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Globe and Mail
13 hours ago
- Business
- Globe and Mail
My 5 Favorite Stocks to Buy Right Now
Key Points Sellers have arguably overshot their target with beverage and snack-chip outfit PepsiCo. The social media landscape's increasingly toxic vibe is driving users to sites where they can better shield themselves from it. E-commerce remains a major growth opportunity. 10 stocks we like better than MercadoLibre › Is it time to reset or reallocate your portfolio? Maybe you just need some new places for idle cash that's been slowly building up. Don't sweat it. I think I can help. Here's a closer look at five stocks I've had an eye on for a while, all of which have become some of my top prospects. I think they'll work for plenty of other investors, too. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » 1. PepsiCo PepsiCo (NASDAQ: PEP) stock has dramatically underperformed shares of its rival Coca-Cola since late 2023, when lingering inflation turned downright painful. Whereas Coca-Cola's business model largely punts expensive bottling operations to its third-party bottling partners, PepsiCo owns most of its manufacturing facilities, which were suddenly more expensive to operate. It would also be naïve to pretend Coca-Cola doesn't have at least a little more pricing power than PepsiCo does, particularly in comparison to PepsiCo's Frito-Lay snack chip business. However, while the backdrop put pressure on PepsiCo's profit margins, it was never the existential threat that the stock's 30% pullback from its 2023 peak suggests. The sell-off has done investors a huge favor, though. It's pumped this stock's forward-looking dividend yield up to 4.2%.That yield is also based on a dividend that has now been raised for 53 consecutive years. 2. AppLovin Ever heard of AppLovin (NASDAQ: APP)? It would be a bit surprising if you had. It's anything but a household name. There's a good chance you or someone in your household has been exposed to its service, however. AppLovin helps app developers advertise their apps. This description still understates what the company brings to the table, though. The company's turned digital marketing into an art and a science. From streaming TV to mobile apps and more, AppLovin helps marketers create, manage, and measure advertising campaigns. Its target market clearly loves what it offers, if this year's projected top-line growth of more than 21% is any indication. This pace of revenue growth is also expected to last at least through 2027. This technology company is also profitable, and increasingly so. In fact, its per-share profits are expected to triple from last year's $4.53 to more than $14.00 per share by 2027. There's been some drama, for the record. In March, short-selling specialist outfit Muddy Waters argued that AppLovin's advertising tech didn't actually work as effectively as it was said to. Shares tumbled on the news. It's quite telling, however, that the stock has since more than reclaimed that lost ground. 3. Snap When Snapchat parent Snap (NYSE: SNAP) went public in 2017, investors were understandably hesitant. Twitter (now X) and Meta Platforms ' Facebook were well-entrenched by then, and still growing. The last thing the world seemed to need at the time was yet another social media platform. Investors needed an unprofitable one even less. A funny thing's happened in the meantime. Snapchat's continued to make forward progress in terms of revenue, profitability, and user headcount. Its first-quarter daily user tally of 460 million extends a slow and steady growth streak to another new record. Sales growth and progress toward consistent profitability remain equally impressive, firmed up by the company's willingness to consistently try new things, and learn from its failures as well as its successes. What gives? It's arguably an underappreciated theory, but it's possible that more and more people are finding Facebook and X to be a bit too toxic, and increasingly so. It's easier for users to shield themselves from this noise with the Snapchat app. 4. MercadoLibre There's a good chance you've never heard of MercadoLibre (NASDAQ: MELI). Don't let that deter you. It's a fantastic growth opportunity. MercadoLibre is often referred to as the Amazon of Latin America, by virtue of its e-commerce platform that serves the entire region. From payment processing to delivery logistics to technological tools for brick-and-mortar retailers, MercadoLibre is a turnkey solution for a bunch of South American consumer-facing businesses. Last year, its tech facilitated the sale of $51.5 billion worth of goods and services, and it also served as the intermediary for nearly $200 billion in digital payments. Both were well up from year-earlier comparisons. MELI Revenue (Quarterly) data by YCharts. This still only scratches the surface of its opportunity. In many ways, Latin America's telecom landscape is where North America's was 25 years ago, when Amazon first began growing into a powerhouse. Research outfit Canalys reports that smartphone shipments to Latin America reached a record-breaking 137 million units just last year, in step with the region's now-rapid growth of wired and wireless broadband. As was the case in North America, this access is driving strong interest in online shopping. A forecast from Payments and Commerce Market Intelligence predicts that the Latin American e-commerce market is set to double in size between 2023 and is perfectly positioned to capture more than its fair share of this growth. 5. Alibaba Last but not least, I'm adding Alibaba (NYSE: BABA) to my list of favorite stocks to buy right now. Alibaba is parent to China's powerhouse e-commerce platforms Taobao and Tmall, which collectively control about half of China's online shopping market. Its e-commerce sites AliExpress and -- largely aimed at customers outside of China -- don't boast the same sort of reach, but they're still respectable presences in their own right. The company is much more than e-commerce. It operates a digital entertainment arm, a logistics service, and a cloud computing business that's developed a powerful AI-powered chat tool called Qwen that can be used -- and monetized -- in several different ways. What about the tariff standoff that's part of a much bigger trade war being fought between the world's two economic superpowers? It may not matter nearly as much as you might think it should. China (in general) and Alibaba (in particular) largely operate within silos that don't outright require superstrong relations with top trade partners. As evidence of this argument, after Alibaba's first-quarter top-line growth of 6%, China reported that its retail spending improved 4.8% in June, following May's 6.4% increase. Industrial output remained firm as well. This isn't to suggest that China wouldn't love to have better trade relations with the U.S. It's simply to point out that the country -- and this company -- can still thrive despite the trade impasses. Should you invest $1,000 in MercadoLibre right now? Before you buy stock in MercadoLibre, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and MercadoLibre 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 $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. James Brumley has positions in Coca-Cola. The Motley Fool has positions in and recommends Amazon, AppLovin, MercadoLibre, and Meta Platforms. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.
Yahoo
3 days ago
- Business
- Yahoo
PepsiCo moves toward North America 'integration' in productivity drive
PepsiCo is seeking to boost its productivity by 'integrating' its two-largest businesses in North America, snacks and drinks. That was one of the key messages to emerge from chairman and CEO Ramon Laguarta's second-quarter results presentation yesterday (17 July) as he outlined an expected 'sequential improvement' in PepsiCo's revenue and market share through the rest of the 2025 financial year. 'One North America will modernise our company and improve our agility and marketplace competitiveness over time,' Laguarta said in his prepared remarks. Laguarta implied the integration will include PepsiCo's Frito-Lay North America reporting and operating division, along with PepsiCo Beverages North America (PBNA), each with revenues in 2024 of $24.8bn and $27.8bn, respectively. It was not clear if Quaker Foods North America, which posted sales last year of $2.7bn, will also feature in the amalgamation but it seems likely judging by the CEO's follow-up comments to analysts' questions. 'When it comes to the North America market, we have one new layer of opportunity that is going to give us a lot of opportunities to improve our cost structure over the next three, four years, which is the North America integration. 'We have two large businesses, almost $30 billion each that have been operating almost a full value chain side by side. Now, with the investments we've made in technology, with the new data that we have in systems, we're going to start looking at those businesses in a more integrated way to perform some of the value chain tasks in an integrated way.' Laguarta highlights synergies The finer details of the workings of that plan have yet to emerge - whether PepsiCo will consolidate its North America business units into one standalone division or still have separate reporting divisions. Integration would 'create both efficiency and cost reduction, but also growth opportunities for the business in a combined way', Laguarta added. He used another adjective, 'synergise', in terms of 'two large operating businesses that are sitting side-by-side servicing the same geographies, the same customers and then the same consumers'. Laguarta explained further: 'That, for us, is a huge idea to optimise how we do most of the task in our value chain, how we do this at low cost and a better performance. 'This will be our priority and where we will focus our efforts for the next three, four years to capture value and come out of this as a lower-cost business and better-performing business.' The PepsiCo chief also outlined historical and ongoing efforts to boost productivity 'enabled by automation, standardisation, and increased use of digital tools and data analytics', which, Laguarta said, 'will provide continuous, ongoing support for our necessary operational investments and commercial activities'. They also include AI. Savings from those productivity initiatives will be 'used primarily to invest in capabilities that accelerate growth and improve profitability', he said. PepsiCo's international division (40% of the company's 2024 group revenue of $91.8bn) was outlined as a key driver of revenue growth at the first-quarter results stage in April. That remains the case but foodservice is also now seen as a major growth opportunity, with innovation at the heart of both the out-of-home and retail push. Laguarta slipped in the planned 'big push' into protein beverages, with no 'artificials', to complement its no-sugar and functional drinks. And also so-called permissible snacks in the health space, including simple ingredient Frito-Lay and Tostitos brands that too will have no 'artificials'. The protein-drinks launch is slated for the final quarter or into the first three months of the next fiscal year, Laguarta suggested, adding: 'We will be participating in the liquid-protein space with, I think, superior propositions that have no artificials, that are great tasting, and that I think will give us the return on what is clearly a consumer trend that is scaling up in the US and it's part of the repertoire of our consumers'. Finance chief Jamie Caulfield said PepsiCo expects to deliver 70% more productivity savings in the second half than in the first six months across the group, much of which will be centred on Frito Lay because of the 'need to right-size the assets and some of the other fixed costs'. 'We're pushing on every cost lever that is available and that's what's going to drive the incremental productivity in the second half,' Caulfield said. "PepsiCo moves toward North America 'integration' in productivity drive" was originally created and published by Just Drinks, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. 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
Fast Company
4 days ago
- Business
- Fast Company
PepsiCo's Q2 earnings beat Wall Street expectations despite sluggish U.S. sales
PepsiCo reported better-than-expected earnings and revenue in the second quarter despite sluggish North American sales. Sales of Frito-Lay and other snacks fell 1% in North America during the April-June period, PepsiCo said Thursday, while beverage sales were down 2% in the region. But sales rose in some other regions, including Latin America and Asia. Revenue rose less than 1% to $22.7 billion in the April-June period. That was higher than the $22.3 billion Wall Street forecast, according to analysts polled by FactSet. PepsiCo's net income fell 59% to $1.3 billion. Adjusted for one-time items, PepsiCo earned $2.12 per share. That was also higher than the $2.03 analysts forecast. PepsiCo shares rose more than 2% in premarket trading Thursday. PepsiCo lowered its full-year earnings expectations in April, citing increased costs from tariffs and a pullback in consumer spending. The company reaffirmed that guidance Thursday. tariff on imported aluminum from 25% to 50%.
Yahoo
4 days ago
- Business
- Yahoo
PepsiCo posts better-than-expected second quarter despite lower US sales
PepsiCo reported better-than-expected earnings and revenue in the second quarter despite sluggish North American sales. Sales of Frito-Lay and other snacks fell 1% in North America during the April-June period, PepsiCo said on Thursday, while beverage sales were down 2% in the region. But sales rose in some other regions, including Latin America and Asia. Revenue rose less than 1% to 22.7 billion dollars (£17 billion) in the April-June period. That was higher than the 22.3 billion dollars Wall Street forecast, according to analysts polled by FactSet. PepsiCo's net income fell 59% to 1.3 billion dollars (£970 million). Adjusted for one-time items, PepsiCo earned 2.12 dollars per share. That was also higher than the 2.03 dollars analysts forecast. PepsiCo shares rose more than 2% in pre-market trading on Thursday. PepsiCo lowered its full-year earnings expectations in April, citing increased costs from tariffs and a pullback in consumer spending. The company reaffirmed that guidance on Thursday. Its tariff costs have risen since then. In June, the Trump administration hiked the tariff on imported aluminium from 25% to 50%.
BreakingNews.ie
4 days ago
- Business
- BreakingNews.ie
PepsiCo posts better-than-expected second quarter despite lower US sales
PepsiCo reported better-than-expected earnings and revenue in the second quarter despite sluggish North American sales. Sales of Frito-Lay and other snacks fell 1% in North America during the April-June period, PepsiCo said on Thursday, while beverage sales were down 2% in the region. Advertisement But sales rose in some other regions, including Latin America and Asia. Revenue rose less than 1% to 22.7 billion dollars (£17 billion) in the April-June period. That was higher than the 22.3 billion dollars Wall Street forecast, according to analysts polled by FactSet. PepsiCo's net income fell 59% to 1.3 billion dollars (£970 million). Adjusted for one-time items, PepsiCo earned 2.12 dollars per share. That was also higher than the 2.03 dollars analysts forecast. PepsiCo shares rose more than 2% in pre-market trading on Thursday. Advertisement PepsiCo lowered its full-year earnings expectations in April, citing increased costs from tariffs and a pullback in consumer spending. The company reaffirmed that guidance on Thursday. Its tariff costs have risen since then. In June, the Trump administration hiked the tariff on imported aluminium from 25% to 50%.
