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Rising stock prices can spark excitement for investors, showcasing the growth of their portfolios. Yet, while celebrating these increases, it’s important to evaluate whether buying shares is still a good option, especially if the stock seems too pricey or at its peak.

Stocks often surge due to strong earnings, innovative product launches, or strategic acquisitions that promise future profits. These events can serve as valuable indicators for investors to further analyze potential long-term investments. Here are three stocks that have recently seen notable increases, which are still appealing for your portfolio.

Image source: Getty images.

1. Dutch Bros: A Brewing Success Story

Dutch Bros (NYSE: BROS) originated as a pushcart selling coffee beside the railroad tracks in Oregon in 1992. It has since transformed into a thriving national coffee chain with 950 locations across 18 states. Currently, its stock has increased by 68% year to date, approaching its 52-week high.

In the first three quarters of this year, Dutch Bros reported remarkable growth: revenue rose 31.8% year over year to $938 million, while operating income doubled to $90 million, and net income soared tenfold to $31.6 million. The company also ended the period with positive free cash flow of $5.2 million, a significant turnaround from the previous year’s negative free cash flow of $72.8 million.

With 156 new store openings over the past year, Dutch Bros expanded its footprint by 20%, concluding with 645 company-operated and 305 franchised stores. For the third quarter, same-store sales increased by 2.7%, and transactions rose by 0.8%.

Optimism drives the company as it improves its site selection for new locations, which can lead to stronger outcomes. Dutch Bros plans to open 150 additional stores in 2024 while enhancing investments in development and construction teams.

This month, the coffee chain appointed Venki Krishnababu as its new chief technology and information officer, previously of Lululemon Athletica. His expertise is expected to help Dutch Bros boost customer engagement, a vital aspect of the company’s strategy. Technology plays a crucial role in improving beverage customization and gathering customer feedback.

2. Reddit: The Social Media Heavyweight

Reddit (NYSE: RDDT) has made waves as a social media platform where users share and vote on the most engaging posts. This unique forum structure encourages vibrant discussions across diverse topics.

The company recently went public in March at $34 per share, witnessing a remarkable spike to $169 as of now. Reddit demonstrated a revenue increase of 68% in the third quarter, reflecting its growing popularity.

In addition to this revenue growth, Reddit achieved an operating profit of $6.9 million and a net income of $29.8 million, recovering from a prior year loss. They also reported positive free cash flow of $70.3 million, a stark contrast to the previous year.

Popular metrics continued to impress as global daily active users surged by 47% year over year to 97.2 million, and weekly active users increased 53% to 365.4 million. Average revenue per user rose by 14%, hitting $3.58, indicating greater engagement and spending among its growing user base.

In May, Reddit entered a partnership with OpenAI to incorporate AI tools into its platform and secure OpenAI as an advertising partner. Recently, Reddit has launched a testing phase for “Reddit Answers,” allowing users to receive summarized responses to questions, enhancing user experience and promoting deeper engagement.

3. Twilio: Connecting Businesses and Customers

Twilio (NYSE: TWLO) specializes in customer engagement, facilitating personalized communication between businesses and their clients. The company’s stock price has risen 48% year to date and is nearing its 52-week high of $116.

Revenue growth has been steady, climbing from $2.8 billion in 2021 to $4.2 billion in 2023, with gross profit increasing from $1.4 billion to $2 billion. Notably, free cash flow turned positive in 2023 after two years of decline.

Twilio’s growth continued into 2024, boasting a 6% year-over-year revenue increase and an 11% rise in gross profit over the first nine months. Free cash flow skyrocketed more than threefold year-over-year, from $152.7 million to $564 million. The company also reported an increase in customer count by nearly 5% year over year, totaling 320,000.

Twilio’s figures reflect a successful strategy, maintaining a dollar-based net expansion rate above 100% for five consecutive quarters.