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Yahoo
a day ago
- Automotive
- Yahoo
Why Advance Auto Parts Stock Trounced the Market on Thursday
The company benefited from a pre-market open price target raise. That didn't exactly make the analyst behind it an Advance bull, however. 10 stocks we like better than Advance Auto Parts › Investors were assertively stepping on the gas pedal with Advance Auto Parts (NYSE: AAP) on Thursday. The stock closed more than 5% higher as of the 1 p.m. ET early market close for the Fourth of July holiday, a figure that was well higher than the S&P 500's (SNPINDEX: ^GSPC) 0.8% increase. An analyst price target raise had much to do with Advance's advance. Well before market open that day, Mizuho prognosticator David Bellinger upped his fair-value assessment of Advance's stock. His new level is $44 per share, up notably from the preceding $38. Despite the fairly generous bump, Bellinger maintained his neutral recommendation on the auto parts retailer. The analyst's modification was due largely to the company's first-quarter performance, according to reports. On the back of Advance delivering headline fundamentals that were significantly better than the consensus pundit estimates, Bellinger raised his own for full-year 2025 and 2026. For the former period, he now feels that the company will earn $2.34 per share on the bottom line, where previously he had been modeling $2.18. As for 2026, he upped his profitability estimate to $4.00 from $3.75. Bellinger also devoted some words in his new Advance note to intimating why he left his neutral recommendation unchanged. He thinks that the company will continue to have challenges implementing its current turnaround plan. Many retailers, in his estimation, are facing similar difficulties. While there was something to admire in Advance's first-quarter earnings beat, I'd agree with the Mizuho analyst that retail is a tough game these days. I also don't believe we'll see sudden spikes in car sales, a dynamic that tends to inject some turbo into the performance of parts retailers like Advance. Therefore, I wouldn't jump in to this particular ride just now. Before you buy stock in Advance Auto Parts, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Advance Auto Parts 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 $692,914!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $963,866!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 179% 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 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Advance Auto Parts Stock Trounced the Market on Thursday was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Why Summit Therapeutics Stock Soared 8% Higher Today
A large, well-capitalized peer is apparently interested in a partnership deal with the company. This could be worth up to $15 billion in total, according to a media report. 10 stocks we like better than Summit Therapeutics › One day before the July Fourth holiday, the stock of clinical-stage biotech Summit Therapeutics (NASDAQ: SMMT) exploded like a powerful fireworks display. Shares of the cancer-focused company leaped by 8%, on a media report that a well-known peer was interested in a licensing deal. That rise bettered the S&P 500's (SNPINDEX: ^GSPC) 0.8% increase by several orders of magnitude. The media outlet in question was Bloomberg, which that morning published an article asserting that AstraZeneca is in talks with Summit about a partnership between the two companies. According to unnamed "people familiar with the matter," the piece stated that such a partnership would center on the investigational lung cancer treatment ivonescimab. The drug, which Summit licenses from Chinese peer Akeso, has recently attracted much attention from the healthcare community and investors alike. This was due to its impressive performance in a late-stage clinical trial. Bloomberg's sources said that the terms of a potential deal were still being hashed out. They might include an up-front payment of several billion dollars, and several milestone payments over time (this kind of structure is common in pharmaceutical industry licensing/partnership arrangements). All told, a deal between the two companies could pay out as much as $15 billion. Both Summit and AstraZeneca declined comment on the Bloomberg article. When a drug development program attracts $15 billion worth of interest from a major industry player with deep pockets, it's almost indisputably a win. If the Bloomberg report is accurate and a deal is indeed in the works (and is ultimately agreed upon), it would open a great, powerful, and quick road to success for Summit. It's little wonder investors were so happy about the possibility. Before you buy stock in Summit Therapeutics, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Summit Therapeutics 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 $692,914!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $963,866!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 179% 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 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Summit Therapeutics. The Motley Fool recommends AstraZeneca Plc. The Motley Fool has a disclosure policy. Why Summit Therapeutics Stock Soared 8% Higher Today was originally published by The Motley Fool
Yahoo
2 days ago
- Business
- Yahoo
This Dan Ives-Backed ETF Could Be the Smartest Way to Play the AI Revolution
The Dan Ives AI Revolution ETF limits the influence of mega-cap tech stocks, such as Nvidia and Microsoft. It still explores the exciting AI opportunity with 30 hand-picked stocks in that market. This nearly equal-weighted ETF could appeal to investors seeking more diversification in the AI sector. 10 stocks we like better than Wedbush Series Trust - Dan Ives Wedbush Ai Revolution ETF › The artificial intelligence (AI) revolution is shaking Wall Street to its very foundations. The "Magnificent Seven" group of market-defining AI stocks all rank among the 12 highest-valued securities on the market today. Together, this group accounts for 32.3% of the S&P 500 (SNPINDEX: ^GSPC) index's total score, and 61.9% of the tech-heavy Nasdaq 100 index. These are the market darlings of this era, all trading at lofty valuations and perhaps headed toward a painful price correction someday soon. What if you're not comfortable giving so much weight to a risky bunch of recent market beaters? Remember, past performance does not guarantee that future returns will be similar. Well-known analyst Dan Ives just launched a hand-vetted fund that provides targeted investments in the AI boom, but with lower influence from the handful of top-ranked giants. Let's see what's different about this exchange-traded fund (ETF), so you can decide whether it belongs in your portfolio. The Dan Ives Wedbush AI Revolution ETF (NYSEMKT: IVES) is technically an index fund, but the underlying index is a custom list that simply reflects the stock pick in Ives' top-30 AI stock-picking reports. It was launched just days before the related ETF. So the index formulation is just a technicality. The Wedbush analyst with a long research history and a penchant for colorful suits is really making these stock picks in a very direct sense. At the same time, the index structure adds some academic rigidity to the ETF. New additions to the index (and ETF) are given a cap-based weight between 1% and 4% of the total portfolio, no exceptions. The index is rebalanced four times a year, on the third Fridays of March, June, September, and December. The hard caps of at least 1% but no more than 4% are reapplied at each of these events, making sure that no single stock ever represents a huge slice of the Dan Ives ETF. The annual expense ratio is 0.75%, far above the leading S&P 500 index funds and comparable to many handpicked stock collections. On June 30, just 27 calendar days after the ETF's inception, the "Magnificent Seven" stocks added up to 32.6% of the Ives fund's value. That's actually a smidge higher than their combined slice of the S&P 500, but megacaps Nvidia (NASDAQ: NVDA) and Microsoft (NASDAQ: MSFT) hold significantly lighter weights in the Dan Ives portfolio. Nineteen of the 30 components ran into the 4% top-end weighting cap at the latest rebalancing, making alternatives such as IBM (NYSE: IBM) and Advanced Micro Devices (NASDAQ: AMD) just as important to the ETF's value as any of the Magnificent Seven. No ETF can guarantee market-beating returns, and AI is a volatile field right now. I can't guarantee that Ives' selections will outperform the broader market in the long run, or that the nearly equal-weighted nature of this fund is a better idea than the market cap weightings seen in many other ETFs. But if you're looking for a lower-risk approach to the exciting but risky AI market, the Dan Ives AI Revolution ETF might hit the spot. Its careful rebalancing policy sets this fund apart from most of its rivals. Ives' decades of market analysis experience should be worth something, too. The fund is too young to do a deep dive into its market performance, but it's off to a strong start in its first month of operation. Only time will tell how this ETF will stack up in the long run, but its lower risk profile could be right for your portfolio. After all, it will hurt less to hold the Dan Ives ETF if a top stock like Nvidia or Microsoft takes a big tumble. As always, do your own research before you buy anything -- but if you want a smarter, more diversified way to play the AI revolution, this ETF might just fit the bill. Before you buy stock in Wedbush Series Trust - Dan Ives Wedbush Ai Revolution ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Wedbush Series Trust - Dan Ives Wedbush Ai Revolution 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 $692,914!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $963,866!* Now, it's worth noting Stock Advisor's total average return is 1,050% — a market-crushing outperformance compared to 179% 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 Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, International Business Machines, Microsoft, and Nvidia. 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. This Dan Ives-Backed ETF Could Be the Smartest Way to Play the AI Revolution was originally published by The Motley Fool
Yahoo
2 days ago
- Business
- Yahoo
Is This Growth Stock-Heavy Vanguard ETF Worth Doubling Up on in July?
Nvidia, Microsoft, and Apple have contributed significant gains to the S&P 500 over the last decade. Many excellent tech companies make up a fraction of the S&P 500 but are better represented in the Vanguard Information Technology ETF. The tech sector is valued based on future earnings growth, so delivering on expectations is paramount to justify lofty valuations. 10 stocks we like better than Vanguard Information Technology ETF › Investors who doubled up on top growth stocks during the rapid sell-off in April were handsomely rewarded -- as the broader indexes are now hovering around all-time highs. But long-term investors know that the truly massive gains aren't made by timing the market or being fortunate enough to put capital to work during a sell-off. Rather, the rewards come from holding shares in excellent companies or exchange-traded funds (ETFs) long-term and letting those investments compound over time. Despite making new highs, there are still plenty of top tech stocks worth buying now for patient investors. Technology is the highest-weighted sector in the S&P 500 (SNPINDEX: ^GSPC) -- making up nearly a third of the index. The Vanguard Information Technology ETF (NYSEMKT: VGT) closely tracks this sector and charges a mere 0.09% expense ratio, or $9 for every $10,000 invested. Here's why the fund could still be worth buying now, as well as factors that could make it a poor choice for some investors. Ten years ago, Apple and Microsoft had a combined market cap of around $1.1 trillion, and Nvidia was a mere $11 billion company. Today, each of these tech companies has a market cap over $3 trillion -- and over $10.3 trillion combined. Put another way, these three companies have added around $9 trillion in market cap to the S&P 500 in the last decade, while the S&P 500 has added just over $29 trillion. That means Nvidia, Microsoft, and Apple have contributed roughly a third of the gains in the index in the last 10 years. Understanding just how vital these names have been to broader market returns illustrates the impact of asymmetric gains. Today, Nvidia, Microsoft, and Apple make up 18.6% of the Vanguard S&P 500 ETF -- which tracks the index -- and 45.7% in the Vanguard Information Technology ETF. So, if you want outsized exposure to these three companies, the tech sector may pique your interest. It's worth mentioning that while Microsoft and Nvidia stocks hover near all-time highs, Apple has been a noticeable laggard -- down close to 20% year to date. Without that underperformance, the ETF would be up even higher. Outside of those three top holdings, the tech sector offers far more exposure to software companies and the semiconductor industry than is available from an ETF that mirrors the performance of the S&P 500 or Nasdaq Composite (NASDAQINDEX: ^IXIC). In fact, semiconductors make up 28.8% of the Vanguard Tech ETF -- led by Nvidia's 14.2% weighting and Broadcom's 4.5% weighting. Perhaps the most attractive quality of the tech sector is its diversified exposure to artificial intelligence (AI). Chip companies provide the computing power needed to handle increasingly complex AI models. Software companies like Salesforce are using AI to enhance their services through AI agents and other tools. Similarly, Microsoft has integrated AI tools through Copilots across its Microsoft 365 suite, as well as other platforms like GitHub for developers. Microsoft Azure is the No. 2 cloud computing service behind Amazon Web Services. However, it's worth noting that Amazon and Google Cloud parent company, Alphabet, are not in the Vanguard tech ETF because Amazon is in the Vanguard Consumer Discretionary ETF, and Alphabet is in the Vanguard Communications ETF. Many legacy tech companies that spent years underperforming the major benchmarks are undergoing resurgences thanks to AI. International Business Machines, Cisco Systems, and Oracle are examples of veteran tech companies that participate in the AI ecosystem through cloud, hardware, and/or software offerings. In sum, there are many phenomenal growth companies in the tech sector outside of the big three players. However, these companies make up a fraction of the S&P 500 index funds. So, buying directly into the tech sector is a good way to increase the impact of the companies in your portfolio. The Vanguard Tech sector ETF can be an excellent tool for getting exposure to Nvidia, Microsoft, Apple, and hundreds of other tech companies. But before diving headfirst into the ETF, it's worth considering how the holdings will fit into your existing portfolio and if they match your risk tolerance. For example, if you already have a sizable position in one or more of those big three top holdings, then buying the Vanguard Tech ETF may be adding more exposure than you intended. Or if you hold growth-focused ETFs or even an S&P 500 ETF, then you already indirectly own many of the stocks in the Vanguard Tech ETF. So, if you're looking to invest more capital in tech stocks and are OK with boosting your exposure to existing holdings, the Vanguard Tech ETF could be a good idea. Another factor to consider is risk tolerance. Tech has dominated the broader market in recent years, which has inflated the valuations of many tech companies. To justify those valuations, earnings have to continue growing at impressive rates. Nvidia is a textbook example. The stock has skyrocketed to new highs, but so have the company's earnings. Over the last three years, Nvidia's stock price has jumped 835% -- but earnings are up 916% thanks to data center demand. So Nvidia's valuation has remained reasonable because it has sustained earnings growth. But the stock could look expensive if that growth cools off, even for factors outside of the company's control. The tech sector can be highly volatile due to its cyclical nature and valuations based on future growth projections. The Vanguard Tech ETF is only worth considering if you're OK with these risks and how the ETF would fit into your existing portfolio. It may seem counterintuitive to buy stocks or an ETF that has increased so quickly. But the best companies grow into their valuations over time, and the tech sector is full of top companies. All told, the Vanguard Tech ETF may be worth a closer look in July. Another option is to scan the fund's holdings and select individual companies you don't own and want to build a position in. That way, you aren't putting an uncomfortable amount of money into existing holdings. Before you buy stock in Vanguard Information Technology ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Information Technology ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $939,655!* Now, it's worth noting Stock Advisor's total average return is 1,045% — a market-crushing outperformance compared to 178% 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 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Daniel Foelber has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Cisco Systems, International Business Machines, Microsoft, Nvidia, Oracle, Salesforce, and Vanguard S&P 500 ETF. The Motley Fool recommends Broadcom and 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. Is This Growth Stock-Heavy Vanguard ETF Worth Doubling Up on in July? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
This Is the Best Vanguard ETF to Buy Right Now, and It's Not Even Close
Traditional portfolio theory warns against overweighting sector funds, but the digital revolution demands new thinking. This Vanguard tech fund has crushed the S&P 500 with 20.3% annual returns over the past 10 years, versus 11.1% for the broader market. This single ETF provides exposure to artificial intelligence (AI), quantum computing, robotics, and the entire technology stack reshaping our economy. 10 stocks we like better than Vanguard Information Technology ETF › Every investing textbook tells you the same thing: Don't put too much money in sector-specific exchange-traded funds (ETFs). Diversify broadly. Own the whole market. This advice made perfect sense -- in 1995. But the economy is undergoing a fundamental transformation that makes the old playbook dangerously obsolete. The Vanguard Information Technology ETF (NYSEMKT: VGT) isn't just another tech fund. It's your ticket to owning the companies building the next economy -- one that is rapidly emerging from the shadows. Look at the performance gap and try not to gasp. Over the past 10 years (2015 to 2025), this Vanguard tech fund has delivered a staggering 20.3% annualized return. The S&P 500 (SNPINDEX: ^GSPC)? A respectable but comparatively pedestrian 11.1%. That 9.2-percentage-point difference might sound modest, but compound it over time, and you're talking about life-changing wealth creation. A $10,000 investment in the Vanguard Information Technology ETF 10 years ago would be worth roughly $62,000 today, versus $30,000 in an S&P 500 fund. This isn't a temporary anomaly driven by tech euphoria. Technology spending is projected to reach $5.74 trillion in 2025 -- a 9.3% increase from 2024. But here's what few investors understand: That figure barely scratches the surface. Technology isn't just growing as a sector. It's absorbing every other sector. Banks? They're technology companies that happen to move money. Retailers? Tech companies that happen to sell products. Auto manufacturers? Software companies wrapped in metal. When everything is technology, owning "just tech" means owning everything. Tech is the foundation of modern society. The "Magnificent Seven" stocks in this fund trade at valuations that make traditional investors uncomfortable. Apple is at 26 times forward earnings. Microsoft stock is commanding a premium of 32 times forward earnings. Nvidia, for its part, trades at over 35 times projected earnings. But here's what the bears miss: We're not pricing in yesterday's growth. We're pricing in tomorrow's revolution. Consider artificial general intelligence (AGI). Five years ago, AGI was science fiction -- something for 2050 or beyond. Today? We're arguably witnessing its primitive birth. ChatGPT can write code, analyze data, and reason through complex problems. It's not true AGI yet, but it's close enough to transform industries. And this primitive version is only getting smarter. Every month brings breakthroughs that would have seemed impossible a year earlier. When AGI fully arrives -- and it's now a question of when, not if -- the economic implications are staggering. McKinsey estimates artificial intelligence (AI) could add $13 trillion to global economic output by 2030. That's the equivalent of adding another economy the size of the United States. The companies building this future deserve premium valuations because they're not just growing revenues. They're creating entirely new categories of human possibility. Yes, the Vanguard Information Technology ETF is top-heavy. Apple, Microsoft, and Nvidia comprise about 45% of the fund right now. Critics point to this concentration as a weakness. They're missing the forest for the trees. These aren't just big companies -- they're the architects of our digital infrastructure. Microsoft's Azure powers the cloud. Nvidia's chips enable AI. Apple's ecosystem defines how billions interact with technology daily. But this fund's real genius lies in what else it owns: over 300 companies building tomorrow's breakthroughs. Palantir Technologies is turning data into strategic advantage. Cadence Design Systems creates the software that designs next-generation chips. Advanced Micro Devices is challenging Intel's dominance. Quantum computing pioneers. Cybersecurity innovators. Robotics manufacturers. The Vanguard Information Technology Index Fund is the big tent of tech. This isn't picking winners in the AI race or betting on which quantum computing start-up will succeed. It's owning the entire ecosystem. When one company stumbles, another surges. When new technologies emerge, they're automatically added. The fund rebalances itself, ensuring you own tomorrow's giants, not just today's. Traditional wisdom says to stay broadly diversified across most, if not all, sectors. But when one sector is rewriting the rules of every business on Earth, traditional wisdom becomes tomorrow's regret. The tried-and-true investing strategies must be redrawn for a world where software eats everything, AI makes decisions, and quantum computers solve the unsolvable. The Vanguard Information Technology ETF isn't just the best Vanguard ETF to buy right now. For investors who understand where the world is heading, it's not even close. Before you buy stock in Vanguard Information Technology ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Information Technology ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $939,655!* Now, it's worth noting Stock Advisor's total average return is 1,045% — a market-crushing outperformance compared to 178% 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 George Budwell has positions in Apple, Microsoft, Nvidia, Palantir Technologies, and Vanguard Information Technology ETF. The Motley Fool has positions in and recommends Advanced Micro Devices, Apple, Cadence Design Systems, Intel, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft, short August 2025 $24 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. This Is the Best Vanguard ETF to Buy Right Now, and It's Not Even Close was originally published by The Motley Fool Sign in to access your portfolio
