buy

The market’s moving higher, and there’s a good chance that many of the stocks in your portfolio are having a good year. That doesn’t mean that you have a portfolio loaded with winners. Every investor has laggards, and for me, one of them is Target (TGT 1.02%). I’ve owned the discount retailer through some good years, and lately some bad ones.

Target shares have been cut nearly in half over the past year. Investors tend to shy away from falling stocks, but this out-of-favor stock is high on my list of potential purchases in November. And it’s not the only name I’m looking at. I believe that Duolingo (DUOL 4.29%) and Crocs (CROX 6.63%) — two other stocks I own that have fallen by at least 40% from their 52-week highs — are also ready to bounce back; I think they’re out-of-favor stocks to buy right now.

Let me dive into what I hope will be a timely contrarian take on Target, Duolingo, and Crocs.

1. Target: down 46%

Before I go into what’s holding Target back these days, I want to talk about its juicy dividend. The cheap-chic chain is currently yielding 5.2%, a historic high. With money-market and fixed-income yields heading lower, Target’s quarterly distributions are worth celebrating.

Target is good for the money; it has found a way to boost its dividend for 54 consecutive years. You know how they say that e-commerce will be the end of brick-and-mortar chains? Well, Target has found a way to deliver hikes every year since the commercialization of the internet. This Dividend King‘s latest guidance calls for a profit of between $7 and $9 per share this year, meaning a healthy payout ratio of 51% to 65%.

Image source: Getty Images.

The dividend is sustainable, despite Target’s recent misfires. The retailer is struggling to connect with shoppers. In-store comparable sales slipped 5.7% in its most recent quarter, with overall comps down 3.8% for the period. It’s losing market share — a sobering reality for a company that used to feast at the expense of its retail stock rivals with its now-fading aspirational brand.

But patient investors are getting more than a bountiful 5.2% yield right now; they’re getting a bargain. Target is trading for just 11 times the midpoint of its earnings guidance this year.

Analysts see a return to revenue and net income growth next year. Wall Street profit targets have been inching higher over the past three months, and the mass-market retailer has exceeded bottom-line expectations in two of the last three quarters. Last month’s quarterly report wasn’t popular with most investors, but at least three major analysts boosted their price targets on the company. While the turnaround will take time and a potential uptick in reinvestment obligations, there are worse places to be than riding it out with big dividend checks coming every quarter.

2. Duolingo: down 40%

Unlike Target, Duolingo isn’t going through growing pains. Revenue growth has topped 40% in each of the last five years. The language-learning company’s top line accelerated in its latest quarter, with a 42% year-over-year surge as its healthiest jump in more than a year.

Duolingo’s shares have still fallen 40% since scoring an all-time high in the spring, which doesn’t seem fair. It wasn’t just revenue picking up the pace since the shares peaked — in the most recent earnings report, profit landed 32% ahead of what Wall Street was modeling. There are concerns about artificial intelligence (AI) leveling the playing field for language learning, but that dismisses Duolingo’s own AI enhancements. Its platform and the gamification of learning have made the company a winner.

Unlike the other two names on this list, Duolingo isn’t cheap; it’s trading for nearly 40 times forward earnings. However, it was trading a lot higher when it lacked today’s momentum. The Duolingo owl is wise. This feels like a buying opportunity in any language.

3. Crocs: down 43%

Like another discarded cheap-chic stock, Crocs is a bargain. The maker of distinctive footwear is trading for just 6 times this year’s projected adjusted earnings. As with Target, revenue and profitability are going the wrong way this year.

Crocs has a history of riding the ups and downs of demand for its comfy hole-laden resin clogs. The same can be said of most shoe stocks. It always finds a way to get back in style, doing so consistently for a couple of decades. Its streak of seven consecutive years of top-line gains may come to an end this year, but it’s not likely to stay down for long.

It doesn’t offer the same chunky yield as Target — there’s no payout at all — but bargains come with different perks. Crocs is cheap, and history is on the side of those who believe when the masses do not.

BigBear.ai (BBAI -5.74%) is a leader in providing artificial intelligence (AI) technology for national security. Investor optimism about increasing government investment in AI, and the potential impact on BigBear, has sent the stock up 361% over the last year.

President Donald Trump’s “big, beautiful bill” could be a catalyst, as it provides substantial funding for spending on defense technology. BigBear.ai believes it is well positioned to benefit, but does this make the stock a buy?

Image source: Getty Images.

BigBear.ai is aiming for large government deals

Revenue has been flat over the last three years. The company reported an 18% year-over-year decrease in revenue in the second quarter, driven by lower volume from certain Army programs.

While the loss of revenue from these Army programs was a setback, legislative tailwinds are in BigBear’s favor. The bill provides billions of dollars in funding for border security, which is one of BigBear’s specialties, where it supplies biometric solutions for traveler processing.

BigBear ended last quarter in a solid financial position. It has a net cash position of $248 million on its balance sheet — the strongest financial position in the company’s history. Management intends to invest aggressively in hiring top-tier AI talent and innovation to win a share of the funding going to national security programs.

The stock offers significant upside potential from a market cap of just $2.6 billion. But the company will have to prove it is up to the job and win more contracts, which is no guarantee. I would look at the stock like a call option on whether the company can land a big contract. This is a stock for those who are willing to accept high volatility for the potential of explosive returns if BigBear.ai can secure large government deals.

Centrus Energy (LEU -2.19%) has been one of several nuclear energy stocks that have crushed the market in 2025. Compared to the S&P 500‘s impressive 13% gain so far this year, Centrus’ stock is up about 295%  in 2025 at the time of writing — and over 450% year over year.

At that yearly gain, you’d be forgiven if you thought Centrus was training large language models (LLMs) instead of enriching uranium. And yet its growth potential does have an indirect connection with artificial intelligence (AI) in that its fuel could help power the data centers behind the boom.

With the first American-owned enrichment plant to start production in decades, Centrus finds itself at the center of an industry that hasn’t seen this much interest since the 1970s. But does that make this growth stock a no-brainer buy today?

Ground floor side view of the HALEU cascade. Image source: Centrus Energy.

A unique position in nuclear fuel

Centrus operates two main businesses. The first is supplying low-enriched uranium (LEU) for today’s reactors. And the second is providing technical services, including a Department of Defense (DOE) contract, to produce high-assay low-enriched uranium (HALEU) for advanced reactors.

Of the two, the HALEU production likely offers more growth opportunity long-term. That’s because many next-generation reactors — like small modular reactors (SMR) — are increasingly being designed to run on this fuel.

In Piketon, Ohio, it runs the only U.S.-owned enrichment facility licensed to make HALEU. Emphasis there on only: Centrus currently holds the only license from the Nuclear Regulatory Commission to enrich uranium above 5%. If HALEU does end up becoming the preferred fuel for future reactors, Centrus could have a first-mover advantage in the U.S. for producing it.

The first U.S. supplier of HALEU — but with a Russian connection

But don’t overlook the last part of that sentence. Although no other U.S. company is licensed to produce HALEU, there are several companies producing it worldwide, some at a much larger scale than Centrus.

One is a Russian company, Tenex, a subsidiary of the state-owned Rosatom. The funny thing about Tenex: It has a supply contract with Centrus, meaning that some of Centrus’ LEU — which it sells to reactors in the U.S. — comes from Russian supplies. Any geopolitical risk — or a refusal on the part of Tenex to continue supplying Centrus — could hurt the company’s ability to meet obligations.

That hasn’t happened yet, however, and Centrus is likely aware of this dependence. But until it can achieve self-sufficiency in production, the Russian link to LEU remains an uncomfortable fact, especially since Tenex is also the world’s go-to for HALEU.

The balance sheet and the market’s bet

Usually, when I write about advanced nuclear stocks, the phrase “pre-revenue” always finds a place near “balance sheet.” In this way, Centrus is ahead of the pack in that it’s not only selling something (fuel) but it’s actually profitable.

In the second quarter of 2025, it reported net income of $28.9 million, a slight decrease from $30.6 million a year ago. What stood out, however, was its gross profit of about $54 million — an increase of 48% from last year — which shows a stronger margin even as revenue declined.

LEU Net Income (Quarterly) data by YCharts

The company also ended the quarter with a hefty consolidated cash balance of $833 million and a backlog of $3.6 billion that extends to 2040.

Is now the best time to buy Centrus?

Centrus offers a rare, U.S.-based play on nuclear fuel independence at a time when governments are rethinking energy. And yet it’s not an obvious buy, at least for those who want to stay away from volatility.

Bulls will point to a few major tailwinds at Centrus’ back.

The first is policy. In May 2025, President Donald Trump signed a flurry of executive orders aimed at boosting the country’s nuclear energy capacity, including calls for a stronger domestic supply chain of nuclear fuel. That puts Centrus in a strong position to benefit from government funding.

Meanwhile, international interest, like Centrus’ recent memorandum of understanding with Korea Hydro & Nuclear Power, could be stirring, especially as concerns rise over Russia’s dominance of the global nuclear fuel market.

But even the bulls have to acknowledge that Centrus, though it has support, doesn’t have the industrial capacity to produce enriched uranium at scale. Until expansion efforts at its Piketon plant are complete, or new capacity is turned online, Centrus will remain pretty supply-constrained for now.

Investors interested in Centrus’ stock should also take note of its rich valuation. At today’s price, the stock trades at 76 times forward earnings, which is several times higher than the energy sector writ large (about 16).

Clearly, investors are expecting growth. Whether or not they get it will depend on Centrus’ ability to scale enrichment capacity.

Dividend yields have been on a downward trend over the past year due to rising stock prices. The S&P 500‘s dividend yield is down to less than 1.2%, approaching its lowest level on record. Because of that, it’s getting harder to find stocks with attractive payouts.

However, it’s not impossible. Clearway Energy (CWEN 0.67%) (CWEN.A 0.89%), Realty Income (O 0.83%), and Verizon (VZ 0.55%) currently stand out for their high dividend yields. The trio pays sustainable and steadily rising dividends, making them appealing options for those seeking to generate passive income.

Image source: Getty Images.

A powerful dividend stock

Clearway Energy’s dividend currently yields 6.3%. The company owns one of the country’s largest clean power platforms. It sells the electricity generated by its wind, solar, energy storage, and natural gas assets to utilities and large corporations under long-term, fixed-rate power purchase agreements (PPAs). Those contracts supply Clearway with stable and predictable cash flow to support its high-yielding dividend.

The company aims to pay out between 70% and 80% of its steady cash flows in dividends, retaining the remainder to invest in new income-generating renewable energy assets. The company has already secured several new investments, including plans to repower some existing wind farms and agreements to purchase several renewable energy projects currently under development. These secured investments position Clearway to grow its cash flow per share by more than 20% over the next two years. That should support a dividend increase of more than 10% from the current level by the end of 2027.

Clearway has multiple drivers to support its continued growth beyond 2027. It can repower additional wind farms, add battery storage to existing facilities, buy development projects from a related company, and acquire operating assets from third parties. The company believes it has the financial capacity to support 5% to 8%+ annual cash flow per share growth beyond 2027, which could support dividend increases within that target range.

A very consistent dividend stock

Realty Income’s dividend yield is 5.4%. The real estate investment trust (REIT) pays dividends monthly, making it even more attractive to passive income-seeking investors.

The REIT also has a stellar record of increasing its dividend. It has raised its payment 132 times since its public market listing in 1994. Realty Income has increased its dividend for 112 consecutive quarters and more than 30 straight years. It has grown its payout at a 4.2% compound annual rate during that timeframe.

Realty Income backs its high-yielding and steadily rising dividend with a diversified real estate portfolio (retail, industrial, gaming, and other properties). It invests in high-quality properties secured by long-term triple net leases (NNN), which provide it with very durable and stable cash flow. The REIT pays out about 75% of its cash flow in dividends, retaining the rest to reinvest in additional income-generating properties. Realty Income sees a staggering $14 trillion investment opportunity in NNN real estate, giving it a long growth runway.

The streak continues

Verizon leads this group with a 6.4% dividend yield. The telecom giant backs its big-time payout with recurring cash flow as consumers and businesses pay their wireless and internet bills.

The company generates massive cash flows ($38 billion in operating cash flow is expected this year), providing it with the funds to invest in projects that maintain and expand its networks, pay dividends, make acquisitions, and repay debt. Verizon is currently using its strong financial profile to acquire Frontier Communications in a $20 billion deal aimed at enhancing its fiber network. The company’s growth investments should enable it to continue expanding its copious cash flows.

Verizon’s financial strength and growing cash flows have enabled it to continue increasing its dividend. The company recently delivered its 19th consecutive annual dividend increase, the longest current streak in the U.S. telecom sector. With more growth ahead, that streak should continue.

Big-time income boosters

Clearway Energy, Realty Income, and Verizon pay high-yielding dividends backed by strong financial profiles. They also have solid records of increasing their dividends, which seem likely to continue. That makes them great stocks to buy right now to boost your passive income.

Vanguard has a long history of offering a variety of great exchange-traded funds (ETFs) that not only give you exposure to a variety of investments, but also do it at a a very low cost. Most of Vanguard’s ETF charge industry-low expense ratios, allowing you to keep more of the investment returns you make.

But which Vanguard ETFs should you consider, if you’ve got $1,000 to invest today? Here are three great options — including one that’s one of my top holdings.

Image source: Getty Images.

1. Vanguard S&P 500 ETF: Buy a whole basket of stocks

Legendary investor Warren Buffett recommends that most investors put their money into S&P 500 index funds because they provide exposure to the biggest companies and do so at a very low cost. He even went so far as to recommend one such fund in a Berkshire Hathaway annual letter, noting, “I suggest Vanguard’s.”

Buffett was referring to the Vanguard S&P 500 ETF (VOO 0.59%), which invests in stocks in the S&P 500 and has the goal of closely tracking the index’s returns. This fund is personally one of my largest holdings and is a great option for investors who want to put money into stocks but would rather not have to make regular changes to their investment strategy.

Aside from being a great way to invest in a wide variety of stocks across all sectors, you’ll get the added benefit of one of the cheapest expense ratios available. The Vanguard S&P 500 ETF charges just 0.03% in annual fees, which works out to be just $0.30 for every $1,000 invested.

2. Vanguard Information Technology ETF: Ride the tech wave

The Vanguard Information Technology ETF (VGT 0.25%) is designed for investors who want to focus their investment strategy on technology companies, while still spreading out some of the risk. The fund tracks the MSCI US Investable Market Information Technology 25/50 index, which includes more than 300 small- and large-cap technology companies.

That’s important because it means the Vanguard Information Technology ETF helps you invest in some of the leading artificial intelligence stocks of today — including Nvidia and Palantir — while also giving you exposure to the smaller tech companies that could become big players in the coming years. The fund also charges a very reasonable annual expense ratio of just 0.09% — equal to $0.90 for every $1,000 invested — allowing you to keep more of the returns you make.

3. Vanguard Growth ETF: Grow with the biggest companies

If you want to focus your investments on more growth stocks, then the Vanguard Growth ETF (VUG 0.48%) may be the right fund for you. This ETF tracks the performance of the CRSP US Large Cap Growth Index and includes more than 300 of the largest U.S. growth stocks.

Growth stocks are often technology-focused in the U.S., so you’ll have plenty of exposure to trends like AI and cloud computing — through companies including Nvidia — but you’ll also have exposure to consumer stocks, including Eli Lilly. You’ll also pay a low annual fee of just 0.04% with the Vanguard Growth ETF, far less than the average 0.93% similar funds charge.

Just remember that in order for these ETFs to work their magic, you’ve got to hold onto them for the long haul. Dipping in and out of these funds won’t do you much good — the real gains will come as you hold them (and buy more) through boom and bust cycles.

If you’re ever in need of a new stock pick, you can always borrow an idea or two from Berkshire Hathaway‘s (BRK.A 0.55%) (BRK.B 1.06%) portfolio of holdings hand-picked by Warren Buffett himself. And you should. Given enough time, Berkshire shares consistently outperform the broad market largely due to the conglomerate’s investments in publicly traded companies.

Not every Berkshire Hathaway holding is always a great buy, however. Sometimes they’re trading at too steep of a valuation for newcomers, and other times, they’ve just turned into clunkers.

With that as the backdrop, here’s a closer look at two Warren Buffett stocks you can feel good about buying today, but one name you might want to avoid until something big changes for the better.

Image source: The Motley Fool.

Buy: American Express

Many investors don’t realize that — through the attrition of other holdings as well as its own growth — credit card outfit American Express (AXP 0.55%) is now Berkshire Hathaway’s second-biggest stock holding, accounting for 17% of the outfit’s portfolio of publicly traded equities. Underscoring this bullishness is the fact that Berkshire also holds stakes in Visa and Mastercard, but has chosen to only hold much smaller positions in both.

Then again, it’s not difficult to see what the Oracle of Omaha has seen in AmEx since first establishing the position back in the 1990s. It’s not just a payment middleman like the aforementioned Mastercard and Visa. It operates an entire consumerism ecosystem, serving as the card issuer as well as the payment processor, while also managing a perks and rewards program that’s attractive enough for some members to pay up to $900 per year to hold the plastic. These perks include credit toward hotel stays and ride-hailing, cash back on grocery purchases, and discounted entertainment, just to name a few. Although some have tried, no rival has been able to successfully replicate this offering.

Of course, it’s worth pointing out that American Express’s cardholders tend to be a bit more affluent than average, and are therefore mostly unfazed by economic soft patches. As CEO Stephen Squeri pointed out of its Q2 numbers despite the turbulent economic backdrop at the time, “Our second-quarter results continued the strong momentum we have seen in our business over the last several quarters, with revenues growing 9 percent year-over-year to reach a record $17.9 billion, and adjusted EPS rising 17 percent.”

Buy: Kroger

It’s not a major Berkshire holding, and certainly not one that’s talked about much by Buffett (or anyone else, for that matter). But Kroger (KR -0.08%) is quietly one of Berkshire Hathaway’s best-performing stocks.

You know the company. With 2,731 stores producing annual sales on the order of $150 billion, Kroger is one of the country’s biggest grocery chains. Oh, it doesn’t grow very quickly, or produce a ton of profit; this year’s expected top-line growth of around 3% is only likely to lead to operating income of a little less than $5 billion. That’s just the nature of the well-saturated, low-margin food business.

What Kroger lacks in growth firepower, however, it makes up for in surprising consistency.

Although the volatile food business doesn’t exactly lend itself to it, not only has this company not failed to produce a meaningful full-year profit every year for over a decade now, but has roughly doubled its bottom line during this stretch. Making a point of remaining relevant by doing things like entering the e-commerce realm has helped a lot.

More important to would-be investors, although the grocer’s reported growth doesn’t seem all that impressive, the company’s found other ways to create considerable shareholder value. Its quarterly dividend payment has grown by a hefty 250% over the course of the past decade, for example, boosted by stock buybacks that have roughly halved the number of outstanding Kroger shares. In fact, reinvesting Kroger’s dividends in more shares of the increasingly scarce stock over the course of the past 30 years would have consistently outperformed an investment in the S&P 500 during this stretch.

Avoid: UnitedHealth Group

Finally, while Buffett was willing to dive into a small position in beleaguered health insurer UnitedHealth Group (UNH -0.43%) a few weeks back, you might not want to do the same just yet…if ever.

But first things first.

Yes, there’s some drama here. UnitedHealth shares have been beaten down since April, starting with a surprise shortfall of its first-quarter earnings estimates, followed by then-CEO Andrew Witty’s abrupt resignation for “personal reasons” in May. Then in July, the company confirmed that the U.S. Department of Justice was investing its Medicare billing practices. Its second-quarter earnings posted later that same month also missed analysts’ estimates due to the same high reimbursement costs that plagued its first-quarter results. All told, from peak to trough, UNH stock fell 60% in the middle of this year.

As Buffett himself has said, of course, you should be fearful when others are greedy, and greedy when others are fearful. Taking his own advice, he recently plowed into a stake in a long-established company that’s likely to be capable of overcoming all of its current woes. Berkshire now owns 5 million shares of UNH that are currently worth a little less than $2 billion.

Except, maybe this is one of those times you don’t follow Buffett’s lead, recognizing that UnitedHealth Group — along with the entire healthcare industry — seems to be running into these regulatory and pricing headwinds more and more regularly. UnitedHealth’s Medicare business ran into similar legal trouble back in 2017, for instance, while its pharmacy benefits management arm OptumRX was sued by the Federal Trade Commission just last year for artificially inflating insulin prices. It would also be naïve to not notice the federal government is increasingly scrutinizing every aspect of the nation’s healthcare industry, now that care costs have raced beyond reasonable affordability.

And for what it’s worth, although UnitedHealth has managed to continue growing its top line every year for over a decade now, actual operating profits and EBITDA stopped growing early last year, not counting the recent unexpected surges in its medical care costs.

UNH Revenue (TTM) data by YCharts

What gives? The entire healthcare industry may be at a tipping point, so to speak, and not in a good way. Although this wouldn’t necessarily be catastrophic for UnitedHealth, it certainly would undermine its value to investors. If nothing else, you might want to wait on the sidelines for the proverbial dust to settle before following Buffett into this uncertain trade.

Some companies seem like obvious slam-dunk investments. They have a combination of durable business models, visible growth profiles, and strong financials. Because of that, you don’t have to think twice when considering whether to buy these stocks.

Enbridge (ENB 0.04%), Brookfield Infrastructure (BIPC 2.58%) (BIP 4.92%), and Brookfield Asset Management (BAM 0.15%) stand out to a few Fool.com contributing analysts as no-brainer buys for 2025 and beyond. Here’s why they think these stocks will be great long-term investments.

Image source: Getty Images.

Enbridge has dividend investors covered today and tomorrow

Reuben Gregg Brewer (Enbridge): It is easy to get caught up in the fact that Enbridge has increased its dividend, in Canadian dollars, for 30 years and currently has a lofty 5.5% dividend yield. Those two facts do, indeed, make it a very attractive dividend stock.

But what about the business that backs the dividend? That’s where the real magic is here. Enbridge started out largely transporting oil through its fee-based energy infrastructure system. Looking at the direction the world was going, it started to add more and more natural gas transportation assets to its system, including regulated natural gas utilities. And, along the way, it dipped its toe into clean energy investments, with some sizable stakes in offshore wind farm assets in Europe. The trend is what’s important to note.

Essentially, Enbridge is a reliable dividend-paying energy stock that is changing its business along with the changing energy needs of the world. That is, in fact, the goal that management is pursuing. And it means that you, as a dividend investor, can comfortably own Enbridge even through the ongoing, likely decades-long, shift from dirtier fuels to cleaner ones.

The only drawback here is actually tied to the lofty dividend yield. Enbridge isn’t likely to be a fast-growing business, so the yield is going to make up a huge portion of your total return. But if you are focused on generating a large income stream from your investments, that probably won’t bother you much, if at all.

Strong earnings and dividend growth ahead

Neha Chamaria (Brookfield Asset Management): Brookfield Asset Management is among the largest alternative asset managers in the world, with over $1 trillion of assets under management (AUM). It’s a global powerhouse, operating in over 50 countries across five verticals: infrastructure, renewable power and energy transition, real estate, private equity, and credit. Here’s why the stock has caught my attention: The company has just announced bold growth plans through 2030.

Of its $1 trillion AUM, roughly $560 billion is fee-bearing capital. That’s the portion of its assets on which Brookfield Asset Management charges management fees, also its primary source of revenue. As of Dec. 31, 2024, 87% of that fee-bearing capital was perpetual (fees coming from its permanent capital vehicles and funds) or long-term (fees locked in for at least 10 years). That makes Brookfield Asset Management’s revenue and cash flows incredibly stable and predictable and also supports dividend growth. Brookfield Asset Management last increased its dividend by 15% earlier this year.

Brookfield Asset Management expects to more than double its fee-bearing capital base to $1.2 trillion by 2030, driven by growth in existing businesses and new verticals like insurance and wealth management. The company is off to a strong start in 2025, with its fee-based earnings rising 16% year over year in the second quarter. Notable recent announcements include an agreement with tech giant Google to deliver up to 3,000 megawatts of hydroelectric capacity in the U.S. during the quarter and a $10 billion investment in Sweden to develop artificial intelligence infrastructure.

With its earnings stability and massive growth targets, Brookfield Asset Management is a rock-solid stock to buy for 2025 and beyond.

Focused on capitalizing on these megatrends

Matt DiLallo (Brookfield Infrastructure): Brookfield Infrastructure is a leading global infrastructure investor. Part of the Brookfield Corporation family, along with Brookfield Asset Management, this entity owns and operates a diversified portfolio of crucial infrastructure assets across the utility, energy midstream, transportation, and data sectors.

The company focuses on deploying capital into infrastructure that capitalizes on three major global investment megatrends: digitalization, decarbonization, and deglobalization. The company sees a multitrillion-dollar investment opportunity ahead across these themes, particularly in infrastructure to support AI, such as data centers, semiconductor fabrication facilities, and natural gas power plants. Brookfield has already committed to investing significant capital to capitalize on this opportunity, including building a backlog of $5.9 billion of data infrastructure capital projects that it expects to complete over the next two to three years.

Brookfield has also secured several acquisitions this year. It’s investing $1.3 billion to buy interests in a U.S. refined products pipeline system, a U.S. bulk fiber network provider, and a North American railcar leasing portfolio. These new investments will boost its cash flow as the deals close in the coming quarters.

Brookfield’s powerful combination of organic growth drivers and acquisitions-driven expansion positions it to deliver more than 10% annual funds from operations (FFO) per share growth in 2025 and beyond. That will drive Brookfield’s ability to increase its more than 4%-yielding dividend by 5% to 9% annually. This compelling mix of income and growth makes Brookfield a no-brainer stock to buy and hold for the long term.

United Parcel Service (UPS 1.38%), which usually just goes by UPS, has a huge dividend yield of 7.9%. Many investors are likely attracted to it as a dividend stock, but that’s a risky call. It is more appropriate to see this package delivery giant as a turnaround stock. And if that’s how you view it, now could be the time to hit the buy button.

What UPS does is hard to do

Without getting into the logistical details, moving packages quickly and cost-effectively is very difficult. Even after huge capital investments in its own delivery service, Amazon still uses UPS. But Wall Street has a habit of going to extremes, which is a big part of why UPS could be an attractive turnaround stock.

Image source: Getty Images.

During the pandemic, package demand spiked. Investors extrapolated that demand far into the future, bidding up UPS’ stock price. Demand slowed, and UPS’ stock price crumbled when the world learned to live with COVID-19. UPS chose to start a major business overhaul as demand was returning to normal levels. The goal is to increase the use of technology to cut costs and to refocus on the company’s most profitable business lines to increase profit margins.

This is a multiyear effort with material up-front costs. And exiting low-margin business will lower sales even as it helps improve profitability. (Notably, UPS has chosen to proactively reduce its business relationship with Amazon.) Financial results have been ugly lately, which is what you’d expect. An over 97% dividend payout ratio, however, hints that most income investors should tread with caution.

However, there are positives starting to show through. For example, revenue per piece increased 5.5% in the U.S. business during the second quarter of 2025. That could be signaling that deeply out of favor UPS stock is turning a corner and is, thus, ripe for an upturn as investors get more confident in its business overhaul.

You don’t need to be ultra-wealthy to start building wealth in the stock market. With just $1,000, investors can buy into promising growth stories and put their money to work in businesses shaping the future. The key is choosing companies with strong tailwinds, clear expansion potential, and the ability to multiply in value over time. Even a modest sum split between the right names can grow meaningfully over the years.

Two stocks that stand out right now are American Resources (AREC 0.72%) and Freshworks (FRSH 0.32%). By allocating roughly $500 to each, investors gain exposure to two very different but compelling growth opportunities: one in the critical minerals powering the clean-energy transition, and the other in software that helps businesses connect with customers more effectively.

Image source: Getty Images.

The critical minerals moonshot

American Resources exemplifies how quickly narratives can transform stock prices. The company spent years as a struggling coal producer before pivoting toward rare earth elements and critical minerals essential for clean energy infrastructure. That strategic shift coincided perfectly with Washington’s push to reduce dependence on Chinese mineral supply chains. The stock has responded accordingly, surging 173% in 2025 as investors price in a future where American Resources supplies the lithium, graphite, and rare earths needed for the energy transition.

The opportunity is massive. The U.S. imports nearly 100% of its rare earth elements despite their critical importance in electric vehicles, wind turbines, and defense applications. Government support for domestic production has never been stronger, with billions in federal funding flowing toward securing supply chains. American Resources is in a position to capture this spending through both its existing operations and development projects. The company’s ReElement Technologies subsidiary focuses on battery material recycling and purification, adding another revenue stream tied to the circular economy.

But small-cap stocks with market values under $500 million carry outsized risks. American Resources remains pre-revenue on many initiatives, burning cash while building out capabilities. Commodity prices swing wildly — what looks like a secular growth story today could become a cyclical disaster tomorrow if rare earth prices collapse. Ultimately, this is a high-risk bet on management execution and Washington’s support for critical minerals — not a play on today’s numbers.

The software discount special

Freshworks tells the opposite story — a profitable growth software company punished for sins it’s already addressing. The customer engagement platform posted over $200 million in revenue last quarter, representing low-teens growth year over year. That’s not hypergrowth, but it’s steady expansion in a market where Salesforce and ServiceNow leave plenty of room for competitors targeting small and mid-sized businesses. Yet the stock has shed 23% of its value this year.

The numbers suggest Freshworks deserves better. Gross margins exceed 84%, typical for quality SaaS businesses. Operating losses are narrowing each quarter as the company balances growth investments with cost discipline. The product suite keeps expanding with AI-powered features for customer support, IT service management, and customer relationship management — capabilities that smaller businesses need but can’t afford from enterprise vendors. With over 68,000 customers globally, Freshworks has proven product-market fit.

The bearish case centers on competition and profitability timing. Salesforce and ServiceNow dominate enterprise accounts with deeper functionality and stronger ecosystems. Reaching profitability might take several more quarters, and the market has shown little patience for companies still burning cash. If the economy weakens, small business customers could churn faster than larger enterprises. But at just 18.5 times forward earnings, much of this pessimism appears priced in.

The $1,000 portfolio

Splitting $1,000 between American Resources and Freshworks creates an intriguing barbell strategy. American Resources offers lottery-ticket exposure to the critical minerals boom — if the company executes and government support continues, the stock could multiply from here. Freshworks provides a more traditional growth story with improving fundamentals, trading at a discount to both the S&P 500 and its closest peers.

Have you ever seen a puzzle that asks you to identify what doesn’t seem to belong in the picture? That comes to mind when I look at the list of stocks with market caps of $1 trillion or more.

Only 10 companies (and 12 stocks, because two have multiple share classes) are members of the trillion-dollar club. All of them have artificial intelligence (AI) pedigrees except one: Berkshire Hathaway (BRK.A 0.55%) (BRK.B 1.06%).

While Berkshire is an outlier in this elite club, I think the huge conglomerate deserves its spot. Most investors can’t afford the Class A shares, which trade at close to $745,000. But should you buy Berkshire Hathaway Class B stock while it’s hovering around $500?

Image source: Getty Images.

Playing devil’s advocate

I’ll start off answering the question by playing devil’s advocate. There are several arguments against buying Berkshire Hathaway right now.

Perhaps the top reason for hesitation in many investors’ minds is the impending departure of Warren Buffett as the company’s CEO. Buffett and Berkshire have become synonymous through the years. However, he is handing over the reins as top executive to Greg Abel as of Jan. 1, 2026. Some may worry that Berkshire Hathaway’s allure will be diminished without Buffett at the helm.

Another argument against buying Berkshire stock is its valuation. Shares currently trade at a forward price-to-earnings ratio of 22.8. The stock is only around 8% below its all-time high. Even Buffett seems to think the valuation isn’t compelling, considering that he hasn’t authorized any stock buybacks since last year.

Economic uncertainty is another factor that could prevent some investors from buying Berkshire. Federal Reserve chair Jerome Powell recently stated that rising inflation and unemployment present a “challenging situation” for the Fed. Some of Berkshire’s businesses could be negatively impacted by these macroeconomic concerns.

Arguments in favor of buying Berkshire Hathaway

While those might be compelling arguments against buying Berkshire Hathaway stock, there are also some reasonable counterpoints. For example, Buffett isn’t leaving Berkshire altogether; he will stay on as chairman. Importantly, he doesn’t think the company will miss a beat without him as CEO. Buffett even said at the annual shareholder meeting in May 2025 that he expects Berkshire will be in better shape with Abel running the business.

What about the valuation concerns? They shouldn’t be dismissed. However, Berkshire has had higher earnings multiples in the past but delivered enough growth to drive its share price higher. I think history will repeat itself over the long run. If you’re a long-term buy-and-hold investor, Berkshire’s current valuation (which is much lower than the S&P 500‘s, by the way) shouldn’t keep you from buying the stock.

As for economic uncertainty, it’s a legitimate issue as well. The Fed’s rate cuts could prop up the economy, though. Even if not, Berkshire Hathaway could be widely viewed as a safe haven if the economy stumbles. I suspect its stock would hold up better than most in the event of an economic pullback.

Importantly, Berkshire offers diversification that’s almost at an exchange-traded fund (ETF) level. The company owns over 60 subsidiaries representing a wide range of industries. It also has equity holdings in around 40 other publicly traded companies across multiple sectors.

Final verdict

So should you buy Berkshire Hathaway Cass B shares while they’re trading around $500? I think answer is yes — if you have a long-term investing time horizon.

The case against buying Berkshire is mainly focused on near-term concerns. It’s entirely possible that the stock could decline over the next year because of the issues discussed earlier. However, the long-term case for Berkshire is persuasive, in my view.

O’Reilly Automotive (ORLY 1.07%) operates brick-and-mortar locations that sell various products to DIY and professional customers. This includes things like brakes, batteries, and motor oil. It’s not an exciting business, but investors should have zero complaints.

In the past five years, this retail stock is up 242% (as of Sept. 23), crushing the broader market. But is O’Reilly a smart buy right now?

Image source: Getty Images.

Consider the valuation

This company has clearly made for a terrific investment. But investors should think twice before buying shares. That’s because the valuation looks rich.

The stock trades at a price-to-earnings ratio of 36.9. This is close to the most expensive that shares have sold for in the past two decades. And the ratio has climbed 65% during the past five years, which means it has contributed to investor returns.

Paying too high of a starting valuation for a company can lead to subpar performance going forward.

O’Reilly is a great business

The stock’s expensive valuation indicates investors’ appreciation for this business. And that perspective is totally justified.

O’Reilly has an impressive history of growing its revenue and earnings. And this year is on track to be the company’s 33rd straight year of reporting a same-store sales gain. O’Reilly also registers durable demand regardless of economic conditions.

Because of the valuation, investors shouldn’t buy shares today. However, it’s best to continue keeping a close eye on this business, waiting for a pullback before making a move.

Artificial intelligence (AI) stocks have outperformed the stock market by a wide margin this year. The Morningstar Global Next Generation Artificial Intelligence Index, which provides exposure to about 50 top AI companies, is up 37% in 2025 (as of Sept. 19). The S&P 500 index has increased by 13% over that same time frame.

Because of how much growth there has already been in the AI sector, most of these stocks aren’t cheap. But that doesn’t mean you’re out of luck with investment opportunities. The global AI market is projected to grow at a compound annual rate of 29% through 2032, according to research by Fortune Business Insights.

So, which companies are best positioned to capitalize on that growth? Here is a pair of AI stocks worth considering for your portfolio.

Image source: Getty Images.

1. Nvidia

There are plenty of AI success stories out there, but none has been bigger than Nvidia (NVDA 0.35%). It’s the top company by market cap and the first to reach a value of $4 trillion.

Nvidia’s size and the fact that it’s trading at a high valuation (39 times forward earnings) scare off some investors. However, it has consistently delivered excellent results over the last two-plus years, beating earnings expectations and seeing revenue rise by more than 50% year over year for nine consecutive quarters.

Most of that is data center revenue as tech companies invest in Nvidia graphics processing units (GPUs) for the training and inference of their AI models. Nvidia is the dominant player here — estimates put its share of the AI chip market at 85% to 90%.

Nvidia is also taking steps to expand its reach. It recently invested $5 billion to take a roughly 5% stake in Intel. Intel is the leader in CPU market share, and data centers need AI GPUs and CPUs. Intel will now be making custom CPUs for Nvidia, allowing Nvidia to advance its technology.

On a negative note, China has reportedly banned its tech companies from using Nvidia AI chips due to tensions with the U.S. That effectively cuts Nvidia off from a major market. However, trade talks between the U.S. and China are ongoing, so it remains to be seen if this is a long-term issue.

2. Meta Platforms

Meta Platforms (META -1.46%), which owns Facebook, Instagram, and several other companies, is making a significant push into AI. So far this year, CEO Mark Zuckerberg has:

• Hired away top AI talent from rival companies to form Meta Superintelligence Labs, with pay packages reportedly as high as $300 million.
• Invested $14.8 billion to take a 49% stake in Scale AI, a data labeling start-up.
• Committed to investing at least $600 billion in U.S. data centers and infrastructure through 2028.

Meta is incorporating AI through various aspects of its business. It launched a Meta AI assistant and has woven generative AI tools into its existing apps, including Messenger and WhatsApp. Meta Glasses are getting an upgrade to AI smart glasses. And it now offers AI advertising tools to enhance and optimize campaigns.

Advertising is also how Meta can afford to invest so heavily in AI. Its revenue over the trailing 12 months is $179 billion, with about 98% of that coming from advertising. Ad revenue gives Meta a sizable war chest — it has also generated $50 billion in free cash flow over the last 12 months.

It hasn’t all been smooth sailing for Meta lately. The tech giant’s Meta Ray-Ban Display glasses recently failed in two live demos, leading to an awkward moment for Zuckerberg and bad publicity for Meta’s AI ambitions. However, the glasses are getting positive early reviews.

Overall, this is a business with strong financials that’s betting big on AI to enhance its products and services. It’s also not overly expensive, trading at 28 times forward earnings. With its valuation, cash flow, and AI ambitions, Meta is one of the better tech investments currently available.

IF you’re looking for a stylish buy to add to your home that will also make it feel cosier, B&M has got you covered.

The bargain retailer’s extra large shaggy faux rug is perfect for warming up your feet as temperatures dip over autumn and winter.

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It’s also an affordable way to spruce up your space for the colder months after being marked down in the sale.

The cream shaggy faux fur rug was originally priced at £18.

But it’s currently scanning for just £4.50. This works out at a huge £13.50 saving.

And it’s not just an insulation solution for your floors.

A savvy bargain hunter revealed she has been using the rug as a throw for her bed and sofa after snapping up two in her local store.

Posting on the BARGAIN LOVERS – Poundland, Home Bargains, B&M, Primark, The Range & More Facebook group, which boasts 910,000 members, Jayne said: “Bargain down to £4.50 at B&M.

“iv put one on my sofa and bed “

Other shoppers are now racing to pick one up, as one gushed: “I need.”

A second asked a loved one: “Have u any in if so please save me 2 an let me know.”

Meanwhile, a third cried: “I need a new rug!!! When we going?”

Elsewhere in store, a mum has revealed the top B&M buys you can grab now to spread the cost of Christmas shopping.

Kirsty, who jokingly describes herself as ”Christmas crazy”, recently shared the epic haul of goodies she got her teenager ahead of the festive season.

While some people reckon Christmas shopping in September is ”too early” – and even her hubby reckons she’s ”lost the plot” – sorting out the presents months in advance is a great way to spread the cost.

”I start shopping [for Christmas] straight away, soon as the year starts – especially once we get to February, March, April, I’m in full-swing Christmas,” Kirsty told her 29k followers on TikTok.

The monster haul included just some of the items the mum will be treating her 16-year-old daughter to during the festive season.

The majority of the goodies she snapped up as long as six months ago were purchased at B&M and included a range of items.

Mums are also snapping up a £10 festive buy that guarantees an hour of peace from your kids.

Warren Buffett is a legend in the investing world, known for taking a disciplined approach to allocating capital, favoring durable businesses with strong competitive moats and management teams with high integrity. His success stems from embracing simplicity and resisting market noise, compounding returns over the course of decades.

Buffett’s investing style has yielded extraordinary long-term results, turning Berkshire Hathaway into a trillion-dollar business, and reinforcing the importance of taking a long-term approach to investing. If you’re looking for stocks to add to your diversified portfolio, here are three no-brainer Buffett stocks to buy now.

Image source: The Motley Fool.

Visa

As a global leader in digital payments, Visa (V -0.01%) has had decades to establish a robust payment network worldwide. It benefits from network effects, as each new customer or merchant added strengthens its ecosystem and reinforces Visa’s dominance. In 2023, Visa processed a total of $6.3 trillion in purchase volume, giving it a 32% global market share and a 52% share in the U.S.

The Visa brand is trusted worldwide, and its infrastructure is deeply embedded in commerce. Visa’s growth is tied to secular trends, such as digitalization, e-commerce, and global financial expansion, which are structural tailwinds that should continue to support it in the long term.

Not only that, but Visa doesn’t issue credit or assume consumer risk. Instead, it earns fees from transactions, making its revenue model resilient across economic cycles. As a result, it has a capital-light business structure that enables high margins and robust free cash flow.

Some investors have expressed concern about the potential threat to Visa’s business from stablecoins. Visa’s management sees it differently, believing stablecoins are an opportunity to solve payment problems, particularly in emerging markets and cross-border money movement. The payments company looks to leverage its strengths and integrate stablecoins into its broader payments ecosystem.

Visa’s sound business and strong network provide it with durable competitive advantages, allowing it to grow alongside an expanding economy, making it an excellent Buffett stock to buy today.

Amazon

Amazon (AMZN -0.28%) has been a visionary in the e-commerce market, building up an incredibly strong position during the past few decades. However, Berkshire didn’t invest in the e-commerce giant until 2019, and it was one of Buffett’s investment managers, Todd Combs or Ted Weschler, who initiated the position.

Amazon’s core retail business operates on razor-thin margins as it strives to maintain its position as the lowest-cost retailer in the U.S. Its dominance is rooted in logistical mastery and data-driven innovation. However, it’s Amazon’s smart reinvestment of profits back into the business that has driven its growth.

The company is laser-focused on optimizing its logistics networks to improve efficiency and reduce costs. Key to this was transforming fulfillment into regional hubs, which stock items closer to customers, resulting in faster delivery, fewer packages, and lower costs. The company continues to invest in its fulfillment network, utilizing artificial intelligence (AI) and robotics. It has deployed Deep Fleet, an AI system that serves as a traffic management system to coordinate robots and improve travel efficiency by 10%.

In addition, Amazon Web Services (AWS), the market leader in cloud computing, transformed the company into a cash-generating powerhouse. Last year, Amazon raked in nearly $40 billion in operating income from this business alone. AWS’s high-margin, recurring revenue model provides stability and fuels reinvestment across Amazon’s ecosystem.

Amazon’s consistent growth in free cash flow, combined with its strong position in multiple sectors with solid growth potential, makes it an excellent long-term investment.

Chubb

Chubb (CB 0.85%) operates as one of the world’s largest publicly traded property and casualty insurers and is recognized as the largest commercial lines insurer in the U.S. With operations in 54 countries and territories, Chubb truly has a global reach.

What makes it stand out is its breadth of knowledge combined with its disciplined underwriting and conservative risk management. This broad-based approach diversifies Chubb’s insured risk to various geographies, customers, and product areas, helping support long-term, sustainable growth.

Disciplined underwriting is vital to Chubb’s success across various market cycles. The company stresses disciplined underwriting and will not take any business below what it deems an adequate price. For example, Chief Executive Officer Evan Greenberg noted that the insurer has “begun walking away where necessary” in specific markets where insurers have become more aggressive in their pricing. While this may limit growth, it also shows Chubb’s commitment to steady, profitable growth over time.

Chubb’s ability to price risk accurately and maintain underwriting discipline across market cycles has resulted in industry-leading combined ratios. This translates to steady underwriting profits, even in volatile environments, and is also a big reason Chubb has raised its dividend payout for 32 consecutive years. For investors seeking steady growth over time, Chubb is another excellent Buffett stock to consider today.

The semiconductor industry is the beating heart of the artificial intelligence (AI) revolution. Developing AI models wouldn’t be possible without powerful chips and advanced networking equipment, and for them to continue getting “smarter,” semiconductor suppliers will have to deliver more and more computing capacity.

For that reason, Nvidia (NVDA -0.82%) CEO Jensen Huang expects data center operators to spend up to $4 trillion on upgrading their infrastructure to meet demand from AI developers by 2030. Nvidia will be a major beneficiary of that spending over the next five years, but so will many of its peers and competitors.

Here are five semiconductor stocks to buy right now.

Image source: Getty Images.

1. Nvidia

Let’s start with the most obvious pick. Nvidia’s graphics processing units (GPUs) for data centers are the gold standard for AI development. The company just started shipping a new GPU called the GB300, which is based on its Blackwell Ultra architecture, and it’s up to 50 times more powerful in certain configurations than its flagship H100 chip, which dominated the market in 2023 and most of 2024.

The latest AI reasoning models consume significantly more tokens (words and symbols) than older one-shot large language models (LLMs), because they spend more time “thinking” in the background to weed out errors before generating outputs. This calls for more computing power, which is expected to drive explosive demand for the GB300 from the best AI developers like OpenAI, Anthropic, Meta Platforms, and xAI.

Nvidia generated a record $41.1 billion in data center revenue during its fiscal 2026’s second quarter (ended July 27), which was up 56% year over year. That number also grew by a staggering 1,081% compared to the same quarter in fiscal 2023, which was right before the AI revolution started gathering momentum. If AI infrastructure spending really does hit $4 trillion over the next five years, Nvidia will probably be one of the best stocks investors can own.

2. Broadcom

Broadcom (AVGO 0.15%) supplies AI accelerators (a type of data center chip) to at least three hyperscalers, including Alphabet. These chips have become a popular alternative to GPUs because they can be customized to suit the needs of each customer, so they offer more flexibility.

Broadcom is also a top supplier of networking equipment. Its Ethernet switches regulate how fast data travels between chips and devices, and its new Tomahawk Ultra variant delivers industry-leading low latency and high throughput, which facilitates faster processing speeds with less data loss.

Broadcom’s AI semiconductor revenue soared by 63% to $5.2 billion during its most recent quarter, but it might just be getting warmed up. The company says its three hyperscale customers plan to deploy over 1 million AI accelerators each in 2027, creating a $90 billion opportunity. Separately, a new mystery customer recently placed a $10 billion order for accelerators, and Wall Street is speculating it could be OpenAI.

3. Advanced Micro Devices

Advanced Micro Devices (AMD -0.03%) supplies chips for some of the world’s most popular consumer electronics, from Sony‘s PlayStation 5, to the infotainment systems inside Tesla‘s electric vehicles. However, the company is now laser-focused on catching up to chipmakers like Nvidia in the AI data center business.

AMD’s latest MI350 series of GPUs are based on a new architecture called Compute DNA 4, and they are 35 times faster than its previous generation that launched less than two years ago. Next year, AMD will start shipping the MI400 series, which will be paired with specialized hardware and software systems to create a fully integrated data center rack called Helios, delivering a tenfold improvement in performance relative to the MI350 series.

This highlights how quickly AMD is progressing from a technological perspective. The company is slowly capturing market share already, but these new chips could cement its position as a real player in the data center space for the long term.

4. Micron Technology

GPUs wouldn’t be as efficient without high-bandwidth memory (HBM), which stores data in a ready state to accelerate processing speeds. Simply put, more HBM capacity allows the GPU to unleash its maximum performance, which is essential in data-intensive AI workloads.

Micron Technology‘s (MU -2.83%) HBM3E solution for the data center offers industry-leading capacity and energy efficiency, and it’s embedded in Nvidia’s Blackwell Ultra GPUs and also AMD’s MI350 series. But the company will raise the bar again next year with its HBM4 solution, which will offer 60% more performance and 20% less power consumption.

Simply put, investors who believe Nvidia and AMD will sell truckloads of data center GPUs over the next five years should also be bullish on Micron’s business.

But it gets better, because some smaller AI workloads are slowly migrating to personal computers and smartphones, so they also require higher memory capacities. That’s great news for Micron because it’s a major player in those markets, too.

5. Taiwan Semiconductor Manufacturing

Finally, Taiwan Semiconductor Manufacturing (TSM -0.58%) could be the ultimate picks-and-shovels play as AI infrastructure spending ramps up. It’s the world’s largest semiconductor fabricator, and Nvidia, Broadcom, and AMD are just a few of its top clients.

Taiwan Semi offers unmatched expertise when it comes to manufacturing the most advanced chips. It works with the smallest nodes in the industry, so it can pack more transistors into each chip which is the key to unlocking processing power and energy efficiency. That is an ideal combination when it comes to AI GPUs.

Investors who own Taiwan Semi stock won’t be too concerned about which chip giant wins the AI race, because whether it’s Nvidia, Broadcom, or AMD, the demand for manufacturing capacity is only heading in one direction: up.

Newsmax (NMAX -1.68%) and The New York Times Company (NYT -1.05%) represent two opposite ends of the political spectrum in the media, and they’re also two of the few pure-play news media stocks available for investors.

While some might think of the news media as a dying industry, the response to Newsmax’s initial public offering (IPO), which faded soon after, and the success of The New York Times’ digital transformation, shows otherwise.

Let’s take a closer at these two stocks to determine which is the better buy today.

Image source: Getty Images.

Business model: Newsmax vs. New York Times

NewsMax is a diversified media company, best known for its Newsmax linear cable channel.

Today, more than 40 million Americans watch, read, and listen to Newsmax. Newsmax has grown over time to become the fourth-largest with 21 million regular viewers.

The company’s broadcasting assets include two streaming channels, Newsmax and World at War, and Newsmax2, a free streaming channel. Additionally, Newsmax Radio offers a syndicated radio and several podcasts. Newsmax also has a digital arm that includes online advertising and specialized subscription newsletters, and it has a publishing subsidiary, Humanix Publishing, which has published around 100 titles. Additionally, it owns Medix Health, which sells 22 nutraceutical products, and Crown Atlantic Insurance, an insurance agency that sells annuities, life insurance, and other insurance offerings.

That collection of businesses makes Newsmax different from other media companies. While the vast majority of its revenue comes from cable subscription fees and ad revenue, the company also makes money from selling nutrition and insurance products, as well as books that it can advertise on its programming.

The New York Times may be the best example of a traditional newspaper that transitioned to the digital era. While the transition hasn’t always been smooth, the Times now makes the vast majority of its revenue from digital subscriptions and ad revenue, though digital ads have not been as lucrative as print ads.

After selling assets like The Boston Globe, the Times has sought to add complementary news products to the core New York Times newspaper, including sports through The Athletic, games such as Wordle, Cooking, and Wirecutter, a product review site. Overall, the Times continues to set the news agenda in the country, giving it outsize influence over the media landscape, despite the relatively small size of the company, which currently has a market cap of $9.5 billion, even as it trades at an all-time high.

Financials: Newsmax vs. The New York Times

Newsmax is still small. In the second quarter, the company reported $46.4 million in revenue, up 18.4% from the quarter a year ago. Broadcast revenue growth was particularly impressive at 28.5% to $38 million.

However, the company reported a loss on an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) basis of $3.8 million, down from a profit of $1.9 million.

The New York Times also delivered solid growth in the second quarter with revenue up 9.7% to $685.9 million, while total subscribers were up 10% to 11.9 million. Its adjusted operating profit rose from $104.7 million to $133.8 million, giving it an operating profit margin of near 20%. Adjusted earnings per share was up $0.45 to $0.58.

Valuation: Newsmax vs. The New York Times

Newsmax currently has a market cap of $1.15 billion. It is not profitable, and analysts expect it to continue to report a loss at least through 2026. Newsmax currently trades at a price-to-sales ratio of 9.

The New York Times, on the other hand, is solidly profitable and trades at a lower price-to-sales ratio of 3.6. On a price-to-earnings ratio, the stock trades at a multiple of 30. The New York Times also offers a dividend yield of 1.2%.

What’s the better buy?

While Newsmax attracted some attention when it went public earlier this year, it’s still losing money and is more expensive on a P/S basis than The New York Times.

The Times, meanwhile, is delivering solid revenue growth and strong and expanding profit margins. It’s the better buy of the two.

It’s probably safe to say that the world hasn’t seen a better capital allocator than Warren Buffett. His incredibly long track record running Berkshire Hathaway speaks for itself, as his investment prowess transformed the company into a $1 trillion conglomerate.

Average investors are right to listen to Buffett’s advice. And one of his recommendations is extremely simple. The Oracle of Omaha says to buy this Vanguard exchange-traded fund (ETF). It could turn a monthly $1,000 investment into $264,000 in a decade.

Image source: Getty Images.

Simple is best

Every investor wants to be like Buffett, picking individual businesses based on expert financial analysis skills. However, this is obviously not something everyone can do. Even professional money managers struggle to find success, with many funds lagging the overall market.

Buffett believes that most retail investors are better off taking a simpler approach. This means buying a low-cost ETF that tracks the performance of the S&P 500, such as the Vanguard S&P 500 ETF (VOO -0.56%). It carries an extremely low expense ratio of 0.03%, which is probably why Buffett is so supportive of it.

What’s more, investors are buying an ETF offered by a leading firm in the asset management industry that has been around since 1975. Vanguard had $11 trillion in total assets under management as of July 31, highlighting its tremendous scale and the amount of capital it’s trusted to handle.

The Vanguard S&P 500 ETF tracks the performance of the S&P 500. Investors in the fund get exposure to 500 large and profitable companies, with tech behemoths like Nvidia, Microsoft, and Apple having big weights. However, there is still broad diversification, as all sectors of the economy are represented.

Owning this ETF essentially means that investors are betting on the ongoing growth and ingenuity of the U.S. economy. That doesn’t mean there isn’t international exposure. Many of the companies in the S&P 500 generate revenues from overseas markets. This can be beneficial as other countries potentially register more growth than the U.S. in the long run.

Stellar performance

In the past decade, the S&P 500 has generated a total return of 304% (as of Sept. 19). On an annualized basis, this translates to a gain of 15%. It’s hard to complain with this performance, which has been driven by historically low interest rates, lots of passive capital flowing into the stock market, and the rise of massive tech companies.

If trailing-10-year returns (from August 2015 to August 2025) repeated over the next decade, investing $1,000 monthly into the Vanguard S&P 500 ETF would turn into $264,000 by September 2035. This proves that even small sums of money can result in huge returns over the long term.

This approach is considered dollar-cost averaging, and it works so well because investors are building a consistent habit of allocating capital to their portfolios. Plus, it lessens the importance of trying to correctly time the market, which is a losing proposition.

But to be clear, past returns provide no guarantee of future results. Looking out over the next decade, the Vanguard S&P 500 ETF could generate worse performance than it did since 2015. This is entirely in the realm of possibilities. One area of concern is the historically expensive valuation of the S&P 500, which might be one of the main reasons Buffett and Berkshire have been net sellers of stocks in recent years.

It’s best to have realistic expectations. While the returns could be great, it’s also possible that the S&P reverts back to its long-run average of 10% yearly gains. Either way, buying the Vanguard S&P 500 ETF on a monthly basis is perhaps one of the best things investors can do, at least in Buffett’s opinion.

When it comes to making money in the stock market, stock price appreciation gets a lot of attention because it’s the most straightforward way to do so. You buy a stock for one price, sell it for a higher price, and make a profit. Simple enough. However, dividends can be just as effective at making money from stocks in many cases.

Assuming you’re investing in high-quality stocks or exchange-traded funds (ETFs), dividends are guaranteed income that investors can rely on quarterly (or monthly in some cases). Dividends can be an added plus when a stock is growing, as well as a buffer when a stock is falling.

If you’re looking for a high-quality dividend ETF to add to your portfolio, you should consider the Schwab U.S. Dividend Equity ETF (SCHD 1.01%). A $1,000 investment today could go a long way with time and patience.

Image source: Getty Images.

SCHD has a criteria fit for high-quality companies

The saying “Everything that glitters ain’t gold” also applies to dividend stocks. Just because a stock has a high dividend yield doesn’t mean it’s worth owning. In some cases, it could be a yield trap, where the dividend is only high because the stock price has dropped due to bad business performance.

Investing in SCHD removes much of the risk of a yield trap because of the criteria it takes to be included in the ETF. It tracks the Dow Jones U.S. Dividend 100 Index, and to be included, a company must have the following:

• A strong balance sheet
• Consistent cash flow
• At least 10 years of dividend payouts
• Strong profitability metrics (such as return on equity)

These criteria is a good vetting tool for investors, removing some of the need to do more in-depth research on the companies within the ETF. Some notable dividend kings (companies with at least 50 consecutive years of dividend increases) in the ETF are Coca-Cola, Altria, PepsiCo, Target, and Kimberly Clark.

A sustained high dividend yield

You shouldn’t solely focus on dividend yields because they fluctuate with stock price movements, but it’s still worth paying attention to the dividend yield a dividend-focused ETF is able to sustain. At the time of this writing, SCHD’s dividend yield is 3.7%. This is above its 3.1% average over the past decade, and around three times what the S&P 500 currently offers.

SCHD Dividend Yield data by YCharts

At its current dividend yield, a $1,000 investment would pay around $37 annually. This isn’t early retirement type money, but it can snowball into meaningful income, especially if you take advantage of your brokerage platform’s dividend reinvestment plan (DRIP). With a DRIP, your broker will take the dividends SCHD pays you and automatically reinvest them to buy more shares of the ETF.

Add in the fact that SCHD has increased its payout by over 160% in the past decade and should continue to increase its payout over time, and you have a chance for a $1,000 investment to go a long way.

Don’t expect explosive stock price growth

Since SCHD hit the market in October 2011, it has underperformed the S&P 500, averaging 12.4% annual total returns compared to the index’s 15%. Despite the underperformance, those are returns that most investors would still be happy to receive.

^SPX data by YCharts

Past results don’t guarantee future performance, but for the sake of illustration, let’s assume the ETF continues to average 12% annual total returns. A single $1,000 investment today could grow to over $9,600 in 20 years. If you were to add just $100 monthly to the ETF, it would grow to over $96,000. And with a low 0.06% expense ratio, you can keep more of these gains in your pocket.

On Sept. 18, the S&P Index closed at a fresh all-time high. The popular benchmark continues to march higher. While that’s a good thing for investors, it might be a discouraging development for those searching to buy individual companies at a discount.

Even in this kind of market environment, there are still investment opportunities, like this growth stock that’s trading 42% below its record high from February 2021. Should you buy shares with $10,000 right now?

Image source: Getty Images.

Leading the travel industry

From its founding 17 years ago to today, Airbnb (ABNB -1.24%) has become a $78 billion company (based on market cap) that dominates its industry. Growth has been the key driver of value. Revenue, gross booking value, and nights and experiences booked have soared over the years. The company currently has 5 million hosts and 10 million homes, showcasing its scale.

The growth has revealed just how profitable the business can be. Airbnb raked in $642 million in earnings during the second quarter, which translated to a strong net profit margin of 21%. This is a major improvement from the $576 million net loss posted in Q2 2020. The company also produces ample amounts of free cash flow.

Management has the confidence to keep pushing for more growth. Within the core rental operations, there is a big opportunity to further penetrate international markets, like Brazil, Japan, Germany, and India. Airbnb is also noticing that long-term stays, those that are for 28 days or more, are popular.

There are plans to become a comprehensive travel platform. Earlier this year, Airbnb introduced Services (like a personal chef, massage, or photographer) and Experiences (like a wine tasting, scenic hike, or yoga session), revamping its app in the process. “It’s still early, but we believe that services and experiences can become sizable businesses for Airbnb,” said co-founder and CEO Brian Chesky on the Q2 2025 earnings call.

These initiatives will require capital investments, to the tune of $200 million just this year, so investors shouldn’t be surprised if margins decline. However, they certainly expand the company’s total addressable market, even if they require patience from investors. Airbnb is putting itself in a position to drive more revenue from its guests over time.

Airbnb’s economic moat

Airbnb is putting up solid financial results, and investors should have confidence that this type of performance will continue into the future. That’s because the business has developed an economic moat that supports its staying power in the travel industry.

CFO Ellie Mertz said on the Q2 2025 earnings call that 90% of site traffic comes from “direct and unpaid” sources. In other words, Airbnb has built a powerful brand that people might immediately think of when they consider taking a trip. The company’s name is also regularly used interchangeably as a verb, highlighting the mindshare it has commanded among consumers.

Airbnb also benefits from a network effect. It’s a classic flywheel. More hosts with more listings provide travelers with more options, increasing the value the platform provides. And with more travelers searching on Airbnb for accommodations, hosts benefit by being able to target a larger audience. Even better, the network effect is global, not restricted to a specific city in the way ride-hailing services might be.

Time to buy the dip

Airbnb has underperformed the market in the past year, with shares up less than 3%. The market is rightfully worried about key risks, like the persistent threat of changing regulations in certain markets, with governments focused on supporting housing supply and cost of living within their borders. A possible recessionary scenario will also put a damper on growth, at least temporarily. These factors shouldn’t be ignored, but Airbnb deserves the benefit of the doubt.

Shares trade at a forward price-to-earnings ratio of 25. Given the company’s growth potential, high profits, and durable competitive strengths, Airbnb is worthy of a $10,000 investment right now.

When Home Depot (HD -0.68%) talks, the stock market listens. The blue chip Dow Jones Industrial Average component is a bellwether for consumer spending and the housing market.

In recent years, Home Depot’s results have disappointed. Earnings have been falling, and fiscal 2025 same-store sales are expected to grow by just 1%. But that sluggish growth could quickly fade into the rearview mirror.

In an effort to maximize employment and reduce inflation to 2% over the long run, Jerome Powell and the Federal Reserve are cutting interest rates by 0.25% — citing a weak labor market and “somewhat elevated” inflation. More cuts could be in the cards to boost consumer spending and avoid a recession. Although artificial intelligence (AI) has been driving the stock market to record highs, U.S. gross domestic product growth is projected to be just 1.6% in 2025 and under 2% every year through 2028 — illustrating weakness in the broader economy.

Here’s why an interest rate cut is great news for Home Depot, and whether the dividend stock is a buy now.

Image source: Getty Images.

A much-needed jolt

Higher interest rates have a significant impact on consumer spending, particularly on discretionary goods, services, and travel. When money is more readily available for borrowing, consumers may opt for a car loan or a mortgage because the monthly payment is lower. Or they may finance a home improvement project. In this vein, lower interest rates can lead to an increase in renovation projects, which benefits Home Depot.

There’s a big difference between going to Home Depot for a few spare parts to fix an appliance and redoing an entire room or section of a house. And Home Depot’s poor results suggest that a lot of customers are putting off big projects until conditions improve.

On its August earnings call (second quarter 2025), Home Depot said that lower interest rates would help boost demand and provide relief for mortgages. Home Depot CEO Ted Decker said the following:

When we talk generally though to our customers, each of our sets of consumers and pros, the number one reason for deferring the large project is general economic uncertainty, that is larger than prices of projects, of labor availability, all the various things we’ve talked about in the past. By a wide margin, economic uncertainty is number one.

The prospect of good-paying jobs and lower interest rates could certainly give Home Depot’s residential business a lift. However, the company has also been investing heavily in its professional and commercial contractor business. In June 2024, Home Depot completed its $18.25 billion acquisition of SRS Distribution, expanding its home improvement and construction business. SRS specializes in selling roofing products to contractors — which provides cross-selling opportunities with Home Depot’s retail outlets.

Home Depot made the SRS acquisition in the middle of an industrywide downturn — a sign that it is investing for the long term. SRS essentially makes Home Depot even more of a coiled spring for the next cyclical expansion period, potentially amplifying the benefits the company will feel from lower interest rates.

Taking a home improvement rebound for granted

The market is forward-looking and cares more about where businesses are headed than where they have been. And unfortunately for investors considering Home Depot, the stock is already priced as if interest rates will continue to fall.

As you can see in the following chart, Home Depot’s earnings were on the rise leading up to the pandemic, then entered a new phase during the pandemic as consumers accelerated spending on do-it-yourself home improvement projects, driven by low interest rates.

HD data by YCharts

But Home Depot’s earnings have been ticking down in recent years even though its stock price is around an all-time high — suggesting that investors are looking past the company’s near-term struggles in anticipation of a recovery.

In February, Home Depot raised its dividend by the lowest amount in 15 years and issued a dire warning to investors about a prolonged downturn in the home improvement industry. So it could take several interest rate cuts to really move the needle on consumer spending at Home Depot.

In the meantime, the stock is on the expensive side, with a price-to-earnings ratio of 28.2 and a forward P/E of 27.7 compared to a 10-year median P/E of just 23. Meaning that Home Depot’s earnings would need to grow 20% faster than its stock price just for the valuation to come back down to historical averages over the last decade.

A quality company at a premium valuation

Home Depot is an excellent company, but it is already priced for a recovery. So the stock isn’t a screaming buy now.

The good news is that Home Depot could still be a good buy for long-term investors who believe in the company’s potential for store expansions, same-store sales growth, and that the SRS acquisition will pay off. If Home Depot enters a multiyear period of double-digit earnings growth, its valuation could quickly come down, making the stock more attractive.

Home Depot could also reaccelerate its dividend growth rate, building on its 16-year track record of consecutive annual dividend raises. Home Depot yields 2.2% — which is better than the 1.2% yield of the S&P 500.

All told, Home Depot isn’t a no-brainer buy now because the stock price has run up ahead of anticipated rate cuts. But it’s still a decent buy for long-term investors.