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Yahoo
19 hours ago
- Business
- Yahoo
Why Abercrombie & Fitch Stock Is Soaring This Week
Abercrombie reported another strong quarter despite tariff issues. The company was forced to lower guidance due to the levies, especially those imposed on China. The company believes the impact won't be as severe as some had feared. 10 stocks we like better than Abercrombie & Fitch › Shares of Abercrombie & Fitch (NYSE: ANF) are trading higher this week. The company's stock jumped 9.7% as of 2:15 p.m. ET. The move up comes as the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq-100 were up 1.4% and 1.1%, respectively. The clothing retailer released its quarterly numbers on Wednesday, beating Wall Street targets at a time when other retailers are struggling. Abercrombie posted a strong quarter and set relatively optimistic guidance, even in the face of uncertainty around Trump's tariffs. The company delivered earnings per share (EPS) of $1.59 on sales of $1.10 billion for the quarter, beating consensus expectations of $1.39 on $1.07 billion in sales. Investors were pleased with the performance, willing to look past the company's downward adjustments to its forecast of earnings and margins for the full year. The company was projecting EPS between $10.40 and $11.40, but now expects between $9.50 and $10.50. Operating margins guidance was also cut, from 14%-15% to 12.5%-13.5%. While downgrades are rarely well received, they were less than many anticipated, given Trump's introduction of sweeping tariffs in April. CEO Fran Horowitz was pleased, telling investors the quarter beat "expectations and was supported by broad-based growth across our three regions," attributing the success primarily to the Hollister brand, which "led the performance with growth of 22%, achieving its best-ever first-quarter net sales." She also noted that sales growth for Abercrombie's core brand had slowed slightly, but is still in the double digits. Abercrombie has reinvented itself, no longer the controversial brand of the early 2000s. It continues to show strong, resilient growth at a time when many clothing retailers are struggling. I think it is a solid pick. Before you buy stock in Abercrombie & Fitch, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Abercrombie & Fitch 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 $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% 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 Johnny Rice 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 Abercrombie & Fitch Stock Is Soaring This Week was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
When Stocks Slide, These Are the Sectors That Do Best
Utilities are a favorite safe haven during turbulent markets. The consumer staples sector also usually performs well during market sell-offs. The healthcare and energy sectors are often resilient, but not always. 10 stocks we like better than S&P 500 Index › Is the worst over for the stock market? Maybe. However, significant uncertainty remains -- even with the U.S. Court of International Trade ordering a halt to many of President Donald Trump's tariffs. (The administration has appealed.) The stock market may sink again. Billionaire hedge fund manager Steve Cohen even stated recently that stocks could decline nearly as much as they did in April. Investors can be prepared if he's right. When stocks slide, these are the sectors that do best. Investors have long viewed the utilities sector as a safe haven during turbulent markets. And for good reason. Utility stocks can typically count on steady revenue and cash flow regardless of what's happening in the stock market or the economy. Many of them enjoy monopolies in their areas of service. Just look back at 2022. The S&P 500 (SNPINDEX: ^GSPC) plunged roughly 19.4%, marking its worst performance since the major meltdown in 2008. Utilities stocks, though, delivered a total return of 1.57% including dividends. That normally wouldn't be anything to get excited about, but it's a lot better than a huge loss for the year. The utilities sector is also holding up quite well during the current market volatility. The Utilities Select Sector SPDR Fund (NYSEMKT: XLU), which owns 31 utility stocks, has trounced the S&P 500 while remaining in positive territory most of the year so far. I think this exchange-traded fund (ETF) is a great way to invest in the utilities sector. However, there are also plenty of attractive individual utility stocks you can buy. Dominion Energy (NYSE: D) is among my favorite utility safe havens. The company has solid growth prospects, with its home state of Virginia a hotspot for data centers. Dominion also pays a juicy dividend that yields 4.76%. The consumer staples sector includes companies that sell essential goods and services that consumers buy during good and bad economic periods. Think food, beverages, household supplies, and personal care products. While consumer staples are must-haves for consumers, consumer staples stocks can be must-haves for investors when the market declines significantly. When the dot-com bubble burst in 2000 through 2002, consumer staples stocks skyrocketed while the S&P 500 plunged. It was a similar story during the financial crisis of 2007 through 2009. The consumer staples sector also outperformed all other sectors during the initial stock market sell-off caused by COVID-19 lockdowns. How have consumer staples stocks performed with the tariff-fueled market volatility in 2025? Pretty well. The Consumer Staples Select Sector SPDR Fund (NYSEMKT: XLP), which owns 38 consumer staples stocks, is handily beating the S&P 500. Investors seeking to gain exposure to the consumer staples sector might want to consider buying this ETF. Alternatively, you could buy individual consumer staples stocks. The Coca-Cola Company (NYSE: KO) looks like a solid pick, in my view. Coca-Cola is a longtime winner and a Dividend King. It's also one of Warren Buffett's favorite stocks. Like consumer staples, healthcare products and services, at least in many cases, are must-haves for people regardless of what's going on with the economy or the stock market. As a result, the healthcare sector tends to be resilient during crises. Healthcare stocks on aggregate delivered positive returns during the dot-com bubble, the global financial crisis that led to the Great Recession, and the early innings of the COVID-19 pandemic. However, the healthcare sector has underperformed the S&P 500 in 2025, with the Health Care Select Sector SPDR Fund (NYSEMKT: XLV) down around 4%. What's behind this decline? The Trump administration's tariffs could hurt some medical technology companies. Drugmakers are worried about the prospects of tariffs on pharmaceutical imports and most-favored-nation drug pricing. Many healthcare stocks have still beaten the market, though. I think Vertex Pharmaceuticals (NASDAQ: VRTX) is one of the strongest of the group. This big biotech company sells the only therapies that treat the underlying cause of cystic fibrosis. Vertex also has a recently approved non-opioid pain drug that should be a huge commercial success. The energy sector is another sector that sometimes performs well during market declines, but not always. For example, energy was the only sector delivering a positive return during 2022 (excluding dividends). It didn't just eke out a small gain either: Energy stocks soared 59%. However, energy is one of the worst-performing S&P 500 sectors so far this year. Why? Declining oil prices and worries about the impact of tariffs on the global economy are two main culprits. You can still find winners in the energy sector, though. Enbridge (NYSE: ENB) is one of my favorites. Shares of the midstream energy leader are up around 8% year to date. It also offers a juicy forward dividend yield of 5.91%. 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 $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — 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 19, 2025 Keith Speights has positions in Dominion Energy, Enbridge, and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Enbridge and Vertex Pharmaceuticals. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy. When Stocks Slide, These Are the Sectors That Do Best was originally published by The Motley Fool
Yahoo
a day ago
- Business
- Yahoo
Got $5,000? These 3 High-Yielding Dividend Stocks Are Trading Near Their 52-Week Lows.
The lowest-yielding stock on this list pays 4.4% -- more than three times the S&P 500 average. While these companies have been struggling of late, their payouts still look safe. A couple of these companies have been raising their payouts for decades. 10 stocks we like better than PepsiCo › Buying a dividend stock when it's near its 52-week low means you have an opportunity to secure a higher-than-typical yield. A falling share price pushes a yield up, and as long as the business' fundamentals are strong, you can benefit both from its recurring dividend payments and a possible rally in its share price in the future. Three stocks that yield more than 4% and that are near their lows for the past year are PepsiCo (NASDAQ: PEP), General Mills (NYSE: GIS), and Chevron (NYSE: CVX). They are all off to poor starts for 2025, but here's why you may want to consider investing $5,000 into them today. Snacking and beverage giant PepsiCo hasn't been a hot buy with investors this year; it has fallen by 15%. While its growth rate hasn't been impressive, investors may be a bit overly bearish on the stock. In its most recent quarter, which wrapped up on March 22, the company's sales totaled $17.9 billion, representing a decline of 1.8% year over year. And PepsiCo's operating profit fell by 4.9%. That's not a great performance, but it's not disastrous, and it comes at a time when consumers are tightening their budgets amid inflation and concerns about a possible recession on the horizon. PepsiCo isn't standing still, either. The business is continuing to expand, and earlier this year, it announced a $2 billion acquisition of soda company Poppi, a prebiotic brand that caters to health-conscious consumers. It's a good way to diversify and reach a different type of customer, which may help improve its growth rate in the process. PepsiCo's dividend, which currently yields 4.4%, well above the S&P 500 (SNPINDEX: ^GSPC) average of 1.3%, is still safe with a payout ratio of around 80%. Ideally it would be lower, but it doesn't look to be at any risk right now of being cut. This is also a Dividend King, so the outlook would need to be particularly dire for PepsiCo's management to break its impressive streak of dividend increases, which will hit 53 years with its upcoming June payment. The stock currently trades just a few dollars from its 52-week low, and at a modest price-to-earnings multiple of 19, PepsiCo can be an underrated buy and a great place to invest $5,000. Not only can you generate approximately $220 in annual dividend income from the stock via its dividend by investing that much, but you can also net a decent return if it's able to recover from its decline this year. Another high-yielding stock to consider investing $5,000 into right now is General Mills, which pays 4.5%. It has fallen 16% this year, and it too is within a few dollars of its 52-week low. It's also coming off a tough quarter, with sales of $4.8 billion falling by 5% for the period ending Feb. 23. Its operating profit was down by just 2.1%, although that would have been worse if not for a divestiture gain of $95.9 million. Earlier this year, General Mills announced the completion of the sale of its Canada Yogurt business, in an effort to "reshape" its portfolio. General Mills has a diverse business as it is, with a presence in multiple food categories, including snacks, cereals, and baking. Simplifying its operations can help with improving efficiency and focusing on higher-growth areas. The company has been working on improving margins and achieving cost savings, which can help position it for better results in the future. That bodes well for a dividend, which already looks safe as it is; General Mills' payout ratio is just above 50%. For income investors, this can be yet another good stock to count on for recurring cash flow. The highest-yielding stock on this list is Chevron, which currently pays right around 5%. The oil and gas company recently reported underwhelming numbers, as its profits were down more than 36% year over year, from $5.5 billion to just $3.5 billion for the period ending March 31. Falling crude oil prices have weighed on its performance, but that is the kind of volatility that investors need to expect with this type of investment, which is highly vulnerable to changing commodity prices. But despite the volatility, the stock has remained a stable income-generating investment to hang on to, with Chevron raising its payout for 38 consecutive years. The stock has declined by 6% this year, trading at 16 times its trailing earnings, and is approaching its 52-week low. As a leading oil and gas producer, however, it's a solid stock to hold for the long term. While there will be periods of volatility, it has proven that it can adapt to changing and adverse market conditions, and still being able to pay and increase its dividend over the years. If you've got $5,000 you can afford to invest in the market, this is another good dividend stock to consider for your portfolio. Before you buy stock in PepsiCo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and PepsiCo 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 $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — 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 19, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy. Got $5,000? These 3 High-Yielding Dividend Stocks Are Trading Near Their 52-Week Lows. was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Is Now the Time to Buy This S&P 500 Stock That's Down 66% and Hold for 20 Years?
Effects from previous strategic blunders helped drive sales and net income 9% and 32% lower in Q3, respectively. Management's focus is on clearing out older inventory, emphasizing the brand's strength, and introducing in-demand products. Shares look extremely undervalued, but a successful turnaround could take time. These 10 stocks could mint the next wave of millionaires › After a volatile start to the year, the S&P 500 (SNPINDEX: ^GSPC) has come roaring back. It's up 8% just in the past month, slowly approaching its peak. But not all businesses are benefiting from renewed bullish fever on Wall Street. As of May 23, one well-known consumer discretionary stock is trading a gut-wrenching 66% below its all-time record, established in November 2021. There's a lot of pessimism, but maybe it's time to take a closer look at this company as a potential 20-year holding. The business whose shares have fallen off a cliff is none other than Nike (NYSE: NKE). The sportswear giant has had a difficult run in recent years. The previous management team, led by then-CEO John Donahoe, was all in on going digital and direct-to-consumer. This backfired with wholesale accounts, leading to greater visibility for rival products. Nike's sales in Q3 2025 (ended March 20) were down 9% year over year. And the expectation is for the top line to drop to the low end of the mid-teens range in the fourth quarter. A lack of product innovation has also added to the issues. CEO Elliott Hill is trying to fix these problems. One of the top priorities is to start introducing footwear that gets consumers excited. On the distribution front, it's about meeting customers where they are. Nike just announced it will begin selling products on Amazon. But first, Nike must move past its challenges. This means getting rid of old inventory. To do this, the business has offered excess promotions and markdowns. That's why the gross margin shrunk from 44.8% in the year-ago period to 41.5% in Q3. "We expect these actions will continue through the first half of fiscal 2026," Nike CFO Matt Friend said on the earnings call when discussing the outlook of cleaning out stale inventory. The good news is that revenue and gross margin trends should start to improve. Nike's ongoing challenges, coupled with the success of competitors, have led to declining market share. According to GlobalData, the business had 14.1% market share of the global sportswear industry in 2024, down from 15.2% the year before. Nonetheless, Nike is still the clear leader. Hill and his team must focus on the fact that it remains the top dog in the industry. This means emphasizing the brand, the key asset that supports the company's economic moat. In the fashion industry, it can be difficult to find lasting success. Businesses must always try to figure out how consumer tastes are changing and then deliver on these needs. For what it's worth, Nike's brand has stood the test of time. It helps that the company partners with top athletes and sports leagues. This raises its credibility on a worldwide stage. What's more, Nike's $48 billion trailing-12-month revenue base means it has greater financial resources than any other competitor to continue investing in marketing efforts and research and development initiatives. With sales and earnings tanking, the market has soured on the business. Consequently, shares trade at a historically cheap valuation. The current price-to-earnings ratio of 19.9 is near the trailing-10-year low, highlighting extreme investor pessimism. However, I think only patient investors comfortable with uncertainty should consider buying the stock. Ongoing economic fears, coupled with the dynamic tariff situation, create new headwinds Nike must navigate. A successful turnaround could take longer than expected. But if you're bullish on the durability of the brand, as well as Nike's ability to create in-demand products, tell compelling marketing stories, and eventually get back to revenue and profit growth, this could work out to be a solid investment opportunity over the next two decades. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $351,386!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $38,008!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $653,389!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join , and there may not be another chance like this anytime soon.*Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Nike. The Motley Fool has a disclosure policy. Is Now the Time to Buy This S&P 500 Stock That's Down 66% and Hold for 20 Years? 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
2 days ago
- Business
- Yahoo
3 Unstoppable Vanguard ETFs I'm Buying and Holding Forever -- Even if a Recession Is Coming
With the market fluctuating wildly, it's more important than ever to invest in the right places. ETFs can help balance risk and reward, especially during periods of volatility Even if a recession is coming, I'm continuing to stock up on these three Vanguard funds. 10 stocks we like better than Vanguard Information Technology ETF › If the recent stock market rollercoaster has you feeling nauseated, you're not alone. Investor sentiment has been swinging wildly in recent months, with 43% of investors feeling optimistic about the market in January to only 19% in March to around 38% most recently, according to weekly surveys from the American Association of Individual Investors. Recession probabilities have also shifted substantially. In March, analysts at J.P. Morgan estimated a 40% chance of a recession beginning in 2025. That number then increased to 60% in April, and as of May 19, it's now down to "below 50%." Much of the volatility centers around tariff policies, which, as we've seen in recent months, can change on a dime. Rather than trying to invest at just the right moment, it's often safer to stay in the market for the long haul, regardless of what happens in the coming weeks or months. If you're looking for a few Vanguard ETFs that can provide some stability while still supercharging your savings, these are three that I'm planning to buy and hold for as long as I can -- even if a recession is looming. During periods of volatility, one of the safer funds you can own is an S&P 500 ETF. The Vanguard S&P 500 ETF (NYSEMKT: VOO) tracks the S&P 500 (SNPINDEX: ^GSPC), meaning it includes stocks from all 500 companies within the index. Companies within the S&P 500 are industry leaders and among the largest stocks in the world, which can reduce your risk substantially. Many of these businesses have been around for decades, surviving several recessions and bear markets along the way. If any stocks are likely to survive future volatility, it's those in the S&P 500. The Vanguard S&P 500 ETF, specifically, can be a smart buy due to its low fees. Its expense ratio is just 0.03%, meaning you'll pay $3 per year in fees for every $10,000 in your account. With some funds charging expense ratios of 1% or more, the Vanguard S&P 500 ETF could help save you thousands of dollars in fees over time. The Vanguard Growth ETF (NYSEMKT: VUG) is a broadly diversified fund that spans multiple market sectors, with a focus on stocks that have the potential for above-average returns. It contains 166 stocks, with around 57% of them coming from the tech industry. (For context, only around 30% of the Vanguard S&P 500 ETF is dedicated to the tech sector.) One of the advantages of this fund is that it's diverse enough to help limit risk, but the heavy focus on tech stocks can still set you up for substantial returns. With over 100 stocks from 11 different sectors, you won't be hit quite as hard if one industry or stock takes a substantial blow. At the same time, though, if tech stocks continue to thrive like they have in recent decades, you could earn significantly higher-than-average returns. Over the past 10 years alone, the Vanguard Growth ETF has earned total returns of close to 279% -- compared to just 181% for the Vanguard S&P 500 ETF. If you had invested $10,000 back then, you'd have around $38,000 or $28,000, respectively, by today. The Vanguard Information Technology ETF (NYSEMKT: VGT) goes all-in on tech, with 307 stocks from all corners of the technology industry. This ETF is the riskiest of the three, but it also has the most potential for higher earnings. Over the last 10 years, it's more than doubled the total returns of the S&P 500 while also significantly outperforming the Vanguard Growth ETF. If you'd invested $10,000 in this ETF a decade ago, you'd have close to $56,000 by today. The caveat with this ETF, though, is its risk level. Investing solely in one industry -- especially the tech sector -- raises your risk substantially. Tech stocks are often hit hardest during market downturns, so if you invest in this ETF, be prepared for greater short-term volatility. That said, it can be a smart addition to an already well-balanced portfolio. Investing in the Vanguard Information Technology ETF along with the S&P 500 ETF, for example, can provide greater protection against recessions as well as potential for above-average returns. There's no way to know for sure whether a recession or bear market is looming later this year, but it doesn't hurt to prepare your portfolio just in case. By balancing risk and reward while keeping a long-term outlook, you're more likely to pull through anything the market throws at you. Before you buy stock in Vanguard Information Technology ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Information Technology ETF 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 $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor's total average return is 982% — a market-crushing outperformance compared to 171% 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 Katie Brockman has positions in Vanguard Index Funds-Vanguard Growth ETF, Vanguard Information Technology ETF, and Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Vanguard Index Funds-Vanguard Growth ETF and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy. 3 Unstoppable Vanguard ETFs I'm Buying and Holding Forever -- Even if a Recession Is Coming 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
