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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
07-06-2025
- Business
- Yahoo
Why Costco Stock Was Sliding Today
Costco reported solid comparable sales for May, but it was slower than April and the rest of the fiscal year. In a note, Wells Fargo expressed concern over the company's valuation. The stock now trades at a price-to-earnings ratio of 57. 10 stocks we like better than Costco Wholesale › Shares of Costco Wholesale (NASDAQ: COST) fell after the warehouse retailer posted comparable sales for May that were slightly below estimates. For a stock that's priced to perfection like Costco, that was enough to send the stock down 3.9% as of 2:01 p.m. ET. Costco is one of the few retailers left that reports monthly comparable sales, as others have backed away from the practice, in part because they think it adds volatility to the stock. Investors sometimes overreact to the numbers. That may be what's happening here. In May, Costco's comparable sales rose 4.3%, or 6% after adjustment for fuel prices and foreign exchange. That was below its growth rate of 5.8%, or 7.9% after adjustments for the first 39 weeks of the fiscal year. Costco also said that overall revenue rose 6.8% for the four-week period ending June 1. Those are hardly concerning numbers, but Wells Fargo said in a note this morning that those results were just below expectations of 6.2% adjusted comparable-sales growth. Though the bank said the retailer continued to perform well, it noted its high valuation and reiterated an equal weight, or neutral rating, with a price target of $1,000. Investors shouldn't change their thesis on Costco stock based on one month of comparable sales, but today's pullback is a good reminder of why valuation matters. Costco now trades at a price-to-earnings ratio of 57, meaning high expectations are baked into the stock. While the business is strong, the valuation assumes that its superior growth rate will continue. However, even a moderation to mid-single-digit comps is enough to send jitters through investors, as we saw today. If Costco's numbers disappoint again, the stock could fall further. Before you buy stock in Costco Wholesale, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Costco Wholesale 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 $668,538!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $869,841!* Now, it's worth noting Stock Advisor's total average return is 789% — 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 Wells Fargo is an advertising partner of Motley Fool Money. Jeremy Bowman has positions in Wells Fargo. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy. Why Costco Stock Was Sliding Today was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
Why Super Micro Computer Stock Soared Again Today
Supermicro made a $20 billion deal with DataVolt, a Saudi Arabian data center company. The company also announced improvements to its direct liquid cooling platform. Investors are returning to the stock after accounting issues nearly sank it. 10 stocks we like better than Super Micro Computer › The rally in Super Micro Computer (NASDAQ: SMCI) stock continued today as investors got another positive data point on the artificial intelligence (AI) server maker. One day after the stock jumped after Wall Street analysts said it was one of the best ways to get exposure to AI, Supermicro, as the company is often known, was gaining again on a new deal with DataVolt, a Saudi Arabian data center company. The agreement was one of several announced between U.S. semiconductor companies and Saudi Arabian entities this morning. As of 1:08 p.m. ET, the stock was up 17% on the news. This morning, DataVolt said it was signing a multiyear partnership agreement with Supermicro to deploy server solutions and rack systems for AI cloud computing in Saudi Arabia and the U.S. The deal is valued at $20 billion and comes at a time when Supermicro is still reeling from a delay in financial reporting that sent the stock tumbling. Investors now seem to be regaining confidence in the business, lifting the AI stock. It's important to consider that $20 billion, even over several years, is a large price tag for Supermicro, as its market cap is only $27 billion. The company also announced several improvements to its direct liquid cooling (DLC) platform, showing that its technology continues to advance, as it's regarded as a leader in AI storage and server solutions. Supermicro has struggled to maintain its gross margins in recent quarters, but advancing technology and a big new contract could help reverse that trend. Investors should keep an eye on that figure going forward. If the company can drive gross margin higher, the stock is likely to follow. Before you buy stock in Super Micro Computer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Super Micro Computer 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 $613,951!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $796,353!* Now, it's worth noting Stock Advisor's total average return is 948% — a market-crushing outperformance compared to 170% 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 12, 2025 Jeremy Bowman has positions in Super Micro Computer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Super Micro Computer Stock Soared Again Today was originally published by The Motley Fool
Yahoo
10-05-2025
- Business
- Yahoo
Why Remitly Stock Popped Today
Remitly delivered strong results on the top and bottom lines in the fourth quarter. The business is scaling effectively and expects to be GAAP profitable this year. Its growth pipeline looks strong after a 26% jump in send volume. 10 stocks we like better than Remitly Global › Shares of Remitly Global (NASDAQ: RELY) were moving higher today after the remittance specialist beat estimates in the first-quarter report and raised its revenue forecast for the year. As of 12:36 p.m. ET, the stock was up 11% on the news. Remitly, which provides a platform for cross-border payments, continued to deliver solid growth. Its active customer base rose 29% to 8 million, driving send volume up 41% to $16.2 billion. As a result, revenue rose 34% to $361.6 million, which was well ahead of the consensus at $347.5 million. Remitly also reported impressive margin expansion, as adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 157% to $58.4 million, while net income reached $11.4 million, up from a loss of $21.1 million. On a per-share basis, the company reported a profit of $0.05 on a generally accepted accounting principles (GAAP) basis. CEO Matt Oppenheimer said: "We delivered an outstanding start to the year, significantly exceeding our expectations for the first quarter. This performance was driven by the deep and growing trust our customers place in us to deliver a fast, reliable, and secure experience." Looking ahead, Remitly issued strong guidance, calling for revenue growth of 25%-26% to $1.574 billion-$1.587 billion, up from a previous range of $1.565 billion-$1.58 billion. It also said it would have positive net income on a GAAP basis, and sees adjusted EBITDA of $195 million-$200 million, up from an earlier range of $180 million-$200 million. Remitly continues to grab market share from legacy operators like Western Union and MoneyGram, and the future looks bright. The GAAP profitability is also a promising sign for a stock that has a lot of upsides, with its market cap at less than $5 billion currently. Before you buy stock in Remitly Global, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Remitly Global 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 $623,103!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $717,471!* Now, it's worth noting Stock Advisor's total average return is 909% — a market-crushing outperformance compared to 162% 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 5, 2025 Jeremy Bowman has positions in Remitly Global. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Remitly Stock Popped Today was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
09-05-2025
- Business
- Yahoo
Why Texas Roadhouse Stock Was Heating Up Today
Texas Roadhouse delivered solid comparable-sales growth in the first quarter, and said traffic accelerated into Q2. The company is facing rising costs, in part from the impact of tariffs. 10 stocks we like better than Texas Roadhouse › Shares of Texas Roadhouse (NASDAQ: TXRH) were moving higher today after the fast-casual restaurant chain delivered solid results in its first-quarter earnings report. As of 11:56 a.m. ET, the stock was up 5% on the news. The steakhouse chain, which has long been an outperformer on the stock market, said that comparable sales in the quarter were up 3.5%, driving overall revenue up 9.6% to $1.45 billion, which was slightly ahead of estimates at $1.44 billion. Restaurant-level margin fell 77 basis points to 16.6% due to inflation in food and wages, and earnings per share rose from $1.69 to $1.70, which was below estimates at $1.76. Despite the weaker-than-expected profit, the company reported positive traffic trends, with visits accelerating in March and the first five weeks of the second quarter. That was particularly encouraging at a time when a number of chains were complaining about declining traffic due to the weakening macroeconomic climate. CEO Jerry Morgan said, "We are pleased to report that our operators successfully navigated us through a number of challenges this quarter and once again delivered traffic growth across all three of our brands." Looking ahead, the company said comparable sales for the first five weeks of the second quarter were up 5%, which included a menu price increase of 1.4%. It also said it expected commodity cost inflation of 4%, including the estimated impact of tariffs, and reiterated positive comps for 2025, including higher prices. In a difficult environment for restaurants, that proved to be enough to push Texas Roadhouse stock higher. Before you buy stock in Texas Roadhouse, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Texas Roadhouse 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 $617,181!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $719,371!* Now, it's worth noting Stock Advisor's total average return is 909% — a market-crushing outperformance compared to 163% 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 5, 2025 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Texas Roadhouse. The Motley Fool has a disclosure policy. Why Texas Roadhouse Stock Was Heating Up Today 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
