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Most people think you need a complicated budget or the latest app to stay out of debt. Warren Buffett does the exact opposite.

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The billionaire investor has stuck to the same basic rule for decades, and it's one that almost anyone can follow, even if you're not great with money. He simply avoids spending money he doesn't already have.

Seriously, that's it.

Buffett's habit: Only spend physical cash

Buffett has long preferred using actual cash for everyday purchases. Not credit. Not even debit. Just cash.

Why? Because it forces you to feel every dollar that leaves your hand. When you pay with plastic or tap your phone, it's easy to disconnect from the money. But when you carry around a set amount of cash, you naturally become more mindful.

That one habit has helped him avoid personal debt his entire life. He's even said, "If I owe anybody anything, I want to get it paid."

Why most people don't do this -- and why it still works

Let's be real. Most people don't use cash anymore. Tap-to-pay, buy now, pay later, Venmo -- it's frictionless. And that's the problem.

According to a recent survey from the Federal Reserve, nearly 50% of Americans live paycheck to paycheck. And for many, credit cards fill the gap. But that leads to a cycle of interest charges, minimum payments, and financial stress.

Want to go further? Pair Buffett's habit with a high-yield savings account

Here's something I've learned from years of writing about personal finance: Small behavior changes matter a lot more when your money has a safe, steady place to grow.

If you're committing to a cash-based system to avoid debt, the next smart move is to stash your extra savings in a high-yield savings account (HYSA). Top accounts right now are offering up to 4.40% APY, which is more than 10 times the national average.

This one habit could change your financial future

Buffett doesn't live on a budget spreadsheet. He lives by a mindset: Don't spend what you don't have.

It's a low-effort way to stay debt-free, and it's just as effective now as it was when he started decades ago. If you're tired of feeling like money is always tight, this one change could help you take back control -- without sacrificing the things you care about most.

And if you're ready to put your extra savings to work, a high-yield account is one of the easiest wins out there.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

GXO (NYSE: GXO) named a new leader and won regulatory approval to integrate a big acquisition. Investors are celebrating the developments, sending shares of the contract logistics provider up 11% as of 2 p.m. ET.

Image source: GXO.

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A (finally) done deal

GXO operates warehouses and supply chain networks for large corporate and government customers. Last year, the company acquired Wincanton for $962 million to boost its European capabilities, but it has been barred from fully integrating the deal due to United Kingdom Competition and Markets Authority (CMA) concerns.

On Thursday, GXO announced that the CMA has cleared it to integrate "the vast majority" of Wincanton subject to the divestment of "a small number" of grocery contracts. Integration is expected to begin in the third quarter, with collaboration on aerospace deals allowed to begin immediately.

The company also announced Patrick Kelleher, who has more than 30 years of global supply chain experience, as its new CEO. GXO has been looking for a new leader since December when current CEO Malcolm Wilson announced his intention to retire.

GXO raised its full-year revenue, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), and adjusted earnings per share (EPS) guidance as well.

Is GXO a buy?

GXO stock has lost to the market since being spun out of XPO in 2021. Thursday's announcements could be the first step in reversing those declines.

The company has great potential capitalizing on the growing need to manage increasingly complex supply chains but has been held back by headwinds, including uncertainty about the Wincanton integration and over who will be the new CEO. Kelleher's U.S. experience could also help drive sales increases in North America, shifting GXO's European-heavy portfolio.

GXO's recent performance has been disappointing, but the potential is there. The market's enthusiasm seems justified.

Should you invest $1,000 in GXO Logistics right now?

Before you buy stock in GXO Logistics, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and GXO Logistics 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 Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Lou Whiteman has positions in GXO Logistics and XPO. The Motley Fool recommends GXO Logistics and XPO. The Motley Fool has a disclosure policy.

Couchbase (NASDAQ: BASE) stock is seeing a huge jump in Friday's trading following news of a buyout for the company. The software specialist's share price was up 30% as of 3:25 p.m. ET.

Before market open this morning, Couchbase published a press release announcing that it had entered into an agreement to be acquired by Haveli Investments. The deal will see Couchbase acquired at a $1.5 billion valuation, representing a 29% premium compared to the company's price at market close on June 18.

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Image source: Getty Images.

Couchbase stock rockets higher on buyout

With the company valued at $1.5 billion in the acquisition, shareholders will receive $24.50 per share as part of the all-cash buyout. Couchbase will become a privately held company after the deal is completed. The company says that the buyout is expected to close before the end of this month, and Haveli indicated that Couchbase's strengths in artificial intelligence (AI) development tools was a key factor in its acquisition move.

What's next for Couchbase stock?

Couchbase says that the acquisition agreement includes a "go-shop" period, which will allow the company to explore other buyout offers before 11:59 p.m. ET on June 23. While this potentially leaves the door open for another suitor to come in with a higher buyout offer, it's also an extremely short window for another potential buyer to come in with their own buyout terms.

Couchbase's press release for its acquisition by Haveli Investments suggests that it's extremely likely that the purchase will be completed after this coming Monday. As of this writing, the company's share price has risen to be roughly in line with the scheduled buyout price -- which suggests that there's very little reason for new investors to enter the stock at this point.

Should you invest $1,000 in Couchbase right now?

Before you buy stock in Couchbase, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Couchbase 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 Stock Advisor.

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.

Shares of the large grocer and retail department chain Kroger (NYSE: KR) had surged by roughly 10%, as of 12:38 p.m. ET today, after the company reported earnings for the first quarter of 2025.

Reaffirming guidance

Kroger reported adjusted earnings per share of $1.49 for the three months ending May 24 on total revenue of $45.1 billion. Adjusted EPS beat Wall Street estimates, while revenue came in just shy of them. Perhaps more importantly, management maintained its full-year earnings outlook and raised its full-year revenue outlook.

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Image source: Getty Images.

Kroger's CFO David Kennerley said in an earnings statement:

Our strong sales results and positive momentum give us confidence to raise our identical sales without fuel guidance, to a new range of 2.25% to 3.25%. While first-quarter sales and profitability exceeded our expectations, the macroeconomic environment remains uncertain, and as a result, other elements of our guidance remain unchanged.

Is the stock a buy after a good quarter?

Kroger certainly surprised investors and is being rewarded right now. The positive news also comes as the company is continuing its search for a new CEO after former CEO Rodney McMullen resigned from his post in March. The company's board of directors earlier this year conducted an investigation into McMullen that concluded "his personal conduct that, while unrelated to the business, was inconsistent with Kroger's Policy on Business Ethics."

Kroger's forward price-to-earnings multiple of 15 is toward the bottom of its peer group, and it is a consumer staples stock, making it a good defensive pick for any kind of looming recession. Therefore, I think investors can definitely allocate at least some capital to the name.

Should you invest $1,000 in Kroger right now?

Before you buy stock in Kroger, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kroger 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 Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy.

Shares in aerospace giant Airbus (OTC: EADSY) rose by as much as 3.1% in early trading as the Paris Air Show concluded for industry professionals (it remains open to the public until Sunday). Airbus had a lot to say and $21 billion in orders to announce , but unfortunately, its great rival, Boeing (NYSE: BA), had very little to say.

Airbus and Boeing at the Paris Air Show

While Boeing didn't release an official statement on the matter, it's widely reported that Boeing scaled down its participation and elected not to announce new orders following a recent Air India crash involving a Boeing 787 Dreamliner. Boeing had previously announced it would offer full support for the investigation currently taking place.

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Consequently, Airbus took center stage in the commercial aerospace industry, announcing $14.2 billion in firm orders and a further $6.7 billion under memoranda of understanding (MoUs).

Among the 148 firm orders was the first-ever order from LOT Polish Airlines for 40 A220 aircraft. All Nippon Airways, a subsidiary, ordered 27 A321 airplanes. Riyadh Air of Saudi Arabia ordered 25 A350 wide-bodies and will be the first Saudi airline to fly the 350. Vietnam's VietJet signed an MoU for 100 Airbus A321neo aircraft.

Image source: Getty Images.

Where next for Airbus?

The strength in A350 (which competes with the Boeing 787) and A321 orders (a highly successful plane Boeing is struggling to compete with) is a continuation of an order trend this year. Meanwhile, the 40 A220 orders are a shot in the arm for an aircraft that Airbus has found it difficult to sign deals on in the last year or so.

Overall, it was a positive air show for Airbus, and that's reflected in the stock price today.

Should you invest $1,000 in Airbus SE right now?

Before you buy stock in Airbus SE, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Airbus SE 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 Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Lee Samaha 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.

A bidding war appears to be brewing for building products distribution company GMS (NYSE: GMS), and investors are excited by the possibilities.

Shares of GMS jumped 26% on Friday morning after the company was put in play by an unsolicited suitor.

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Image source: Getty Images.

A building products bidding war?

GMS is a construction products distributor and tool supplier for consumer and commercial customers. Late Wednesday, QXO (NYSE: QXO) proposed acquiring the business for about $5 billion, or $95.20 per share in cash, a premium of 27% to GMS's 60-day volume-weighted average.

QXO is a roll-up put together by Brad Jacobs, the M&A specialist behind companies including XPO and United Rentals. The company did its first deal in April, acquiring Beacon Roofing Supply for $11 billion, and continues to seek out acquisition opportunities toward its goal to build a $50 billion business in the years to come.

GMS said its board would review the proposal. QXO set a deadline of June 24 for a response, saying it intends to go directly to GMS shareholders if a deal can't be worked out.

But QXO might have competition for the business. Late Thursday, The Wall Street Journal reported that Home Depot (NYSE: HD) has also made an offer for GMS. So far, Home Depot has not gone public with a bid, and it is unclear what price it is offering for GMS.

Is GMS stock a buy?

Though nothing is certain, with two deep-pocketed suitors, it appears likely that GMS's time as an independent company is nearing an end. And it is possible that, since there are two bidders, the sale will be for a higher price than the $95.20-per-share QXO offer.

The market is already pricing that in, bidding GMS shares as high as $104 on Friday morning.

Though both Home Depot and QXO have the resources to engage in a bidding war, both have smart management teams and solid strategies and seem unlikely to dramatically overpay. It is also unclear whether Home Depot was simply being opportunistic, or if the company considers GMS to be strategic enough to engage in a battle.

Given the uncertainty of the outcome and the considerable premium already priced into GMS shares, investors should tread carefully.

Should you invest $1,000 in Gms right now?

Before you buy stock in Gms, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Gms 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 Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Lou Whiteman has positions in Home Depot, Qxo, and XPO. The Motley Fool has positions in and recommends Home Depot. The Motley Fool recommends XPO. The Motley Fool has a disclosure policy.

Very few companies demonstrate the complexity of the current trade conflict and the strategic necessity of securing rare earth materials for the U.S. more effectively than MP Materials (NYSE: MP), and its share price action this week, up 21.8% at the time of writing, underscores this point.

A complicated trading position

Management describes the company as being "America's rare earth magnetics champion," as it is "America's only fully integrated rare earth producer." However, as fellow Fool.com writer Rich Smith notes, Shenghe Resources (a majority-owned subsidiary of China's Shenghe Resources Holding Company) was a major customer of MP Materials, and the company that MP Materials "sells the vast majority of its rare earth concentrate" to, according to its SEC filings.

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Moreover, in mid-April, MP Materials said it had "ceased shipments of rare earth concentrate to China" due to China's tariffs and the issue of selling critical materials not being "aligned with America's national interest." As such, the trade conflict is a near-term negative for MP Materials.

The long-term picture

That said, and as management consistently argues, the company's real growth opportunity lies in being part of the U.S. developing its own rare earth supply chain. It's a point reiterated by CEO James Litinsky on a recent earnings call: "What is now abundantly clear is that the United States must urgently accelerate its full-scale domestic rare earth magnetic supply chain."

Image source: Getty Images.

As such, when speculation rises that the administration is working to secure funding for the company, the stock is likely to perform well, as it did this week.

It's an interesting situation, but with so much uncertainty surrounding the company's direction, it's challenging to argue that retail investors have any kind of advantage in investing in the stock.

Should you invest $1,000 in MP Materials right now?

Before you buy stock in MP Materials, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and MP Materials 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 Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy.

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.

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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.

Image source: Getty Images.

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.

My biggest problem with the Vanguard S&P 500 ETF

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.

An S&P 500 ETF that does things a little differently

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.

Should you invest $1,000 in Invesco S&P 500 Equal Weight ETF right now?

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 10 best stocks 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 Stock Advisor.

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.

It's been quite the week for Roku (NASDAQ: ROKU) and its shareholders. The country's leader in getting folks streaming from their TVs kicked off the fireworks by announcing a transformative deal with Amazon (NASDAQ: AMZN) on Monday. An analyst upgrade and a pair of other firms jacking up their price targets followed.

The stock is up nearly 10% heading into the final trading day of the week. Roku is a name that has fallen off of many growth investing radars, but the shares are now up 55% over the past year. With its solid growth, continuing niche dominance, and projected return to profitability for the second half of this year, it's a name you should probably start paying attention to again.

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At its frenzied peak in 2021, a $5,000 investment could barely be exchanged for 10 shares. That same $5,000 today could have you walking away with 60 shares. This is the kind of math that can burn investors if they're buying a falling stock with dim prospects, but today's Roku is in much better shape than it was four years ago.

Betting on the stream weaver

Roku's revenue and time spent on its platform have both nearly doubled since the shares peaked six times higher four summers ago. However, just saying that Roku is a larger company than it was back in 2021 isn't enough to convince you that this is the smartest growth stock for your next investment. Roku's success in continuing to gain market share as North America's leading streaming operating system for TVs will continue to open doors; doors like the one that was slammed off its hinges on Monday with its new partnership with Amazon.

The leading online retailer runs a popular programmatic demand-side ad buying platform, and this week it turned heads by striking an integration deal with Roku. The two companies are typically competitors in the streaming space; Roku's platform competes with Amazon's Fire TV. But despite the wide gap in market cap -- Roku at $12 million and Amazon at $2.3 billion -- the online retailer doesn't attract the same captive U.S. audience as the pioneer.

In the spirit of the "if you can't beat 'em, join 'em" adage, Amazon advertisers will now have access to Roku's massive reach of roughly 80 million U.S. households spending an average of more than four hours a day cradling the Roku remote. The early tests were fruitful. Amazon found that teaming up with Roku would deliver its connected TV clients 40% more unique viewers with the same budget. With better ad targeting and the ability to lower the instances of viewers seeing the same ads repeatedly, Amazon points out that its advertisers can generate a lot more value on Roku through this partnership.

Investors got excited about Roku's prospects following the news ahead of Monday's market open. A few analysts took the baton and ran with it later in the week.

Image source: Getty Images.

Spreading the news

Analyst Alan Gould at Loop Capital upgraded his opinion on Roku from hold to buy, boosting his price target from $80 to $100 in the process. He feels that the partnership will have a positive impact on Roku's results starting next year, making this now a good time to hop off the fence. The combination of Amazon's shopping feedback loop for advertisers and Roku's market leadership as a streaming hub make this a bar-raising collaboration.

A couple of other firms juiced up their price targets without changing their opinions. BofA was already bullish, but it bumped its price goal from $85 to match Loop Capital at $100. Citigroup remains neutral, but it still revised its target on the stock from $68 to $84.

Roku was already on the way to tear down bearish knocks on the stock. Its lack of profitability has been a popular pressure point, but its guidance in May called for a net loss of $30 million for all of 2025.

Why is this important? Well, Roku clocked in with a bottom-line deficit of $27 million for the first quarter, targeting a loss of $25 million for the current one. A $30 million loss projection for the year after a $52 million hole through the first six months translates into a profit of $22 million over the course of the next six months. Roku was already generating positive free cash flow and adjusted earnings before interest, taxes, depreciations, and amortization (EBITDA). Now it's about to scratch a reversal in net income from its bucket list.

All roads lead to Roku these days. More households are turning to Roku to fuel their smart TV streaming needs, and advertisers are doing the same. Roku shares are already bouncing back, but the best is yet to come.

Should you invest $1,000 in Roku right now?

Before you buy stock in Roku, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Roku 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 Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Citigroup is an advertising partner of Motley Fool Money. Rick Munarriz has positions in Roku. The Motley Fool has positions in and recommends Amazon and Roku. The Motley Fool has a disclosure policy.

Not for the first time this year, Nano Nuclear Energy (NASDAQ: NNE) stock was going somewhat nuclear over the past few trading sessions.

On news that a Senate committee desires changes in President Trump's "Big, Beautiful Bill" that favor the once-struggling industry, interest rose sharply in nuclear stocks. Nano was a direct beneficiary of this; according to data compiled by S&P Global Market Intelligence, its share price had ballooned by nearly 25% week to date as of Friday before market open.

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Credit where credit is due

The bill is an ambitious budget reconciliation proposal that would reshape the federal budget. Early in the week, one new change floated by the Senate Finance Committee was an adjustment of the tax credits the feds provide to energy producers.

Image source: Getty Images.

Some power-generation technologies currently out of favor with the present administration would have their tax credit expiration dates brought forward, while others would be granted extensions. Happily for Nano investors, nuclear energy is in the latter category.

The committee is proposing that nuclear's energy production tax credit, currently set to be phased out on Dec. 31, 2032, have a new expiration date of Dec. 31, 2036.

The president has been active in his support for nuclear power, which in the recent past was largely shunned. Its reputational decline was due mostly to high-profile accidents such as the Three Mile Island incident in 1979, and the catastrophic 1986 meltdown of the Chernobyl plant located in Ukraine (then part of the Soviet Union).

More compromise in store?

Despite its very positive-sounding name, the "Big, Beautiful Bill" is controversial and contentious among both legislators and the U.S. public.

Given that, it's very possible that it will be hammered out through more compromises -- and these might lead lawmakers to rescind the nuclear tax credit extension idea. Still, the proposal currently on the table at least indicates continued strong, top-level support for nuclear power, and that can only help companies like Nano.

Should you invest $1,000 in Nano Nuclear Energy right now?

Before you buy stock in Nano Nuclear Energy, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nano Nuclear Energy 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!*

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See the 10 stocks »

*Stock Advisor returns as of June 9, 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.

Shares in Verve Therapeutics (NASDAQ: VERV) soared 80.5% this week on the news of an agreement for Eli Lilly (NYSE: LLY) to acquire Verve. The deal centers on an exciting cardiovascular health medicine program, VERVE-102.

What is VERVE-102?

It's easy to see why Lilly is excited about the program. VERVE-102 targets the PCSK9 gene, aiming to deactivate it in the liver, and achieves this with a single infusion. Given that PCSK9 binds to low-density lipoprotein (LDL) (often called "bad" cholesterol) receptors and prevents them from recycling to the cell surface, it follows that inhibiting PCSK9 will improve the body's ability to remove bad cholesterol.

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The initial results from the phase 1b trial give cause for optimism. According to Verve's press release:

• "VERVE-102 was well-tolerated, with no treatment-related serious adverse events (SAEs) and no clinically significant laboratory abnormalities observed" across 14 patients given three different dose levels.
• Dose dependency was established, with the lowest dose (0.3mg/kg) patients achieving a "mean reduction in blood LDL-C of 21%," rising to 41% at the 0.45mg/kg dose, and 53% at the 0.6mg/kg dose.

Image source: Getty Images.

Terms of the Lilly/Verve agreement

Lilly is offering:

• $10.50 per share for all the outstanding shares
• Plus a nontradable contingent value right (CVR) that pays up to $3 per share upon "the first patient being dosed with VERVE-102 for ASCVD in a U.S. phase 3 clinical trial on or prior to the tenth anniversary of closing or termination of the CVR."

The share price is $11.12 as I write, implying that the market is willing to pay $0.62 for the CVR, suggesting a 21% chance that Lily will take VERVE-102 to a stage 3 trial -- a reasonable assumption for a novel medicine under a major pharmaceutical company.

Should you invest $1,000 in Verve Therapeutics right now?

Before you buy stock in Verve Therapeutics, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Verve 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 $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 Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Lee Samaha 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.

For the second week in a row, next-generation plastic recycling specialist PureCycle Technologies (NASDAQ: PCT) was quite the hit on the stock exchange.

Thanks to a successful round of capital raising and a bullish analyst note on its prospects, the company's shares were trading nearly 21% higher week to date early Friday morning, according to data compiled by S&P Global Market Intelligence.

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$300 million worth of good news

PureCycle has managed to raise $300 million in fresh capital commitments from a mix of former and new investors. It did so via a flotation of convertible preferred shares.

Image source: Getty Images.

With these funds coming to its coffers, the company also announced that it aims to bring 1 billion pounds of installed recycling capacity onstream by 2030. That $300 million will help it expand its current operations in Augusta, Georgia, and build new facilities overseas in Asia (specifically Thailand) and Europe (Belgium).

In its press release on the matter, PureCycle quoted CEO Dustin Olson: "Over the last several years, we have continued to invest time and resources in progressing our global growth plans and this capital will allow us to execute on those plans."

Still a buy, maintains analyst

Meanwhile, also over the past few days, an analyst covering PureCycle stock felt compelled to publish a bullish note on the company (this occurred on Monday, so it didn't address the convertible preferred stock issue).

In his new PureCycle note, Cantor Fitzgerald's Andrew Sheppard reiterated his overweight (i.e., buy) recommendation on the stock and his $12-per-share price target. According to reports, he cited the company's early-mover advantage in its niche, its exclusive technology, and what he considers its large addressable market as key factors in his rating.

Should you invest $1,000 in PureCycle Technologies right now?

Before you buy stock in PureCycle Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and PureCycle Technologies 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 Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 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.

On average, full coverage car insurance in the U.S. costs about $2,680 a year (that's $223 a month.) But for minimum coverage, that average drops to around $802 a year ($67 a month), according to Bankrate.

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Keep in mind, those are just averages. Your premiums could be a lot lower (or higher) depending on where you live, what you drive, your driving history, and more.

So how do you know if you're overpaying? Here's what to know and how to check.

How do you compare to the national average?

I'll go first. My full coverage premium right now is $1,047 per year. I live in California, have an excellent credit score, drive a minivan (dad mode), and only drive about 6,000 miles a year.

I pay less than half the national average for car insurance. But it didn't happen by accident. I keep a clean driving record and credit profile, and I shop around rates pretty often.

And trust me -- shopping around once in a while really pays off. Here's a free tool to compare rates from the top insurance companies.

You could save hundreds, just by checking what's out there.

What affects your car insurance rate?

There's a long list of factors that impact your auto insurance premium. Some of them you can control, and others you can't.

Here are the big ones insurers look at:

• Your location: Rates vary dramatically by state and even ZIP code. Michigan drivers, for example, pay more than twice as much as people in Vermont.
• Driving record: Accidents, speeding tickets, or DUIs can spike your rate for years.
• Vehicle type: Minivans and sedans are typically cheaper to insure than sports cars or luxury vehicles.
• Credit score: In most states, a higher credit score means a lower insurance premium.
• Annual mileage: Less time on the road usually equals lower risk (and cheaper coverage).
• Coverage level: Full coverage costs more than minimum coverage, but it offers far better protection.
• Deductible amount: Choosing a higher deductible can lower your premium.

I know, that's a lot to keep track of. But understanding the dials you can turn gives you the best shot at lowering your rate.

It pays to shop around

Consumer Reports recently found that 30% of car owners switched insurers in the last five years, and the median savings for those who did was $461 per year.

Here's the thing, though: You can't just sit around and wait for a discount.

If you want a lower premium, you've got to ask for it. And the only way to save is by shopping around and getting new quotes.

Personally, I shop around at least once a year. More often than not, I confirm that I already have the best deal for me. And it makes me feel good knowing I'm not overpaying.

But then there are times when I save a bunch of money for the exact same policy!

Bottom line: Don't wait for your renewal date. Check out this free tool to compare rates from the top insurance companies. It only takes a few minutes, and you could save hundreds!

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

Kings don't always receive royal treatment. Dividend Kings certainly don't. Target (NYSE: TGT) provides a great example.

Shares of the giant retailer have plunged close to 40% below the high set in October 2024. Some investors have run for the hills. However, there's a case to be made for not overthinking the difficulties that Target faces and just buying the beaten-down stock.

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An off-target Target

Target hasn't hit the bullseye very much lately. The company's first-quarter sales slipped nearly 3% year over. Its earnings were well below expectations. Executives said during the Q1 earnings call that they weren't satisfied with the performance four times. Even worse, Target slashed its full-year earnings guidance and expects sales to decline by a low single-digit percentage.

What's going on? Some of the problems are largely outside of Target's control. For example, inflation has put pressure on discretionary spending. Consumer confidence declined for five consecutive months this year.

President Trump's tariffs create more issues for the entire retail sector. Target is no exception. Many of the products the company sells are imported. While Target has significantly decreased its reliance on products made in China, the level is still around 30%.

Target is responsible for one major headache, though. Management announced earlier this year a rollback of several diversity, equity, and inclusion (DEI) initiatives and a new "Belonging at the Bullseye" strategy for "creating a sense of belonging for our team, guests and communities." This decision sparked a major backlash, including a consumer boycott. Target CEO Brian Cornell briefly acknowledged the pushback in the Q1 earnings call, saying that one of the headwinds the company faces was "the reaction to the updates we shared on belonging in January."

Better news for the beaten-down retailer

However, there is some better news for the beaten-down retailer. For one thing, management isn't trying to sweep the company's problems under the rug. Target established an "acceleration office" led by COO Michael Fiddelke. The purpose of this group will be to facilitate faster decision-making and execution of strategic initiatives to return to growth.

Much of what made Target one of the most successful retailers in the world for years remains in place. Many of the brands offered in its stores remain popular with customers. Target's partnership with Kate Spade was a big hit.

Image source: Target.

The company continues to make solid progress on reducing inventory shrinkage and improving productivity. These efforts should help offset some of the pressures on profits.

Target appears to have a good strategy for dealing with tariffs. It's negotiating with vendors, trying to source from different countries with lower tariff rates where possible, adjusting order pricing, and (as a last resort) increasing prices. Chief commercial officer Rick Gomez thinks that these efforts should "offset the vast majority of the incremental tariff exposure" the company will face.

Then there's the dividend. Target recently announced its 54th consecutive year of dividend increases. Its forward dividend yield stands at 4.67%. Despite the retailer's challenges, it remains in a strong position to continue its impressive streak of dividend hikes with a low payout ratio of 49%.

Don't overthink, just buy

It's easy to overthink Target's problems and overlook its strong points. After all, this is a company that's on track to generate revenue of close to $105 billion this year and deliver solid profits. Target is also, as we've seen, a highly reliable source of dividend income.

We shouldn't leave out the stock's valuation, either. Target's shares trade at only 12.8 times forward earnings.

I expect it will take a while for Target's turnaround to play out. However, I suspect that investors who buy now will enjoy attractive total returns over the long term.

Should you invest $1,000 in Target right now?

Before you buy stock in Target, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Target 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 Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Keith Speights has positions in Target. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

According to data compiled by S&P Global Market Intelligence, Astera Labs (NASDAQ: ALAB) stock's price was floating almost 11% higher week to date on early Friday morning. Investors were mainly reacting to news the tech infrastructure company reported about a new business tie-up with an Asian peer.

A cross-Pacific Ocean partnership

On Monday, Astera and Taiwanese chipmaker AIChip Technologies announced in a joint press release that they have formed a strategic business partnership.

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Image source: Getty Images.

Together, the two will aim to exploit opportunities afforded by sky-high demand for artificial intelligence (AI) functionalities. AIChip, which specializes in application-specific integrated circuit (ASIC) chips, and Astera are teaming up to offer "validated, interoperable solutions for hyperscalers building next-generation AI infrastructure," according to the press release.

As the name suggests, a hyperscaler is essentially an extremely large data center. These are in vogue now due to the heavy resource requirements of AI.

Aiming to reap a bundle from AI

Astera and AIChip offered almost no details about their new partnership, including its financial parameters. Given that, it's tough to gauge how this collaboration might affect their fundamentals.

Judging by the market's reaction, though, investors don't seem to mind -- teaming up on projects has clear potential to benefit both companies. I think AI companies like Astera are in the midst of a gold rush. I'd absolutely consider buying the stock.

Should you invest $1,000 in Astera Labs right now?

Before you buy stock in Astera Labs, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Astera Labs 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 Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 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.

Kroger (NYSE:KR) reported results for the first quarter of fiscal 2025 on June 19, 2025, delivering identical sales growth excluding fuel of 3.2% and adjusted EPS of $1.49, up 4%. Management announced accelerated store network optimization, a heightened focus on core operations, and raised fiscal 2025 guidance for identical sales excluding fuel to 2.25%-3.25%.

Decisive Store Network Optimization Aligned with Core Focus

Planned closures of approximately 60 underperforming stores over the next 18 months follow a pause on annual real estate reviews that occurred during the failed merger process with Albertsons Companies. These closures coincide with the completion of 30 major store projects this fiscal year and an anticipated acceleration in new store openings beginning in fiscal 2026, targeting high-growth geographies and increasing total square footage.

"To position our company for future success, this morning, we announced plans to close approximately 60 stores over the next eighteen months. We don't take these decisions lightly, but this will make the company more efficient, and Kroger will offer roles in other stores to all associates currently employed at affected stores."
— Ron Sargent, Chairman and Chief Executive Officer

This proactive footprint rationalization and simultaneous reinvestment strategy should structurally boost average store productivity metrics. The company is also reallocating capital toward markets and formats with superior long-term return on investment (ROI) potential.

E-Commerce Acceleration with Profitability Is Still Elusive

First-quarter e-commerce sales advanced 15% year over year, supported by unified leadership under Chief Digital Officer Yael Cosset and operational improvements such as reduced pickup wait times. However, management confirmed the e-commerce segment remains unprofitable, despite this being the "best profit improvement yet" on a sequential basis.

"We are seeing improvements in profitability at an increasing rate. But to be clear on the profitability, we're not profitable at this point. And we must become profitable in our e-commerce business, and we've got a lot of work to do."
— Ron Sargent, Chairman and Chief Executive Officer

Robust digital revenue growth drove market share gains and increased household engagement. However, the persistent lack of profitability in e-commerce remains a key execution risk that may require further optimization or strategic partnerships to unlock sustainable returns.

Gross Margin Expansion Amid Price Investments and Mix Shifts

FIFO gross margin rate, excluding fuel and adjustment items, climbed by 79 basis points, or 33 basis points adjusting for the divestiture of Kroger Specialty Pharmacy, helped by lower shrink and supply chain costs, but partially offset by mix headwinds from lower-margin pharmacy sales. In Q1, management implemented price reductions on more than 2,000 additional items and increased the Our Brands mix, while promoting margin neutrality.

"I think the positive news is that these pricing investments resulted in better sales, better gross margin, and happier customers. So I think it would be probably a good example of us continuing to invest in pricing while expanding our gross margin rate."
— Ron Sargent, Chairman and Chief Executive Officer

This ability to deliver tangible margin expansion -- despite substantial price investments -- highlights operational leverage through product mix, sourcing efficiencies, and private label leadership. These actions occurred in a highly promotional grocery environment.

Looking Ahead

Management raised full-year guidance for identical sales excluding fuel to 2.25%-3.25% for FY2025, with the second quarter expected to land at the midpoint of this range. Fiscal 2025 guidance for net operating profit and adjusted EPS remains unchanged, reflecting ongoing caution regarding macroeconomic uncertainty and continued fuel headwinds. Completion of the $5 billion accelerated share repurchase (ASR) program is targeted for the third quarter of fiscal 2025, with resumption of open market buybacks under the remaining $2.5 billion authorization planned through the end of the fiscal year.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 995%* — a market-crushing outperformance compared to 172% for the S&P 500.

They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.

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JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy.

If you had to cover three months of bills without a paycheck, could you?

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That's the real reason financial experts point to $19,800 as a smart savings target. It's based on one simple idea: The average U.S. household spends about $6,600 per month, according to recent data from the Bureau of Labor Statistics. Multiply that by three, and you've got a bare-minimum emergency fund.

And yet, most Americans don't even come close.

Most households aren't ready for a crisis

A recent Fortune survey found that just 41% of Americans could cover a $1,000 emergency using their savings. That's not even enough for a major car repair, let alone a job loss or unexpected medical bill.

It's not always a spending problem; it's often a strategy problem. Many people keep what little savings they do have in accounts earning basically nothing. Meanwhile, inflation keeps eating away at the value of their cash.

If you're serious about reaching that $19,800 target, where you keep your savings matters just as much as the amount you save.

Where to stash your emergency fund (Hint: not a checking account)

This is where high-yield savings accounts (HYSAs) come in.

Top online banks are currently offering over 4.25% APY, with no monthly fees or hoops to jump through. That's a huge upgrade over the national average savings rate, which is still stuck below 0.50%.

Let's do the math:

If you're holding $10,000 in a traditional bank account at 0.01% APY, you'd earn just $1 in a year.

But at 4.25% APY? You'd earn $425 -- with no extra effort.

These accounts are federally insured, totally liquid, and built for exactly this kind of savings. You're not locking your money away in a CD or taking on stock market risk. You're just earning more while staying flexible.

How to build up $19,800 -- even if you're starting small

If that number feels out of reach, don't panic. You don't have to save it all at once. The key is consistency.

Try this:

• Start by automating $50 to $100 a week into a high-yield account.
• Use windfalls like tax refunds or bonuses to boost your balance.
• Keep it separate from your everyday spending so you're not tempted to dip in.

Once you build momentum, saving gets easier. And watching your money grow faster in a high-yield account can actually be motivating. You'll feel the progress.

Savings isn't just a number -- it's peace of mind

Having $19,800 in the bank won't make you rich. But it might be the difference between staying afloat or going into debt when life throws you a curveball.

Most people don't have that cushion. But that also means most people aren't earning interest on their money, and that's something you can change today.

If you want a savings strategy that actually works, start with a better account. You'll hit your target faster, and you won't have to settle for earning pennies on your hard-earned cash.

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Here's our initial take on Accenture's (NYSE: ACN) fiscal 2025 third-quarter financial report.

Key Metrics

Accenture Finds Growth in Challenging Environment

Accenture posted solid growth in a difficult period for consulting companies. Corporate customers are scaling back due to macroeconomic uncertainty, and the U.S. federal contracting environment is bogged down by efforts to cut government spending. Yet Accenture still was able to grow revenue by 7.6% and earnings per share by 15% in the quarter, topping Wall Street estimates.

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Financial services was the standout segment based on performance, up 13% year over year, and Accenture saw better strength in the Americas (up 9%) than it did in Europe (up 6%) or Asia (up 4%). Companywide operating margin improved by 80 basis points to 16.8%.

But the results are unlikely to be enough to quell investor fears about the macro economy taking its toll. New bookings for the quarter came in at $19.7 billion, down 6% year over year. Included in that is about $1.5 billion in generative AI new bookings.

Accenture remains a cash generation machine, reporting $3.5 billion in free cash flow in the quarter. The company paid $924 million in dividends and repurchased $1.8 billion of its shares in the quarter, increasing its dividend by 15% compared to fiscal 2024.

Immediate Market Reaction

Investors appear to be focusing on the bookings weakness. Accenture shares were down 5% in premarket trading ahead of the opening bell in New York.

What to Watch

Accenture is now 75% through its fiscal year, and has seen enough to firm up some of its guidance. The company now sees full-year fiscal 2025 revenue up by 6% to 7%, compared to the previous forecast for 5% to 7% growth, and boosted its full-year earnings per share guidance to $12.77 to $12.89, from $12.55 to $12.79. Accenture expects to return "at least" $8.3 billion in capital to shareholders.

There's a lot of uncertainty in the near-term guidance, with the bookings number reflecting the turbulence in the federal contracting market and uncertainty among corporate clients.

But for long-term focused investors, the need for Accenture's assistance in areas such as IT modernization remains as strong as ever, and Accenture appears to be having success establishing itself as a go-to vendor to help clients incorporate artificial intelligence (AI) into their businesses.

Accenture still has a lot of ways to win.

Helpful Resources

• Full earnings report
• Investor relations page

Should you invest $1,000 in Accenture Plc right now?

Before you buy stock in Accenture Plc, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Accenture Plc 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 Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Accenture Plc. The Motley Fool has a disclosure policy.

Here's our initial take on CarMax's (NYSE: KMX) fiscal 2026 first-quarter financial report.

Key Metrics

CarMax Stays Strong Across the Business

There were a lot of good things to see in CarMax's financial report for the first quarter of its 2026 fiscal year. Total vehicle unit sales were up nearly 6% year over year, lifted by extremely strong performance on the retail side. Comparable store used unit sales were up 8.1% from the year-ago period, and total revenue from retail used vehicles climbed 7.5%. The company bought 336,000 vehicles from consumers and dealers during the quarter, up 7%, and revenue from the sale of extended protection plans on used vehicles got an 11% boost.

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The biggest news came on the bottom line. Earnings of $1.38 per share were up 42%, as CarMax largely kept cost increases in check. Expense management efforts played a key role, along with stronger gross profit figures on its retail sales.

CarMax CEO Bill Nash put the results into perspective, noting that the latest quarter was the fourth consecutive period of positive retail comps and double-digit percentage gains in earnings per share. Nash attributed much of the gains to CarMax's workers and investment in technology, citing digital capabilities as supporting 80% of retail sales. Only 14% of sales occurred completely online, but the remainder used online channels to reserve, finance, trade in, or create a sales order for a vehicle.

Immediate Market Reaction

Investors reacted positively to the good news, sending CarMax shares up nearly 11% in the first hour of premarket trading after releasing its financial report on Friday morning. In particular, most of those following the used-car specialist had anticipated much less extensive growth in earnings.

The bounce higher came as CarMax stock had been trading near its worst levels in two years. Fears about consumer sentiment had caused some to question whether buyers would step in to purchase CarMax vehicles. The results showed that despite macroeconomic pressures, consumers were prone to be opportunistic about making purchases even on terms that were attractive for CarMax.

What to Watch

A couple of other notable things stood out in the report. First, CarMax opened two new stand-alone centers for auctions and vehicle reconditioning, one near Phoenix and the other near Dallas. These two facilities should help support relatively strong markets in those areas.

Also, CarMax accelerated its stock repurchase activity, spending $200 million to buy back about 3 million shares. That leaves the company with $1.74 billion of unspent but authorized capacity to do future repurchases. Shareholders should see that as a reflection of CarMax's belief that attractive industry conditions could last quite a while into the future.

Helpful Resources

• Full earnings report
• Investor relations page

Should you invest $1,000 in CarMax right now?

Before you buy stock in CarMax, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CarMax 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!*

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Here's our initial take on Kroger's (NYSE: KR) fiscal 2025 first-quarter financial report.

Key Metrics

Strong Earnings, but Uncertainty Remains

In the first quarter, Kroger reported solid earnings, although revenue fell short of expectations. The grocery giant reported $1.49 in earnings per share, three cents ahead of analysts' consensus, but sales came in just modestly short of estimates (although same-store sales excluding fuel purchases grew by 3.2% year over year).

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E-commerce sales were a particularly bright spot, up 15% year over year and becoming more of a part of the company's business. It will be very interesting to keep an eye on this metric going forward.

Speaking of going forward, Kroger reaffirmed most of its guidance, including its expectation for full-year EPS in the range of $4.60 to $4.80. Analysts expected to see $4.76, so at the midpoint, management's guidance range is a little weak, especially considering that Kroger beat earnings estimates in the first quarter. On the other hand, Kroger raised its same-store sales guidance (which it refers to as "identical sales without fuel"), so it's fair to say that guidance is a mixed bag.

Management also provided some key updates on Kroger's capital allocation strategy, specifically saying that it expects to not only maintain, but increase its dividend over time. The company also addressed its $5 billion accelerated share repurchase program, which started in the fourth quarter of last year, stating that it expects it to be complete "no later than" the third quarter.

Immediate Market Reaction

The initial market reaction to Kroger's earnings report was rather neutral. As of 8:15 a.m. EDT, about 15 minutes after the announcement, Kroger stock was up by less than 0.5%. This isn't too surprising, considering the mixed results with revenue, earnings, and forward-looking guidance.

However, it's worth noting that this reaction was before management's quarterly earnings call, which was scheduled for later on the same morning. Depending on the comments made, the stock could definitely react one way or another.

What to Watch

In CFO David Kennerley's comments, he specifically called out the uncertain macroeconomic environment as the reason why Kroger didn't raise its guidance for earnings, free cash flow, and other key metrics even though it beat expectations in the first quarter. Tariffs are a key factor to keep an eye on (Kroger sells a lot of products not made here), but it's generally important to realize that there's a lot that is outside of the company's control that can result in better- or worse-than-expected earnings as 2025 goes on.

Helpful Resources

• Full earnings report
• Investor relations page
• Additional coverage: Where Will Kroger Stock Be in 1 Year?

Should you invest $1,000 in Kroger right now?

Before you buy stock in Kroger, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kroger 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 Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 9, 2025

Matt Frankel has no position in any of the stocks mentioned. The Motley Fool recommends Kroger. The Motley Fool has a disclosure policy.