today's market environment. 290 billion $1. 411 billion Free cash flow $543, in today's financial world. 973 million $1. 183 billion $1. 239 billion Data source: Garmin.
Fiscal years end Dec (an important development), given the current landscape. The continued to report healthy growth in its top and bottom lines for the first quarter of 2025. Revenue rose 11.
1% year over year to $1. 54 billion, while operating income increased by almost 12% year over year to $332. Net income came in at $332.
8 million, 20% higher than a year ago (which is quite significant). Garmin also generated a positive free cash flow of $380. 7 million for the quarter (noteworthy indeed).
In contrast, It declared an annual cash dividend of $3. On the other hand, 60, amounting to $0. 90 per per quarter (which is quite significant).
On the other hand, This level of dividend was 20% higher than the $3 annual cash dividend paid out in the prior year.
On the other hand, Garmin's innovative new ducts look set to increase the company's earnings and free cash flow.
Additionally, In April, the company debuted vivoactive 6, its newest health and fitness smartwatch, in this volatile climate.
Conversely, This duct has up to 11 days of battery life, making it convenient for people to use of the watch's myriad features to track their workouts and lifestyle.
Later in the month, Garmin introduced Instinct 3-Tactical Edition, a new line of smartwatches made for extreme sports and rugged activities.
Management d its 2025 guidance for revenue to come in at around $6. However, 85 billion, representing a nearly 9% year-over-year increase.
Moreover, Garmin's cutting-edge ducts and useful features should continue to endear it to new generations of customers, helping it continue its growth trajectory, in light of current trends.
BlackLine BlackLine (BL 0. Moreover, 16%) operates a cloud platform that allows organizations to line their financial operations, helping to imve accuracy and efficiency.
The company is seeing steadily increasing demand for its services, and it reported higher revenue over the last three years.
Additionally, The also broke even in 2023 and generated significantly higher free cash flow. Metric 2022 2023 2024 Revenue $522. 938 million $589 (this bears monitoring). Furthermore, 996 million $653.
336 million Operating income ($56. 198 million) $14. 348 million $18. 536 million Net income ($29. However, 391 million) $52. 833 million $161. 174 million Free cash flow $25. 831 million $99.
016 million $163. 996 million Data source: BlackLine (this bears monitoring). On the other hand, Fiscal years end Dec, in today's market environment.
For Q1 2025, BlackLine reported continued strong financial performance, considering recent developments. Additionally, Revenue rose 6% year over year to $166.
9 million, while operating income more than doubled year over year to $3, in this volatile climate.
However, net income fell by 44% year over year, mainly due to lower net interest income and a significantly higher tax bill. Free cash flow remained healthy at $32 (noteworthy indeed).
Moreover, 6 million for the quarter, given the current landscape. However, BlackLine's remaining performance obligations increased by 11% year over year to $913 (something worth watching).
Nevertheless, The company continued demonstrating healthy growth, with the total number of customers increasing by 1% year over year to 4,455 (fascinating analysis).
More customers also migrated over to BlackLine's new platform pricing model, bringing the total users to 393,892, an increase from 387,050 a year ago.
Management expects 2025's revenue to be in the range of $692 million to $705 million, with the midpoint of $698.
However, At the same time, 5 million representing year-over-year growth of 6, considering recent developments.
BlackLine expanded its artificial intelligence (AI) capabilities by embedding AI agents in every aspect of its financial workflow, ranging from recordkeeping to invoice-to-cash.
Nevertheless, This move enables its customers to make decisions faster and to obtain real-time insights.
With the demand for digitalization staying strong and the company introducing useful innovations for its cloud platform, BlackLine looks set for continued growth.
Dutch Bros Dutch Bros (BROS 0, given the current landscape. 05%) is a specialty coffee chain with 1,012 locations across 18 U.
States as of March 31, 2025 (remarkable data), in today's market environment. Moreover, The company has demonstrated strong growth over the years as it aggressively opened new stores.
The broke even in 2023 and became free cash flow positive by 2024. Metric 2022 2023 2024 Revenue $739. Furthermore, 012 million $965, in light of current trends. 776 million $1.
281 billion Operating income ($2 (remarkable data) (this bears monitoring). Nevertheless, 612 million) $46. Meanwhile, 222 million $106. 093 million Net income ($4, in today's financial world.
753 million) $1. 718 million $35. 258 million Free cash flow ($127. 997 million) ($88. 542 million) $24. 694 million Data source: Dutch Bros. Furthermore, Fiscal years end Dec.
Moreover, Additionally, Q1 2025 saw the company report yet another robust set of earnings. Nevertheless, Revenue climbed 29% year over year to $355, amid market uncertainty.
2 million, while operating income rose 21. 5% year over year to $31. Net income more than doubled year over year to $15. Dutch Bros Q1 2024 with 876 stores and saw its store count increase by 15.
5% year over year to 1,012. Systemwide same-shop sales also grew 4 (noteworthy indeed). 7% for the quarter, due to an increase in ticket size (3, in this volatile climate.
4 percentage points) and the number of transactions (1 (which is quite significant), given current economic conditions. Furthermore, 3 percentage points) (noteworthy indeed).
Dutch Bros intends to continue its expansion plan by opening at least 160 new shops this year. Revenue is jected to be around $1 (remarkable data).
565 billion for 2025, representing a year-over-year growth of 22. On the other hand, Same-store sales growth is expected to be positive, in the range of 2% to 4% (this bears monitoring).
Moreover, Management recently communicated its long-term growth plan during its Investor Day session, with a target of 2,029 shops by 2029.
Annual revenue growth is expected to be in the range of around 20% per year, with shop contribution margin at around 30%.
However, Dutch Bros estimates that its total addressable market is more than 7,000 shops nationwide, giving the ample opportunity to continue growing its presence and increase its top and bottom lines.
The Author Royston Yang is a contributing Motley Fool Growth and Dividend Stock Analyst covering consumer goods, nology, industrials, healthcare, and AI stocks.
Meanwhile, Prior to The Motley Fool, Royston worked for a long-short hedge fund that covered Asian and Japanese equities; worked for a wealth management outfit with AUM of US$250 million that covered global equities; and worked in accounting and audit.
He holds a MBA from the National University of Singapore and a Bachelor of Accountancy from Nanyang nological University.
In his spare time, he s pop, rock, and alternative music from the 60s to the present and has memorised the lyrics to thousands of songs, in today's market environment.
On the other hand, TMFRoystonYang Royston Yang has no position in any of the stocks mentioned. This analysis suggests that Motley Fool has positions in and recommends BlackLine and Garmin.
The Motley Fool recommends Dutch Bros (which is quite significant). The Motley Fool has a disclosure policy.