Telecom and satellite company EchoStar (NASDAQ: SATS) is reportedly considering a bankruptcy filing to protect its spectrum licenses. Investors are not taking the threat lightly, sending EchoStar shares down as much as 15% at the open and down 8% as of 11 a.m. Eastern.

Image source: Getty Images.

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A preemptive filing on the horizon?

EchoStar is a satellite television and communications company currently focused on growing a nationwide cellular business. The company owns Boost Mobile, the nation's fourth-largest wireless carrier, and is building out the network using its spectrum holdings.

But regulators appear to be growing impatient with the company's progress. Reports surfaced last month that the Federal Communications Commission has opened an investigation into EchoStar's compliance with federal requirements to build out a nationwide 5G network according to milestones set in 2019.

EchoStar responded with evidence that it is indeed building out the network as required, but the spectrum resources are valuable and coveted by several companies. Included in that list is SpaceX, whose chairman, Elon Musk, has complained about EchoStar's progress and demanded the spectrum be opened to other users, including SpaceX's Starlink.

Late Friday, The Wall Street Journal reported EchoStar is considering a Chapter 11 bankruptcy filing as a way to shield its spectrum licenses from the threat of revocation. In theory, a filing would leave decisions about the spectrum up to a judge, not regulators.

Given EchoStar's structure, it is not entirely out of the question that shareholders would get something out of a bankruptcy. But it is a very high-risk bet. In bankruptcy, equity holders have the least protection, and shares are often zeroed out.

Is EchoStar a buy?

EchoStar declined to comment on the bankruptcy rumors, and a filing is far from certain. Political winds change direction quickly, and it is possible recent events in Washington could cause the FCC not to prioritize the EchoStar spectrum.

If the company does file, debt holders are likely to capture a lot of the value of the reorganized company.

There's a lot of risk to EchoStar right now, but also a lot of potential value if the company is allowed to continue on its path toward building Boost Mobile. Investors considering buying in should be prepared for further turbulence and limit EchoStar to a small part of a well-diversified portfolio.

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

Before you buy stock in EchoStar, consider this:

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So-called "flying taxis" are going mainstream, and investors are rushing into shares of the early market leaders.

Joby Aviation (NYSE: JOBY) stock traded up as much as 14.9% at the market open and were up 8.6% as of 10:30 a.m. ET after President Donald Trump signed an executive order aiming to "unleash" development of the company's new flying machines.

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Image source: Joby Aviation.

Markets taking shape

Joby is one of a handful of aerospace companies racing to bring electric aircraft capable of vertical takeoffs and landings, or eVTOLs, to market. It takes time for new designs to win Federal Aviation Administration (FAA) approval, but if all goes well, Joby and rival Archer Aviation could have air taxis in the air as soon as next year.

Late Friday, investors got a look at the potential market for the eVTOLs once they are approved for takeoff. President Trump signed an executive order aimed at "unleashing American drone dominance," which included a mandate that the Department of Transportation advance eVTOLs.

Within 180 days, according to the order, Transportation is to select "at least" five pilot projects that plan to begin eVTOL operations, including advanced air mobility, medical response, cargo transport, and rural access.

Is Joby stock a buy?

There is still a lot that must go right for Joby, including winning FAA certification and proving it can manufacture its aircraft at scale. And Joby already had several customers lined up, including a high-profile deal announced last week with Saudi Arabia to distribute its aircraft there.

Still, the executive order points to the potential of these aircraft to disrupt existing technologies.

Joby carries a market capitalization of more than $7 billion, a lot for a pre-revenue company. But the potential is there. For investors excited about the technology and willing to carry some risk in a diversified portfolio, Joby looks like the leader of the eVTOL pack.

Should you invest $1,000 in Joby Aviation right now?

Before you buy stock in Joby Aviation, consider this:

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Here's our initial take on CrowdStrike's (NASDAQ: CRWD) financial report.

Key Metrics

CrowdStrike powering through post-outage headwinds

Coming up on the one-year anniversary of CrowdStrike's disastrous July 2024 global outage, the cybersecurity company continues to make progress moving past the incident. CrowdStrike beat earnings per share (EPS) estimates for the quarter and matched on revenue, though earnings, free cash flow, and growth in annual recurring revenue (ARR) all were down year over year.

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Image source: CrowdStrike.

Similar to previous quarters, CrowdStrike is showing solid growth, but the growth is coming at a higher cost than prior to the meltdown. Subscription gross margin fell 100 basis points to 77% in the quarter, and on a generally accepted accounting principles (GAAP) basis, the company reported a $110.2 million net loss. Total operating expenses climbed 36% year over year to $939 million, with sales and marketing expenses responsible for much of those gains.

Still, it is clear that customers are not abandoning the cybersecurity platform. CrowdStrike said its "Falcon Flex" licensing program, a consumption-based model that allows customers to expand or swap modules as needed, is gaining traction, with total Falcon Flex deal value up more than 6x year over year.

The company also announced that its board had approved a new $1 billion share-repurchase program. That should help offset stock-based compensation and help counter CrowdStrike's nearly 14% growth in shares outstanding over the past five years.

Immediate market reaction

CrowdStrike came into earnings with a lot of momentum, with the stock up 40% year to date. The results left investors underwhelmed, with shares trading down 7% in aftermarket trading following the release of results but ahead of the call with investors.

What to watch

CrowdStrike sees further growth from here. The company is forecasting fiscal 2026 second-quarter earnings of between $0.82 and $0.84 per share, ahead of the $0.81 consensus estimate, and slight sequential revenue growth of $1.14 billion to $1.15 billion. Wall Street had modeled $1.16 billion in revenue for the quarter.

The company also boosted its full-year earnings per share guidance by $0.11 per share on both the top and bottom end of the range, to $3.44 to $3.56 per share.

The results appear not to be enough to make investors forget about CrowdStrike's summer of 2024 misstep but also offer no indication that the franchise product is suffering. And management remains bullish on what is to come.

CFO Burt Podbere, commenting on the report, said CrowdStrike remains committed to "net new ARR reacceleration and margin expansion in the second half of fiscal year 2026," fueled by Falcon Flex and the company's robust pipeline.

If CrowdStrike can deliver on that goal, the stock has plenty of room to run from here.

Helpful Resources

• Full earnings report
• Investor relations page
• Additional coverage

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Component manufacturer Heico (NYSE: HEI) delivered better-than-expected quarterly results. Investors are buying in, sending Heico shares up 7% as of 11 a.m. ET.

Image source: Getty Images.

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A solid beat in a volatile market

Heico is a maker of electrical components and other parts for aerospace and other industries. The company earned $1.12 per share in its fiscal second quarter ending April 30 on revenue of $1.1 billion, topping Wall Street's $1.04 per share on sales of $1.06 billion estimate.

Revenue was up 15% year over year, and cash flow from operations grew by 45% to $204.7 million.

In a statement, Laurans Mendelson, the company's executive chairman, and co-CEOs Eric Mendelson and Victor Mendelson said, "We remain confident in achieving net sales growth" throughout the remainder of fiscal 2025, including organic growth and the additions of recently completed acquisitions.

Is Heico a buy?

Heico, along with TransDigm Group, have set the standard in the aerospace industry for using roll-up models to generate substantial long-term overperformance. The momentum at Heico shows no sign of stopping, with the executive team saying they see opportunities for "strategic acquisitions and organic growth" up ahead.

With global commercial aviation projected to grow at a steady clip over the next decade, there should be plenty of sales opportunities for these parts businesses. Heico thanks to its track record never looks cheap and today trades at an enterprise value that is 35 times expected earnings before interest, taxes, depreciation, and amortization (EBITDA). But the company has proven it is able to live up to high expectations.

For investors interested in buying into commercial aviation but don't want to pick between airlines, Heico stock is a great way to get exposure to the sector.

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

Before you buy stock in Heico, 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 Heico wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $830,492!*

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Southwest Airlines (NYSE: LUV) has not yet seen a rebound in demand for travel, disappointing investors who had been hoping for a quick turnaround.

Southwest shares fell as much as 4.5% when comments were made by the company's CFO before rebounding somewhat and trading down 1% as of 2:30 p.m. ET.

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Image source: Southwest Airlines.

Discretionary spending takes a dive

Airline stocks are highly cyclical in nature. When budgets get tight, it is easier to skimp on travel than the grocery bill, meaning airlines tend to see demand fall when the broader economy is under pressure.

Several airlines withdrew or scaled back full-year guidance during earnings season, complaining of a surprise collapse in demand late in the first quarter. There was some hope the collapse would be short-lived.

Southwest CFO Tom Doxey, speaking Thursday at a Wall Street conference, said, "We have not seen in the industry an inflection back" toward more robust demand. Doxey said unit revenue in the first quarter was about three points worse than what they had expected heading into 2025, and second-quarter unit revenue is trending toward about six points worse than what was expected.

That's not good news, and there is some reason for investors to worry it is a Southwest-specific issue.

A day earlier, United Airlines Holdings said it was seeing a "stable" revenue and booking environment heading into the busy summer travel season.

Is Southwest Airlines a buy?

Investors shouldn't make too much of the Southwest/United comparison, as they were slightly different questions, but Southwest could indeed be a standout to the downside.

The company is early in the process of revamping its business model, including getting rid of popular features, including free checked bags. Although Southwest said it has not seen a consumer backlash so far, it is possible consumers are booking elsewhere.

Even in the best-case scenario, Southwest is a company in transition during a dangerous period for the industry. Investors have every reason to be cautious as the summer travel season plays out.

Should you invest $1,000 in Southwest Airlines right now?

Before you buy stock in Southwest Airlines, 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 Southwest Airlines 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 $644,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $807,814!*

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Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends Southwest Airlines. The Motley Fool has a disclosure policy.

Yesterday, shares of Garrett Motion (NASDAQ: GTX) fell 10% after the company announced a big secondary offering. Today, the stock is making back most of what it lost. Shares of Garrett Motion are up 9% as of 10:45 a.m. ET, and the stock is now down just 3% over the past five days.

Image source: Getty Images.

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A shifting shareholder base

Garrett, the former auto division of Honeywell International, is a maker of turbochargers for internal combustion engine vehicles, as well as components for hybrid and battery electric vehicles.

The company has faced a lot of potholes since becoming independent. Garrett filed for bankruptcy in 2020 to shed liabilities, and returned to public markets with significant ownership by private equity firms that helped it through its restructuring.

Private equity firms, by their nature, are not long-term investors. The firms have been steadily selling down their stakes. Late Monday, Garrett announced a 17 million share offering by those private equity firms, causing the stock sell-off.

As we said at the time, the sales were well telegraphed and are likely not a reflection of the long-term prospects for the business. Since its restructuring, Garrett has turned into a strong cash generator and has used that cash to partially offset the dilution caused by the selling shareholders.

Is Garrett a buy?

The bad news for investors is this drama is not yet over. Even after the offering, the three private equity firms still own more than 20% of Garrett's total shares. That's down from 55% when the company went public, but still implies further selling from here.

The good news is that these sales should not impact an investor focused on the long term. Garrett is a solid cash-producing business with significant market opportunities as automakers try to make their legacy fleet more fuel efficient and plan for an electric future.

For investors seeking a turnaround story that provides a mix of income and growth, Garrett is an attractive candidate despite the ownership overhang.

Should you invest $1,000 in Garrett Motion right now?

Before you buy stock in Garrett Motion, 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 Garrett Motion 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 $644,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $807,814!*

Now, it’s worth noting Stock Advisor’s total average return is 962% — a market-crushing outperformance compared to 169% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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Lou Whiteman has positions in Garrett Motion. The Motley Fool recommends Garrett Motion. The Motley Fool has a disclosure policy.

Advance Auto Parts (NYSE: AAP) reported first-quarter results Thursday morning that easily topped expectations, and said its transformation plan was ahead of schedule.

Investors were pleased, and sent shares of Advance up by about 46% as of 10:45 a.m. ET.

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Image source: Getty Images.

A better-than-expected quarter

Shares of Advance Auto Parts had lost more than half their value over the past year, weighed down by poor results and macroeconomic concerns.

The company has been implementing an aggressive restructuring plan, closing hundreds of stores while opening new ones at what it believes to be better locations. But investors had low expectations for the company heading into this earnings season.

Advance lost $0.22 per share in the quarter on revenue of $2.58 billion. That loss was $0.47 per share better than Wall Street had expected, and revenue, though down 7% year over year, also came in about $70 million above expectations.

The company also reiterated its guidance, saying that its restructuring plan remains on track despite complications due to President Donald Trump's trade wars.

"The recently implemented tariffs have created a highly dynamic economic environment," said CEO Shane O'Kelly in a statement. "Despite this, the team is staying focused on the turnaround and our path ahead."

Is Advance Auto Parts a buy?

Even after Thursday's surge, the stock is still down by about 35% over the past year. Advance is a work in progress, and the stock has the potential to go higher should the company continue to produce better-than-expected results.

That said, the turnaround plan will take time to fully implement, and as O'Kelly notes, tariffs have added a lot of uncertainty to it. For investors interested in buying in, patience would likely be prudent. Thursday morning's 40%-plus gain was great to see for shareholders, but the stock will likely continue to take a volatile path from here.

Should you invest $1,000 in Advance Auto Parts right 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 10 best stocks 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 $644,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $807,814!*

Now, it’s worth noting Stock Advisor’s total average return is 962% — a market-crushing outperformance compared to 169% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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Lou Whiteman 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.

The U.S. government has announced plans to spend "tens of billions" to upgrade the air traffic control system, advancements that will hopefully help alleviate concerns about flying following a series of high-profile incidents.

The airlines are trading higher on the news, with Delta Air Lines (NYSE: DAL) and United Airlines Holdings (NASDAQ: UAL) each up 7% as of 1:30 p.m. ET and American Airlines Group (NASDAQ: AAL) up 5%.

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Image source: Getty Images.

Bringing order to in-air chaos

The nation's air traffic control system is in desperate need of an upgrade, and incidents this year including a fatal mid-air collision over the Potomac River in Washington, D.C. and a recent outage at Newark Liberty International Airport have some questioning whether it is safe to fly.

United Airlines has been forced to slash its busy summer schedule due to disruptions at Newark.

On Thursday, Transportation Secretary Sean Duffy outlined his proposal to fix the system during a Congressional appearance that also included several airline CEOs. The administration is urging Congress to approve billions in funding to replace aging radar and other equipment and overhaul the tech infrastructure.

Speaking elsewhere on Thursday, President Donald Trump said the government is "now in the market to buy a gorgeous brand new system" to handle air traffic control.

Though the changes cannot be implemented overnight, a change in the narrative away from focusing on the issues and toward fixing them could help boost demand for air travel.

Is now the time to buy airline stocks?

Unfortunately for the industry, airline investors have a lot more to worry about than just air traffic control modernization. This is a highly cyclical industry that is tied closely to the health of the consumer. When times are tough, households and businesses are more likely to cut back on travel than on paying for basic essentials.

On earnings calls this quarter, execs largely said that demand is holding up for now but could come under pressure if tariffs and inflation sustain into the summer. With that in mind, the stocks are also likely moving on progress on the trade war front.

Those considering buying in now should pay close attention to demand trends in the weeks and months to come. For investors willing to accept the potential for turbulence, Delta and United have industry-leading balance sheets and the scale necessary to take advantage of an uptick in interest in flying from here.

Should you invest $1,000 in United Airlines right now?

Before you buy stock in United Airlines, 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 United Airlines 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 $623,103!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $717,471!*

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Satellite-imagery specialist BlackSky Technology (NYSE: BKSY) reported better-than-expected quarterly results and kept its full-year guidance intact. Investors are relieved, sending the company's stock up 25%, as of 11:30 a.m. ET.

A growing backlog of future business

BlackSky provides high-resolution imagery, analytics, and monitoring services via a fleet of satellites to government and commercial customers. The company lost $0.42 per share in the first quarter on revenue of $29.5 million, topping Wall Street's estimate of a $0.46 per-share loss on $27 million in sales.

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Image source: Getty Images.

Revenue was up 22% year over year, and BlackSky booked more than $130 million in new contracts. The overall backlog grew by $104 million in the quarter, or 40%, and now represents $366 million in future business.

Investors are seeing strong demand, driven by new mission applications that are enabled by the combination of very-high resolution imagery, high-frequency monitoring, and [artificial intelligence] AI-enabled insights," CEO Brian E. O'Toole said in a statement. "We're on track to begin providing early access to major customers and commence general commercial availability later this year."

The company also said it expects $125 million to $142 million in revenue for the full year, in line with the $132.4 million consensus estimate.

Is BlackSky stock a buy?

BlackSky is in the early stages of its development, so when earnings season comes along, investors mostly just want to see signs that the company remains on track. They got that and more in this quarter, as the growth in future business is an indication that customers see the potential in what BlackSky is offering.

However, some caution is warranted. Space stocks are volatile by nature, and with the stock valued at more than 2x revenue, one could argue that some of that future growth is already priced in. But for those investors with a high risk tolerance, BlackSky could be an attractive candidate for a well-diversified portfolio.

Should you invest $1,000 in BlackSky Technology right now?

Before you buy stock in BlackSky Technology, 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 BlackSky Technology 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 $623,103!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $717,471!*

Now, it’s worth noting Stock Advisor’s total average return is 909% — a market-crushing outperformance compared to 162% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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Lou Whiteman 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.

Law enforcement vendor Axon Enterprise (NASDAQ: AXON) posted strong year-over-year growth in the first quarter and raised its guidance for the year. Investors cheered the results, sending Axon shares up 12% as of 10:30 a.m. ET.

Image source: Axon Enterprise.

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Continued strong growth

Axon, the maker of tasers, body cameras, evidence tracking software, and other products for law enforcement customers, earned $1.41 per share in the first quarter on sales of $604 million, easily topping Wall Street's estimate of $1.24 per share on sales of $586 million. Sales were up 31% compared to a year ago and per-share earnings climbed by 23%, marking the 13th consecutive quarter of at least 25% revenue growth.

Software led the way, with 39% revenue growth, which sets Axon up nicely for future growth. Annual recurring revenue grew by 34% to $1.1 billion and the company improved its net revenue retention rate by 1 basis point to 123%, suggesting that existing customers continue to do more business with Axon.

Axon said it now expects full-year revenue of between $2.6 billion and $2.7 billion, which is about $50 million above previous estimates. At the midpoint of that range, the guidance would suggest full-year growth of 27%.

Is Axon Enterprise a buy?

Axon has been an amazing performer through the years. The only knock on the stock is that a lot of that future growth is arguably already priced in. Axon shares trade at more than 100 times future earnings.

This is a stock that seemingly always looks expensive, but with a track record of justifying investor optimism. The key to Axon's success has been to forge tight relationships with its customers and continue to layer on new products to increase spending.

To that end, the company recently updated its vehicle intelligence platform to incorporate capabilities like automated license plate recognition and real-time camera alerts.

Investors need to be aware that stocks like Axon with a high valuation tend to be volatile, and even a slightly less-than-perfect quarter can send shares tumbling. But for those who can stomach that risk, Axon shows no signs of slowing down.

Should you invest $1,000 in Axon Enterprise right now?

Before you buy stock in Axon Enterprise, 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 Axon Enterprise 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 $623,103!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $717,471!*

Now, it’s worth noting Stock Advisor’s total average return is 909% — a market-crushing outperformance compared to 162% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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Lou Whiteman has positions in Axon Enterprise. The Motley Fool has positions in and recommends Axon Enterprise. The Motley Fool has a disclosure policy.

Here's our initial take on Shopify's (NASDAQ: SHOP) fiscal 2025 first-quarter financial report.

Key Metrics

Shopify Posts Growth, but Questions Remain

Shopify posted solid growth in the quarter, with revenue up 27% year over year and gross merchandise volume sold on its platform up 23% to nearly $75 billion. The company also reported a higher net loss, but much of that was accounting related. Backing out the impact of equity investments, net income was up 57% to $226 million in the quarter, and free cash flow climbed by a similar percentage to $363 million.

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The company posted a 15% free cash flow margin in the quarter, the seventh consecutive quarter of double-digit free cash flow.

Heading into the quarter, investors were focused on how tariffs and trade wars would impact Shopify's core business. Although the company itself is not a big importer, many of its customers rely on China for merchandise sold on the Shopify platform. The elimination of the "de minimis" loophole, which allowed shipments from China valued at less than $800 to enter duty-free, was particularly worrisome.

Shopify's outlook provided no reason for further panic but also did little to quell the fears. The company expects revenue growth in the current quarter in the mid-20 percentage-wise, matching but not topping Wall Street's forecast for 23% growth.

In a statement, company president Harley Finkelstein made the case that "businesses perform better on Shopify, regardless of market conditions." Shopify's set of tools can help merchants better navigate changes in tariffs and other trade policies, potentially helping the business to gain new customers in the quarters to come.

Immediate Market Reaction

Given the looming threat of tariffs, the market is taking a glass-half-empty approach to this report and the guidance for what is to come. Shopify shares were down about 8% in premarket trading following the release but ahead of the market open.

What to Watch

With the market seemingly moving more on broader macro fears than on Shopify's actual results, management is likely to spend a lot of time on the call talking investors through their outlook for the quarters to come and how Shopify will attempt to navigate through the uncertainty.

The quarter seemingly did little to settle the debate over whether Shopify is a net loser or net winner from the trade wars. But the strong growth and forecast for further growth in the second quarter, coupled with the cash generation, does provide ample evidence that Shopify is a survivor even if conditions worsen in the quarters to come.

Helpful Resources

• Full earnings report
• Investor relations page

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

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Lou Whiteman has positions in Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.

Railroads are feeling some pain due to ongoing trade uncertainty, but it is yet to trickle down to the companies to railroad suppliers.

Shares of Wabtec (NYSE: WAB), formerly known as Westinghouse Air Brake Technologies, were trading up 10% at 10:30 a.m. Eastern after the locomotive manufacturer beat quarterly earnings expectations and provided a more optimistic outlook for the full year.

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Profitability on the rise

Wabtec manufacturers and services a range of heathy industrial equipment, including rail locomotives. The transportation sector has been in a rut lately as macro issues have caused a pullback in inventories, but companies are still buying Wabtec equipment.

The company earned $2.28 per share in the quarter on revenue of $2.61 billion, beating the consensus profit estimate by $0.25 per share while matching expectations on revenue. Revenue was up 4.5% year-over-year, and Wabtec improved its operating margin by 190 basis points to 22.1%.

Wabtec said that international revenue helped boost results. The growing global fleet is also helping the company to expand the service, components, and digital recurring revenue side of the business.

Is Wabtec stock a buy?

The company expects the momentum to continue. Wabtec boosted the upper end of its full-year earnings guidance to $8.95 per share from $8.75 per share while keeping the lower end intact.

CEO Rafael Santana said that the company is "approaching the remainder of the year with caution but with the discipline and focus to take the necessary actions to deliver against our commitments in an uncertain and volatile economic landscape."

If conditions worsen, Wabtec is unlikely to be immune from a recession, but the company's long-term strategy to build its global business and lean more on recurring servicing revenue instead of just new equipment sales appears to be paying off. For those with a long-term mindset, Wabtec could be an attractive addition to a diversified portfolio.

Should you invest $1,000 in Westinghouse Air Brake Technologies right now?

Before you buy stock in Westinghouse Air Brake 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 Westinghouse Air Brake 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 $561,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $606,106!*

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Airlines are among the most discretionary sectors out there, tied closely to the health of the consumer. So, perhaps it is no surprise that the stocks are seeing an oversize reaction to reports suggesting key parties are moving to de-escalate the trade war gripping the U.S. economy.

Shares of JetBlue Airways (NASDAQ: JBLU) traded up 10% as of 10 a.m. ET, and shares of United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV) were all up more than 5%.

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Clear skies up ahead?

We are only halfway through airline earnings season, but the message from the companies that have reported is clear: The industry is not seeing a dramatic fall-off from near-record demand, but executives are anticipating declines in demand should tariffs eat into the economy and cut consumer purchasing power.

Historically, airlines have been a bad sector to invest in during a recession. Households struggling to pay bills and afford groceries are unlikely to book vacations.

On Wednesday, investors were buying in hopes a worst-case scenario could be avoided. The market is up big on reports that the White House is mulling cuts to steep tariffs on Chinese imports, a move that could lessen the blow on consumers and lower the odds the U.S. falls into a recession in the second half of 2025.

Is now the time to buy airline stocks?

Investors should proceed with caution from here. The market has been volatile of late, trading up and down based on the latest tariff headlines. It is dangerous to try to get ahead of rumors, and until there are actual moves to de-escalate, it is possible these gains could evaporate just as quickly as they materialized.

For those willing to accept the turbulence and look past whatever near-term noise might be on the horizon, Delta and United are the safest investment choices from this group. JetBlue and American have relatively high debt burdens and questions about their revenue models, and Southwest is in the process of eliminating consumer-friendly policies and could see a backlash in the quarters to come.

United execs sounded an optimistic tone about the quarters to come even with the headwinds the airline is currently facing. If those headwinds recede, the airline looks best-positioned to gain altitude from here.

Should you invest $1,000 in United Airlines right now?

Before you buy stock in United Airlines, 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 United Airlines 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 $561,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $606,106!*

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Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines and Southwest Airlines. The Motley Fool has a disclosure policy.

Old Dominion Freight Line (NASDAQ: ODFL) is feeling the pinch from global trade uncertainty, but the impact isn't as bad as investors had feared. Shares of Old Dominion were trading up 9% as of 10 a.m. ET after the company reported better-than-expected results Wednesday morning. But the stock had given all that back in the next 30 minutes.

Driving into headwinds

Trucking company Old Dominion earned $1.19 per share in the first quarter on revenue of $1.37 billion, beating Wall Street's $1.14 per-share consensus profit estimate and matching the top-line estimate. Revenue was down 6% year over year and net income fell by 13%, but investors had been bracing for far worse results.

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Old Dominion specializes in domestic less-than-truckload shipping, meaning it transports freight for multiple customers from distribution centers. CEO Marty Freeman said that the results "reflect the ongoing softness in the domestic economy."

This is a business that benefits from scale. Old Dominion's operating ratio-- a measure of expenses compared to revenue -- rose 190 basis points to 75.4%. Freeman said the decreased volumes had a "deleveraging effect on many of our operating expenses."

Is Old Dominion stock a buy?

Investors should not expect a quick turnaround for this business. Freeman said "there continues to be uncertainty" in the economy, and with the full impact of tariffs only now beginning to hit U.S. ports, there will likely be a further slowdown in domestic trucking up ahead.

The good news is Old Dominion has the wherewithal to survive a downturn, and its best-of-class operations should help it to recover along with the economy. But trading at 30 times forward earnings in the face of a near-term slowdown, the stock can hardly be called inexpensive.

Old Dominion is a solid hold right now, but there is no reason to jump in and buy in this environment.

Should you invest $1,000 in Old Dominion Freight Line right now?

Before you buy stock in Old Dominion Freight Line, 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 Old Dominion Freight Line 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 $561,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $606,106!*

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Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Old Dominion Freight Line. The Motley Fool recommends the following options: long January 2026 $195 calls on Old Dominion Freight Line and short January 2026 $200 calls on Old Dominion Freight Line. The Motley Fool has a disclosure policy.

Investors are looking for winners as government officials inch closer to a defense budget, and Huntington Ingalls (NYSE: HII) looks like a potential winner. Shares of the shipbuilder are trading up 5% on Friday as I write this after receiving a double upgrade from Goldman Sachs.

Opportunities ahead

Huntington Ingalls is one of two primary shipbuilders for the U.S. Navy, operating out of the Newport News shipyard in Virginia and smaller yards on the Gulf Coast. The company is the nation's sole builder of aircraft carriers and makes much of the U.S. nuclear sub fleet.

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The defense company has been sailing through choppy waters of late. It takes years to build these big vessels, and Huntington Ingalls in some cases is still operating under contracts signed before the pandemic. Labor and raw material costs have soared since then, and in many cases Huntington Ingalls has been forced to eat that added expense.

But Goldman Sachs analyst Noah Poponak sees clear sailing up ahead. The bank yesterday upgraded Huntington Ingalls to buy, from sell, and upped its price target to $234, from $145. The stock closed Thursday at $201.

The analyst believes Navy shipbuilding will be a relatively high priority for the Pentagon in the years to come. Huntington Ingalls could also benefit from the administration's focus on domestic labor issues and supply chains.

Earlier in the week, Navy Secretary John Phelan said domestic shipyards are "a big, big priority for the president."

Is Huntington Ingalls a buy?

Huntington shares are down nearly 30% from their early 2024 highs. It appears the tide might be turning in its favor, but investors should be patient.

This is not a quick-change industry. New ship awards today will not generate revenue for years, and any talk of new shipyards, even if funded by the government, would take nearly a decade to pay off for investors. That leaves a lot of time for plans to change, and priorities to shift.

There's some security for investors knowing companies like Huntington Ingalls are deemed essential, which hopefully limits the downside. But the upside from here could still take time.

Should you invest $1,000 in Huntington Ingalls Industries right now?

Before you buy stock in Huntington Ingalls Industries, 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 Huntington Ingalls Industries wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

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