Like Fantasy Football? Here are 3 Sleeper Stocks for Your Portfolio

If you’re like me, your fantasy football team is currently plagued with injuries and you’re relying on your sleep choices to carry the weight. In the spirit of fall and football season, I’ve rounded up three stocks that I think could create some big gains for investors’ portfolios.

Chubb

This isn’t necessarily a traditional pick, as Warren Buffett has been buying stocks left and right. That being said, this insurance company doesn’t get the same amount of attention from investors as it does Nvidia or chew. This is an interesting piece as he struggled to outdo the S&P 500 over the past five years despite its financial performance.

There are two main reasons you want to get involved Chubb (CB 1.63%). First, with Buffett now owning more than 27 million shares, there’s reason to believe he could end up buying it all. Second, the insurance company generated extraordinary annual performance, growing sales from $34.2 billion in 2019 to $50 billion last year. The story doesn’t end there, as Chubb reported a 17.3% year-over-year increase in its most recent quarterly results.

Analyst estimates expect full 2024 earnings of $21.60 per share. This would give the company a forward P/E ratio of 13.4 times annual earnings. That’s below the five-year historical average of 14.9 times earnings, and given the growth rates Chubb is achieving, I think it’s a fair valuation even if Buffett stops buying.

Dutch Bros

I recently wrote about Dutch Bros (BROS -1.10%) compared to Starbucksand view the coffee chain as a solid play based on its financial performance relative to its share price trends.

This is a stock that has a habit of big gains followed by declines that dip back below the broader market. I view these declines as opportunities for investors. The stock has been weaker recently as it issued some lower guidance on expected store openings this year. I see this as an opportunity as Dutch Bros has delivered fantastic financial performance year on year.

In its most recent quarter alone, the company reported year-over-year revenue growth of 30%. Estimates say full-year 2024 revenue will be between $1.215 billion and $1.23 billion, an increase of about 27%.

The coffee company has also started turning a profit, which I believe will create additional momentum when combined with the impressive revenue growth. Overall, it has already started to recover from the recent lows and I see the latest pullback as a buying opportunity.

Boston beer

Boston beer (SAM 0.08%) it is my long sleeper. The premise here is that all the acquisitions and mergers made by this craft beer king have not led to long-term results. Stagnant revenue growth could finally force co-founder Jim Koch and the rest of the Boston Beer team to sell the company.

The big issue here is top-line revenue growth. Things are gradually slowing down. The company reported growth of 39.2% in 2020, then 18.27% in 2021, then 1.59% in 2022 and a decline of almost 4% in 2023.

Until this year, the stagnation continued. In the first two quarters, net income fell 0.8%. Clearances fell 2% with shipments down 3.4%. The craft beer company made the most of it, with net income up 32.3% in the first two quarters of the year.

This company started as a craft beer gem, has since faced tough competition in that business and tried to use new avenues like Truly Hard Seltzer and Twisted Tea to grow the business. Overall, however, the business has struggled to produce results that should drive the share price. Despite the stock’s wild run in 2021, the stock is down 22% over the past five years. With flat growth, I see this as a bedroom buying opportunity.