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Yahoo
a day ago
- Business
- Yahoo
3 Top Stocks to Buy With $3,000 Right Now
The $6 trillion e-commerce market could fuel this top growth stock to monster returns over the next decade and beyond. This fast-growing restaurant stock is trading at a deep discount. This coffee shop chain sees the opportunity to grow its store count sevenfold. 10 stocks we like better than Shopify › Companies that succeed in tapping into massive market opportunities can lead to handsome gains for their shareholders. As an investor, ignoring the short-term noise and staying focused on the company's opportunity will help you succeed in building wealth in the stock market. This is the key to buy-and-hold investing. Three contributors recently selected stocks they think could make rewarding buy-and-hold investments. If you have some cash -- say $3,000 -- available to invest that isn't needed to pay off debt or monthly bills, read on to learn why these Motley Fool contributors think Shopify (NASDAQ: SHOP), Sweetgreen (NYSE: SG), and Dutch Bros (NYSE: BROS) are good places to park that money long-term. (Shopify): Shopify helps provide the operating system for a lot of e-commerce. It has developed a platform of essential tools that businesses can use to set up an online store, in addition to a robust set of back-end solutions, such as analytics, apps, and payment processing for businesses large and small. It's a profitable company generating revenue from subscriptions and fees from services. Shopify has been serving online merchants for over a decade, but is still posting stellar growth. Revenue grew 27% year over year in the first quarter. Shopify has ample opportunities to keep growing at high rates for many years. Shopify Payments remains an important growth driver for the company's gross merchandise volume (GMV), which is the total value of all transactions completed by one of Shopify's merchants. It just launched Payments in 16 new markets, increasing the number of markets where Payments is available from 23 to 39, which will open up a lot more growth. Shopify also sees significant growth opportunities internationally. Europe's GMV grew 36% year over year in Q1. This indicates a lot of merchants worldwide are still discovering the value Shopify brings to the table. Despite the stock's incredible run over the last 10 years, Shopify's market cap (share price times shares outstanding) is just $149 billion, yet it's going after a global e-commerce market that is valued at $6 trillion and still growing, according to eMarketer. There's enough room for growth that Shopify's market cap could reach $1 trillion one day, making the stock a very rewarding investment. Jeremy Bowman (Sweetgreen): Sweetgreen is one of the most promising growth stories in the restaurant industry. However, shares of the fresh produce slinger have been getting tossed in the compost pile lately after two disappointing earnings reports and weak guidance for 2025. Like other restaurant chains, Sweetgreen is feeling the effects of weakening consumer sentiment and nervousness around tariffs. Additionally, the Los Angeles wildfires weighed on the company's performance in the first quarter as L.A. is both its headquarters and a major market. In the first quarter, Sweetgreen's same-store sales fell 3.1%, and the company now expects flat same-store sales for the full year. As a result of that weakness, the stock is trading down about 69% from its peak late last year. However, Sweetgreen still has a lot of long-term growth potential. The company plans to grow its unit base by around 16% this year, adding 40 new stores, and it's rolling out its automated Infinite Kitchen system to more stores, which should save on labor costs and improve throughput, thereby improving customer service and satisfaction. While Sweetgreen's comparable sales have been weak recently, its restaurants remain popular, as its average unit volume of $2.9 million shows. That's on par with industry leaders like Chipotle Mexican Grill and hot restaurant stocks like Cava. Considering the discount in the stock and a price-to-sales ratio of just 2.4, which compares to Chipotle at 6.1 and Cava at 8.9, Sweetgreen looks like a bargain if it can return to comparable sales growth and achieve profitability. Over the long term, the company appears to have the brand strength and expansion potential to do just that. At a bargain price, now looks like a great time to scoop up shares of the restaurant stock. Jennifer Saibil (Dutch Bros): If you enjoy drinking coffee, you've potentially heard about Dutch Bros. But if you live on the East Coast, you may not yet have had a chance to sample its beverages. Dutch Bros got its start on the West Coast, and it is rapidly expanding its drive-thru-focused coffee shop chain into the South and Midwest at the moment, gaining loyal fans and rolling down a huge growth runway. The company just surpassed 1,000 stores, and it recently announced plans to reach 2,029 stores by 2029. More than a clever trick, that goal implies an accelerated store opening rate. It opened 151 stores last year and plans for 160 this year. As it expands, it's entering new states and establishing a strong brand. Long-term, management sees the opportunity for 7,000 stores. It recently upped that estimate from 4,000, and it could get raised again. Investors can be confident about its ability to get there because it's performing so well today, with products and a brand that are resonating with people in all of its regions. In the 2025 first quarter, revenue increased 29% year over year. Comparable sales (comps) were up 4.7%, with a 1.3% increase in transactions. Management reports that detail so investors know that the increase isn't only coming from price hikes, and customers are coming in more frequently. That's a great sign of engagement, especially when other restaurants are feeling a lot of pressure, and it suggests that Dutch Bros has a bright future ahead. It's also becoming profitable at scale. It has reported two straight years with an annual net profit, and net income increased from $16.2 million to $22.5 million in the first quarter, despite an unfavorable economic backdrop. Considering the obvious upside here, Dutch Bros stock isn't cheap. It trades at a forward one-year P/E ratio of 88, which is very pricey even for a top growth stock. If you can buy today and hold it for many years, Dutch Bros could be a standout long-term stock to buy with $3,000. Before you buy stock in Shopify, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Shopify wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Jennifer Saibil has no position in any of the stocks mentioned. Jeremy Bowman has positions in Cava Group, Chipotle Mexican Grill, Shopify, and Sweetgreen. John Ballard has positions in Cava Group. The Motley Fool has positions in and recommends Chipotle Mexican Grill and Shopify. The Motley Fool recommends Cava Group, Dutch Bros, and Sweetgreen and recommends the following options: short June 2025 $55 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy. 3 Top Stocks to Buy With $3,000 Right Now was originally published by The Motley Fool
Yahoo
a day ago
- Business
- Yahoo
2 Stocks Down 23% and 26% to Buy Right Now
If investors can see past the downturn in energy prices, Chevron stock is a great opportunity. Exponential AI demand growth is driving this company's end-market growth. 10 stocks we like better than Chevron › With the first half of 2025 nearly over, many investors are taking time to reevaluate their portfolios and take advantage of quality stocks that can be bought at a discount. It certainly requires some confidence to buy shares of a company when they're down, but it's opportunities like these that offer the potential for outsize returns. Two contributors, for example, recognize that oil supermajor Chevron (NYSE: CVX) and data center equipment provider Vertiv (NYSE: VRT) are two worthy considerations for investors to click the buy buttons on right now since they're stocks are trading down 23% and 26%, respectively, from recent all-time highs. (Chevron): While the 23% decline in Chevron stock from its all-time high in January 2023 may be disconcerting, the truth is that the stock's fall isn't wholly unexpected. There's a strong correlation between the movements of energy prices and those of energy stocks, so when investors pair Chevron stock's plunge with the 22% dip in the price of oil benchmark West Texas Intermediate during the same time period, the performance in Chevron's stock becomes much more understandable. Whether you're on the prowl for a reliable dividend stock or a steady energy stock or something in between, Chevron fits the bill. For 38 consecutive years, the company has hiked its dividend -- a notable achievement for any company but especially one whose business revolves around commodities along with their cyclical prices. Lest investors fear that the company is sacrificing its financial health to placate shareholders, a peek at Chevron's average payout ratio over the past five years should allay their concerns: It's a conservative 68.4%. Unlike some companies that solely focus on exploration and production, or those with midstream businesses, or downstream operations, Chevron operates throughout the energy value chain. This provides it with the ability to benefit from greater efficiencies than companies with more concentrated operations, as well as mitigating the risks associated with a slowing in the business of any one link in the energy value chain. For those looking to put some pep in their passive income streams, now seems like a great time to gas up on Chevron stock. Lee Samaha (Vertiv): Data center equipment provider and Nvidia partner Vertiv's stock trades down about 26% from its all-time high. It has recovered significantly recently, but despite a strong run, it's still an overall dip worth buying into. That reasoning relies on assuming that we are in the early innings of investment in artificial intelligence (AI) applications and the data centers necessary to support AI growth. As recently discussed, there are no signs of a slowdown in data center spending, and that bodes well for the near-term outlook. Thinking more medium-term, Vertiv's data center power systems are set to play a key role in the new generation of data centers that Nvidia is building toward. Nvidia believes the new 800-volt (V) high voltage direct current (HVDC) data centers (set to be launched in 2027) can improve efficiency by 5%, reduce copper usage, and lower maintenance costs by 70%, and also lower cooling costs. The good news is that Vertiv plans to have its 800-V HVDC power systems ready by the second half of 2026, in time for deployment with Nvidia's key platform rollouts in 2027. That should drive the next cycle of orders at Vertiv, and as long as AI demand continues to explode, it's likely that Vertiv's total addressable market for its power systems, thermal management, and data center infrastructure will also grow strongly. While semiconductor stocks often get the lion's share of attention regarding AI, Vertiv is a great consideration for investors looking to gain AI exposure -- especially with 2026 shaping up to an auspicious year of developments for the company. On the other hand, income investors who have the patience to wait out a downturn in energy prices have a great opportunity to power up their passive income streams right now with Chevron stock. Before you buy stock in Chevron, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Chevron wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron and Nvidia. The Motley Fool has a disclosure policy. 2 Stocks Down 23% and 26% to Buy Right Now was originally published by The Motley Fool
Yahoo
a day ago
- Business
- Yahoo
2 Stocks Down 23% and 26% to Buy Right Now
If investors can see past the downturn in energy prices, Chevron stock is a great opportunity. Exponential AI demand growth is driving this company's end-market growth. 10 stocks we like better than Chevron › With the first half of 2025 nearly over, many investors are taking time to reevaluate their portfolios and take advantage of quality stocks that can be bought at a discount. It certainly requires some confidence to buy shares of a company when they're down, but it's opportunities like these that offer the potential for outsize returns. Two contributors, for example, recognize that oil supermajor Chevron (NYSE: CVX) and data center equipment provider Vertiv (NYSE: VRT) are two worthy considerations for investors to click the buy buttons on right now since they're stocks are trading down 23% and 26%, respectively, from recent all-time highs. (Chevron): While the 23% decline in Chevron stock from its all-time high in January 2023 may be disconcerting, the truth is that the stock's fall isn't wholly unexpected. There's a strong correlation between the movements of energy prices and those of energy stocks, so when investors pair Chevron stock's plunge with the 22% dip in the price of oil benchmark West Texas Intermediate during the same time period, the performance in Chevron's stock becomes much more understandable. Whether you're on the prowl for a reliable dividend stock or a steady energy stock or something in between, Chevron fits the bill. For 38 consecutive years, the company has hiked its dividend -- a notable achievement for any company but especially one whose business revolves around commodities along with their cyclical prices. Lest investors fear that the company is sacrificing its financial health to placate shareholders, a peek at Chevron's average payout ratio over the past five years should allay their concerns: It's a conservative 68.4%. Unlike some companies that solely focus on exploration and production, or those with midstream businesses, or downstream operations, Chevron operates throughout the energy value chain. This provides it with the ability to benefit from greater efficiencies than companies with more concentrated operations, as well as mitigating the risks associated with a slowing in the business of any one link in the energy value chain. For those looking to put some pep in their passive income streams, now seems like a great time to gas up on Chevron stock. Lee Samaha (Vertiv): Data center equipment provider and Nvidia partner Vertiv's stock trades down about 26% from its all-time high. It has recovered significantly recently, but despite a strong run, it's still an overall dip worth buying into. That reasoning relies on assuming that we are in the early innings of investment in artificial intelligence (AI) applications and the data centers necessary to support AI growth. As recently discussed, there are no signs of a slowdown in data center spending, and that bodes well for the near-term outlook. Thinking more medium-term, Vertiv's data center power systems are set to play a key role in the new generation of data centers that Nvidia is building toward. Nvidia believes the new 800-volt (V) high voltage direct current (HVDC) data centers (set to be launched in 2027) can improve efficiency by 5%, reduce copper usage, and lower maintenance costs by 70%, and also lower cooling costs. The good news is that Vertiv plans to have its 800-V HVDC power systems ready by the second half of 2026, in time for deployment with Nvidia's key platform rollouts in 2027. That should drive the next cycle of orders at Vertiv, and as long as AI demand continues to explode, it's likely that Vertiv's total addressable market for its power systems, thermal management, and data center infrastructure will also grow strongly. While semiconductor stocks often get the lion's share of attention regarding AI, Vertiv is a great consideration for investors looking to gain AI exposure -- especially with 2026 shaping up to an auspicious year of developments for the company. On the other hand, income investors who have the patience to wait out a downturn in energy prices have a great opportunity to power up their passive income streams right now with Chevron stock. Before you buy stock in Chevron, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Chevron wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron and Nvidia. The Motley Fool has a disclosure policy. 2 Stocks Down 23% and 26% to Buy Right Now was originally published by The Motley Fool
Yahoo
06-06-2025
- Business
- Yahoo
Broadcom Reports AI-Fueled Sales Growth
In its second fiscal quarter, Broadcom reported better-than-expected results on the top and bottom lines. Management's third quarter guidance was a bit stronger than analysts had been expecting. CEO Hock Tan believes AI revenue will accelerate in the next quarter. 10 stocks we like better than Broadcom › Here's our initial take on Broadcom's (NASDAQ: AVGO) fiscal 2025 second-quarter financial report. Metric Q2 2024 Q2 2025 Change vs. Expectations Revenue $12.49 billion $15 billion 20% Beat Earnings per share (adjusted) $1.10 $1.58 44% Beat Cash and equivalents $9.81 billion $9.47 billion -3.5% n/a Free cash flow $4.49 billion $6.41 billion 44% n/a For its fiscal second quarter, Broadcom beat expectations (slightly) on both the top and bottom lines. Revenue for the semiconductor chip and software developer grew 20% year over year to just over $15 billion, and the company produced $4.97 billion of new income. On an adjusted basis, Broadcom generated $1.58 in earnings per share, a penny ahead of estimates. Looking beyond the headlines, the numbers look solid. Broadcom produced $6.4 billion in free cash flow, a stellar 43% margin and an all-time high for the company. Management bought back $4.2 billion in stock. When it comes to guidance, that was a positive story as well. Broadcom is projecting $15.8 billion in revenue for the third fiscal quarter, slightly ahead of what analysts had been looking for. Both of Broadcom's major business segments produced solid growth. Semiconductor solutions revenue grew 17% year over year, and infrastructure software revenue climbed by an impressive 25%. Plus, CEO Hock Tan said that management expects artificial intelligence (AI) semiconductor revenue growth to accelerate in the next quarter, which would be 10 consecutive quarters of growth in this part of the business. It might come as a bit of a surprise, but Broadcom stock's initial reaction to the earnings report was a negative one. As of 4:50 p.m. ET Thursday (about a half hour after the announcement), shares were lower by about 2%. With a beat on the top and bottom lines and better-than-expected guidance, it might seem odd for the stock to fall. However, keep in mind that Broadcom was trading just below its all-time high going into this report and had climbed by a staggering 87% from its April low, so it's possible investors were simply expecting more of a positive surprise. Broadcom's performance for the rest of 2025 will be largely dependent on AI spending. Management is reporting continued strong investment activity from its hyperscale partners, and as mentioned earlier, AI semiconductor revenue growth is expected to accelerate in the third fiscal quarter, so it will be worth keeping an eye on this to see how it actually plays out. Full earnings report Investor relations page Additional coverage Before you buy stock in Broadcom, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Broadcom wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Matt Frankel has no position in any of the stocks mentioned. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy. Broadcom Reports AI-Fueled Sales Growth was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-05-2025
- Business
- Yahoo
3 High-Yield Dividend Stocks to Buy Right Now to Boost Your Passive Income
Buy Dominion Energy for the 4.8% yield; keep it for the unfolding turnaround. Western Midstream Partners pays a monster cash distribution. The recent drop in Chevron's stock price is a solid buy opportunity. 10 stocks we like better than Dominion Energy › Buying dividend stocks is one of many ways to generate passive income. Many companies offer attractive yields that are much higher than the S&P 500's average, which is currently below 1.5%. Dominion Energy (NYSE: D), Western Midstream Partners (NYSE: WES), and Chevron (NYSE: CVX) stand out to a few contributors for their higher dividend yields. Here's why they believe these stocks are great options for those seeking ways to boost their passive income. Reuben Gregg Brewer (Dominion Energy): Some turnarounds are very risky, with companies working back from the brink of financial disaster. Then there are the turnarounds like the one Dominion Energy is undertaking. Dominion is basically a well-run utility that got over its skis because of an overly complicated business model. It has been slimming down by selling assets such as pipelines and natural gas utilities. Now it is largely just a regulated electric utility operating in attractive regions. That makes the 4.8% yield on offer fairly attractive, noting that the average utility yields only around 2.9%. Investors can buy for the yield, with management stating clearly that the dividend is safe at current levels as the turnaround progresses. What the dividend isn't doing, however, is growing. That will be a problem for some income-focused investors and really highlights the current turnaround effort. Dominion is currently working on strengthening its financial position and trimming its payout ratio so that it's more in line with industry peers. Essentially, the heavy lifting here is on the balance sheet. Progress is being made, but it will probably take at least another few years before dividends are reliably growing again because the payout ratio remains elevated. But with earnings projected to grow between 5% and 7% a year, that, too, will change for the better in time. A payout ratio below 70% will likely be a major dividend turning point. Meanwhile, while you wait for dividend growth to resume, you get to collect that well-above-average yield, which seems like a reasonable trade-off. Matt DiLallo (Western Midstream Partners): Western Midstream Partners is a master limited partnership (MLP) that owns and operates midstream assets that gather, process, and transport oil and natural gas for energy companies, including its parent company, Occidental Petroleum. Most of its assets generate stable fee-based cash flows, which support a cash distribution that yields nearly 9.5%. More often than not, a payout approaching 10% is a red flag. However, that's not the case with Western Midstream Partners. The MLP expects to produce $1.3 billion to $1.5 billion in free cash flow this year. That's enough money to cover its lucrative distribution and planned capital expenditures to maintain and grow its business with room to spare. Meanwhile, the company has a strong balance sheet, with its leverage ratio currently below its 3.0 times target. That gives it ample financial flexibility to make bolt-on acquisitions and approve additional growth capital projects as opportunities arise. It's targeting organic investments that deliver mid-teens returns and acquisitions that enhance its asset footprint. Western Midstream's growth investments and financial flexibility fuel its view that it can grow its already monster distribution at a low- to mid-single-digit rate in the future. It recently hiked its payout by 4%. The company's high-yielding and growing distribution can boost your passive income as long as you're comfortable with receiving the Schedule K-1 federal tax form that the MLP sends its investors each year. Neha Chamaria (Chevron): With lower oil prices triggering a sell-off in oil stocks, shares of Chevron have slumped nearly 20% over the past month and a half as of this writing. The drop has pushed the oil stock's yield to 5%, making it an attractive dividend stock to buy now for years of passive income. Chevron has been an incredible dividend stock when it comes to stability and dividend growth. It has increased its dividend for 38 consecutive years, including a 5% hike earlier this year. Chevron is on solid footing right now and should be able to continue its dividend increase streak for years to come. In 2024, the oil major returned a record $27 billion in cash to shareholders, including $11.8 billion in dividends. Chevron expects to grow production by a compound annual rate of 6% through 2026 and could generate $9 billion in incremental free cash flow between 2024 and 2026 at a Brent crude oil price of $60 per barrel. Its cash flows could grow faster if Chevron wins the ongoing arbitration proceedings and acquires Hess to gain a stake in Guyana's oil-rich Stabroek Block. All that excess cash, with or without the Hess acquisition, should mean bigger dividends for Chevron shareholders. That makes Chevron a highly reliable, high-yield dividend stock to buy now. Before you buy stock in Dominion Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dominion Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Matt DiLallo has positions in Chevron. Neha Chamaria has no position in any of the stocks mentioned. Reuben Gregg Brewer has positions in Dominion Energy. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends Dominion Energy and Occidental Petroleum. The Motley Fool has a disclosure policy. 3 High-Yield Dividend Stocks to Buy Right Now to Boost Your Passive Income was originally published by The Motley Fool
