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Think the Stock Market Is Too Expensive? This Historical Chart Might Change Your Mind.
Think the Stock Market Is Too Expensive? This Historical Chart Might Change Your Mind.

Yahoo

time8 hours ago

  • Business
  • Yahoo

Think the Stock Market Is Too Expensive? This Historical Chart Might Change Your Mind.

Key Points The S&P 500 has generated a 7.5% compound annual growth rate (CAGR) dating back to 1957. Despite many bear markets and 10 recessions, the stock market has consistently moved higher over time. Trying to time the market is folly. It is far better to buy and hold. 10 stocks we like better than S&P 500 Index › Is now the right time to buy stocks? It's a question that's been asked countless times, and whenever I field it, my answer is the same: "Yes!" That might seem crazy, but I assure you, it isn't. Here's why: Over the long term, investing in a benchmark stock index like the S&P 500 (SNPINDEX: ^GSPC) has always proven to be a winning strategy -- even if someone's timing is horrible. Still don't believe me? Then take a look at this chart: This is the S&P 500 dating back to 1957, when the index expanded to 500 companies and acquired its current name. Since then, it has increased by an astounding 14,000%. That works out to a compound annual growth rate (CAGR) of 7.5% -- and that's before accounting for dividend payments. During that stretch, there have been many corrections, several bear markets, and 10 full-blown recessions. And yet, no matter when someone bought, they would have made money -- if they had stayed invested in the market. There's a lesson here: Timing the market is folly. Many fortunes have been made by people claiming to know when the right time to buy -- or sell. But far more money has been left on the table by investors trying to time the top or the bottom. The best advice is the simplest: Avoid trying to predict price movements in the short term. Instead, save what you can and invest for the long term. Ignore the headlines -- particularly when the market is going down. And whenever you have doubts, glance at the chart above and remember: Stay patient, hold your stocks for the long term, and you'll come out a winner. Should you invest $1,000 in S&P 500 Index right now? Before you buy stock in S&P 500 Index, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and S&P 500 Index 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 $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% 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 21, 2025 Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Think the Stock Market Is Too Expensive? This Historical Chart Might Change Your Mind. 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

Chipotle Earnings: Another Rough Quarter
Chipotle Earnings: Another Rough Quarter

Yahoo

time4 days ago

  • Business
  • Yahoo

Chipotle Earnings: Another Rough Quarter

Key Points Chipotle missed revenue expectations as comparable-restaurant sales fell 4% in the second quarter. The company lowered its outlook for the full year, although management does expect some improvement in the second half. Investors punished the stock in after-hours trading after the second disappointing quarter in a row. 10 stocks we like better than Chipotle Mexican Grill › Here's our initial take on Chipotle's (NYSE: CMG) financial report. Key Metrics Metric Q2 2024 Q2 2025 Change vs. Expectations Revenue $2.97 billion $3.06 billion 3% Missed Earnings per share (adjusted) $0.34 $0.33 (2.9%) Met Comparable restaurant sales 11.1% (4%) (15.1) pp n/a Operating margin 19.7% 18.2% (1.5) pp n/a Fewer People Are Going to Chipotle Chipotle managed to eke out 3% revenue growth in the second quarter, below analyst expectations, only because it opened 61 new company-owned restaurants. Comparable-restaurant sales dropped 4%, compared to 11% growth in the same period last year, driven by a 4.9% decline in transactions. Profitability also suffered. Adjusted earnings per share was down slightly, while operating margin contracted by 1.5 percentage points to 18.2%. The negative impacts of lower sales volumes and cost inflation for some ingredients were partially offset by menu price increases. Chipotle CEO Scott Boatwright pointed to momentum from the company's summer marketing initiatives, which could start to improve results. For the full year, Chipotle expects comparable restaurant sales to be roughly flat, which implies a meaningful improvement in the second half. Immediate Market Reaction Shares of Chipotle plunged 11% in after-hours trading Wednesday, with investors reacting negatively to the company's revenue miss. While the company's outlook called for some improvement in the second half of the year, investors may not be buying the story. Going into the second-quarter report, Chipotle stock was down about 12% year to date. What to Watch This is the second quarter in a row Chipotle missed expectations and also the second quarter in a row the company dialed back its full-year outlook. While guidance calling for roughly flat comparable-restaurant growth for the full year would be an improvement over the second quarter, the company had previously guided for low- to mid-single-digit growth. It's difficult to know how much of Chipotle's sales woes are due to company-specific issues and how much are due to the macroeconomic environment. While the company benefited from a boost to menu prices, those higher prices could be more than some of its customers are willing to pay. With two quarters of weak results and lowered expectations, investors are right to be wary of Boatwright's talk of "momentum." Helpful Resources Full earnings report Investor relations page Should you buy stock in Chipotle Mexican Grill right now? Before you buy stock in Chipotle Mexican Grill, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Chipotle Mexican Grill 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 $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,023,813!* Now, it's worth noting Stock Advisor's total average return is 1,034% — 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 21, 2025 Timothy Green has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill. The Motley Fool recommends the following options: short September 2025 $60 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy. Chipotle Earnings: Another Rough Quarter 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

Why ServiceNow Stock Surged Today
Why ServiceNow Stock Surged Today

Globe and Mail

time4 days ago

  • Business
  • Globe and Mail

Why ServiceNow Stock Surged Today

Key Points ServiceNow stock rose today following the company's second-quarter earnings report. The enterprise software specialist beat Wall Street's sales and earnings targets for Q2, and it raised its subscription revenue forecast for this year. ServiceNow is seeing strong AI-related tailwinds and looks poised to continue benefiting from digital transformation trends. 10 stocks we like better than ServiceNow › ServiceNow (NYSE: NOW) stock posted gains in Thursday's trading following the company's latest quarterly report. The software specialist's share price gained 4.2% in the session and had been up as much as 9.9% early in the day's trading. ServiceNow published its second-quarter results after the market closed yesterday, and the numbers came in better than Wall Street had anticipated. The company's report showed continued artificial intelligence (AI) tailwinds, and management raised full-year performance targets for the business. ServiceNow stock jumps on strong Q2 numbers ServiceNow recorded non-GAAP (adjusted) earnings per share of $4.09 on sales of $3.22 billion in the second quarter, beating the average analyst estimate's call for per-share earnings of $3.57 per share on sales of $3.12 billion in the period. Revenue was up roughly 22% year over year, and the business closed out the quarter with remaining performance obligations of $23.9 billion -- representing growth of 25.5% on a currency-adjusted basis. What's next for ServiceNow? ServiceNow is seeing strong AI-related demand for its enterprise software suite, and the company has raised its performance outlook for the year on the heels of strong results in the second quarter. Management is now guiding for subscription revenue to come in between $12.77 billion and $12.79 billion. At the midpoint, the new guidance is up by $125 million compared to its previous forecast. As a leading enterprise software provider, ServiceNow looks poised to continue benefiting from AI and digital transformation trends. While gains for the company's valuation could open the door for downside volatility in the near term, the company looks poised to deliver wins for shareholders over the long haul. Should you invest $1,000 in ServiceNow right now? Before you buy stock in ServiceNow, 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 ServiceNow 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 $634,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,799!* Now, it's worth noting Stock Advisor's total average return is 1,037% — a market-crushing outperformance compared to 182% 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 21, 2025

Why ServiceNow Stock Surged Today
Why ServiceNow Stock Surged Today

Yahoo

time4 days ago

  • Business
  • Yahoo

Why ServiceNow Stock Surged Today

Key Points ServiceNow stock rose today following the company's second-quarter earnings report. The enterprise software specialist beat Wall Street's sales and earnings targets for Q2, and it raised its subscription revenue forecast for this year. ServiceNow is seeing strong AI-related tailwinds and looks poised to continue benefiting from digital transformation trends. 10 stocks we like better than ServiceNow › ServiceNow (NYSE: NOW) stock posted gains in Thursday's trading following the company's latest quarterly report. The software specialist's share price gained 4.2% in the session and had been up as much as 9.9% early in the day's trading. ServiceNow published its second-quarter results after the market closed yesterday, and the numbers came in better than Wall Street had anticipated. The company's report showed continued artificial intelligence (AI) tailwinds, and management raised full-year performance targets for the business. ServiceNow stock jumps on strong Q2 numbers ServiceNow recorded non-GAAP (adjusted) earnings per share of $4.09 on sales of $3.22 billion in the second quarter, beating the average analyst estimate's call for per-share earnings of $3.57 per share on sales of $3.12 billion in the period. Revenue was up roughly 22% year over year, and the business closed out the quarter with remaining performance obligations of $23.9 billion -- representing growth of 25.5% on a currency-adjusted basis. What's next for ServiceNow? ServiceNow is seeing strong AI-related demand for its enterprise software suite, and the company has raised its performance outlook for the year on the heels of strong results in the second quarter. Management is now guiding for subscription revenue to come in between $12.77 billion and $12.79 billion. At the midpoint, the new guidance is up by $125 million compared to its previous forecast. As a leading enterprise software provider, ServiceNow looks poised to continue benefiting from AI and digital transformation trends. While gains for the company's valuation could open the door for downside volatility in the near term, the company looks poised to deliver wins for shareholders over the long haul. Should you invest $1,000 in ServiceNow right now? Before you buy stock in ServiceNow, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and ServiceNow 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 $634,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,799!* Now, it's worth noting Stock Advisor's total average return is 1,037% — a market-crushing outperformance compared to 182% 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 21, 2025 Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ServiceNow. The Motley Fool has a disclosure policy. Why ServiceNow Stock Surged Today was originally published by The Motley Fool

Why TotalEnergies Stock Slumped Today
Why TotalEnergies Stock Slumped Today

Yahoo

time4 days ago

  • Business
  • Yahoo

Why TotalEnergies Stock Slumped Today

Key Points TotalEnergies beat on revenue for the quarter, but fell short of the consensus analyst estimate for profitability. Not surprisingly, it was affected by the slump in global oil prices. 10 stocks we like better than TotalEnergies › The stock market wasn't particularly energetic when it came to fuel and chemicals conglomerate TotalEnergies (NYSE: TTE) on Thursday. The company's stock took a hit following its release of second-quarter earnings, and it closed the day down almost 3%. Other stocks did better, as the S&P 500 (SNPINDEX: ^GSPC) eked out a marginal gain. Oil price slump TotalEnergies, which is headquartered in France but reports in the energy industry's standard currency of U.S. dollars, published its latest set of financial figures that morning. The company's net revenue was slightly under $44.7 billion, comparing unfavorably to the nearly $49.2 billion it booked in the same period of 2024. That top-line result was more than high enough to trounce the average analyst estimate, which was a bit under $39.9 billion. Yet the erosion in non-GAAP (generally accepted accounting principles) adjusted net income was more drastic. That critical line item fell by 21% year over year to $3.6 billion ($1.57 per share). Worse, that per-share figure was notably below the consensus pundit projection of $1.67. TotalEnergies suffered from a general decline in oil prices, which it said slid by 10% during the quarter. It put a positive spin on its recent struggles by quoting CEO Patrick Pouyanne as saying that the company "continued to successfully execute its balanced multi-energy strategy, supported by sustained growth in hydrocarbon and electricity production." A gloomy outlook In TotalEnergies's outlook for the current (third) quarter, the company waxed bearish about the prospects for its industry. It said that due to geopolitical and economic developments, oil prices are volatile at the moment, with the industry coping with an "abundant" supply (which, all things being equal, tends to dampen prices). While it forecast that it would spend a net amount of $17 billion to $17.5 billion in investments over the course of this year, it did not provide any revenue or profitability guidance in its earnings release. Should you buy stock in TotalEnergies right now? Before you buy stock in TotalEnergies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and TotalEnergies 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 $634,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,799!* Now, it's worth noting Stock Advisor's total average return is 1,037% — a market-crushing outperformance compared to 182% 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 21, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why TotalEnergies Stock Slumped Today was originally published by The Motley Fool

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