Shares of Deckers Outdoor (NYSE: DECK) continue to tumble. The parent company of footwear brands including UGG, HOKA, Teva, and Ahnu has fallen roughly 50% since peaking early this year at over $200 per share.

It never feels good to buy a stock that continues to go down. It's only human to want to buy winners. The reality is that all companies face adversity at times; the trick is knowing when the company is working through minor bumps or if there are serious problems underneath the surface.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

So, I took a peek into the business to see which side of the coin Deckers Outdoor lands on. Here is whether you should invest $1,000 into Deckers stock today.

Image source: Getty Images.

Core brands continue to lead the way despite some industry headwinds

Deckers Outdoor's two primary brands are UGG, a California lifestyle brand most known for its boots, and HOKA, a premium running shoe brand. Together, UGG and HOKA combined for $4.76 billion of the company's $4.99 billion total sales in fiscal 2025.

The good news is that both brands continue to perform well. Sales of UGG and HOKA increased 13.1% and 23.6%, respectively, in fiscal 2025. But Q4 sales growth was much lower, just 3.6% for UGG and 10% for HOKA in Q4. In other words, sales momentum has dramatically slowed.

Slowing growth isn't ideal, but there is a fair amount of evidence that Deckers is dealing with industrywide headwinds rather than internal issues. Uncertainty regarding tariffs has complicated the supply chain for footwear companies, which primarily manufacture outside of the United States. Deckers manufactures most of its products in Vietnam.

Management estimated that the company's cost of goods sold may increase by $150 million in fiscal 2026 due to tariffs, and is unsure how that may impact consumer demand. The company declined to offer financial guidance for the upcoming year.

The stock's decline may have created a buying opportunity -- though risks exist

Shoes are a discretionary spend for most consumers, so economic uncertainty can easily disrupt business. However, it could be a buying opportunity for the stock if these challenges are temporary and the brands themselves remain strong with buyers.

Deckers is holding up far better in this operating environment than Nike, which reported a 9% year-over-year sales decline in its most recent quarter. I think it's a positive sign that HOKA is Deckers Outdoor's fastest-growing brand, while Nike, the industry leader, is struggling.

If you zoom out, the HOKA brand's recent growth is no fluke. The brand's sales have skyrocketed from just $352 million in fiscal 2020.

Deckers is also well-equipped to navigate a challenging business climate, with a debt-free balance sheet and nearly $1.9 billion in cash on hand. Management re-upped the company's share repurchase program in Q4 as well, bringing its authorized buybacks to $2.5 billion, or 15% of its current market capitalization. That's going to do wonders in establishing a solid floor for earnings-per-share growth.

Whether it's sneakers or apparel, fashion brands are a popularity contest. The risk in these stocks is that the brands lose their appeal. Fortunately, that doesn't seem to be the case here.

Should you invest $1,000 in Deckers Outdoor stock today?

Things could always change in the future, but Deckers Outdoor seems poised for a bounce-back once the economic landscape improves. Consumer sentiment has taken a clear hit amid the uncertainty in recent months.

The negativity is weighing on shoppers, and the stock's steep decline could be as simple as the market lowering growth expectations. Earlier this year, analysts were anticipating approximately 15% annualized long-term earnings growth from Deckers. Those estimates have dropped to just 6.4% today.

Deckers traded at a price-to-earnings ratio of 37 in January, but that has plunged to just 17. Even modest sales growth coupled with those massive buybacks should generate the mid-single-digit earnings growth analysts now expect, and there could be significant upside potential if growth eventually reaccelerates and drives that valuation higher again.

The stock can always go lower, but the long-term risk-to-reward dynamic looks attractive here, making Deckers Outdoor a fine buy-and-hold candidate to park $1,000 in.

Should you invest $1,000 in Deckers Outdoor right now?

Before you buy stock in Deckers Outdoor, 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 Deckers Outdoor 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 $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 173% 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

Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Deckers Outdoor and Nike. The Motley Fool has a disclosure policy.

Manufacturing is the basis of the global economy. Almost everything, from footwear to automobiles, is produced in factories. Within that landscape, Fastenal (NASDAQ: FAST) has built a tremendous business.

The company distributes fasteners, supplies, safety gear, and other products that almost every manufacturer needs but often overlooks.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Decades of steady growth have made Fastenal a giant in the industry, and its shareholders quite wealthy. The company has paid and raised its dividend for 25 consecutive years, and returned over 13,000% since the mid-1990s.

Shares are up 67% over the past three years alone. Can the stock continue to deliver, or is Fastenal approaching the end of its runway? Here is what you need to know.

Image source: Getty Images.

Innovation and a convenience-focused value proposition have fueled Fastenal's success

Supply chains are crucial to all manufacturers. But while most companies focus on the core materials they need to build their products, they often overlook the simple items that workers frequently need. Think nuts and bolts, safety goggles, and batteries. Fastenal has found immense success catering to this need.

Fastenal is a leading distributor of industrial supplies, selling essential yet under-the-radar products to its customers. It focuses on technology to provide excellent service and nearly unbeatable convenience.

For example, Fastenal installs vending machines at customer facilities, allowing workers to easily access what they need without interrupting their work. Fastenal will also open on-site stores at larger facilities and has a full-fledged e-commerce storefront.

Continuous expansion has helped Fastenal continue to grow its top and bottom lines:

FAST Revenue (TTM) data by YCharts

A diversified, growing revenue base funds a rising dividend

Today, Fastenal has approximately 130,000 vending machines installed, up from 55,000 in 2015. It seems clear that Fastenal's business model is effective, so it's more a matter of how long the company can sustain its expansion.

Most manufacturing sites are small, making vending machines a great solution. Fastenal's installed vending base grew by 12.2% from 2023 to 2024 and by 12.4% year over year in Q1 2025, so its growth momentum remains strong. Management estimates that its addressable market could support upward of 1.7 million units.

Fastenal also works with national accounts, which often buy more but have more complex needs. The company signs contracts with these customers. In 2024, national accounts represented 63% of total sales. However, no single customer contributed more than 5% of Fastenal's sales last year, so there is little risk of painful fallout if any given customer were to leave.

Such a diverse business enables Fastenal to continue paying and increasing its dividend. The company has raised its payout through both the 2007-2009 financial crisis and the COVID-19 pandemic, two of the worst scenarios for its industrial-focused customer base in decades.

The dividend payout ratio is higher than you'd like to see in most industrial stocks, at 80% of earnings. However, Fastenal doesn't spend much on capital expenditures, and the business has zero net debt. Management has raised the dividend at an annualized rate of 12% over the past decade, and occasionally pays a special dividend.

Fastenal's willingness to return cash to shareholders is a significant contributor to the stock's long-term results.

Is it too late to buy Fastenal stock?

Wall Street also seems to think that Fastenal will continue to sustain solid growth. Analysts estimate the company will grow earnings by an average of just over 10% annually over the long term.

That doesn't mean the stock is without risks. Much of what Fastenal sells comes from non-U.S. sources, which means tariffs could weigh on the business if they persist. Additionally, Fastenal's business would be affected during a recession, as the company's manufacturing-driven customer base would likely slow.

But while Fastenal's future appears bright, the stock's valuation already reflects that. The stock's success has pushed its price-to-earnings (P/E) ratio to 42, which is a bit high for a business with an expected 10% earnings growth rate.

That values the stock at a PEG ratio of about 4.0, and I generally shy away from buying high-quality stocks above PEG ratios of 2.0 to 2.5. The risk of downside if something goes wrong becomes uncomfortably high as you start going beyond that.

So it's not too late to be bullish on Fastenal, but investors would be wise to wait for a lower price before scooping up shares.

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

Before you buy stock in Fastenal, 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 Fastenal 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 $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 173% 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 2, 2025

Justin Pope 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.

Stock prices can do irrational things from day to day, or even for a few years. But if you look at more extended periods, you'll see that the market is pretty good at sniffing out winning and losing companies. That's why The Motley Fool recommends long-term investing.

So, when a stock, say, The Trade Desk (NASDAQ: TTD), returns over 2,300% since its initial public offering in 2016, investors can feel like that company is genuinely worth looking at more closely.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

The technology company has continued to grow in a lucrative but highly competitive advertising space. Despite its long-term performance, The Trade Desk is down over 40% from its high. Is the stock still a long-term winner?

Here is whether investors should consider adding the stock to their portfolios today.

Image source: Getty Images.

An alternative to the "walled garden" dominance of big tech companies

Advertising has been around forever, and for a good reason: It works. But an age-old industry is evolving. Advertising dollars are steadily shifting from newspapers, magazines, and broadcast television to the internet, where your online footprint generates data that companies can use to target you with ads they think you'll respond to.

Google (Alphabet) and Facebook (Meta Platforms) built trillion-dollar businesses on this trend. They act as gatekeepers in internet search and social media, a $500 billion market between both segments. These companies operate walled garden ecosystems, meaning they make the rules, keep the data, and give little control to advertisers.

As big and powerful as these walled gardens are, there are other opportunities in the digital advertising market -- in connected TV, online video, websites, smartphone apps, mobile web browsers, and internet audio. That's where The Trade Desk has thrived.

Its technology platform enables companies to purchase ad space, target their ads to their ideal audience, and track the results of their ad campaigns. It also offers more transparency and control than these walled gardens, a big deal to advertisers, as evidenced by The Trade Desk's success over the years.

Why The Trade Desk could continue to grow profitably

Sustained, profitable business growth is the key ingredient for a winning long-term investment.

The Trade Desk has generated $2.57 billion in revenue over the past four quarters, converting $0.26 of every dollar into free cash flow. The company can continue to build on that. Gross ad spending on the platform was approximately $12 billion in 2024, just a fraction of an estimated $135 billion opportunity in digital media (excluding search and social apps).

Additionally, an estimated $300 billion is still spent on traditional media, which will continue to shift to digital over time. The Trade Desk's gross ad spending has grown by 24% to 25% annually from 2022 to 2024, so there aren't any signs of growth slowing down meaningfully.

TTD Revenue (TTM) data by YCharts.

The Trade Desk is currently transitioning customers to its new Kokai platform, which utilizes artificial intelligence to optimize ad spending, thereby helping drive better campaign results for customers and ultimately leading to improved monetization for The Trade Desk. That could mean higher profit margins over time.

Lastly, I don't think The Trade Desk gets enough credit for taking care of its shareholders. The company's discipline in managing stock-based compensation has limited share dilution to just 3.4% over the past five years. That's a big deal because a higher share count diminishes a stock's potential returns by spreading the company's profits across a broader shareholder base.

The recent sell-off offers investors an opportunity

Stocks with stellar long-term track records, like The Trade Desk, don't go on sale often. But that is precisely what's happened. A rare, disappointing quarter in fourth-quarter 2024 sent the stock tumbling from a valuation, as measured by enterprise value-to-revenue, that had grown increasingly hot over the past few years.

When you buy and hold a stock, you are, in a way, partnering with that company. You want to feel good about who is steering the ship. On the Q4 2024 earnings call, The Trade Desk's founder and CEO, Jeff Green, discussed 15 ways the company is capitalizing on industry growth trends. It's an encouraging glimpse into The Trade Desk's leadership.

Now, the stock is valued at a level rarely seen over the past six years.

TTD EV to Revenues data by YCharts. EV = enterprise value.

The Trade Desk seems poised to continue its ongoing trajectory of profitable growth moving forward. Its current price looks like a fantastic starting point for a fresh investment, as a lower valuation means that revenue and earnings growth will more likely reflect in the stock's returns.

Overall, it seems likely that The Trade Desk will continue to be a winning stock over the long term.

Should you invest $1,000 in The Trade Desk right now?

Before you buy stock in The Trade Desk, 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 The Trade Desk 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 $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

Now, it’s worth noting Stock Advisor’s total average return is 792% — a market-crushing outperformance compared to 173% 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 2, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, and The Trade Desk. The Motley Fool has a disclosure policy.

The loose regulatory nature of the cryptocurrency market has led to an influx of meme coins, cryptocurrencies that lack meaningful real-world utility but can attract investors due to their appeal as a joke, because they are affiliated with someone or something popular, or for some other superficial reason.

Dogecoin (CRYPTO: DOGE) is the original meme coin. It was created as a joke, but Dogecoin's price has risen by more than 50,000% since 2014. Those returns are no joke.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

It's been a volatile journey, though. Dogecoin is currently on a slide, having dropped to less than $0.20 after soaring to more than $0.46 in late 2024. With Bitcoin setting new highs recently, should investors buy Dogecoin at less than $0.25 and ride the train?

Here is what you need to know.

Image source: Getty Images.

Dogecoin has surpassed $0.25 several times before

Dogecoin was around for a while before its popularity exploded in 2021. The meme coin has a large and supportive community and is a fully functioning cryptocurrency -- meaning people can use it as a digital currency at the few places where it's accepted.

During the past five years, Dogecoin's price has surged to $0.25 or higher a number of times. However, it has struggled to stay there. Previous rallies have occurred during periods of high cryptocurrency optimism, such as 2020-2021, and immediately after the 2024 election, when investors cheered an incoming president who had campaigned on a pro-cryptocurrency message.

Remember, investor sentiment is crucial to Dogecoin's price because cryptocurrencies lack underlying earnings or tangible assets to support their value. Their prices depend on the market's willingness to pay more for tokens.

Three factors working against Dogecoin's long-term price potential

That willingness, or the demand for the cryptocurrency, stems from three key factors: utility, tokenomics, and competition.

Dogecoin has problems in all three areas, which could continue to work against it over time.

First, Dogecoin lacks significant utility. Its popularity has resulted in some adoption: For example, some investment firms hope to launch Dogecoin exchange-traded funds (ETFs), which is a step in the right direction, and some merchants will accept it as payment. Still, Dogecoin is used for trades, tips, and donations primarily within its community. Meme coins generally aren't intended for much else.

Second is Dogecoin's tokenomics. Many view Bitcoin as an anti-inflationary digital asset due to its increasing adoption and capped supply. But Dogecoin has an unlimited maximum supply, and miners earn about 10,000 tokens per minute. This ever-increasing supply has much the same effect on Dogecoin's price that share dilution has on a company's stock.

Third, there is competition from newer meme coins. Many investors invest small sums in meme coins for fun. They typically aren't a serious component of a portfolio. Dogecoin's name recognition helps it, but investors may opt for different meme coins when newer, hotter tokens go viral. Less investor interest means lower prices.

Should you buy Dogecoin at less than $0.25?

The main points of Dogecoin and other meme coins are to have fun and build community around your favorite tokens. So it's perfectly fine to buy Dogecoin today, as long you're not spending a meaningful amount of money or seriously expecting a profit.

Of course, Dogecoin could spike and go to $0.25 and beyond, just as it has before. And if you buy Dogecoin and it happens to make you money, then that's great! Just don't count on it.

Dogecoin, like other meme coins, should not be considered a bigger deal than it is. It's all about going in with the proper expectations.

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

Before you buy stock in Dogecoin, 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 Dogecoin 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $828,224!*

Now, it’s worth noting Stock Advisor’s total average return is 979% — a market-crushing outperformance compared to 171% 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 2, 2025

Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

Sometimes, it feels like bank stocks carry a stigma.

Perhaps it's the persona of the extremely wealthy, the "suits" as some on social media might call them, that some associate with big banks. Maybe it's a result of the political backlash from the financial aid some banks received during the 2007-2009 financial crisis. Or, it could be that banks are complicated businesses that even professional analysts can struggle to sift through.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

The Motley Fool dove into the financial sector and reported on the world's largest financial companies by market cap. JPMorgan Chase (NYSE: JPM) checked in at No. 2, after Berkshire Hathaway. America's largest bank has delivered strong returns for shareholders, with annualized investment returns exceeding 25% during the past five years.

Is the stock still a buy, or has this big bank stock peaked? Here is what you need to know.

Image source: Getty Images.

A lucrative business with a virtually impenetrable moat

Big banks like JPMorgan Chase touch almost every aspect of the economy. They are involved in a wide range of financial products and services, including (but not limited to) consumer and business banking, mortgages, investment management, and student lending. A bank's finances are a complicated web, but a bank's primary function is lending money at higher rates than it pays to depositors.

There are two competitive advantages in that game: size and stickiness. Let me explain.

Larger banks have more resources to invest in areas such as technology to analyze and act on data, marketing to attract customers, and cheaper access to capital that they can use to undercut smaller competitors. It's a significant reason big banks continue to grow larger, while the total number of banks and credit unions in the U.S. has steadily declined.

JPMorgan Chase is America's largest bank with more than $4.3 trillion in assets. It offers practically every financial product or service you could imagine. A customer is more likely to stick with JPMorgan Chase as they use them for more of their financial needs.

It's hard to see anything other than government regulation threatening the wide moat JPMorgan and other large U.S. banks enjoy.

Why JPMorgan Chase will likely continue to grow

Since JPMorgan Chase is essentially everywhere in the economy, it is likely to grow in tandem with it. That trend has played out for years:

JPM Total Assets (Quarterly) data by YCharts

A bank also benefits from inflation, where asset prices, home values, and loan sizes all grow over time. The catch is that recessions can hurt banks when people and businesses spend and borrow less, and loan defaults rise.

It's a part of investing in bank stocks, though it's worth noting that the 2007-2009 financial crisis was one of the worst events in the financial sector since the Great Depression. Some banks didn't survive, but JPMorgan Chase did, and has thrived in recent years. The stock has outperformed the S&P 500 index by a wide margin during the past decade.

Is the stock a buy?

Here's the problem for investors now. JPMorgan Chase stock currently trades at about 2.2 times its book value, near its highest valuation during the past decade. That's not ideal when the economy is showing multiple signs of potential weakness including:

• U.S. household credit card debt is at an all-time high.
• Auto loan delinquencies are at decade-highs, excluding a spike during the pandemic.
• Student loan repayments are fully resuming after a multiyear pandemic freeze.
• Interest rates are rising, squeezing demand for mortgages and other loans.

Even JPMorgan Chase's chief executive officer, Jamie Dimon, has publicly expressed concern for the economy's direction. Although JPMorgan is a world-class business and bank, it's tough to justify paying such a high valuation for a company that could soon be subjected to a weaker economy than it has enjoyed for most of the past five years.

Nobody can predict these things with certainty, but investors may be wise to tread lightly here.

Should you invest $1,000 in JPMorgan Chase right now?

Before you buy stock in JPMorgan Chase, 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 JPMorgan Chase 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $828,224!*

Now, it’s worth noting Stock Advisor’s total average return is 979% — a market-crushing outperformance compared to 171% 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 2, 2025

JPMorgan Chase is an advertising partner of Motley Fool Money. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

People love round numbers, and Bitcoin (CRYPTO: BTC) is a notable one, having reached $100,000 late in 2024. After some volatility, something you'll see occasionally when you invest in cryptocurrencies, Bitcoin has recrossed the $100,000 mark and is up 8% during the past month alone.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Where Bitcoin's price goes tomorrow, or next week, is anyone's guess. However, some exciting catalysts are lining up at the right time that could send Bitcoin's price higher.

Here are four reasons Bitcoin could soar in June.

1. Investor enthusiasm has risen since Bitcoin's price hit $100,000

It's remarkable to think about how far Bitcoin has come. Bitcoin's price crossed the $100,000 marker roughly 15 years after an early Bitcoin investor famously traded 10,000 bitcoins for a couple of pizzas. The Motley Fool conducted research that found that 30% of respondents who had never owned cryptocurrencies were more likely to invest for the first time due to Bitcoin hitting $100,000.

Image source: Getty Images.

The Motley Fool's research also found that 68% of cryptocurrency investors surveyed believe that Bitcoin's price will reach $200,000 in 2025. Market sentiment has a direct impact on Bitcoin's price movement, so such high enthusiasm bodes well for Bitcoin's current momentum.

2. Government spending takes a turn in Bitcoin's favor

The Trump administration and Elon Musk created the Department of Government Efficiency (DOGE) to help reduce federal spending. However, pushback from politicians and the courts has effectively thwarted DOGE's efforts, which also turned out not to do much to reduce spending. Musk has stepped back from his government role, and the looming One Big Beautiful Bill, the Trump administration's budget bill, will likely continue the U.S. government's pattern of running a fiscal deficit.

Bitcoin is a popular anti-inflationary investment. After months of headlines about DOGE's efforts, the pivot back to the government's overspending ways is likely to continue fanning the flames of inflation, which is a tailwind for Bitcoin's price.

3. Trump's latest sign of Bitcoin support

President Donald Trump campaigned on cryptocurrency support, and followed through with an early executive order to establish a strategic Bitcoin reserve. In late May, Trump Media & Technology Group, the parent company of Trump's Truth Social media app, announced a deal to raise $2.5 billion that will help the company begin accumulating Bitcoin.

The Motley Fool's 2025 Cryptocurrency Investor Trends Survey found that Trump's public support for Bitcoin and cryptocurrencies moves the needle, and this announcement is a fresh instance of him putting his weight behind it.

4. Tariff shock is subsiding

Bitcoin rallied in late 2024 on the transition to a more pro-cryptocurrency Trump administration. However, Trump dumped cold water on Bitcoin's price action in early April by announcing aggressive tariffs that shocked and spooked the market. The VIX Index, a commonly used indicator of market fear, spiked to its highest mark since the COVID-19 pandemic.

VIX data by YCharts

Many investors see Bitcoin as a riskier asset than many others, so a fearful market generally works against Bitcoin's price. The market has since calmed down, despite Trump extending and retreating on tariffs on multiple occasions, and different courts issuing conflicting rulings.

Bitcoin has rallied on the perception that such high tariffs seem increasingly unlikely. Things could take a turn for the worse, but assuming that doesn't happen, a calmer market can help Bitcoin continue its rally.

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

Before you buy stock in Bitcoin, 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 Bitcoin 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $828,224!*

Now, it’s worth noting Stock Advisor’s total average return is 979% — a market-crushing outperformance compared to 171% 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 2, 2025

Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

Tobacco stocks aren't for everyone. The fact that they deal in vices and sell addictive products is off-putting to some, while others skip over them in favor of faster-growing businesses. British American Tobacco (NYSE: BTI) is one of the industry's most prominent players, boasting a global presence and a diverse portfolio of cigarette brands and smoke-free nicotine products.

The stock's nearly 7% dividend yield offers firm short-term returns, which investors can appreciate when market volatility rises, as it has recently.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

But can you trust British American Tobacco as a long-term holding in your portfolio? There are some risks, but the upside could surprise you.

Emerging from a tumultuous decade

It has been a particularly rough decade for British American Tobacco, also known as BAT. The stock languished for years as the company worked through two primary challenges:

1. The early stages of an industrywide shift away from cigarettes to smoke-free nicotine products.
2. The consequences of overpaying to merge with Reynolds American in 2017, including a $31.5 billion non-cash write-down on its U.S. cigarette brands in late 2023.

Now the dust is settling.

Tobacco companies are transitioning to electronic cigarettes (vapes), heated tobacco, and oral nicotine pouches, and British American Tobacco is competing. Organic, currency-neutral sales for new category products grew by 8.9% in 2024, rising to 17.5% of total revenue. British American Tobacco is trailing Philip Morris International in its smoke-free efforts, but is ahead of Altria Group, which still depends overwhelmingly on Marlboro cigarettes in the U.S.

Combustible cigarette volumes are declining, but BAT is increasing prices to offset the losses -- a classic tactic for tobacco companies.

Continued growth in new category products and stable cigarette revenues could drive modest but steady long-term growth. Management anticipates 3% to 5% annualized currency-neutral revenue growth starting in 2026. That won't light the world on fire, but it's a path forward from a brutal stretch.

Dividend reinvestment is the path to maximizing returns

The beauty of British American Tobacco is that you don't need blazing growth to produce excellent investment returns.

British American Tobacco's dividend yields 7%. If it hits its growth goals and maintains profit margins, the company could generate total annual returns of 10% to 12% over the long term, and that's without factoring in dividend reinvestment. Pump those dividends right back into the stock, and you're going to see some serious compounding over time.

Some investors question the sustainability of the dividend, but I don't see an issue.

British American Tobacco generated 7.9 billion pounds in free cash flow in 2024 and paid out 5.2 billion pounds in dividends. That's a payout ratio of 66%, leaving a substantial amount left over. Additionally, the company owns approximately a quarter of ITC, an Indian conglomerate with a market value of 5.38 trillion rupees, or roughly $63 billion. That's a valuable asset for BAT, and gives the dividend -- a top financial priority for tobacco companies to begin with -- an extra safety net.

Why the stock should perform better over the next decade

Right or wrong, share prices can influence how investors might view a stock. British American Tobacco is up 43% over the past year, but down 25% from a decade ago.

Fortunately, it appears that the stock's recent momentum is the start of a new era. British American Tobacco's price-to-earnings ratio peaked at about 24 at the end of 2017. It slowly unwound for years, a major contributor to the stock's lousy performance.

British American Tobacco hit bottom at under 8 times earnings early last year, following its massive write-off. Now, with a brighter future ahead, the market is buying. The stock's valuation has risen, but it's still under 10 times 2025 earnings estimates. Investors probably shouldn't expect shares to return to 24 times earnings anytime soon, but the current price is reasonable at the very least.

It should enable shareholders to enjoy returns in line with the company's growth and dividends moving forward. That should make long-term investors very happy.

Should you invest $1,000 in British American Tobacco right now?

Before you buy stock in British American Tobacco, 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 British American Tobacco 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 $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $680,390!*

Now, it’s worth noting Stock Advisor’s total average return is 872% — a market-crushing outperformance compared to 160% 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 April 28, 2025

Justin Pope has no position in any of the stocks mentioned. The Motley Fool recommends British American Tobacco P.l.c. and Philip Morris International and recommends the following options: long January 2026 $40 calls on British American Tobacco and short January 2026 $40 puts on British American Tobacco. The Motley Fool has a disclosure policy.

Investors have spent the past couple of years acquainting themselves with artificial intelligence (AI) and quantum computing. These emerging technologies could represent the most significant leaps forward for humankind since the internet decades ago.

Of course, such groundbreaking technologies can be lucrative investment opportunities. The Defiance Quantum ETF (NASDAQ: QTUM) could be a smart way to add exposure to artificial intelligence and quantum computing to your portfolio.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

The exchange-traded fund has plunged nearly 20% from its high amid the market's recent volatility, one of its steepest declines since it began trading in 2018.

Here are three reasons to buy this AI quantum computing stock on the dip.

1. Quantum computing and AI have significant growth potential

It's impossible to predict what AI and quantum computers could make possible over the coming decades. You might see things you only thought were possible in science fiction. Humanoid robotics is already on the way, which reminds me of a famous action movie from the 1980s featuring a particular cyborg sent from the future.

Plus, AI and quantum computing could eventually be worth trillions of dollars. Research from McKinsey estimates AI could generate $23 trillion in annual economic value by 2040. Meanwhile, quantum computing could start slowly. Technology experts have speculated that practical quantum computers could still be several years away.

However, they could be a game changer once they get here. Boston Consulting Group's report on quantum computing forecasts that quantum computers will create $5 billion to $10 billion in annual economic value by 2030, but projects this to increase to $450 billion to $850 billion by 2040. Time will tell how accurate such estimates and timelines are, but the financial and real-world potential is exciting, to put it mildly.

2. An ETF means you don't have to pick winners

AI and quantum computing present quite a challenge for investors. Most individuals, let alone professional investors, aren't experts in these complex fields.

Therefore, picking individual winners could prove extremely challenging. That's a great reason to invest in a diversified instrument such as the Defiance Quantum ETF. It represents a global basket of 70 companies involved with AI and quantum computing -- someone else did the hard work of picking high-quality stocks in these advanced technology industries.

The fund's top holdings include:

Data source: Defiance ETFs.

Since AI and quantum computing have immense potential but are still so unpredictable, casting a wide net is a wise strategy. It could be a case of the 80-20 rule, where a select few companies produce a majority of the value in AI and quantum computing.

The ETF's construction spans various companies, industries, and countries, reducing risk by limiting the top holding to just 3.31% of the fund's total assets. Additionally, the expense ratio (0.4%) appears reasonable, considering the simplicity and diversification you gain in return.

3. The Defiance Quantum ETF has outperformed the market

Many quantum computing stocks have been highly volatile, and investors who bought at the wrong time have endured steep losses.

The Defiance Quantum ETF has been around since 2018, and has outperformed the Nasdaq Composite, a prominent technology-leaning U.S. stock market index, since about 2021:

QTUM Total Return Level data by YCharts

Past performance does not guarantee future results, but it demonstrates the effectiveness of a diverse approach to speculative industries like AI and quantum computing. I don't see why the Defiance Quantum ETF can't continue to perform well as these technologies mature.

Should you invest $1,000 in ETF Series Solutions - Defiance Quantum ETF right now?

Before you buy stock in ETF Series Solutions - Defiance Quantum 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 ETF Series Solutions - Defiance Quantum 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 $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!*

Now, it’s worth noting Stock Advisor’s total average return is 811% — a market-crushing outperformance compared to 153% 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 April 21, 2025

Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool recommends Alibaba Group and RTX. The Motley Fool has a disclosure policy.