Two Stocks to Buy and Hold for the Long Haul
Investing in stocks can be a great way to build wealth over time, but not every stock is created equal. Some companies have a proven track record of success and are well-positioned for continued growth. In this article, we’ll take a closer look at two monster stocks that could be worth considering for your portfolio: Intuitive Surgical and Dutch Bros.
Intuitive Surgical: A Leader in Surgical Robotics
Intuitive Surgical has been a leader in surgical robotics for over two decades, since its first da Vinci system was approved. Today, its systems are approved for minimally invasive surgical procedures across various specialties, including urology, gynecology, general surgery, thoracic surgery, and cardiac surgery. The company’s business model is somewhat unique in the medical device stock space because it makes money primarily through a "razor-and-blades" approach.
This means that most of the company’s revenue is from recurring sources, a figure that has risen steadily over the years. In its Q2 financial results, Intuitive Surgical reported total revenue of $2.4 billion, a 21% increase from one year ago. Out of that revenue total, $1.47 billion was from instruments and accessories sales, $574.7 million from system sales, and $391.2 million from services related to its surgical systems.
The quarter also marked Intuitive Surgical’s 10,488th installment of a da Vinci surgical system, leaving it with an installed base that was up 14% from the year-ago period. This means that more and more hospitals are turning to Intuitive Surgical’s technology to perform complex surgeries with greater precision and accuracy.
Intuitive Surgical has an impressive track record of being incredibly profitable. Its Q2 net income totaled $664 million, up 25% year over year. However, over the trailing five-year period, Intuitive Surgical has grown its annual earnings by a whopping 119%. Those growth figures have made plenty of investors interested in the stock.
Dutch Bros: A Coffee Company with a Unique Business Model
Dutch Bros is a coffee company that has managed to make significant headway as a business in a highly competitive industry. The company’s business model focuses on no-frills, drive-thru locations, emphasizing speed, customer service, and a limited menu of unique beverages. This approach has allowed Dutch Bros to cultivate a loyal customer base and expand rapidly with lower overhead costs.
Dutch Bros had a pretty great start to the year in the first quarter of 2025, exceeding both revenue and earnings expectations that analysts had put forward. The company reported revenue of $355.2 million, a 29% increase year over year, and net income of $22.5 million, a whopping 39% jump from one year ago.
The company also opened 30 new shops across 11 U.S. states in Q1. Systemwide same-shop sales grew by 4.7%, while company-operated same-shop sales increased by 6.9%. Dutch Bros is actively opening new locations, particularly in the U.S. Southeast, and this is actively contributing to revenue growth.
Why These Two Stocks Stand Out
So why do these two stocks stand out from the crowd? Intuitive Surgical has a proven track record of success and is well-positioned for continued growth. The company’s business model is unique in the medical device stock space, and its revenue is rising steadily over time.
Dutch Bros, on the other hand, has managed to make significant headway as a business in a highly competitive industry. The company’s business model focuses on no-frills, drive-thru locations, emphasizing speed, customer service, and a limited menu of unique beverages. This approach has allowed Dutch Bros to cultivate a loyal customer base and expand rapidly with lower overhead costs.
What the Experts Say
The Motley Fool’s expert analyst team has analyzed Intuitive Surgical and Dutch Bros, and they believe that these two stocks could be worth considering for your portfolio. They have a proven track record of success and are well-positioned for continued growth.
If you’re looking to build a profitable portfolio over time, it may be worth considering adding these two monster stocks to your lineup. With their unique business models and impressive financials, they could be just what you need to meet your personal financial goals.
Conclusion
Investing in the stock market can be a great way to build wealth over time, but not every stock is created equal. Some companies have a proven track record of success and are well-positioned for continued growth. Intuitive Surgical and Dutch Bros are two monster stocks that could be worth considering for your portfolio.
With their unique business models and impressive financials, they could be just what you need to meet your personal financial goals. Whether you’re looking to invest in the medical device industry or the coffee market, these two companies are definitely worth a second look.
