Investors have found that the stock market is a great way to generate wealth in the long run. Where things can get tough, though, is choosing the stocks that will do best not only today or this month, but for years to come.
With so many investment trends, it is extremely difficult to understand what companies are doing. If you’re not supportive, the latest software-as-a-service-platform may be beyond your comprehension. And even if you know how to drive a car, trying to figure out how to make one electric vehicle manufacturer better than another can give you a headache.
You don’t have to invest in things you don’t know to make money in the stock market. Below, we’ll look at two of the top excellent growth stocks with simple industries that won’t leave you wondering how they work.
1. Boston beer
Boston beer (NYSE: Sam) The stock has been surprisingly strong over the past year. After years of consistent and solid share-price gains, Sam Adams beer maker has tripled in value since early 2020.
If you’re expecting to find some sort of tech-stock angle here, you’ll have to look no further. For its customers, the biggest rush of Boston beer into the cloud comes when they get their drinks on an airplane flight. And Boston has not come up with a way to create a subscription-based platform for beer lovers.
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What Boston Beer has is a lineup of popular products. Increasingly, its most successful product line is not really beer.
Offers iced tea and lemonade with a twisted tea kick, while Angry Orchard also has a hard-cedar line dedicated following. More recently, alcoholic sparkling water has become a hit new drink, and Boston Beer’s true brand is moving forward with flavors such as pomegranate, colima lime and Sicilian blood orange.
Boston Beer’s revenue has surpassed 25% in 2019, and despite epidemic challenges, the company is on track to surpass growth after the results of the final fourth quarter of 2020 come out. Net income is growing at a much faster pace. That’s great news for Boston Beer shareholders, and anyone who has ever enjoyed a trip to the local watering hole can understand the success of the beer producer.
2. RH
Anyone who has ever owned a home knows that finding the right furniture for them can be a balancing act. Most people have a budget to follow, but they also want top-of-the-line furniture and accessories that give them the distinctive and comfortable feel they want.
R.H. (NYSE: RH) The luxury is aimed at catering to the homeowner. The retailer does not pull any punches, using an unusual membership model to entice its best customers to its luxury gallery locations. CEO Gary Freedom’s goal is to create an unparalleled brand known for its stunning concepts to help upscale shoppers build their dream homes.
As severe as the epidemic is for retailers, RH has also benefited from the fact that people live more at home and want the places where they live to be better than before. Despite low store traffic, e-commerce sales declined.
Going forward, RH has ambitious plans to create complete ecosystems of luxury around its store locations, with plans to invest in major destinations such as the international ski spot Aspen. The company has become hugely profitable over the past three years, and with huge aspirations for the future, RH has a long growth run ahead of it.
Invest in what you know
Many grow stocks succeed because they have great ideas that no one else could come up with. But in some cases, businesses that are too easy to understand still manage strong growth. Both RH and Boston Beer are not confused, and they have promising avenues for future expansion opportunities that could sustain growth for years to come.
