Key Points

• Space companies rushed to go public in 2020 and 2021, but many of their stocks crashed in 2022.

• The IPO market is reviving this year, and space stocks are popular again.

• Space company iRocket will take advantage of the renewed popularity of space stocks and try to go public in Q4 2025.

• These 10 stocks could mint the next wave of millionaires ›

I'll say one thing for COVID-19: It sure was great for special purpose acquisition companies (SPACs). In 2020 and 2021, more than 860 separate companies conducted initial public offerings (IPOs) via reverse mergers into SPACs -- blank-check entities created and listed on the stock exchange specifically to acquire private companies and turn them public. (This was up from, for example, just one such SPAC IPO in 2003 and 10 in 2013.)

Problem is, a lot of these SPAC ideas proved half-baked. Among space stocks that went public as SPACs in those years, losses in stock prices post-IPO reached as high as 90% as early as 2022. Once burned and twice shy, investors began to shun not just SPAC companies, but space companies, too.

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Until now. All of a sudden, in 2025, space stocks are red-hot again -- and momentum traders are rushing to invest in this next big thing (which was also the last big thing just a few years ago). And Wall Street is happy to take advantage of their forgetfulness.

As evidence, I present to you what looks like the first space SPAC IPO of 2025: iRocket.

Introducing iRocket

iRocket bills itself as "a next-generation reusable space rocket developer" aiming to "capture a significant share of the global launch and propulsion market" using "patented MACH-i Landing Engine technology" to create a new class of liquid-fueled reusable rockets that it calls Shockwave. Additionally, iRocket says it has expertise in solid rocket motors, which it will offer the military for use in missiles and interceptor rockets as well as using it for commercial rocket boosters.

This space start-up says it already has $1 billion in letters of intent and memoranda of understanding with several potential customers that want to launch national security and commercial satellites on its rockets. Furthermore, iRocket says it's targeting a global space economy worth $1.8 trillion over the next decade.

Up until this week, however, the number of contracts that iRocket put specific names and numbers to was considerably more modest -- one Cooperative Research and Development Agreement with the U.S. Air Force Research Laboratory worth $18 million, and another "Tactical Funding Increase" contract with the Space Force worth only $1.8 million. Both of these contracts, by the way, appear to have been signed back in 2023.

Nevertheless, with a little help from BPGC Acquisition Corp., "a special purpose acquisition company sponsored by The Hon. Wilbur Ross, the 39th U.S. Secretary of Commerce," iRocket plans to hold an IPO in the fourth quarter of 2025 to offer its stock to the public.

iRocket's SPAC IPO

iRocket values itself at $400 million pre-IPO and "before potential earnouts based on share price performance" (which will presumably accrue to BPGC and other pre-IPO investors). Helping the company reach that valuation, and helping to make the IPO a success, will be one apparently new contract iRocket just announced on Monday. Specifically, iRocket says it will provide up to 30 rockets to launch satellites for new Saudi Arabian space company SpaceBelt KSA over a period of five years -- and be paid up to $640 million for the work.

(It's unknown, however, whether SpaceBelt KSA actually has any satellites built. And iRocket does not currently have a qualified rocket to launch them.)

In an SEC 8-K filing, BPGC informs that it is a Cayman Islands company, and it's apparently not yet listed on a stock exchange. This is curious if true, because the ordinary logic behind a SPAC IPO is that it simplifies the listing process for a privately owned operating business going public by reverse-merging it into a "blank check" SPAC that doesn't actually conduct business but is already publicly traded.

Nevertheless, while some sources seem to think BPGC is publicly traded already and listed on the NYSE under ticker symbol ROSS, I can find no record of such a stock existing. Furthermore, CNBC reports the companies "intend" to list on the Nasdaq after merging -- which would appear to confirm that BPGC is not in fact already publicly traded.

This mystery is further complicated by an intricate transaction described in the 8-K, which says BPGC plans to merge with four other companies (two of which appear to be variations of iRocket), ultimately resulting in a new stock valued at $11.50 a share, or perhaps $10 with attached warrants to purchase additional shares at $11.50 each.

How much the stock actually ends up costing investors won't be known until IPO day, when the shares begin trading later this year.

Should you buy the iRocket IPO?

Which brings us to our real question today: If and when this SPAC IPO happens, should you buy iRocket stock? And my simple answer is: No.

Between the strange lack of announced contracts (up until just this week) to support iRocket's assertion that it has $1 billion in business lined up, and the overly (intentionally?) complex nature of the transaction that will bring iRocket public, this particular SPAC IPO has my Spidey senses tingling. It may all be on the up and up, but it also may not be.

Worst case, investors should lose nothing by waiting until the IPO has happened and taking a good hard look at iRocket's published financials before deciding whether to buy. If everything looks kosher at that point, by all means, go ahead and buy iRocket stock.

In the meantime, though, my advice is simply to stay away.

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Key Points

• V2X was formed from the merger of Vectrus and Vertex Aerospace in 2022.

• The defense stock has racked up some impressive multibillion-dollar contract wins over the last couple of years -- including one just last week.

• Analysts forecast surprisingly strong earnings growth from V2X, although it hasn't happened just yet.

• 10 stocks we like better than V2X ›

Raise your hand if you've ever heard of V2X (NYSE: VVX), the small-cap defense company formed from the merger of defense contractors Vectrus and Vertex Aerospace in 2022?

Yep. That's about what I expected. Even among investors, V2X is the farthest thing from a household name. But it's a name defense investors in particular might want to start paying attention to. Because on July 31, V2X scored a new Pentagon defense contract worth $4.3 billion -- and V2X itself costs only $1.8 billion.

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Introducing V2X

I admit, the first time this company caught my eye was on July 31, when the company's name (or rather, one of its component companies, Vertex) appeared at the very top of the list of the most valuable contracts awarded by the U.S. Department of Defense that day.

"Vertex Aerospace LLC, Madison, Mississippi, was awarded a maximum $4,322,844,989 value, indefinite-delivery/indefinite-quantity contract for the contractor operated and maintained supply service contract for the T-6 [training jet] aircraft," read the announcement, before going on to explain that V2X beat out two other bidders to win the contract, and that the $4.3 billion will be doled out over the course of the next 10 years (ending on July 31, 2034).

Further digging revealed that this isn't the only gigantic contract on V2X's plate, however. In fact, just last year, my fellow Fool Eric Volkman spotlighted a similarly significant win by V2X, when the company landed a $3.7 billion, five-year contract to provide "readiness capabilities" to the U.S. Army, by supporting the operation of training devices, simulators, and simulations.

In fact, averaging out to $740 million per year, that contract is arguably even more significant than last week's $4.3 billion win, which will be worth "only" $430 million per year over its decade duration.

"A billion here, a billion there -- pretty soon you're talking real money"

So... $4.3 billion here, and $3.7 billion there. It seems to me we're already talking about "real money" that V2X is earning off the Pentagon -- $8 billion total, won via just two contracts, over the course of just two years.

But if V2X is rolling in so much Defense Department dough, one wonders, why is it that the stock looks so seemingly cheap at a market capitalization of just $1.8 billion?

Is V2X stock cheap?

Well, let's start with sales. V2X took in $4.3 billion in revenue last year, up 9% from 2023 -- a respectable growth rate for a defense contractor, if perhaps a bit on the slow side for a small-cap defense contractor. What's more, V2X earned less than $35 million in profit on those sales.

That's a net profit margin of less than 1%. Which is to say, pretty slim.

If we apply this margin, then, to the extra $430 million a year V2X will be bringing in from its latest multibillion-dollar contract win, therefore, it's likely to boost V2X's annual earnings by less than $10 million. That's not a lot of money with which to move the needle on a $1.8 billion market capitalization.

Is V2X stock a buy?

Now, the good news is that V2X seems to be getting more profitable as its merger matures, and cost synergies between the two merged businesses, Vectrus and Vertex, work their way through the company. Over the last six months, for example, V2X earned $30.5 million, which is to say nearly as much as it earned in all of 2024. As profitability improves, analysts polled by S&P Global Market Intelligence estimate V2X might earn as much as $73 million this year, and generate $135 million in positive free cash flow.

Assuming the analysts are right, this would value V2X stock at 24 times current-year earnings, but only about 13 times current year free cash flow. That doesn't sound like a lot, but with profits only growing 9% a year, and V2X paying no dividend, it's not necessarily cheap enough to tempt me to buy the stock right now.

The big question for investors is whether V2X can continue improving its profit margin, and perhaps accelerate its earnings growth into the double digits. Many analysts believe the company can accomplish this, forecasting that per-share profits, for example, might double over the next three years -- and that free cash flow might nearly double in two.

I don't know enough about the company right now to say how likely this is, but now that I'm alerted to V2X's existence -- and impressed by its last two massive contract wins -- I'm certainly interested enough to keep following the story, and learning if V2X can deliver on these lofty predictions.

And as soon as I know the answer to that... I'll let you know, too.

Should you invest $1,000 in V2X right now?

Before you buy stock in V2X, consider this:

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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $636,563!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,108,033!*

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Rich Smith 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.

Key Points

• Morgan Stanley raised its price target on Marvell stock to $80 today.

• Another analyst forecast the company's revenue could double in two years.

• Marvell stock looks expensive at 47x FCF.

• 10 stocks we like better than Marvell Technology ›

Shares of Marvell Technology (NASDAQ: MRVL), the system-on-a-chip semiconductor manufacturer, jumped 7.6% through 12:05 p.m. ET Wednesday after Morgan Stanley analyst Joseph Moore raised his price target to $80 a share.

And that's not the only reason.

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Why Morgan Stanley likes Marvell stock

Moore (not the same guy who wrote Moore's Law) forecasts Marvell to earn $2.28 per share in 2026, and values the stock at 35 times forward earnings. "Marvell is firmly in the AI winners camp," writes Moore in a note covered on StreetInsider.com today, but "sentiment has swung aggressively negative" -- and now Marvell stock is down about 33% from its peak back in late January.

Speaking of artificial intelligence, though, the other big Marvell news today is that Fubon Research is reporting interest in Microsoft (NASDAQ: MSFT) in upgrading from 3nm to a more advanced 2nm for its upcoming Maia300 AI chip -- which Marvell will produce. Fubon notes that the change is pushing back production (and revenue) for Marvell from Q1 2026 into Q4 2026 -- but the analyst thinks the chance to sell Microsoft a more advanced chip costing as much as $8,000 per unit "represents a substantial opportunity for Marvell."

Is Marvell stock a buy?

Fubon is guessing the new chip could add $2.4 billion to Marvell's revenue in 2026 and as much as $12 billion in 2027 -- a substantial sum when you consider that Marvell did only $5.8 billion in business in 2024!

Does this make Marvell stock a buy? It depends. The stock costs a steep 47 times this year's estimated free cash flow. But analysts expect Marvell's FCF to double over the next two years, alongside the doubling in revenue. If the growth materializes as planned, Marvell stock actually could be cheap enough to buy.

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

Before you buy stock in Marvell 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 Marvell 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 $630,291!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,075,791!*

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends Marvell Technology and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Key Points

• UBS upgraded Peloton stock to buy this morning.

• The Swiss banker calls Peloton's valuation "undemanding" and sees a turnaround afoot.

• 10 stocks we like better than Peloton Interactive ›

Shares of Peloton Interactive (NASDAQ: PTON), the streaming fitness and equipment company, jumped 14.6% through 11:30 a.m. ET Wednesday after UBS analyst Arpine Kocharyan upgraded the stock to buy with an $11 price target.

That's nearly twice where Peloton stock closed last night.

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Why UBS loves Peloton

UBS sees Peloton making progress cutting costs and growing revenue, resulting in higher expectations for fiscal 2026 profits. Granted, that might not happen, but UBS sees the stock as offering a "favorable risk/reward [ratio] and undemanding valuation" at its present price -- and cash flow is already improving.

All of this leads the analyst to predict that Peloton might guide investors to higher 2026 profit than Wall Street is expecting. Kocharyan's best guess is that Peloton might guide to $400 million or even $450 million in 2026 earnings before interest, taxes, depreciation, and amortization (EBITDA) -- as much as a 25% earnings surprise.

Is Peloton stock a buy?

Now mind you, we're talking about EBITDA here, a rather spongy term and not actual net profit, much less real free cash flow (FCF) that goes into the bank.

Still, Peloton has resumed generating positive free cash flow, and most analysts agree Peloton will remain FCF-positive this year and, indeed, for the foreseeable future. Valued on the $245 million in cash profit the company will probably generate this year, the stock only costs about 11.5 times current year FCF, which I agree is an "undemanding valuation," so long as Peloton can grow as UBS predicts.

Even with $1.1 billion in net debt on the books, the price looks right for this one. I agree: Peloton stock is probably a buy.

Should you invest $1,000 in Peloton Interactive right now?

Before you buy stock in Peloton Interactive, 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 Peloton Interactive 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 $630,291!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,075,791!*

Now, it’s worth noting Stock Advisor’s total average return is 1,039% — a market-crushing outperformance compared to 182% 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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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Peloton Interactive. The Motley Fool has a disclosure policy.

Key Points

• Textron beat on sales and earnings this morning -- then sold off.

• The company's sales didn't grow much, and its earnings grew almost none at all.

• Free cash flow at Textron backs up only 69% of reported net income.

• 10 stocks we like better than Textron ›

Textron (NYSE: TXT) stock tumbled to close down 7.1% Thursday, despite beating analyst forecasts this morning.

Heading into the quarter, Wall Street had Textron pegged for a $1.45 per-share profit on $3.65 billion in quarterly sales. In fact, Textron earned $1.55 per share on sales of $3.7 billion.

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Textron Q2 earnings

That sounds pretty good, except for a couple of things. For one, earnings as calculated according to generally accepted accounting principles (GAAP) were only $1.35 per share, with $1.55 being only a non-GAAP result. For another, even the non-GAAP number was up only $0.01 over what Textron reported a year ago -- and this despite Textron growing sales 5.4% year over year.

In other words, sales were up modestly, boosted by commercial aircraft and helicopter sales, as well as new revenue from the company's MV-75 tiltrotor aircraft. But profit margins on those sales were down.

Free cash flow for the quarter was $317 million, up from $309 million earned one year ago.

Is Textron stock a sell?

With $816 million in trailing-12-month net income and a $14.6 billion market capitalization, Textron stock sells for a P/E ratio of just under 18. That wouldn't be a bad price for a company growing earnings double-digits, and paying a nice dividend yield. Unfortunately, Textron's earnings are struggling to grow even low single digits, and its dividend yield is a measly 0.1%.

Even worse, based on the latest data, Textron is generating only about $0.69 in real free cash flow for every $1 in net profit it reports. Thus, Textron's price-to-free cash flow ratio works out to closer to 26 -- far too expensive for the slow growth rate.

I fear that makes Textron stock a sell.

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

Before you buy stock in Textron, 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 Textron 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 $634,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,046,799!*

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Textron. The Motley Fool has a disclosure policy.

Key Points

• Oklo announced it has completed a "pre-application readiness assessment" for its first NRC reactor license.

• The company plans to file its application for a license for Phase 1 of its construction plan later this year.

• Oklo anticipates getting the reactor on line and generating revenue in 2027.

• 10 stocks we like better than Oklo ›

Oklo (NYSE: OKLO) stock jumped 4% through 1:20 p.m. ET Thursday after the small nuclear reactor-builder announced it has completed its Nuclear Regulatory Commission (NRC) "pre-application readiness assessment" for the first part of a combined license application (COLA) to build its "Aurora powerhouse" at Idaho National Laboratory (INL).

What does this mean?

Translated into English, this means Oklo is one step closer to building a small modular reactor at INL. More precisely, it's one step closer to being able to apply for permission to build said reactor. (Whether NRC deems the application worthy of approval remains to be seen.)

Put this way, it's less of a needle-mover for the stock, but as Oklo CEO Jacob DeWitte explained, it does indicate that NRC thinks Oklo is on track to file an application with a decent chance of getting it approved.

The next step for Oklo along this journey to approval (now underway for nearly a decade) will be to submit its COLA application, and that should happen later this year.

Is Oklo stock a buy?

Oklo's still a long way away from becoming a viable business, although it's 10 years closer than when it started. Long term, the company intends to build reactors in-house, place them on sites near its customers, then operate the reactors and supply power, charging for electricity much in the same way an ordinary electric utility does.

If all goes as planned, the company's first reactor will go online in 2027, and the company will begin generating revenue that year. Oklo won't turn profitable until 2030, however, according to analysts. Whether the stock is a "buy" at its current $10 billion market cap depends very much on how much profit it will generate that year, and in all the years to come.

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

Before you buy stock in Oklo, 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 Oklo 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 $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,050,415!*

Now, it’s worth noting Stock Advisor’s total average return is 1,058% — a market-crushing outperformance compared to 179% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

Rich Smith 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.

Key Points

• Edgewater Research warned Monday that prices and demand for computer memory chips will fall in the second half of 2025.

• On Thursday, TSMC seconded the emotion, warning of a sales slowdown coming in Q3.

• Micron's free cash flow already looks weak relative to reported earnings. A slowdown could make things worse.

• 10 stocks we like better than Micron Technology ›

Micron (NASDAQ: MU) stock is getting hammered again Thursday afternoon, down 3.1% through 12:20 p.m. ET.

Earlier in the week, if you recall, shares of the computer semiconductor memory maker tumbled after Edgewater Research warned that prices and demand for computer memory chips would fall in the second half of 2025.

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Today, we're hearing echoes of the same forecast from Taiwan Semiconductor Manufacturing (NYSE: TSM), the biggest player in contract chip manufacturing.

Why TSMC's news should worry Micron investors

Early this morning, TSMC reported strong Q2 sales and earnings. By one measure, sales climbed 44.4%, and profits were up 60.7%.

That's great news for now. But turning to guidance, TSMC warned investors that Q3 sales will slow a bit, rising 38% at best, while gross and operating profit margins will both decline sequentially.

Unfortunately, this news tallies with what Edgewater told us earlier in the week: That chip demand and chip prices will both be "subseasonal" in the second half of this year (meaning Q3, and Q4 as well), and that there's a "bias lower" -- meaning things could get worse, not better.

Is Micron stock a sell?

Micron's own numbers don't give any more cause for optimism.

As I pointed out on Monday, the stock reports good earnings -- $6.2 billion in net profit over the last 12 months. However, free cash flow is less than one-third as good as its earnings according to generally accepted accounting principles (GAAP): Just $1.9 billion generated over the past year.

That's not a lot of cash to support Micron's $126 billion market cap. It actually gives the stock a price-to-free cash flow ratio of 66.5, which is probably too much to pay. It's almost certainly too much if pricing and demand are getting worse, not better.

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

Before you buy stock in Micron 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 Micron 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 $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,050,415!*

Now, it’s worth noting Stock Advisor’s total average return is 1,058% — a market-crushing outperformance compared to 179% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

Key Points

• Taiwan Semiconductor Manufacturing beat earnings soundly this morning.

• Sales surged, and profit margins were robust.

• TSMC did warn that sales will slow a bit in Q3, and profit margins may slip.

• 10 stocks we like better than Taiwan Semiconductor Manufacturing ›

Shares of Taiwan Semiconductor Manufacturing (NYSE: TSM), that powerhouse of contract semiconductor manufacturing located just off the coast of mainland China, reported powerful Q2 earnings this morning, which sent its shares up 3.3% through 11:40 a.m. ET.

Expected to be $2.28 per American depositary receipt for the quarter, TSMC reported instead $2.47 per ADR, beating the forecast soundly. Sales for the quarter were reported as NT$933.8 billion, which worked out to $30.1 billion.

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TSMC Q2 earnings

Q2 sales climbed 38.6% year over year (but 44.4% in USD terms), and net profits grew significantly faster, up 60.7%. The company noted that its gross profit margin for the quarter was 58.6%, operating margin was 49.6%, and net margin was 42.7%.

Company CFO Wendell Huang credited "continued robust AI and [high-performance computing]-related demand" for the sales growth, and noted that 74% of the company's revenue came from the sales of advanced semiconductor wafers -- chips at 7 nanometers or less.

Is TSMC stock a buy?

Turning to guidance, TSMC forecast that in Q3, it will book between $31.8 billion and $33 billion in revenue, with gross margins ranging from 55.5% to 57.5% and operating margins between 45.5% and 47.5%.

While investors seem fine with those numbers (they're buying, not selling, after all), that's not necessarily great news. TSMC did $23.9 billion in Q3 revenue last year, so even $33 billion in sales would work out to "only" 38% year-over-year growth -- somewhat slower than in Q2 even at the top of guidance. Meanwhile, the forecast for both gross and operating margins foreshadows a sequential decline in profitability.

Still, at a P/E ratio of only 22.5 and with sales still growing briskly, it's hard to call TSMC stock anything but a "buy."

Should you invest $1,000 in Taiwan Semiconductor Manufacturing right now?

Before you buy stock in Taiwan Semiconductor Manufacturing, 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 Taiwan Semiconductor Manufacturing 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 $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,050,415!*

Now, it’s worth noting Stock Advisor’s total average return is 1,059% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

Key Points

• Bank of America cut its price target on Intuitive Machines stock yesterday -- and the stock rose anyway.

• Intuitive is gaining again today, but BofA's warnings yesterday still merit attention.

• Free cash flow at the space company will be lumpy, and could remain so for years.

• 10 stocks we like better than Intuitive Machines ›

Something curious is happening with Intuitive Machines (NASDAQ: LUNR) stock, the tiny lunar exploration company that last year landed a U.S. spacecraft on the moon for the first time in over 50 years.

Yesterday, Bank of America analyst Ronald Epstein lowered his price target on Intuitive stock from $16 to $10.50, below where the stock was trading, triggering an "underperform" rating. And yet, Intuitive Machines stock went up, not down, on the news (rising 1.2%).

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And today, it's going up even more.

What BofA says about Intuitive Machines stock

Intuitive Machines stock gained a healthy 5.1% through 10:40 a.m. ET. But while investors are surely happy to see Intuitive continue to defy gravity, maybe they shouldn't get used to it.

As Epstein explains, in a note covered by The Fly, Intuitive stock has done well this year after surprising investors with a report of positive free cash flow achieved in Q1 -- $13.3 million generated in the quarter. At the same time, however, management warned that cash receipt lumpiness could return in Q2.

And I suspect "cash receipt lumpiness" translates as "negative free cash flow."

Is Intuitive Machines stock a buy?

This shouldn't be a surprise.

Analysts have long forecast it would take Intuitive until at least 2027 to reach sustained profitability as calculated according to generally accepted accounting principles (GAAP), and 2028 to begin generating consistently positive FCF. Q2 2025 was almost certainly an aberration, albeit a happy one, and investors will still need patience with this stock.

That said, I believe patience will be rewarded. Between the company's series of NASA contracts to land spacecraft on the moon, its Near Space Network communications contract, and now a new business building Earth reentry vehicles for semiconductor and space pharmaceutical customers, Intuitive's future could be out of this world.

Should you invest $1,000 in Intuitive Machines right now?

Before you buy stock in Intuitive Machines, 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 Intuitive Machines 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 $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,050,415!*

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See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

Bank of America is an advertising partner of Motley Fool Money. Rich Smith has positions in Intuitive Machines. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Key Points

• AngioDynamics beat on sales and beat on earnings this morning -- sort of.

• The company reported a smaller-than-expected adjusted loss, but its GAAP loss was much bigger.

• AngioDynamics lost money in fiscal 2025 and will probably do that again in 2026.

• 10 stocks we like better than AngioDynamics ›

Tuesday started off well for AngioDynamics (NASDAQ: ANGO), maker of such medical devices as the NanoKnife tool for "electrocuting" cancer, as well as multiple devices for treating peripheral vascular disease. In the morning, AngioDynamics reported stronger-than-expected Q4 2025 sales and earnings, with sales of $80.2 million and an adjusted loss of $0.03 per share (instead of the $0.12-per-share forecast).

By the end of the day, however, the rally fell completely apart. AngioDynamics ended up closing down almost 10% for the day. So what went wrong?

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AngioDynamics' Q4 earnings

Q4 sales grew 13% year over year, although gross profit margins on those sales declined by 160 basis points, to 52.7%. Adjusted earnings still ended up better than expected, and AngioDynamics cut its loss as calculated according to generally accepted accounting principles (GAAP) by more than half, from $0.33 per share a year ago to just $0.15 per share this time around.

Still, a loss is a loss. That's part of the reason investors probably weren't 100% thrilled with this report. For the full-year fiscal 2025, moreover, AngioDynamics lost $0.83 per share according to GAAP, and its sales grew only 8.1%.

Is AngioDynamics stock a sell?

A second reason is guidance. AngioDynamics told investors it expects fiscal 2026 sales to range from $305 million to $310 million, which is ahead of Wall Street forecasts -- so far, so good. Problem is, management then proceeded to warn its losses for the year will range from $0.25 to $0.35 per share, adjusted for one-time items.

That's more than the $0.23 per-share loss Wall Street was forecasting -- and AngioDynamics still hasn't told us how much it will really end up losing under GAAP. Until we know that, the stock probably remains a sell.

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

Before you buy stock in AngioDynamics, consider this:

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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,005,670!*

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Rich Smith 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.

Key Points

• Cantor Fitzgerald initiated coverage of Oklo stock with an overweight rating today.

• Oklo also announced it will hire Kiewit Nuclear Solutions Co. to help build its first commercial reactor.

• Things are progressing at Oklo, but the stock costs quite a lot and has no revenue.

• 10 stocks we like better than Oklo ›

Shares of small nuclear reactor-builder Oklo (NYSE: OKLO) tumbled 3.1% through 12:10 p.m. ET Tuesday. Curiously, the news on Oklo today is good, not bad.

Cantor Fitzgerald initiated coverage of Oklo stock with an overweight rating and a $73 price target. No sooner had it done so than Oklo announced it has picked Kiewit Nuclear Solutions Co. to help build its first commercial Aurora powerhouse in Idaho, at Idaho National Laboratory (INL).

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What Cantor says about Oklo

Let's start with the initiation. As The Fly relates, Cantor is calling Oklo key to a global transition to safe nuclear energy. The company's small module reactor technology relies on "proven" fast fission reactors, which should help with Nuclear Regulatory Commission approvals. Cantor expects Oklo to become a "big winner" in the transition to nuclear energy.

Moving next to the INL announcement, Oklo says "pre-construction" work on its new reactor will begin later this year, and "commercial operations [are] targeted for late 2027 to early 2028." Importantly, Oklo also confirmed that it has secured access to the uranium fuel it will need to operate the reactor, and is making "regulatory progress" toward getting it design approved.

Is Oklo stock a buy?

And yet, investors don't seem to be buying the argument -- or the stock, at least not today. Why not?

Valuation's probably one concern. Oklo stock costs $9.2 billion, yet the company has neither profit not even revenue on which to hang a valuation. While analysts do expect revenue to begin in 2027, in line with the "commercial operations" forecast, profits won't arrive until 2030 at the earliest.

It's hard to value a stock with so many unknowns, lasting so many years into the future. And it's hard to call Oklo stock a buy because of this.

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

Before you buy stock in Oklo, 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 Oklo 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 $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,005,670!*

Now, it’s worth noting Stock Advisor’s total average return is 1,053% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 15, 2025

Rich Smith 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.

Key Points

• Starboard Value just disclosed a 9% stake in Tripadvisor.

• The stock costs 38 times earnings, but profits are growing quickly, and so is free cash flow.

• Starboard scored a quick gain on Tripadvisor -- but the stock has even more room to rise.

Tripadvisor (NASDAQ: TRIP) stock galloped ahead 18% through 11:05 a.m. ET Thursday after activist investor Starboard Value disclosed that it has taken a 9% stake in the travel advisor.

Calling the company "undervalued" (at the time it bought the shares -- we'll have to see if it remains undervalued now that it's up 17%), and "an attractive investment opportunity," Starboard plans to meet with management to discuss ways to improve the stock's price even further.

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Although I have to say, a 17% one-day prop is already quite an improvement!

Momentum investing

Tripadvisor's an excellent prospect for the kind of stock that can be moved suddenly by a surprise headline. It was valued at less than $1.8 billion before today's announcement, so it only cost Starboard $160 million to build its 9% stake.

After the announcement, the stock has already gained more value than Starboard put into it.

Is Tripadvisor a buy?

Priced north of $2 billion today, Tripadvisor represents a potentially compelling value proposition. The company's debt load is modest -- only about $105 million. And while the stock costs nearly 38 times trailing earnings, analysts forecast Tripadvisor will also earn nearly $105 million next year, with even stronger free cash flow. Even valued just on the generally accepted accounting principles (GAAP) profit, the stock's forward P/E ratio is only about 20. And next year's earnings are expected to grow 40% compared to this year's.

Paying 20 times earnings for a 40% grower? Yeah, that sounds like a pretty "attractive investment opportunity" to me, too.

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

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

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $692,914!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $963,866!*

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*Stock Advisor returns as of June 30, 2025

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tripadvisor. The Motley Fool has a disclosure policy.

Sometimes, bad news for a stock investor can be good news for a stock buyer. Take the case of Intuitive Machines (NASDAQ: LUNR).

One month ago, I asked myself if Intuitive Machines -- a stock I already own -- might be worth buying even more of, after its share price nearly doubled from the price at which I first bought it. Paying twice the price for the very same stock ordinarily wouldn't sound like much of a bargain. In fact, after running the valuation on the stock in May, I ended up hedging my bet and arguing it might be worth buying. Yet it also seemed to cost more than I usually consider an acceptable valuation for an unprofitable space stock.

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But that was then, and this is now. Over the past month, shares of Intuitive Machines have slumped 14%, closing Friday below $11 a share. For existing shareholders, that's disappointing. For investors looking to buy into Intuitive Machines for the first time, however, it may be an opportunity.

Introducing Intuitive Machines

In case you're unfamiliar with the company, Intuitive Machines is the very definition of a space stock. The company is best known for being the first private company to land a spacecraft on the moon, and for landing an American spacecraft on the moon for the first time since the Apollo era 50 years ago.

It has in fact landed spacecraft on the moon twice now. Granted, neither landing was 100% successful -- both vehicles toppled over on their sides after landing -- but they did touch down safe and intact before keeling over. The company has secured NASA contracts for two more landing attempts, scheduled to take place in 2026 and 2027. And Intuitive Machines has promised to "incorporate ... lessons learned" from the first two partially successful landings to try and improve its performance on the next two.

According to filings with the Securities and Exchange Commission (SEC), the company was paid $132 million for its first landing and $122 million for the second (with both NASA and various commercial customers contributing to the revenue). Intuitive Machines' third mission, IM-3, is said to be priced at $87 million, but that number may be increased, and doesn't yet include payments from commercial customers.

As valuable as these moon landing contracts are, however, they're arguably dwarfed by a completely different kind of contract Intuitive Machines secured from NASA last year. For $4.8 billion, spread across 10 years (so $480 million per year -- quadruple the value of a lander contract), the company has been hired to build a Near Space Network of satellites that will relay communications from low earth orbit to the moon and back.

How to value Intuitive Machines stock

Over the past few years, both stock markets and corporate mergers and acquisitions (M&As) have been valuing (mostly unprofitable) space stocks in a range of 2 to 4 times annual revenue.

Intuitive Machines did $217 million in revenue last year, implying the stock should cost less than $880 million today. And yet it currently costs closer to $1.3 billion; factoring in "shares held by non-controlling interest holders," S&P Global Market Intelligence data suggests the company's implied market capitalization might be as high as $2 billion. So is that too much to pay?

I think not.

Why not? Well, just consider a future in which Intuitive Machines keeps launching one moon lander per year for NASA and its private customers (say, $120 million in revenue), operates its Near Space Network (for another $480 million), and does nothing else at all. Imagine it doesn't provide communications services to private customers with payloads on the moon, launch more often than once per year, or explore any new business opportunities in space.

That's still $600 million a year in revenue, and at a revenue valuation (price-to-sales ratio) of 4, it implies that Intuitive Machines stock should be worth $2.4 billion -- and that's assuming the company does all of this unprofitably. (The price-to-sales ratio of 2 to 4 only applies to unprofitable space companies, remember.) Yet analysts polled by S&P Global anticipate that Intuitive Machines actually will begin reporting profits based on generally accepted accounting principles (GAAP) just two years from now, in 2027.

Even taking the most extreme estimate of the stock's current valuation today, $2 billion, that means the stock is probably already undervalued -- and a buy.

Should you invest $1,000 in Intuitive Machines right now?

Before you buy stock in Intuitive Machines, 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 Intuitive Machines 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 $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $966,931!*

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*Stock Advisor returns as of June 23, 2025

Rich Smith has positions in Intuitive Machines. The Motley Fool has positions in and recommends S&P Global. The Motley Fool has a disclosure policy.

Stock markets rallied Tuesday as a ceasefire between Israel and Iran appeared to be holding, just a couple of days after conflict seemed set to expand after a U.S. attack on an Iranian uranium enrichment site. In a social media post Tuesday morning, President Donald Trump said that "ISRAEL is not going to attack Iran. All planes will turn around and head home, while doing a friendly 'Plane Wave' to Iran. Nobody will be hurt, the Ceasefire is in effect!"

However, Lockheed Martin (NYSE: LMT) stock was falling as the rest of the market soared. At 3 p.m. ET, Lockheed stock was down 3%.

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Investors predict falling demand

Lockheed Martin makes weapons systems, both offensive and defensive. Demand rises in times of conflict and falls in more peaceful times. Two weeks ago, when the Israel-Iran conflict spiked with an attack on Iranian nuclear sites, Lockheed stock took off as investors bet on heightened demand for fighter jets and missile systems.

Two weeks later, as future demand for such military products comes into question, Lockheed Martin stock is giving back most of its gains, and, indeed, trading right about back where it was before recent events.

Is Lockheed Martin stock no longer a buy?

All this is logical, but also probably a wrong reaction to the ceasefire news. Granted, active conflict increases demand for weapons systems, in particular consumable weapons systems such as missiles, which, once fired, must be replaced. The theory is that the longer the conflict lasts, the greater the demand.

But, the current ceasefire notwithstanding, there will always be a need for the products Lockheed sells.

Should you invest $1,000 in Lockheed Martin right now?

Before you buy stock in Lockheed Martin, 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 Lockheed Martin 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 $676,023!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $883,692!*

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*Stock Advisor returns as of June 23, 2025

Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.

The stock of Plug Power (NASDAQ: PLUG), maker of hydrogen fuel cells and the hydrogen to fuel them, jumped 5.5% through 12:45 p.m. ET Tuesday after announcing what was -- honestly -- some pretty ho-hum news.

In a press release out this morning, Plug confirmed plans to participate in a pair of imminent investor conferences.

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What's on Plug Power's to-do list?

First, Plug said its president and VP of investor relations would present at today's J.P. Morgan Energy, Power, Renewables & Mining Conference in New York City. One day later, the company will send CEO Andy Marsh across the pond to speak at the Roth 15th Annual London Conference.

Plug provided no further details on the contents of either planned presentation, although an investor might surmise the company will continue to hype its recently announced expanded partnership with Australia's Allied Green Ammonia. The two companies are working to set up a 2-gigawatt (GW) hydrogen fuel electrolyzer plant in Uzbekistan, additional to a separate 3-GW plant they want to build in Australia.

Is Plug Power stock a buy?

Neither of the Allied Green projects are really off the ground just yet. The Australian plant is closest to moving from idea to fact, with a final investment decision expected before the end of this year.

Meanwhile, Plug's still losing more than $2 billion per year, and burning nearly $950 million in cash annually. The company is still seeking shareholder approval of a plan to sell more shares to raise cash, and in May had to take out a new $525 million secured term loan facility to roll over old debt and provide cash needed to build out its existing projects.

Therefore, Plug stock remains speculative, and I cannot recommend buying it.

Should you invest $1,000 in Plug Power right now?

Before you buy stock in Plug Power, 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 Plug Power 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 $676,023!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $883,692!*

Now, it’s worth noting Stock Advisor’s total average return is 793% — 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 23, 2025

Rich Smith 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.

Independent oil and gas producer APA (NASDAQ: APA) gained 3.8% through 1:30 p.m. ET as news continues to pour in concerning Israel's attacks on Iran, and Iran's response to same.

Israeli warplanes struck multiple targets in Iran last night, prompting drone strike reprisals from Iran, and threats of more of the same. Investors worry oil supplies from Middle East producers could be at risk, and oil prices are on the rise in anticipation of this.

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What this means for oil prices

So far this afternoon, OilPrice.com is clocking a 6.5% rise in the price of WTI crude oil to $72.50 per barrel. International benchmark Brent Crude oil is up 6.4% and selling for just under $74 a barrel.

It's a knee-jerk reaction to the Israel-Iran news, to be sure, but don't expect these price rises to disappear anytime soon. To the contrary, as the conflict continues and potentially widens to include neighboring countries, worries could rise even further -- and oil prices along with them.

Is APA stock a buy?

That's not necessarily bad news if you're invested in oil stocks, however. Logically, if the price of oil rises, then the profits of companies that sell oil, and their stock prices, will also rise. In the case of APA, we're looking at a mid-cap energy stock that earned $804 million in profit last year even before prices began rising, and that trades for only about 7.2 times trailing earnings today.

APA also pays a generous 5% dividend yield. Arguably best of all, APA generates superior free cash flow of $1.2 billion, or about 20% more than reported trailing-12-month earnings. This is unusual for an energy stock. It's a strong argument in favor of buying APA stock, whatever happens in the Middle East.

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

Before you buy stock in Apa, 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 Apa 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 $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $888,780!*

Now, it’s worth noting Stock Advisor’s total average return is 999% — a market-crushing outperformance compared to 174% 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

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apa. The Motley Fool has a disclosure policy.

Ask Sherwin-Williams (NYSE: SHW) why its stock price is going down today, and your reply will probably be to ask Citigroup instead.

This morning, the investment bank downgraded shares of the paint maker from buy to neutral, and Sherwin-Williams stock is down 3.3% through 12:20 p.m. ET in response.

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What Citi thinks about Sherwin-Williams stock

"Housing dynamics" look "suppressed," warns Citi analyst Pat Cunningham in a note covered on StreetInsider.com today. Interest rates are high, and the likelihood of Federal Reserve cuts that would lower those rates looks slim. (Earlier today, J.P. Morgan's chief economist predicted the next Fed meeting will vote "unanimously" to leave rates unchanged.)

In the current economic environment, therefore, Citi says it has little "confidence in a material 2H25 US housing market recovery," nor a "favorable risk/reward" for buying Sherwin-Williams stock at its present price.

Is Sherwin-Williams stock a buy?

With its fortunes tied largely to the health of the residential housing market, Sherwin-Williams stock looks pricey at 34 times earnings, a projected growth rate of only 10%, and a meager dividend yield of just 0.9%. A better bet in the housing sector, thinks Citi, might be construction products company RPM International (NYSE: RPM), whose business is less tied to residential.

Despite its slower (8%) growth rate, RPM pays a dividend twice as big as Sherwin-Williams' (1.8%). And with its price-to-earnings ratio only 23, RPM stock costs half as much.

I'm personally not thrilled with these numbers either (paying 23x earnings for 10% growth doesn't seem much of a bargain). But Citi is right: As expensive as RPM stock looks, at least it's cheaper than Sherwin-Williams.

Should you invest $1,000 in Sherwin-Williams right now?

Before you buy stock in Sherwin-Williams, 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 Sherwin-Williams 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 $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $888,780!*

Now, it’s worth noting Stock Advisor’s total average return is 999% — a market-crushing outperformance compared to 174% 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

Citigroup is an advertising partner of Motley Fool Money. Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends RPM International and Sherwin-Williams. The Motley Fool has a disclosure policy.

ConocoPhillips (NYSE: COP) stock is on the rise Friday morning, up 2.5% through 10:55 a.m. ET, on worrisome news from the Middle East.

On Thursday evening, Israeli warplanes struck multiple targets in Iran, resulting in drone strikes from Iran on Israel. Investors are nervous that conflict in the Middle East will threaten the supply of oil from Mideast suppliers, raising oil prices.

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What this means for oil prices

So far, investors seem to be right about that. According to the latest data from OilPrice.com, WTI crude oil shot up nearly $5 today, the biggest one-day gain since 2022, to $72.70 per barrel. International benchmark Brent Crude is up a similar amount, selling for just under $74 a barrel.

While this might be a blip, it's a big one. And my hunch is it's not a temporary adjustment, as the conflict between Israel and Iran is likely to get worse before it gets better, and could even draw in neighboring countries, affecting oil supplies from the broader region.

Is ConocoPhillips stock a buy?

From an investors' perspective, of course, these kinds of worries do encourage a focus on oil stocks, which may benefit as oil prices rise, and oil profits increase. In the case of Conoco, we're looking at a global giant that earned $9.2 billion in profit last year even before prices began rising, and that trades for only about 12.6 times trailing earnings today

With a 3.3% dividend yield, the stock should perform well so long as Conoco can maintain a 10% or better earnings growth rate. Mideast tensions should help make that more likely, and lift the stock past analyst forecasts for 7% long-term earnings growth.

All things considered, I think Conoco stock looks like a reasonable way to play the situation.

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

Before you buy stock in ConocoPhillips, 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 ConocoPhillips 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 $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $888,780!*

Now, it’s worth noting Stock Advisor’s total average return is 999% — a market-crushing outperformance compared to 174% 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

Rich Smith 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.

Redwire Corporation (NYSE: RDW) stock jumped a lucky 7.7% Monday morning after the company gave an update on its plan to acquire privately held Edge Autonomy, "a leader in providing innovative autonomous systems, advanced optics, and resilient energy solutions" (i.e., drones).

As you may recall, Redwire announced in January that it will buy the maker of Penguin unmanned aerial vehicles for $925 million, payable in $150 million cash plus $775 million in Redwire stock.

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The more things change, the more they stay the same

That's still the basic plan, but this morning Redwire announced that the purchase will actually be made with $160 million in cash (so $10 million more) and $765 million in shares of Redwire common stock (so $10 million less). Furthermore, $100 million of the "cash" portion of the price will be "paid" in the form of an unsecured promissory note from a Redwire subsidiary.

Is this good news or bad news for Redwire?

Why would Redwire make this change, and is it good news or bad news for the stock?

Well, consider that Redwire stock cost less than $15 before the Edge acquisition was announced but is worth nearly $20 today. Consider too that the Redwire stock being paid to Edge is still valued back near its January price -- $15.07 per share. So Edge is already making out like a bandit, receiving shares worth almost $20 when it expected to get shares worth less than $15. Owners of the private company have already made a tidy profit.

It makes sense that Redwire now wants to pay less in shares and more in cash. The adjustment is modestly good news for the stock -- probably not worth a 7% share price bump, but still good news.

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

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Planet Labs (NYSE: PL), a small space stock that owns one of the world's biggest constellations of Earth observation satellites, exploded higher after beating on earnings last night.

Heading into the fiscal Q1 2026 earnings report, analysts expected Planet to report a $0.03-per-share adjusted loss on sales of $62.3 million. Instead, it reported $66.3 million in sales and break-even profits. Investors applauded, sending the stock up 52.1% through 1:50 p.m. ET.

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Planet Labs' Q1 earnings

The $66.3 million set a new quarterly sales record for Planet Labs, and was up 10% year over year, with 97% of the revenue recurring. Gross profit margins expanded from 52% a year ago to 55% this time around.

The company still lost money when earnings are calculated according to generally accepted accounting principles (GAAP) -- $0.04 per share -- but Planet's non-GAAP result was a wash at $0.00 earned. Best of all, Planet Labs for the first time ever reported positive free cash flow for a quarter: $8 million.

Is Planet Labs stock a buy?

Now the question is: Can Planet Labs keep up the good work?

CFO Ashley Johnson thinks so, advising that "We continue to have good visibility to meaningful revenue growth rate acceleration." Fiscal Q2 sales are projected to be about $66 million, roughly flat sequentially, but up about 8% year over year. Earnings are likely to be negative, though, and free cash flow as well.

For the full fiscal year, Planet sees sales growing between 9% and 15%, to $265 million or even $280 million. I suspect earnings and free cash flow will still end up negative for the year, but Planet's getting closer to sustainable free cash flow -- and more and more deserving of a buy rating.

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

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Rich Smith 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.