Navigating the stock market can be a challenge, especially during periods of volatility. Market downturns are a normal part of the economic cycle, and while they can be unsettling, they don't have to derail your financial goals. By understanding and implementing smart strategies, you can build a resilient portfolio that can weather the storm and even capitalize on market fluctuations if you consistently put cash into quality companies.
With that in mind, here are two top stocks to consider for your portfolio as you plan for a better financial future.
1. Dutch Bros
Dutch Bros (BROS +0.07%) is known for its variety of handmade beverages, including espressos, lattes, cold brews, smoothies, and teas. Some locations have walk-up windows, but Dutch Bros primarily operates through a highly efficient drive-thru-only model and has veered away from the traditional coffeehouse set-up.
That said, its no-frills model has enabled the business to rapidly expand its store count. It's also growing profitably and delivering the speed as well as the convenience that customers have become accustomed to, which differentiates it from some of the larger coffee chains.
The company has a loyal customer base, with its Dutch Rewards program driving more than 70% of transactions. It's expanding into food items and consumer packaged goods, which could boost revenue and brand presence. Management is also aiming for 2,029 stores by 2029, which would be nearly double its current total.
Second-quarter revenue reached $415.8 million, a 28% increase from the same period in 2024. Importantly, it also delivered net income of $38.4 million, a 73% increase year over year. Systemwide same-shop sales increased by 6.1%, and company-operated same-shop sales grew even faster, at 7.8%.
NYSE: BROS
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Dutch Bros opened 31 new shops during the quarter, with 30 of them being company-operated. It also launched a pilot program for hot food items that was expanded to 64 company-operated locations across Kansas, Missouri, and Oklahoma.
The company is still in the early stages of its national expansion, and management is relying on high-growth, suburban, and Sun Belt markets to pave the way to its long-term goal of more than 7,000 shops nationwide, compared to the over 1,000 locations it currently has.
It's reached an inflection point where it is generating enough cash from its operations to self-fund its impressive expansion plans, while its balance sheet is improving quarter by quarter. Long-term investors who want a consumer discretionary stock with qualities of a growth stock might want to take a look at Dutch Bros.
2. Viking Holdings
Viking Holdings (VIK +0.78%) is a global travel company that operates a fleet of small ships offering river, ocean, and expedition cruises. It's the parent company of Viking Cruises and targets customers seeking culturally immersive, destination-focused experiences in the European and Mediterranean markets, as well as a growing list of other destinations. In a time when consumer spending is constrained in key areas, Viking Holdings has remained resilient.
Viking's core demographic consists of affluent travelers 55 and up, a group that broadly speaking has significant discretionary income and accumulated wealth. That makes their spending on luxury travel less sensitive to the economy than it is for the general population.
Wealthy consumers are increasingly prioritizing experiential travel over the purchase of luxury goods. This trend benefits the luxury travel industry as a whole, and Viking remains well positioned to capitalize on it.
Within each product line, the company builds identical ships. This simplifies marketing, allows older ships to command prices similar to new ones, and creates operational efficiencies in maintenance and staffing. The smaller size of its ships also allows them to reach destinations and ports that larger vessels cannot.
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Its cruises prioritize cultural immersion over onboard entertainment, which is different from other cruise lines that feature casinos, children's programs, or more party-focused experiences. Viking also maintains control over customer relations and reduces reliance on third-party agencies by focusing on direct marketing, which drives consistent, direct bookings that have boosted its profitability through the years.
Revenue of $1.88 billion in the second quarter was up 18.5% year over year, and net income nearly tripled from one year ago to $439.2 million. Viking Holdings reported occupancy of 95.6%, and an 8.8% year-over-year increase in passenger cruise days.
One of the most impressive takeaways from the results was the robust number of advanced bookings. Not only was 96% of capacity sold for the company's core products in the 2025 season, but 55% of 2026 capacity was also already booked as of the end of the second quarter.
Now, I'm not saying that any company is totally impervious to economic headwinds, and many cruise stocks have experienced their fair share of volatility through recent years. However, if you want to invest in a travel stock with a resilient underlying model, a rock-solid balance sheet, and the financial fortitude to weather some rockiness ahead, Viking Holdings looks like an attractive option.
