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Yahoo
13 hours ago
- Business
- Yahoo
VOO Is a Great Choice for Most, but I Like RSP ETF Better
The Vanguard S&P 500 ETF tracks the performance of the most popular stock market benchmark. It has minimal expenses and has historically been a great way to build wealth over long periods. The S&P 500 has become a little top-heavy, so I prefer an equal-weight approach. 10 stocks we like better than Invesco S&P 500 Equal Weight ETF › The Vanguard S&P 500 ETF (NYSEMKT: VOO), also known by its ticker symbol VOO, is one of the most popular funds in the world. Including Vanguard's mutual fund version of the same index fund, investors have $1.4 trillion in assets invested in it. As the name suggests, this is an index fund that tracks the benchmark S&P 500 (SNPINDEX: ^GSPC) over time. In other words, if the S&P 500 produces a 20% total return for investors over the next two years, this ETF should do the same, net of fees. Speaking of fees, as a Vanguard ETF, the investment expenses of this index fund are extremely low. It has an expense ratio of just 0.03%, which means that for every $1,000 in assets, your annual investment cost will be just $0.30, which will be reflected in the fund's performance over time. The Vanguard S&P 500 ETF is generally thought of as an excellent "core" investment for a stock portfolio. And in full disclosure, I own shares of it in my own retirement portfolio. But if I were to put new money to work today, I may choose to go in a slightly different direction and buy shares of a similar ETF that has one big difference. To be clear, the Vanguard S&P 500 ETF is a great index fund. If you're simply looking for a low-cost way to match the stock market's performance over time, it could be an excellent addition to your portfolio. My biggest issue with investing in the S&P 500 is that it has become rather top-heavy in recent years. With the emergence of trillion-dollar tech companies, the S&P 500 is weighted so that well over one-third of its performance is derived from the 10 largest components. In a nutshell, an S&P 500 index fund has increasingly become a bet on the largest few dozen U.S. companies, and has become less of a broad, diversified way of getting stock market exposure. If I were putting new money to work today, I would take a closer look at the Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP). It invests in the same 500 companies you'll find in the portfolio of the Vanguard S&P 500 ETF, but with one key difference. Instead of allocating assets based on the size of each component, it invests an equal amount in all 500 companies. Of course, there are day-to-day fluctuations, but there's about 0.2% of the fund's assets invested at any given time. This means that smaller components of the S&P 500 like Dollar General carry the same weight as megacaps like Microsoft. The equal-weight fund does have a somewhat higher 0.20% expense ratio, but this is still on the lower end for a unique ETF. As mentioned, there's absolutely nothing wrong with a traditional S&P 500 index fund. But if you're not too much of a fan of having your investment's performance largely dependent on just a few companies, this equal-weight counterpart could be worth a closer look. Before you buy stock in Invesco S&P 500 Equal Weight ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Invesco S&P 500 Equal Weight 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 $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Matt Frankel has positions in Vanguard S&P 500 ETF. The Motley Fool has positions in and recommends Microsoft and Vanguard S&P 500 ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. VOO Is a Great Choice for Most, but I Like RSP ETF Better was originally published by The Motley Fool
Yahoo
14 hours ago
- Business
- Yahoo
2 Glorious Growth Stocks Down 36% and 57% You'll Wish You'd Bought on the Dip, According to Wall Street
The S&P 500 is hovering near an all-time high, but some stocks in the software space still haven't reclaimed their best levels from 2021. Datadog and Workiva are two of those stocks, but their strong businesses could fuel a recovery over the long term. Analysts have reached a very bullish consensus on both Datadog and Workiva. 10 stocks we like better than Datadog › The S&P 500 (SNPINDEX: ^GSPC) has almost fully recovered from its recent 19% drop, which was triggered by President Donald Trump's "Liberation Day" tariffs in April. But not every stock is following along -- in fact, many enterprise software stocks still haven't reclaimed their record highs from 2021. Datadog (NASDAQ: DDOG) and Workiva (NYSE: WK) are two of those stocks. They were incredibly overvalued when they peaked a few years ago, and they are still down by 36% and 57%, respectively, from those lofty levels. But they're starting to look quite attractive. The majority of the analysts tracked by The Wall Street Journal who cover Datadog stock and Workiva stock have assigned them the highest possible buy rating. Here's why their optimism might be justified. Datadog developed an observability platform that monitors cloud infrastructure around the clock, alerting businesses to technical issues and outages which they might not have discovered until customers were affected or sales were lost (at which point it's too late). Over 30,500 businesses are using Datadog, and they operate in many different industries, including gaming, manufacturing, financial services, retail, and more. Last year, Datadog expanded into artificial intelligence (AI) observability with a new tool that helps developers troubleshoot technical issues, track costs, and assess the outputs of their large language models (LLMs). During the recent first quarter of 2025 (ended March 31), the company said that the number of customers using this new tool more than doubled compared to just six months earlier, which suggests it's gaining serious traction. Datadog also offers other AI products, like a monitoring solution for businesses using ready-made LLMs from OpenAI, and an AI-powered virtual assistant for its flagship observability platform. Overall, the company said that 4,000 customers were using at least one of its AI products in Q1, which also doubled year over year. On the back of a strong first-quarter result, Datadog raised the high end of its full-year revenue forecast for 2025 to $3.235 billion, up $40 million from management's original guidance. It would represent growth of 21% from the company's 2024 result, but it would still be a drop in the bucket compared to the $53 billion addressable opportunity in the observability space alone. Datadog was trading at a price-to-sales (P/S) ratio of around 70 when it peaked in 2021. But the 36% decline in the stock since then, in combination with the company's revenue growth, has pushed its P/S ratio down to 15.5. It's still elevated compared to many other enterprise software stocks, but it's much closer to the cheapest level since Datadog went public than it is to its lofty 2021 peak. The Wall Street Journal tracks 46 analysts who cover Datadog stock, and 31 have assigned it the highest possible buy rating. Seven others are in the overweight (bullish) camp, and the remaining eight recommend holding. No analysts recommend selling. Their average price target of $140.72 implies a potential upside of 15% over the next 12 to 18 months, but investors who hold the stock for the long term could do far better as Datadog's AI products gather momentum. Modern businesses often use dozens, or even hundreds, of digital applications to run their day-to-day operations. This is a nightmare for managers who are tasked with tracking workflows across all that software, but Workiva built an elegant solution to ease the burden. Workiva's platform integrates with most storage applications, systems of record, and productivity software, allowing managers to pull data from all of them onto one dashboard. This saves them from having to open hundreds of individual applications, and it also reduces human error, which is common when copying mountains of data manually. Once data is loaded into Workiva, managers can select from several different templates so they can rapidly compile regulatory filings or reports for senior executives. Workiva is also becoming a key player in the ESG (environmental, social, and governance) reporting space, offering a product that allows businesses to track their effect on all key stakeholders, not just those with a financial interest. With Workiva's ESG platform, organizations can create frameworks, track data, and compile reports on everything from their carbon emissions to the diversity of their workplace. Workiva had 6,385 total customers at the end of Q1 2025, which was a 5% increase from the year-ago period, but its highest-spending cohorts are growing significantly faster. For example, the number of customers with annual contract values of at least $100,000 grew by 23%, and those with annual contract values of at least $500,000 soared by 32%. In other words, larger organizations with more complex operations seem to be flocking to Workiva. The company expects to generate up to $868 million in total revenue in 2025, which would be a 17.5% increase compared to 2024. That would be a modest acceleration from the 17.3% growth it delivered last year. As is the case with Datadog, Workiva's P/S ratio is currently down significantly from its 2021 peak. It's at 4.8 as of this writing, which is near the cheapest level since the stock went public. The Wall Street Journal tracks 13 analysts who cover Workiva stock, and 11 of them have given it a buy rating. The remaining two are in the overweight camp, with none recommending to hold, let alone sell. Simply put, the analysts have reached a very bullish consensus. Their average price target of $97.64 implies an eye-popping potential upside of 44% over the next 12 to 18 months. But the stock could do even better over the long term, since Workiva has barely scratched the surface of its $35 billion addressable market. Before you buy stock in Datadog, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Datadog 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 $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor's total average return is 992% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Datadog and Workiva. The Motley Fool has a disclosure policy. 2 Glorious Growth Stocks Down 36% and 57% You'll Wish You'd Bought on the Dip, According to Wall Street 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
4 days ago
- Business
- Yahoo
Why Digital Turbine Stock Is Skyrocketing Today
Digital Turbine reported its fiscal Q4 results yesterday, and the stock is rocketing higher today thanks to the report. The adtech specialist beat Wall Street's sales and earnings targets for last quarter. Digital Turbine also gave encouraging guidance for the current fiscal year. 10 stocks we like better than Digital Turbine › Digital Turbine (NASDAQ: APPS) stock is soaring higher in Tuesday's trading. The advertising technology company's share price was up 49.7% as of 11 a.m. ET amid the backdrop of a 0.3% decline for the S&P 500 (SNPINDEX: ^GSPC). After yesterday's market close, Digital Turbine published results for the fourth quarter of its last fiscal year, which ended March 31. In addition to posting quarterly sales and earnings that beat the market's expectations, the company also issued strong forward performance guidance. Digital Turbine recorded non-GAAP (generally accepted accounting principles) adjusted earnings per share of $0.10 on sales of $119.15 million in fiscal Q4. The performance crashed the average Wall Street analyst estimate, which had called for adjusted earnings per share of $0.04 on sales of $116.64 million. The business's revenue increased roughly 6% year over year in the period. While the company's per-share profit declined from $0.12 in the prior-year quarter, the performance was still far better than investors had anticipated. Along with better-than-expected number's for last year's fiscal Q4, Digital Turbine also issued encouraging targets for its current fiscal year. The company expects sales for the period to come in between $515 million and $525 million. At the midpoint of the guidance range, that would mean delivering annual growth of approximately 6% over the $490.5 million in sales posted last fiscal year. For comparison, the average estimate had called for the business to guide for sales of $519.5 million for the year. Digital Turbine's guidance for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also beat Wall Street's expectations, with management's target for adjusted EBITDA between $85 million and $90 million coming in significantly better than the average estimate's call for adjusted EBITDA of $85.2 million. With better-than-anticipated performance and outlooks for sales and profitability, Digital Turbine is looking significantly stronger coming out of its latest earnings report. Before you buy stock in Digital Turbine, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Digital Turbine 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 $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!* Now, it's worth noting Stock Advisor's total average return is 791% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Keith Noonan 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 Digital Turbine Stock Is Skyrocketing Today was originally published by The Motley Fool Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
Yahoo
4 days ago
- Business
- Yahoo
Should You Buy Enterprise Products Partners While It's Below $33?
Enterprise Products Partners is a large North American midstream operator. The master limited partnership's unit price has been on the rise for several years. Enterprise's distribution has been heading steadily higher for decades. 10 stocks we like better than Enterprise Products Partners › Enterprise Products Partners (NYSE: EPD) is offering investors an attractive 6.7% distribution yield. That compares to the tiny 1.2% yield for the S&P 500 (SNPINDEX: ^GSPC) and a 3.5% or so average yield in the broader energy sector. The big draw here is, obviously, the yield. But is that enough to make Enterprise a buy while it's trading below $33 a unit? Here's what you need to know. Enterprise Products Partners is a fairly boring business, which is a bit unusual in the energy sector. Upstream companies, which produce oil and natural gas, have volatile earnings because oil and natural gas prices dictate their top- and bottom-line results. Downstream companies, which make chemicals and refined products like gasoline, have volatile earnings because volatile oil and natural gas are key inputs, and the products they make are often volatile commodities, too. But midstream businesses like Enterprise are just toll takers. Midstream operators own energy infrastructure like pipelines, storage, processing, and transportation assets. They charge upstream and downstream companies fees for the use of these assets. Demand for energy is far more important to the top and bottom lines of a midstream business like Enterprise than the price of the commodities being moved. Energy is so vital to the global economy that demand tends to remain robust throughout the energy cycle. And, thus, Enterprise's cash flows are fairly consistent over time. That is how it supports such a large distribution payment, and how Enterprise has managed to increase that distribution every single year for 26 consecutive years. If you are looking for an ultra-high yield that is actually sustainable, Enterprise Products Partners should be on your short list. Enterprise has been far more attractive in the past, noting that its yield was over 10% during the early days of the coronavirus pandemic and associated bear market. That said, the master limited partnership's (MLP's) units have rallied strongly since that point. With the yield at around 6.7%, however, it is still an attractive yield option. The key is the regular distribution increases. The last time Enterprise's unit price was in the $33 range, the yield was closer to 4%. Price alone isn't the key determinant here -- it is the combination of price and yield. And now that the distribution has had some time to grow, the price looks more attractive. But there's more to this story than just price and yield. Enterprise has an investment-grade-rated balance sheet, so it is on a sound financial footing. In 2024, the distribution was covered 1.7x by the MLP's distributable cash flow. It is also one of the largest players in the North American midstream sector. Put all of that together, and Enterprise is a very reliable income investment. The future is likely to look a lot like the past for Enterprise Products Partners. That basically means slow and steady growth of the business and the distribution. Right now, it has around $7.6 billion worth of capital investment projects in the works. That, plus regular price increases and the occasional acquisition, should keep the distribution growing for years to come. And that, in turn, should support further unit price gains. All in, Enterprise is still a solid income option at $33 and, perhaps, even a little higher. Before you buy stock in Enterprise Products Partners, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Enterprise Products Partners 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 $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool recommends Enterprise Products Partners. The Motley Fool has a disclosure policy. Should You Buy Enterprise Products Partners While It's Below $33? 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
4 days ago
- Business
- Yahoo
Why Lockheed Martin Fell on a Good Day for the Markets
Iran indicated to mediators it's looking to end hostilities with Israel this morning. Investors took this as a sign the conflict, which started last Friday, won't escalate too much. Defense, oil, and gold stocks gave up some of last week's gains. 10 stocks we like better than Lockheed Martin › Shares of U.S. defense contractor Lockheed Martin (NYSE: LMT) fell 4% on Monday, even as the S&P 500 (SNPINDEX: ^GSPC) was up a strong 0.94% on the day. Lockheed had rallied on Friday when war between Israel and Iran broke out. So, some might be surprised the stock gave back those gains today, given the exchange of bombs and hypersonic missiles over the weekend between the two nations. However, it appears investors believe the war will be contained or over very quickly, thus leading to a "relief" rally in most stocks but a give-back in defense contractors today. Most stocks fell late last week when news of the Israel-Iran war broke out, with defense contractors, oil stocks, and gold stocks rallying over fears of global instability and supply shocks. Israel is a big buyer of U.S. defense contractor equipment, especially Lockheed's F-35 fighter jet and others, and Iran is a major oil and gas producer. Heading into the weekend, some feared Iran would close the Strait of Hormuz, which sits between Iran and Oman and the United Arab Emirates, through which about 20% of the world's oil passes. However, by Monday morning, The Wall Street Journal reported that Iran was "urgently" seeking to end the hostilities and return to the negotiating table over its nuclear program. Last week, the UN's nuclear watchdog, the International Atomic Energy Agency (IAEA), sanctioned Iran for the first time in 20 years, declaring that Iran wasn't complying with its obligations regarding its nuclear program. That in turn led Israel to strike Iran's nuclear sites, as well as high-ranking members of Iran's Revolutionary Guard over the weekend. And it appears the strikes were very successful in degrading Iran's capabilities, given that Iran is now seeking a ceasefire. Defense contractors and oil and gold stocks can often function as portfolio insurance policies against wars and supply shocks, which can lead to potential worst-case scenarios for the global economy. While these stocks are down today, investors should keep in mind that the conflict isn't resolved, and could re-escalate. Besides, one would almost hope these stocks underperform, as no one ever "hopes" to have to use an insurance policy, because it means something bad has happened. However, unlike buying insurance, most of these types of stocks pay dividends to investors during peacetime, too. Before you buy stock in Lockheed Martin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lockheed Martin 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 $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy. Why Lockheed Martin Fell on a Good Day for the Markets 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
