Foreign Buying of Japan Stocks Hits Longest Spell Since 2013
The persistent buying — despite lingering concerns over US tariffs and still sluggish domestic consumption — likely points to diversification away from US equities, as investors pare positions after Wall Street's strong showing.
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26 minutes ago
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3 Soaring Stocks I'd Buy Now With No Hesitation
Netflix, IBM, and Brinker International have all posted impressive one-year gains. Premium valuations haven't stopped these stocks from delivering strong results. These successful companies with soaring stocks show that buying at a high can still pay off if the business is thriving. 10 stocks we like better than Netflix › Some stocks don't catch my eye unless they're really affordable. Starting a new position at a low price helps me in several ways: I'm more likely to take a calculated chance on a risky idea. The stock will be poised for greater long-term returns if the investment thesis plays out in my favor. This is also a classic way to follow in the footsteps of investing legends like Warren Buffett. "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price," Buffett said. But there are a handful of stocks that would be fantastic buys even at a soaring valuation. These are the growth stories I understand and trust so well that I don't mind a premium price tag. You never know where any stock will go in the short term, and maybe you'll see a dip or correction along the way -- but these stocks are primed for long-term success and might never be this affordable again. Everything is relative on Wall Street. That's why I'd gladly buy Netflix (NASDAQ: NFLX), IBM (NYSE: IBM), and Brinker International (NYSE: EAT) shares right now, even though the stocks are skyrocketing. Let me explain so you can determine whether these elevated stocks are right for your portfolio, too. Media-streaming veteran Netflix had a dry spell in recent years, but it's a different story in 2025. New ideas such as ad-based subscription plans and a crackdown on account-sharing shenanigans are making a difference, and the long-term growth opportunity is as large as ever. Netflix shares have gained 92% over the last year as I'm writing this on July 3. The stock trades at 61 times earnings and 74 times free cash flows -- lofty territory even for a proven high-growth performer. At the same time, Netflix keeps proving the bears wrong, time and time again. Let's say you invested $1,000 in Netflix stock at the start of 2016. It traded at 408 times earnings back then, and free cash flows were negative. That must have been a bad idea, right? Well, that hypothetical bet on Netflix's long-term strategy would be worth $11,350 today. I can't promise that Netflix will outperform expectations by that much again. Past performance doesn't necessarily reflect future results, you know. But I have been able to tell similar stories many times over the last two decades, and Netflix isn't done growing yet. Big Blue started focusing on cloud computing, consulting services, and artificial intelligence (AI) when Ginni Rometty took the helm, way back in 2012. (Arvind Krishna is now CEO.) It took years of frustration, but IBM's AI and cloud focus is finally paying off. Leaving consumer-grade AI services to other providers, IBM offers business-class tools with robust data security and audit-ready information flows. As a result, IBM's generative AI orders soared from $1 billion a year ago to $6 billion in April's Q1 report. And the stock isn't even expensive, changing hands at a modest 21 times free cash flow. That's not too shabby after posting market-busting returns over the last year. Finally, restaurant chain Brinker is executing a successful turnaround plan. The company behind Chili's and Maggiano's Little Italy struggled to rebuild its customer traffic after the COVID-19 pandemic, falling behind top performers such as Chipotle Mexican Grill and Darden Restaurants in terms of revenue growth. That downtrend took a sharp turn for the better under new CEO Kevin Hochman, who took the reins in 2022. Under Hochman, Chili's simplified its sprawling menu and refocused its marketing efforts. Other restaurants and the industry press now see Brinker as a shining example of how to fix a broken brand. So Brinker's stock is soaring too, but from a much lower starting point. Hence, the shares are trading at an affordable valuation of 21 times free cash flow and 25 times earnings, even after more than doubling in one year. I don't own this stock yet, but that might change soon. It's so refreshing to see a common-sense business plan striking exactly the right chord with consumers. Before you buy stock in Netflix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Netflix 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 $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Anders Bylund has positions in International Business Machines and Netflix. The Motley Fool has positions in and recommends Chipotle Mexican Grill, International Business Machines, and Netflix. The Motley Fool recommends the following options: short June 2025 $55 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy. 3 Soaring Stocks I'd Buy Now With No Hesitation was originally published by The Motley Fool
Yahoo
43 minutes ago
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We've Witnessed U.S. Money Supply Make History on Both Ends of the Spectrum -- Including a First Since the Great Depression -- and It Foreshadows a Big-Time Move in Stocks
Heightened volatility often encourages investors to seek out events and data points that strongly correlate with moves higher or lower in the Dow, S&P 500, and Nasdaq Composite throughout history. Changes to U.S. money supply that haven't been observed in 90 to 155 years point to wild stock market vacillations persisting. Thankfully, history is a pendulum that swings disproportionately in both directions and has a knack for rewarding patience. 10 stocks we like better than S&P 500 Index › For more than a century, Wall Street has been a stomping ground for wealth creation. No other asset class has come particularly close to matching the annualized return of stocks spanning 100 years. However, this doesn't mean stocks move higher in a straight line. Volatility is the price investors pay for admission to the world's greatest wealth creator -- and 2025 has been chock-full of volatility. During a one-week stretch in April, the ageless Dow Jones Industrial Average (DJINDICES: ^DJI) and broad-based S&P 500 (SNPINDEX: ^GSPC) dipped into correction territory, while the Nasdaq Composite (NASDAQINDEX: ^IXIC) entered a bear market for the first time in three years. This was followed days later by all three indexes recording their largest single-day point gains since their respective inceptions. When the market vacillates wildly, it's common for investors to seek out clues that might tell them which direction stocks will head next. These clues come in the form of events and data points that have previously correlated with sizable moves higher or lower in one or more of Wall Street's major stock indexes. Though no event or data point can guarantee what's to come, some of these tools have remarkably strong track records of forecasting future returns. One metric, which has made history on both ends of the spectrum over the last couple of years, is currently foreshadowing a big-time move in stocks. While there are a number of telling metrics, events, and indicators, such as the stock market entering 2025 at one of its priciest valuations dating back 154 years, perhaps the most eyebrow-raising of them all is U.S. money supply. Among the numerous measures of money supply, M1 and M2 tend to garner the most attention. The former measures all cash and coins in circulation, as well as demand deposits in a checking account. In other words, it's capital that can be spent immediately. Meanwhile, M2 takes everything in M1 and adds in savings accounts, money market accounts, and certificates of deposit (CDs) below $100,000. This is still money that can be spent, but it requires more effort to do so. It's this money supply measure that's been all over the map and made history at opposite ends of the spectrum this decade. Normally, M2 money supply moves up and to the right. This is to say that, with very few exceptions, money supply has been steadily increasing over time. However, these rare exceptions have been doozies. The post you see above on X (formerly Twitter) comes from Reventure App CEO Nick Gerli. Even though it's more than two years old and the right side of the chart is now outdated -- I'll touch on this in greater detail in a moment -- it demonstrates one of the more intriguing correlations we've witnessed over the last 155 years. Prior to this decade, there had only been four instances where M2 money supply declined by at least 2% on a year-over-year basis: 1878, 1893, 1921, and 1931-1933. All four of these periods respectively correlate with economic depressions for the U.S. economy, as well as double-digit unemployment rates. Between April 2022 and October 2023, U.S. M2 money supply contracted by more than $1 trillion, equating to a 4.76% peak-to-trough decline. It represented the first time since the Great Depression that M2 fell by at least 2% year over year, as well as more than 2% on a peak-to-trough basis. Admittedly, things are quite different today than they were during the prior four occurrences where M2 declined by more than 2% on a year-over-year basis. For instance, the Federal Reserve didn't exist in 1878 and 1893. Further, monetary policy and fiscal policy know-how are far greater today than they were in the 1920s or during the Great Depression. But we've also witnessed money supply make history in the other direction. For starters, the latest update from the Board of Governors of the Federal Reserve System shows M2 hit an all-time high of $21.942 trillion in May 2025. It's erased the 4.76% peak-to-trough decline from April 2022 to October 2023 in its entirety (and then some!). Steadily climbing money supply is typically something that's observed when the U.S. economy is healthy and expanding, which is often good news for the stock market. Furthermore, M2 expanded by more than 26% on a year-over-year basis during the height of the COVID-19 pandemic due to fiscal stimulus. When back-tested to 1870, this is, by far, the quickest expansion of money supply in America's history. Thus, the outsized drop in M2 from April 2022 to October 2023 might have been nothing more than a benign mean reversion following a never-before-seen jump in money supply. Regardless of which historical M2 money supply moment shines brightest, all point to heightened volatility for the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite. Though wild gyrations in Wall Street's major stock indexes can, at times, be scary or tug on the heartstrings of investors, history has demonstrated a knack for rewarding those who exercise patience and perspective, and have an optimistic view on the U.S. economy and stock market. A perfect example of history rewarding optimists can be seen when examining U.S. economic cycles. On one hand, recessions are perfectly normal, healthy, and inevitable. No amount of fiscal or monetary policy maneuvering can stop economic slowdowns or downturns from taking shape sometimes. But the one prevailing theme of recessions is their rapid resolution. The average U.S. recession since the end of World War II has resolved in 10 months, and none have lasted longer than 18 months. In comparison, the average period of economic growth over the last eight decades clocks in at around five years and includes two periods of expansion that surpassed the 10-year mark. With corporate America enjoying far more time in the sun than under the gray clouds of a recession, it's no surprise that stocks have performed so well over extended periods. This leads to the next point: the disproportionate nature of bull and bear market cycles on Wall Street. In June 2023, shortly after the S&P 500 had entered its current bull market, Bespoke Investment Group published a data set on X (formerly Twitter) comparing the calendar-day length of every S&P 500 bull and bear market dating back to the start of the Great Depression. The 27 S&P 500 bear markets that occurred over the nearly 94 years examined stuck around for an average of just 286 calendar days, with the longest bear market enduring only 630 calendar days. Meanwhile, the typical S&P 500 bull market from September 1929 through June 2023 lasted 1,011 calendar days. Also, if the current bull market is extrapolated to present day, more than half of the 27 S&P 500 bull markets (14 out of 27) have stuck around longer than the lengthiest bear market. Regardless of the near-term volatility that (presumably) awaits Wall Street, history has shown time and again that investors who exercise patience and allow time to work its magic are handsomely rewarded. Before you buy stock in S&P 500 Index, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and S&P 500 Index wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Sean Williams 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. We've Witnessed U.S. Money Supply Make History on Both Ends of the Spectrum -- Including a First Since the Great Depression -- and It Foreshadows a Big-Time Move in Stocks was originally published by The Motley Fool Sign in to access your portfolio
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43 minutes ago
- Yahoo
CareTrust REIT (CTRE) is an Incredible Growth Stock: 3 Reasons Why
Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock. By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss. However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects. CareTrust REIT (CTRE) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank. Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better. While there are numerous reasons why the stock of this health care real estate investment trust is a great growth pick right now, we have highlighted three of the most important factors below: Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration. While the historical EPS growth rate for CareTrust REIT is 1.1%, investors should actually focus on the projected growth. The company's EPS is expected to grow 20.9% this year, crushing the industry average, which calls for EPS growth of 0.8%. Cash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds. Right now, year-over-year cash flow growth for CareTrust REIT is 67.6%, which is higher than many of its peers. In fact, the rate compares to the industry average of 2.7%. While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 12.5% over the past 3-5 years versus the industry average of 3.1%. Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements. There have been upward revisions in current-year earnings estimates for CareTrust REIT. The Zacks Consensus Estimate for the current year has surged 0.5% over the past month. While the overall earnings estimate revisions have made CareTrust REIT a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. This combination indicates that CareTrust REIT is a potential outperformer and a solid choice for growth investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CareTrust REIT, Inc. (CTRE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
