Key Points

• Lower interest rates will help, but the real key to the stock's potential lies elsewhere.

• Today's move might not stick, but Whirlpool stock is attractive anyway.

• 10 stocks we like better than Whirlpool ›

Shares in household appliance maker Whirlpool (NYSE: WHR) have risen by 6.5% as of midday today. The move comes after a high-profile speech by Federal Reserve Chair Jerome Powell gave support to the idea that a rate cut is coming. Discussing the inflation outlook, Powell noted that "with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance."

Why it matters to Whirlpool

Lower interest rates could have a significant impact on Whirlpool for three interconnected reasons. First, they would likely improve the housing market by making it more affordable, and that's likely to feed through into more appliance sales.

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Second, they would have an inordinate impact on Whirlpool's higher-margin discretionary (as opposed to replacement) demand, whereby consumers are likely to buy newer models or planned kitchens. Third, lower interest rates would make refinancing Whirlpool's debt easier.

For these reasons, the market usually rewards the stock when the interest rate environment looks more benign.

A stock to buy?

Whirlpool is an attractive stock, but the case for it doesn't rest only on lower interest rates; the underlying case is also based on an improvement in its competitive positioning as a result of President Trump's tariff actions. Lower interest rates will certainly help, but there's no guarantee a rate cut is coming in September or that a Federal Reserve rate cut will lead to a drop in market rates, including mortgage rates, particularly if inflation data isn't complying.

Image source: Getty Images.

So today's move isn't too much to get excited about, and it may well retract. Still, Whirlpool's long-term growth prospects make it a stock well worth looking at.

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

Before you buy stock in Whirlpool, 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 Whirlpool 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 $650,499!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,543!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — 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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*Stock Advisor returns as of August 18, 2025

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

Key Points

• Joby is buying Blade's air mobility business for up to $125 million.

• The news added nearly $3 billion in market cap to Joby.

• The eVTOL company is still not earning material revenue.

• 10 stocks we like better than Joby Aviation ›

Joby Aviation (NYSE: JOBY) delighted investors on Monday when it announced the acquisition of Blade Air Mobility's (NASDAQ: BLDE) passenger business. The move gives Joby ownership of what might be the best-known brand in the urban air taxi mobility market.

According to the terms of the deal, Joby will pay Blade in up to $125 million in a combination of cash or stock, according to Joby's choosing. The move will give Joby immediate market access in New York City and Southern Europe, as well as ownership of a business that flew more than 50,000 passengers in 2024, primarily in the New York City area.

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Investors loved the agreement, sending Joby stock up 18.8% on Monday, which represented a $2.7 billion gain in market cap. For a price of $125 million, that's an incredible return on investment, at more than 20 times.

However, investors seemed to have second thoughts about the deal on Tuesday, as both stocks pulled back following Blade's second-quarter earnings report. Joby was down 5% in afternoon trading on Tuesday, while Blade, after jumping 17.2% on Monday, was down 10.8% at the same time.

Are investors reading the deal correctly here? Let's take a closer look.

Image source: Joby Aviation.

What Blade means for Joby

It's easy to see the appeal of Blade for Joby and its investors: Blade has an existing urban air taxi network. Joby wants to launch them.

The deal does not include Blade's medical division, which will remain a separate publicly traded company renamed Strata Critical Medical, but the two companies are partnering in the medical transportation field, as Joby will become Blade's preferred VTOL partner for Blade's organ transport business.

However, there seems to be a disconnect between the $125 million price that Joby is paying Blade and the nearly $3 billion boost it got in its market cap. The fact that Blade stock jumped also indicates that Blade investors believe they got a good price in the sale.

Blade's second-quarter earnings report indicates why the company didn't value the air taxi business very highly. In the second quarter, revenue fell 13.2% to $25.7 million, due in part to its exit from the Canadian market, and the short-distance segment, which appears to be what Joby is most interested in, also saw reduced demand due to a helicopter accident in New York in April.

Passenger segment adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) improved from $0.8 million to $2.4 million, though that doesn't include corporate costs.

Are eVTOL stocks in a bubble?

While the Blade deal makes sense for Joby, as it will help boost its ambitions in the urban air taxi market, the market's reaction seems unjustified and is just the latest evidence that electric vertical takeoff and landing (eVTOL) aircraft are in a bubble.

Joby is still a development-stage company with no material revenue, yet its market cap has ballooned to more than $16 billion. That makes it more valuable than both American Airlines and Southwest Airlines, two well-established, profitable airlines. In fact, they're two of the four biggest airlines in the country.

By bidding up stocks like Joby and Archer Aviation, investors seem to be grossly overestimating the market for air travel and the profit potential in the industry, as Blade's relatively small size shows.

Blade's experience also shows that the constraints to scaling an urban air mobility business aren't the advanced technology that eVTOLs provide, such as being emission-free, quieter, or safer, but price and access, which doesn't really change going from a helicopter to an eVTOL. For comparison, a Blade ride from Manhattan to JFK Airport starts at $195 per seat, meaning it's not price-competitive with a taxi, rideshare, or another form of transportation.

With its market cap now at $16 billion, high expectations are baked into Joby Aviation stock even though it's barely made a sale.

Investors seem to be taking the wrong lesson from Blade here. Yes, the helicopter operator could help Joby, but it failed to disrupt urban transportation. The same is likely to be true for Joby.

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

Before you buy stock in Joby Aviation, 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 Joby Aviation 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 $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!*

Now, it’s worth noting Stock Advisor’s total average return is 1,047% — a market-crushing outperformance compared to 181% 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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*Stock Advisor returns as of August 4, 2025

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

Key Points

• Investors need to be patient, but the tariffs will inevitably improve Whirlpool's competitive position in the US market.

• The tariffs on its Asian competitors are significant and, if maintained, could prove a game-changer for the company.

• 10 stocks we like better than Whirlpool ›

Some positive things are going Whirlpool's (NYSE: WHR) way of late. The home appliance maker looks set to be a net winner over the long term from the Trump administration's recent tariff actions. The company's decision last year to exit its European business (which combined with Arcelik to form Beko Europe) should magnify the tariff's benefits further by increasing the company's exposure to North America.

Whirlpool's near-term headwinds

That said, the company needs to overcome some near-term headwinds, and the irony is that they are caused by the self-same tariff actions that will help the company over the long term. As recently discussed, Whirlpool's immediate problem is that Asian competitors are preloading product into the market in anticipation of higher tariffs (as they did in the first quarter) or to take advantage of any tariff pauses (as they did in the second quarter).

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As a result, Whirlpool's markets are suffering intense promotional activity as its competitors sell their inventory into the market through 2025. According to Whirlpool CEO Marc Bitzer on a recent earnings call, "we expect that foreign competitors will begin to experience the full implications of tariffs and appliances as they sell down their preloaded inventory in the back half of 2025."

Bitzer's comment speaks to a likely continuation of the near-term pressure that caused the company to cut its full-year guidance.

Whirlpool's long-term growth prospects

Still, it also refers to the substantive tariffs currently applied to Asian competitors. Whirlpool outlined some of them on its earnings presentation, with imports from China tariffed at 44% to 61%, Korea at 29%, Vietnam at 25%, Thailand at 39%, etc. While these rates may change, and its competitors can expand investment to produce more in the U.S., 80% of what Whirlpool sells in the U.S. is made in the U.S.

Image source: Getty Images.

Simply put, Whirlpool is best placed to benefit from the new tariff regime, and that should become clear enough as the full impact of tariffs kicks in. As such, Whirlpool stock has excellent upside prospects.

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

Before you buy stock in Whirlpool, 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 Whirlpool 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 $635,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,099,758!*

Now, it’s worth noting Stock Advisor’s total average return is 1,046% — a market-crushing outperformance compared to 181% 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 August 4, 2025

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

Key Points

• Joby Aviation's business model differs significantly from that of its peers.

• There's reason to believe its vertically integrated strategy will win out.

• The upside potential is significant; provided the certification process goes smoothly, Joby has a big future.

• 10 stocks we like better than Joby Aviation ›

The electric vertical take-off and landing (eVTOL) market is crowded, but that doesn't mean it's a winner-takes-all scenario. Different companies have different business models with varying risks and rewards, and Joby Aviation (NYSE: JOBY) is arguably the one with the most reward and also one that's reducing its risk the most in 2025. Is it enough to make it a stock that could set investors up for life? Here's the lowdown.

What makes Joby Aviation different

It's always interesting to compare competitors across a growth industry, and doing so with Joby's peer Archer Aviation (NYSE: ACHR) makes for a fascinating comparison. The first conclusion is that they have significantly different models. The second is that the nature of their models allows for more than enough room for both in the market, and the third is that Joby Aviation is making real progress in de-risking the elements of its business that are subject to greater market uncertainty.

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In a nutshell, you can think of Joby Aviation as a "go it alone" player in the industry, backed by a heavyweight manufacturing partner in Toyota, as well as other investors such as Uber and Delta Air Lines. Its business model is different from Archer's and the rest of the industry in two key ways:

• Joby Aviation doesn't plan to sell its aircraft and prefers to develop much of its technology in-house, having its own powertrain and electronics manufacturing facility in California.
• As quoted from its Securities and Exchange Commission (SEC) filings, Joby plans to "own and operate our aircraft ourselves, building a vertically integrated transportation company that will deliver transportation services to customers."

Both points are crucial to understanding the investment case.

Joby's in-house development

Archer, along with other eVTOL companies such as Germany's Lilium and the U.K.'s Vertical Aerospace, makes no secret of the fact that it has leading aerospace and automotive companies as partners in providing solutions. The advantage of heavy integration with established partners in developing technology is a simplified and less risky process, which, theoretically, leads to earlier certification.

Image source: Getty Images.

For example, Archer partners with Honeywell for actuators and climate systems, Hexcel for advanced composite materials, Safran for avionics, and Stellantis (also a key investor). Honeywell is a key strategic technology partner of Vertical Aerospace and partners with European aerospace companies GKN and Leonardo.

Lilium partners with GE Aerospace in flight data management and Honeywell (also an investor) for flight control, avionics, and propulsion unit sensors.

As such, Joby's more "go it alone" approach could be deemed more risky. However, it has received significant investment (up to $894 million) from a manufacturing heavyweight, Toyota. Moreover, the Japanese giant is assisting in improving Joby's manufacturing processes and optimizing design.

A vertically integrated transportation company

Here again, Joby is different. It doesn't want to sell its aircraft; instead, it wants to handle the commercialization of transportation services itself. Again, this is a more risky business model, as it implies commercial business expertise in addition to research & development and manufacturing expertise. It's somewhat akin to Boeing or Airbus deciding to operate an airline.

On the other hand, there's a reason why Uber has invested $125 million in Joby so far: the obvious potential to integrate their services. Similarly, Delta Air Lines is investing up to $200 million in Joby to transport passengers to airports. With Delta increasingly focusing on premium travelers and looking to offer experiences that engender loyalty, the Joby tie-in is a significant plus.

Image source: Joby Aviation.

Can Joby Aviation be a life-changing investment?

Given the current trends in the global economy, whereby technology is enabling fundamental shifts in how industrial and transportation companies operate (think Tesla selling direct or Uber not needing to own cars), Joby's business model makes perfect sense and has the potential to create more value for shareholders over the long term.

Meanwhile, while its peers are working with leading aerospace companies, Toyota is a formidable manufacturing entity and partner, and the Toyota Production System is the precursor to all the lean manufacturing practices successfully implemented by GE Aerospace and many others.

There are no guarantees in nascent technology fields such as eVTOL, and diversification is key when investing in growth stocks. Still, Joby Aviation is a strong candidate for an investment that could set you up for life.

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

Before you buy stock in Joby Aviation, 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 Joby Aviation 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 $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,063,471!*

Now, it’s worth noting Stock Advisor’s total average return is 1,041% — a market-crushing outperformance compared to 183% 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 21, 2025

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool recommends Delta Air Lines, GE Aerospace, Hexcel, and Stellantis. The Motley Fool has a disclosure policy.

• You've probably seen the Coldplay "kiss cam" moment that has ricocheted around the internet.
• A tech CEO and his head of HR appear to embrace, then look mortified after seeing themselves on cam.
• I wish I didn't know anything about any of this — I wish none of us did.

I don't want to know what you did at a Coldplay concert. I don't want to know who you were there with, what the track list was. I don't even want to know you went!

And if it turns out that you were caught on camera in a passionate embrace with a coworker? I mean, sure, I'm curious. I love gossip! But I'm not sure I should know about that. And that goes double if I don't know you in real life.

On Thursday, as I'm sure you know by now, a "kiss cam" video went viral from a Coldplay concert outside Boston on Wednesday night. In the clip, two audience members stand against a railing, the man with his arms around the woman. They look to be in their late 40s or early 50s, fit and attractive, enjoying the musical stylings of arguably Britain's greatest rock act of the 21st century.

As soon as they realize they're on the Jumbotron, the woman turns to hide her face, and the man ducks. You overhear front-man Chris Martin say into the microphone, "Either they're having an affair, or they're just very shy."

Yikes!

The clip appeared to show Astronomer CEO Andy Byron embracing the company's head of HR, Kristin Cabot. Neither has commented on the clip.

I'm not sure how people online figured out who these people were. Was it by using a controversial facial-recognition tool like PimEyes? Or was it from someone who knows them in real life who identified them?

The thing is, I don't know these people. (Neither, probably, do you.) I don't know their lives. I have no idea what was really going on. Astronomer execs, board members, and founders haven't returned BI's requests for comment, as my colleagues Madeline Berg and Tim Paradis report.

I can say that the online attention they've received is certainly distressing to them — on top of a situation that may also already be very distressing in other ways.

The issue might have some legs from an HR standpoint: If a company CEO is embracing his head of personnel at a concert, could that raise some issues? Sure! That's for the company and its execs to figure out. But otherwise, who cares? I don't.

I just spent almost every day of the last six weeks watching some of the most depraved people on Earth frolic around in swimwear and occasionally hump under thick duvets on "Love Island." I'm not going to suddenly go morality police to say that two Coldplay-loving consenting adults is the biggest scandal I can imagine.

And, to me, there's a potentially unsettling element of potential surveillance. As 404 Media wrote:

The same technologies used to dox and research this CEO are routinely deployed against the partners of random people who have had messy breakups, attractive security guards, people who look "suspicious" and are caught on Ring cameras by people on Nextdoor, people who dance funny in public, and so on. There has been endless debate about the ethics of doxing cops and ICE agents and Nazis, and there are many times where it makes sense to research people doing harm on behalf of the state or who are doing violent, scary things in to innocent people.

It is another to deploy these technologies against random people you saw on an airplane or who had a messy breakup with an influencer.

Again, we're not sure what happened here or how these people were apparently identified. But I don't think it's any of our business — barring something illegal — what happens at a concert. Could it violate a company's rules? Yes, but then the company can deal with it.

By the way: Why the heck does Coldplay have a kiss cam, anyway?

Key Points

• Archer Aviation stock saw double-digit gains in Thursday's trading amid bullish momentum for the broader market.

• Speculative growth stocks saw especially strong gains today, and Archer continued to get a boost from some favorable indicators in the eVTOL space.

• Archer Aviation stock probably isn't a good fit for investors without high risk tolerance, but the company could be in the early stages of a big long-term growth story.

• 10 stocks we like better than Archer Aviation ›

Archer Aviation (NYSE: ACHR) stock posted big gains in Thursday's trading. The company's share price climbed 10.8% in the daily session. Meanwhile, the S&P 500 index was up 0.5%, and the Nasdaq Composite was up 0.7%.

Archer Aviation is gaining ground today thanks to bullish momentum for the broader market and especially strong valuation tailwinds for speculative tech stocks. While there isn't any fresh business-specific news for the company, its stock appears to be getting a boost from recent news that Joby Aviation will be significantly expanding production for its electric vertical takeoff and landing (eVTOL) aircraft. Archer's valuation has also continued to benefit from expectations that the Federal Reserve will serve up multiple interest rate cuts this year.

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Image source: Getty Images.

Is Archer Aviation stock a buy right now?

Archer Aviation now has a market capitalization of roughly $7.4 billion despite the business being expected to post relatively little revenue this year. The company is trading at roughly 581 times its expected revenue for this year. The business's sales could scale rapidly further out, but there's still a huge amount of speculation involved in charting its trajectory.

Archer Aviation is a high-risk, high-reward stock. While the company has recently seen some big valuation gains in conjunction with favorable developments on macroeconomic fronts and indications that the eVTOL industry could be poised to take off, investors must move forward with the understanding that the company's stock could see big downside volatility if economic and industry-specific backdrops take a turn for the worse.

Archer has seen a big valuation outlook, but its performance outlook remains heavily speculative. In addition to its growth opportunities in the commercial air-taxi space, Archer also has expansion potential in the defense industry. Wins on these fronts could power more big gains for the stock, but the company probably isn't a good fit for investors without a high tolerance for risk.

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

Before you buy stock in Archer Aviation, 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 Archer Aviation 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

Keith Noonan has positions in Archer Aviation. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

On July 14, 2025, Gayn Erickson (President and CEO) reported a disposal of 4,518 shares of Aehr Test Systems (NASDAQ:AEHR) valued at $62,619 to either pay the exercise price of vested stock, or tax liability with shares instead of cash. This transaction does not amount to a sale of stock by the CEO.

Transaction summary

Company overview

Company snapshot

Aehr Test Systems provides test and burn-in systems for integrated circuits, including the ABTS and FOX product families, as well as wafer probing and packaging solutions for logic, memory, and photonic devices in the semiconductor equipment industry. The company leverages proprietary technology to address the stringent quality and performance requirements of leading chip manufacturers.

It generates revenue primarily from the sale of proprietary test systems, consumables, and related services to semiconductor manufacturers.

The company targets global semiconductor manufacturers and integrated circuit producers seeking advanced reliability and quality assurance solutions.

Foolish take

Aehr Test System CEO, Gayn Erickson's "sale" of less than $63 thousand worth of stock isn't anything to get excited about. He currently holds a $4 million direct ownership stake in a company with a current market capitalization of just $440 million, and there's a specific reason behind this transaction.

According to the SEC filing, Erickson withheld the 4,518 shares to cover the costs and taxes incurred by the vesting of the restricted stock units. In other words, all things being equal, Erickson's stock holdings will increase due to the vesting of restricted stock.

That's probably good news because Aehr, a company that manufactures test and burn-in equipment used in semiconductor manufacturing, appears to be one of the success stories of 2025. Having started the calendar year with a heavy reliance on the weakening silicon carbide (SiC) Wafer Level Burn In (WLBI) market – an end market overwhelmingly tied to electric vehicle (EV) investment – Erickson has successfully navigated the company's revenue to new markets like gallium nitride (GaN) semiconductors, and artificial intelligence processor burn-in markets.

With these new end markets starting to make meaningful contributions to revenue and the prospect of an eventual return to growth in SiC WLBI, when the EV market eventually improves, Aehr Test Systems has a bright future.

Glossary

Insider:A company executive, director, or major shareholder with access to non-public company information.
Form 4:A required SEC filing disclosing insider transactions in a company's securities.
Exercise price:The set price at which an option holder can buy or sell the underlying security.
Option-related transaction:A trade involving company stock options, such as exercising or selling shares acquired via options.
Burn-in:A testing process where electronic devices are operated under stress to detect early failures.
Wafer probing:Testing semiconductor chips on a wafer before they are cut and packaged.
Photonic devices:Electronic components that use light (photons) for functions like communication or sensing.
Outstanding shares:The total number of a company’s shares currently held by all shareholders.
Total return:The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Proprietary technology:Technology owned and controlled by a company, often protected by patents or trade secrets.
TTM:The 12-month period ending with the most recent quarterly report.
Consumables:Products used up during equipment operation, requiring regular replacement (e.g., test sockets, probes).

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,058%* — a market-crushing outperformance compared to 179% for the S&P 500.

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

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*Stock Advisor returns as of July 14, 2025

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

Key Points

• Interest rate-sensitive stocks came under pressure today.

• Whirlpool faces some challenging near-term conditions.

• In the longer term, Whirlpool should be a winner from the tariff conflict.

• 10 stocks we like better than Whirlpool ›

Shares in household appliances company Whirlpool (NYSE: WHR) declined by more than 5.5% by 3 p.m. ET today. Outside a rise in market interest rates (the 10-year Treasury rate is now up to almost 4.5%, putting pressure on interest rate-sensitive stocks like Whirlpool), there's no stock-specific reason for the decline.

Whirlpool's challenging 2025

Investors in Whirlpool can expect more volatility leading up to its second-quarter earnings report on July 29. While the stock has had an impressive run-up over the last three months (up 26%), it still faces significant near-term headwinds. Not only are interest rates stubbornly high and negatively impacting the housing market and therefore, demand for higher-margin discretionary purchases of household appliances, but the tariff conflict and the fear of further tariffs have likely caused Asian competitors to push products into the U.S. market.

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It all creates an uncertain near-term trading environment in a company with a dividend that cost $384 million in cash last year, $4.8 billion in debt (with $1.85 billion maturing in 2025), and pressure on its full-year guidance for $500 million to $600 million in free cash flow in 2025.

Image source: Getty Images.

Long-term potential

As such, don't be surprised if Whirlpool cuts its dividend this year. That said, it might turn out to be a positive for the stock, as it would help alleviate some uncertainty surrounding debt repayment. Moreover, considering the longer term, Whirlpool is highly likely to be a winner from the trade conflict, as management views the Trump administration as leveling the playing field that has been tilted against Whirlpool over time.

It's a curious mix of near-term risk and long-term opportunity, but today, the market focuses on the former.

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

Before you buy stock in Whirlpool, 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 Whirlpool 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

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

Key Points

• Exchange-traded funds typically hold baskets of stocks, but trade like individual equities.

• The Invesco KBW Premium Yield Equity REIT ETF focuses on real estate investment trusts.

• REITs are required to distribute most of their profits via dividends.

• 10 stocks we like better than Invesco Exchange-Traded Fund Trust II - Invesco Kbw Premium Yield Equity REIT ETF ›

Exchange-traded funds (ETFs) have become quite popular in their three-plus decades of existence. There are now more publicly listed ETFs than there are individual stocks on the New York Stock Exchange. Similar to mutual funds, ETFs usually hold baskets of stocks or other assets, but they trade similarly to stocks. They are highly liquid, and owning them can be a more tax-efficient way to invest than holding mutual funds.

Each ETF is designed around a theme -- and that could be anything from tracking an index to focusing on one industry or type of stock. Many have portfolios that are intended to produce reliable dividends for income investors. But which ETF has the highest yield in 2025?

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 »

This ETF holds stakes in many real estate investment trusts

At this point, investors can find ETFs to suit pretty much any investment strategy. Some track indexes, others are actively managed, and many deploy complex options strategies or leverage up on crypto bets. However, because many of those strategies result in funds that are not appropriate as long-term holdings, I'm excluding ETFs that use complex options strategies or make big crypto bets from my search.

Image source: Getty Images.

Within the field of choices that remain, the highest-yielding ETF at the moment is the Invesco KBW Premium Yield Equity REIT ETF (NASDAQ: KBWY). It invests solely in real estate investment trusts (REITs) -- companies with special structures that enjoy tax advantages as long as they abide by the required policies. For instance, a REIT must distribute 90% of its taxable income to its shareholders each year through dividends. REITs also must invest at least 75% of their assets in real estate or cash, and receive at least 75% of their total income from real estate revenue, like rent, mortgage interest, real estate loans, or the sale of real estate assets.

Because of that payout requirement, REITs are viewed as strong dividend investments. However, their earnings and yields can fluctuate as the real estate market progresses through economic and interest rate cycles. KBWY's dividends have had their ups and downs, but it has had a strong average yield since launching in 2010. Currently, its yield is over 9.6%.

Data by YCharts.

As of July 7, the ETF's top 10 holdings by weight were:

Source: Invesco.

Brandywine Realty Trust focuses on urban and municipal transit-oriented developments. Innovative Industry Properties leases properties to companies in the cannabis sector. Community Healthcare Trust leases properties to hospitals and other healthcare providers, primarily in markets outside of major cities.

Is KBWY a buy?

Few ETFs that don't make use of super-aggressive investment strategies can match KBWY's yield. But in the world of dividends, investors should always take a skeptical approach to an unusually high yield -- sometimes, they're too good to last. And sometimes, they signal that an investment has other problems.

For example, since its inception, KBWY's net asset value (NAV) is only up about 4%. Now, part of that weak result can be attributed to the pandemic, which changed the ways people live and work, likely forever. As a result, many real estate stocks and REITs got hit hard and haven't recovered. That's reflected in KBWY's five-year performance. A lower interest rate environment, which many expect to start to materialize later this year, could help KBWY by lowering REITs' borrowing costs and improving conditions for the businesses that are leasing space.

Lower benchmark interest rates also reduce the amount that investors can earn from low-risk assets, which makes dividend investments more appealing.

However, one thing that worries me about KBWY is its high exposure to the office space and healthcare segments, both of which have been shaky since the pandemic, and which are still very much trying to find their footing.

Although KBWY's yields have been attractive since its inception, the dividend is likely to remain volatile, and it likely won't be this high forever. KBWY will keep churning out passive income for its shareholders, but I think there are more stable options out there that might be more prudent for income-focused investors.

Should you invest $1,000 in Invesco Exchange-Traded Fund Trust II - Invesco Kbw Premium Yield Equity REIT ETF right now?

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• Immigration and Customs Enforcement officers have visited workplaces across the country.
• HR, crisis management, and legal pros say they're helping clients prepare for potential raids.
• Experts say having a plan can help ensure workers and customers stay safe.

After federal immigration agents raided a Miami construction site in May, lawyer Alex Barthet got a call from a developer client seeking advice on what he should do if they showed up at his nearby property.

Barthet said he recommended closing off the premises to visitors, putting up No Trespassing signs, and being ready to turn agents away if they don't show a proper warrant.

"You create this little bit of a walled garden," he told Business Insider, though he conceded that workers could still get detained once they left the work site.

Employers have long had response plans for extreme weather, active shooters, and other workplace emergencies. Now, some are quietly preparing for immigration raids, too — even if they believe everyone on their payroll is legally permitted to work in the US.

Human resources, crisis management, and legal professionals say they're helping clients take the extra step to keep workers safe, minimize disruption to operations, and avoid being charged with hefty fees if they lack accurate employment-authorization documents known as I-9s.

Preparing for an ICE raid may be especially relevant for employers in industries such as food processing and construction, they say, as these typically rely on immigrant labor. In some cases, workers are alreadynot showing up for shifts, fearful of getting swept up in raids — though the arrival of armed agents in the workplace could be scary for anyone. ICE did not comment for this article.

"We have a responsibility to protect employees," said Kim Minnick, an HR consultant in Napa, California, who developed a rapid response template for Immigration and Customs Enforcement raids earlier this year and posted it online to share with her industry peers. It features tips such as keeping within arm's reach a list of emergency contacts for any workers who get detained.

"They may have minors waiting to be picked up at school," Minnick said.

More workplace raids expected

Since January, ICE has highlighted arrests made at worksites across the country, including a meat-processing plant in Omaha, Nebraska, a fire-equipment company in Kings Mountain, North Carolina, and a Louisiana racetrack. It's part of an effort to meet the Trump administration's 3,000 arrest-per-day minimum. The administration has attributed the effort to protecting the nation.

"Worksite enforcement remains a cornerstone of our efforts to safeguard public safety, national security, and economic stability," Department of Homeland Security spokeswoman Tricia McLaughlin told BI in a statement.

ICE hasn't specified how many workplaces have been raided overall, though more visits could be on the horizon. Last week, President Donald Trump signed into law a bill that provides ICE with additional funding and resources to go after undocumented immigrants, including enough detention capacity to maintain an average daily population of 100,000 individuals.

Developing a plan

Employers are already mandated by the federal government to have at least a generic emergency response plan that is up to date, though not all do, said Bo Mitchell, president of 911 Consulting in Wilton, Connecticut.

He suspects that some company leaders are fearful that preparing for the possibility of an ICE raid in particular could be misinterpreted externally to mean they're harboring undocumented workers or engaging in a political act.

"Nobody wants to talk about it because of overtones of politics," Mitchell said.

Yet those who don't take such caution may be putting their credibility at risk, said Michelle Sinning, a principal at Bernstein Crisis Management in Mission Viejo, California.

"Your competence may come into question if you're not able to handle a high-pressure situation with confidence," she said.

Companies can also face fines in the tens of thousands of dollars for every employee lacking proper I-9 documentation in the event of a surprise audit by ICE or another government entity, said Tina Ullmann, an HR consultant in Milford, Connecticut. Even a clerical error can be costly, she said.

Preparing for an ICE visit

In addition to ensuring those I-9s are compliant, employers should train workers who greet visitors to be ready to escort any ICE agents who show up to an area that isn't private but won't interfere with customers or other employees, such as a conference room, said immigration attorney Christine Rodriguez in Atlanta.

These workers should then know to alert the right personnel to interact with the agents, such as the company's CEO, head of HR, or lead counsel, she said.

ICE agents are not legally permitted to access private areas of a workplace without a judicial warrant, which will say "U.S. District Court" and bear the signature of a federal judge, said Evan Fray-Witzer, an employment lawyer in Boston. By contrast, he said administrative warrants do not legally grant such access and so employers would be within their rights to deny entry to ICE agents bearing only one of those.

Leadership or employees should never interfere with ICE agents' actions — even if they believe their actions to be illegal — or they could face obstruction charges, warned Fray-Witzer. Instead, he suggested trying to document the incident by recording video or taking notes, as these could come in handy should the matter lead to a lawsuit.

"There is no benefit to the employer or the employee to try and talk ICE out of taking someone," said Fray-Witzer. "The best thing to do is get as much information as you possibly can."

Key Points

• Archer manufactures electric air taxis that it plans to sell to cities, commercial airlines, and the U.S. military.

• Morgan Stanley estimates that Archer is operating in a market that could be worth $9 trillion in the long run.

• While Archer's potential is exciting, the young company's valuation requires a thoughtful look right now.

• 10 stocks we like better than Archer Aviation ›

When it comes to the electric vehicle (EV) market, most investors probably don't look past companies such as Tesla or Rivian Automotive. While both of these companies have built strong brands in the car landscape, there are other opportunities beginning to emerge within the broader EV realm.

One of the more popular areas includes electric vertical takeoff and landing (eVTOL) aircrafts, such as those built by Archer Aviation (NYSE: ACHR). Archer is looking to disrupt the aviation industry through its futuristic electric air taxis. From offering a new form of mobility in densely populated environments such as cities to introducing new stealth aircraft for the military, Archer has no shortage of interesting use cases. Among its fans is popular tech investor Cathie Wood.

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 »

With shares trading for about $10 as of July 7, is now a good time for investors to invest in Archer? Read on to find out.

Archer Aviation is an exciting company with a lot of potential, but...

Investment bank Morgan Stanley recently published a report in which research analysts estimated the size of what the organization calls the "low altitude market." By 2050, Morgan Stanley is forecasting the total addressable market (TAM) for low altitude aircraft to be around $9 trillion.

While Morgan Stanley's research includes other types of aircraft besides eVTOLs (i.e., drones) in its report, it is encouraging to see Archer's primary opportunity in air mobility is so large. When you explore Archer's potential to disrupt traditional modes of transportation while bringing much-needed innovation to the aviation industry, it's not surprising to learn that companies such as United Airlines and Stellantis have been eager to partner with the company.

On top of that, Archer's recent partnership with Palantir Technologies also suggests the company is exploring how software and artificial intelligence (AI) can play a role in the company's new aviation system.

With an order book worth roughly $6 billion, institutional investor support, partnerships with leading vehicle and aviation businesses, and use cases spanning commercial aviation as well as defense contracting, Archer might look like a no-brainer investment opportunity.

Image source: Getty Images.

...smart investors understand reality versus narrative

For now, Archer remains a pre-revenue business. In other words, the company's partnerships and growing order book haven't exactly led to tangible sales coming through the door just yet.

ACHR Cash and Equivalents (Quarterly) data by YCharts

While the chart above might imply that Archer's cash balance is strong, the company's rising research and development (R&D) costs and ongoing burn rate could quickly diminish its liquidity position. Despite this financial profile, Archer boasts a market capitalization of $5.4 billion. To me, that valuation reflects an exciting hype narrative as opposed to concrete fundamentals.

Is Archer Aviation stock a buy right now?

Although Archer stock may look "cheap" at $10 per share, the company's multibillion-dollar valuation seems overstretched considering there aren't any sales to back it up yet. In reality, Archer could be seen as analogous to a late-stage venture capital (VC) type of investment. The payoff could be enormous, but the risk profile is equal (if not larger) in size.

Another layer that could complicate the company's commercialization efforts revolves around regulatory approvals from the Federal Aviation Administration (FAA). In my view, there are too many uncertainties around Archer right now. While I am hopeful that the company has the potential to disrupt the aviation world, I think investing in Archer stock right now is too speculative.

It could be years before the company reaches critical scale and the stock price really takes flight. For these reasons, I would encourage investors to monitor Archer's progress but remain on the sidelines when it comes to buying the stock right now.

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

Before you buy stock in Archer Aviation, 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 Archer Aviation 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 $687,764!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $980,723!*

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*Stock Advisor returns as of July 7, 2025

Adam Spatacco has positions in Palantir Technologies and Tesla. The Motley Fool has positions in and recommends Palantir Technologies and Tesla. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.

Archer Aviation (NYSE: ACHR) is taking investors on a roller-coaster ride in 2025.

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*Stock prices used were the afternoon prices of June 30, 2025. The video was published on July 2, 2025.

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

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

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $939,655!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 30, 2025

Parkev Tatevosian, CFA 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. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Key Points

• Archer began Abu Dhabi test flights this week, becoming the first eVTOL manufacturer flying in the Middle East.

• Defense partnerships with Anduril and Palantir Technologies could unlock massive value through acquisition or corporate split.

• With approximately $2 billion in liquidity following White House-backed funding, Archer has the industry's strongest balance sheet.

Wall Street sees Archer Aviation (NYSE: ACHR) as just another electric flying taxi company burning cash while chasing FAA certification. Yes, the risks are real -- certification delays, massive cash burn, fierce competition, and the challenge of scaling a new form of aviation.

But that narrow view completely misses what's really happening here: Archer is quietly building the most valuable defense aviation asset outside the traditional primes -- and a major acquisition or corporate restructuring could soon expose this hidden value. Here's a deeper look at why I think these forces are building to drive a major breakout in the stock in the not-so-distant future.

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 »

Image source: Getty Images.

The White House just changed everything

Trading around $10 with a market cap near $5.4 billion at the time of writing (July 1, 2025), Archer has delivered impressive returns, up over 245% in the past three years. But those gains pale compared to what's coming. In June 2025, following President Trump's executive order establishing an eVTOL Integration Pilot Program, Archer raised $850 million at $10 per share, bringing its total liquidity to an industry-leading $2 billion.

This wasn't just another funding round. The White House explicitly aims to establish U.S. "dominance" in eVTOL technology through its new Integration Pilot Program. The timing is perfect -- Archer serves as the Official Air Taxi Provider for the Los Angeles 2028 Olympics, creating a high-profile deadline for commercial deployment.

CEO Adam Goldstein called the executive order a "seminal moment" -- and he's right. Unlike competitors burning through capital with single-market strategies, Archer's dual approach and $2 billion war chest provide multiple paths to profitability.

While well-funded competitors like Joby Aviation (NYSE: JOBY) pursue both civilian and military markets, Archer has assembled something unique: an exclusive defense partnership combining its hybrid-electric vertical takeoff and landing (eVTOL) technology with Anduril's autonomous systems and Palantir Technologies' (NASDAQ: PLTR) artificial intelligence (AI) infrastructure. This triumvirate represents a $100 billion-plus opportunity that doesn't require FAA certification.

The defense disruption play

Yes, both Archer and Joby have defense contracts. But Archer's approach is fundamentally different. The late-2024 Anduril partnership creates a hybrid-propulsion aircraft specifically for military use -- not adapted civilian aircraft. This matters because hybrid systems offer extended range and payload capacity that pure electric vehicles can't match right now.

More importantly, Anduril brings its Lattice AI platform, already integrated into hundreds of military systems. Combined with Palantir's March 2025 partnership for AI-powered aviation software, Archer offers the Pentagon something unprecedented: a fully integrated, AI-enabled vertical lift capability from three of defense tech's hottest companies.

The partnership targets a "program of record" -- Pentagon-speak for guaranteed multiyear funding. These contracts can reach billions annually. With defense demand "stronger than expected," according to Goldstein, the company aims to build early hybrid-propulsion defense prototypes soon, distinct from its Midnight commercially oriented aircraft.

The split scenario unlocks everything

Here's where it gets interesting. Archer could unlock massive value through a corporate split, separating its commercial and defense operations. This solves multiple problems at once: Stellantis, with its substantial stake in Archer, wants to focus on commercial air mobility -- not get entangled with defense contractors. A split allows the commercial division to pursue the $1 trillion urban air mobility market with Stellantis and United Airlines, backed by the White House pilot program.

Meanwhile, the defense division -- supercharged by Anduril and Palantir -- becomes an attractive acquisition target for Northrop Grumman (NYSE: NOC) or other defense primes. Northrop has explicitly prioritized AI, autonomous systems, and next-generation aviation. The aerospace giant's Orbital ATK acquisition ($9.2 billion total in 2018) proved its ability to integrate cutting-edge aerospace assets, expanding capabilities in solid rocket motors, missile systems, and space technologies.

Multiple paths to value

Archer isn't waiting for corporate action. The company delivers its first piloted Midnight aircraft to Abu Dhabi Aviation this summer. Manufacturing has begun at its Georgia facility, targeting two aircraft per month by year-end. The Palantir partnership adds another layer, developing AI-powered air traffic systems worth billions.

With a pro forma liquidity position of $2 billion, Archer has industry-leading financial resources to execute on both opportunities simultaneously. Wall Street still prices it primarily as a pre-revenue eVTOL company, largely ignoring its defense potential. But with Anduril recently beating Boeing for major contracts and White House backing, the market's dismissive attitude is changing.

When investors recognize Archer's transformation from flying taxi company to critical defense asset, today's $10 stock will look like the bargain of the decade. After all, defense stocks tend to sport premium valuations and stellar free cash flows.

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

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

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $939,655!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 30, 2025

George Budwell has positions in Archer Aviation, Joby Aviation, Northrop Grumman, and Palantir Technologies. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.

The second half of 2025 offers a chance for investors to shake off the cobwebs of tariffs and recession fears and focus on where the market is going, rather than where it has been. Archer Aviation (NYSE: ACHR) has been on a roller coaster, while Cognex (NASDAQ: CGNX) and First Solar (NASDAQ: FSLR) have sold off considerably year to date.

Despite these jarring moves, these three companies could be worth buying in the second half of 2025 and holding for years to come. Read on to find out why.

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 »

Image source: Getty Images.

Archer Aviation stock has soared since this time last year -- and it's poised to keep ascending.

Scott Levine (Archer Aviation): If you take a look at Archer Aviation stock's performance in 2025, you'll see it has logged a modest 3% gain (as of June 20). If you expand your perspective to the past year, however, you'll find a much different story -- a 222% gain.

In light of this, growth investors may feel like it's too late to hitch a ride with the electric vertical takeoff and landing (eVTOL) stock, but there's no reason to think that Archer can't gain considerably more altitude.

Developing innovative aircraft -- such as Archer's eVTOL aircraft dubbed Midnight -- is no small feat. To ensure that the aircraft is safe, Archer is undergoing a rigorous certification process from the Federal Aviation Administration (FAA) that's nearing its conclusion.

The company has received a variety of requisite certifications from the FAA and is currently working toward receiving Part 142, the final certificate it needs before commencing commercial operations. Management is optimistic about receiving the certification soon and projects it will start commercial operations in 2025.

Separate from the FAA certification, Archer continues to make progress in securing partnerships. Most recently, it announced an agreement (valued at up to $18 million) to deploy its Midnight aircraft in Indonesia, which is the third agreement of its type. Archer has also inked agreements in the United Arab Emirates and Ethiopia.

According to Business Research Insights, the eVTOL market is poised for significant growth. Whereas it was valued at about $1.2 billion in 2024, it's expected to climb to $20.1 billion by 2033.

For those scanning the skies for a growth stock with tremendous upside, Archer hits the mark.

Machine vision is the future of automated manufacturing

Lee Samaha (Cognex): If you looked at a three-year chart of revenue growth -- or rather decline, in this case, as Cognex's revenue is down 15.3% over the period on a 12-month rolling basis -- the last thing you'd conclude is that it's a "monster growth" stock. That said, the chart below provides a broader perspective.

CGNX Revenue (TTM) data by YCharts.

Unfortunately, the last few years have been challenging, with high interest rates pressuring end demand in two key markets -- automotive and consumer electronics. Meanwhile, the company's logistics end market (primarily e-commerce warehousing) experienced a boom during the lockdowns, only to face a correction in the following years.

Still, Cognex's long-term growth trend remains impressive, and management highlighted the opportunity ahead during its recent investor day event. In a nutshell, management expects a combination of underlying industry growth of 4%, with 6% to 7% growth on top of that from the increasing penetration of machine vision into automated processes. Throw in 3% growth from inorganic sources (Cognex is the industry leader, so acquisitions are likely), and it results in long-term growth of 13% to 14% per annum.

Those assumptions appear reasonable, considering the ever-increasing complexity of production, the need to improve manufacturing efficiency and quality control, the desire to reshore production to higher-labor-cost countries, and the increased value added to its solutions through artificial intelligence. It adds up to a compelling growth story -- if you can tolerate some possible volatility, given challenging near-term end markets.

A bright light in a cloudy industry

Daniel Foelber (First Solar): Solar stocks soared in 2020 due to a combination of low interest rates, favorable policies, government support, and a push for clean energy. Since then, however, many solar stocks have gotten crushed as these same factors that drove the industry higher have reversed course.

Borrowing costs now are elevated. And last week, the Senate Finance Committee proposed accelerating the reduction and removal of tax credits for solar and wind energy.

Solar-panel manufacturer First Solar plunged on the news in lockstep with the broader industry. But even when factoring in the sell-off, First Solar has been a standout and is actually outperforming the S&P 500 over the last five years. In contrast, the solar industry, as measured by the Invesco Solar ETF, is down over that period.

FSLR data by YCharts.

There are several reasons why First Solar has held its own despite immense industry pressure. For starters, it's profitable and has an impeccable balance sheet. It also doesn't manufacture in China -- an advantage if trade tensions mount.

The company has been expanding its U.S. footprint recently, including opening a $1.1 billion manufacturing facility in Alabama last year. These moves could pay off over the long run if government incentives and trade policy continue to favor companies that onshore their manufacturing and create U.S. jobs.

Despite these advantages, First Solar still relies on government subsidies and sustained commercial investment in solar. In its Q1 2025 earnings release, First Solar guided for $1.45 billion to $2 billion in operating income. But that figure assumes $1.65 billion to $1.7 billion in 45X tax credits.

The 45X tax credit incentivizes domestic production and sale of renewable energy components (like solar panels). Take away the tax credits, and First Solar's profitability and high cash flow are put in jeopardy.

Given the industrywide uncertainty, it's understandable investors may be on the sidelines with First Solar stock. But the company has what it takes to ride out the industrywide downturn.

Despite profitability pressures, First Solar still expects to finish 2025 with $400 million to $900 million in net cash (cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities, less expected debt). The company also has a massive order backlog that supports years of future cash flow (although that backlog could decrease if customers pull back on purchases).

Add it all up, and First Solar stands out as one of the best all-around buys in the industry for patient investors.

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

Before you buy stock in Archer Aviation, 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 Archer Aviation 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 $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $881,731!*

Now, it’s worth noting Stock Advisor’s total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 23, 2025

Daniel Foelber has positions in First Solar. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cognex and First Solar. The Motley Fool has a disclosure policy.

Sometimes the best investment opportunities come wrapped in government buzzwords and unrealistic timelines.

Last Friday, the White House issued an executive order called "Unleashing American Drone Dominance." Yes, that's the actual title. And while it's long on ambition and short on specifics, buried in the bureaucratic language is something that matters for growth investors: a clear signal that the administration wants to fast-track electric vertical takeoff and landing (eVTOL) aircraft.

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 »

Image source: Getty Images.

The executive order creates an eVTOL pilot program requiring the FAA to select at least five companies for real-world operations, with aggressive timelines that suggest political pressure to move faster than typical aviation bureaucracy allows.

While the details remain vague and the timelines optimistic, the direction is clear: America wants to lead in urban air mobility. This political tailwind arrives just as the technology reaches commercial viability, creating a rare convergence of innovation, regulation, and market demand.

Now, before you roll your eyes at another government initiative, consider this: Archer Aviation (NYSE: ACHR) and Joby Aviation (NYSE: JOBY) don't need this executive order to succeed. Both companies are working through FAA certification (though timelines for experimental aircraft are notoriously opaque), have secured major airline partnerships, and claim to be targeting commercial launches shortly.

What both companies are getting is something potentially more valuable -- political cover to move faster through the regulatory maze. Both stocks have already had massive runs over the past 12 months (Archer up 203%, Joby up 63%), but if you think flying taxis are still science fiction, you haven't been paying attention. Here's why these two pioneers look like buys even after their recent runs.

Archer Aviation: The execution story

Archer Aviation operates with remarkable efficiency for a pre-revenue company, achieving milestones that arguably justify its $5.6 billion market cap. The company's Midnight aircraft, designed to carry four passengers plus a pilot on trips up to 100 miles, recently completed piloted flights -- a critical step that positions Archer, alongside Joby, as one of America's leading eVTOL companies.

With partnerships spanning United Airlines for domestic routes and Stellantis for manufacturing expertise, Archer has assembled the pieces for rapid commercialization once certification arrives. Its Launch Edition program, securing commitments from Abu Dhabi Aviation and Ethiopian Airlines valued at up to $30 million each, provides early revenue visibility and validates international demand.

The investment case is compelling. Archer's $6 billion order backlog now exceeds its entire $5.6 billion market cap, while its hefty 11.7% short interest (as of mid-May) sets up a potential short squeeze. Though Friday's executive order lacks implementation details, it sends an unmistakable signal -- the U.S. government views eVTOL dominance as a national priority. For a company already executing ahead of most of its peers in many ways, that political validation could be the spark that sends shares soaring in the months ahead.

Joby Aviation: The deep-pocketed pioneer

Joby Aviation brings unmatched financial firepower to the eVTOL race, with $813 million in cash plus Toyota's recent $250 million investment (part of a $500 million commitment) providing runway through commercialization. The company's Q1 2025 achievements read like a pre-launch checklist: routine pilot-on-board transition flights, Virgin Atlantic partnership for U.K. market entry, fifth production aircraft powered on, and expanded Marina manufacturing facility set for June handover.

Joby benefits from Toyota's manufacturing expertise embedded directly in operations, potentially solving the hardest challenge facing aerospace start-ups -- scaling from prototypes to volume production. The company claims to be 62% complete on its side of Stage 4 FAA certification (43% on FAA's side), though investors should view these self-reported metrics skeptically given the opaque nature of experimental aircraft approval. That's not a knock against either company, but the reality of developing a new form of aviation.

With strategic partnerships including Delta Air Lines, Virgin Atlantic, and a $131 million Department of Defense contract, Joby has diversified its path to revenue across commercial, international, and military applications. And like Archer, Joby also sports a fairly high short interest, with 7.6% of outstanding shares sold short in May. As such, this eVTOL pioneer could also benefit form a short squeeze on positive news or a marketwide melt-up.

Why these two eVTOL pioneers are a buy this week

Friday's executive order accelerated the eVTOL timeline, and the market hasn't caught on. While Archer executes lean and Joby brings Toyota's backing, both companies now face compressed regulatory timelines that could pull commercial operations forward by years.

This week's setup is compelling: Heavy short interest creates squeeze potential, operational milestones keep hitting, and a fresh political catalyst has just emerged. So, for growth investors comfortable with volatility, this could be a stellar entry point.

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

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Makers of electric vertical takeoff and landing aircraft (eVTOLs) aim to revolutionize the transportation industry by allowing people to literally fly above urban traffic on short-haul routes. Archer Aviation (NYSE: ACHR) is an early mover in the air taxi space, and with its market cap at just $5.83 billion now, new investors can still get in early on what could be an exciting long-term growth opportunity.

That said, potential rewards often correlate with potential risk in the stock market. And in late May, a report from short-seller Culper Research cast doubts about the quality of Archer Aviation's communications with investors and the public. Remember that short-sellers make money when a stock falls.

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Culper Research is short Archer Aviation

On May 20, Culper Research published a report titled "Archer Aviation (ACHR): When You Can’t Earn Airtime in the Sky, Buy it on Late Night Television" and featuring an image of Archer Aviation CEO Adam Goldstein alongside Jimmy Fallon, host of The Tonight Show Starring Jimmy Fallon. Culper Research claims the company "systematically misled" investors about its progress toward developing and testing its flagship Midnight aircraft. The report cites examples from employee emails, photos, and public statements that the short-seller believes contradict Archer Aviation's claims about the progress of its eVTOL program.

The stock didn't immediately drop after the report, but was down about 18% from the close of trading May 19 to the close on June 5. Archer's management fired back in a statement, dismissing the claims as "baseless" and questioning Culper's credibility.

Short-sellers profit when the price of a stock that they have shorted goes down, which gives them an incentive to present such a company's situation as negatively as possible. That gives me pause about the Culper report. Furthermore, even if Archer Aviation is overselling the progress of its eVTOL program, that's par for the course for speculative tech companies. For example, Tesla CEO Elon Musk has frequently made projections about timelines and projects (such as self-driving) that have rarely played out the way he said they would. Expectations of some exaggerations and delays are likely already priced into Archer Aviation's stock.

Focus on the fundamentals

Instead of getting caught up in news stories and short-seller allegations, investors should focus on Archer Aviation's financial reports. This data should give investors the best indications of how long the company can sustain its operations while it waits for factors outside its control, such as regulatory approvals. So far, the situation is complicated.

In the first quarter, its operating losses stood at $144 million, compared to $142 million in the prior-year period. This was mainly due to research and development outflows, as it spent more to bring the Midnight aircraft closer to commercialization. However, with around $1 billion in cash and equivalents on its balance sheet, Archer Aviation could sustain that rate of cash burn for about seven more quarters before it would need to seek outside sources of capital.

Artist's rendering of futuristic eEVTOLs parked and landing on a building in a city. Image source: Getty Images.

The company is also working on expanding its manufacturing capabilities through a partnership with multinational automaker Stellantis. The companies are teaming up to build a manufacturing facility in Covington, Georgia, that will eventually be capable of producing up to 650 aircraft annually, with Stellantis contributing expertise and capital to the project. Archer Aviation expects to be able to produce two Midnight aircraft per month by the end of 2025.

What will the next three years have in store?

Like many speculative companies, Archer Aviation presents a hugely optimistic vision for its future. While the company is still awaiting final approvals from the Federal Aviation Administration (FAA) in the U.S., in international markets, it seems to be moving much faster.

Early "launch edition" customers for its eVTOLs include Ethiopian Airlines and Abu Dhabi Aviation, which plans to take delivery of Midnight aircraft later this year. Over the next three years, Archer's revenue growth could accelerate dramatically as it secures more clients and ramps up production. But while this is exciting news for investors, it is unclear if these customers plan to merely test and experiment with eVTOLS or incorporate them into large-scale revenue-generating operations.

Furthermore, investors shouldn't be surprised if there are delays and disappointments associated with the aircraft's commercialization, especially considering the allegations made in Culper Research's report. Archer Aviation remains a high-risk, high-potential-reward bet and it's not clear where it will be in three years.

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

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• HR software company Lattice is unleashing new AI agents for the workplace.
• The new features transform the tools from simple chatbots into more proactive assistants.
• Sarah Franklin, the CEO of Lattice, told BI that embracing AI now would help protect jobs.

AI is already entering the workplace, so how should employees make sure it doesn't take their jobs?

For HR software company Lattice, the answer is to embrace it now and get ahead.

Last month, the company announced it was launching an AI agent designed to help HR teams. The agent would effectively give employees a digital copilot to answer questions about payroll, benefits, and other things they might usually message a human about.

On Tuesday, Lattice announced it's rolling out more features to transform these tools from simple chatbots into more proactive assistants.

They'll sit in on 1:1 meetings with your manager. They'll nudge you if they think an employee is disengaged and at risk of leaving the company. They'll let you practice difficult questions before having them with other employees.

Notably, Lattice is applying those same techniques to other business departments beyond HR, with what it's calling an "agent platform." Lattice CEO Sarah Franklin told Business Insider that IT and finance are two areas where these agents could be most helpful.

"I have an executive assistant as the CEO of a company, but my regular line engineer does not have an executive assistant," said Franklin. Lattice's proposal is: what if they did?

AI agents are a big theme in the corporate world right now. As the underlying AI models continue to improve rapidly, generative AI tools that can actually carry out helpful tasks and act more proactively are becoming more of a reality. But Franklin says many companies are struggling to make that leap.

"A lot of people are stuck at the starting line of, 'how do I get this going for my employees, rather than just having a ChatGPT window?'" she said.

The elephant in the room

While Franklin says Lattice is trying to get AI to enhance employees, rather than find ways of replacing them, plenty of companies are trying to get AI to take on white-collar jobs.

Franklin believes using AI to replace repetitive daily manual tasks, such as answering employee questions about payroll or health insurance plans, will free employees up for more "strategic" thinking.

She doesn't deny that some companies will look to use these AI tools to replace some humans, but she also said that's not what Lattice is trying to do. Instead, she sees the ability to offload menial tasks to AI as a way to make employees more productive and useful.

"We're not able to have people focused on the things that are really important because they're too busy doing the stuff that is logistical and not strategic," she said.

Franklin says there will always be a human in the loop and that Lattice's AI agents won't act on their "proactive" recommendations, such as contacting an employee who has missed a deadline, without a warm body giving the OK. Some companies that were bullish on AI, such as Klarna, have about-turned in recent months after discovering that taking humans out of the loop backfired.

It's a sign of just how unchartered these waters are. Lattice itself knows: jump back 10 months, and the company found itself in a media storm after announcing a new tool to let companies onboard AI "employees" and even give them official employment records.

It didn't go over well, and Lattice later walked back the release, but Franklin still believes the idea at heart was correct.

"We need to treat them as employees that aren't ghosts," she told BI. That means holding AI agents to the same standards as human employees when it comes to security, compliance, and performance, she added, "so we have a deep understanding of how these entities are behaving."

This, she said, will be important to preventing AI from just taking human jobs outright. It's an optimistic take, and it might prove to be correct. But there's also fear right now that AI agents will soon be good enough to wipe out many white-collar jobs. In some cases, they are already doing so.

"People have fear, uncertainty, doubt — this is why the time is now where we must all go through this change management, know how to be proficient, fluent, and elevated with AI so we're not replaceable," said Franklin.

"We prevent this by being proactive, by seeing the future and getting to it first."

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Short-selling can deliver spectacular returns when overvalued companies collapse, but it can also create devastating losses when markets move against bearish bets. The asymmetric risk profile makes shorting particularly hazardous during periods of rapid technological change, where seemingly overpriced stocks can continue to climb as new business models emerge and mature.

The current environment presents especially treacherous conditions for short-sellers. With artificial intelligence, autonomous systems, and defense modernization driving massive government and private investment, companies operating at the intersection of these trends often defy traditional valuation metrics. What appears overvalued today can quickly transform into tomorrow's essential infrastructure provider.

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Image source: Getty Images.

Archer Aviation (NYSE: ACHR) exemplifies this dynamic perfectly. After surging 202% over the past 12 months, the electric aviation company has attracted significant short interest, with 11.7% of outstanding shares sold short as of mid-May 2025. But beneath the surface, a fundamental business transformation is underway that could make this one of the most dangerous short positions in the market.

The short thesis looks compelling on paper

Archer became a prime short target following its meteoric rise, and the bearish case appears straightforward. The company operates in the nascent electric vertical takeoff and landing (eVTOL) market with limited recurring revenue and significant regulatory hurdles ahead. Commercial air taxi operations require extensive FAA certification and, for widespread adoption, costly investments in specialized vertiport infrastructure and air traffic management systems.

Recent research from Culper Research amplified these concerns, alleging that Archer had misled investors about key development milestones and questioning the timeline for FAA certification. Culper Research accused the company of misrepresenting testing progress and aircraft readiness, claiming Archer's "continued promotion of near-term commercialization is not only premature, but reckless." Like most pre-revenue companies, Archer is valued purely on potential rather than current financial performance, making it vulnerable to any signs that development progress is falling short of expectations.

While initial operations can leverage existing helipads and airport infrastructure, the scaling challenge looms large. Widespread air taxi adoption will eventually require substantial investments in dedicated takeoff and landing facilities, charging networks, and traffic coordination systems. The capital intensity and coordination complexity create natural barriers to rapid scaling that could limit long-term revenue growth potential.

Defense contracts change everything

What short-sellers are missing is Archer's strategic pivot into defense applications through its dedicated Archer Defense unit. The company has already secured a $142 million contract with the U.S. Air Force's Agility Prime program to deliver up to six Midnight eVTOL aircraft for military evaluation. This represents roughly half of the Department of Defense's initial eVTOL investments, positioning Archer as a leading contender for larger procurement programs.

The military use case completely transforms the value proposition. Archer's Midnight aircraft offers a 20- to 50-mile range, 150 mph top speed, and acoustic signature far quieter than traditional helicopters. These characteristics make it ideal for military missions requiring stealth and agility, including quick-reaction transport, medical evacuation, resupply, and intelligence gathering operations.

More importantly, defense adoption bypasses the civilian scaling bottlenecks that concern short-sellers. Military bases already possess suitable landing areas, and the Department of Defense has established procurement pathways designed to accelerate promising technologies into operational use. Success in prototype evaluations typically leads to "programs of record" where the military commits to fleetwide adoption worth hundreds of millions to billions of dollars.

Strategic partnerships multiply the opportunity

Archer's exclusive partnership with defense technology company Anduril Industries significantly expands its addressable market and credibility within military circles. Together, they're developing hybrid-propulsion VTOL aircraft that combine electric lift with fuel-based generators for extended range, directly addressing military requirements that pure battery-powered aircraft cannot meet.

Anduril brings proven defense contracting expertise, having recently secured a $642 million Marine Corps counter-drone system deal and a $99.7 million Space Force contract. This partnership positions Archer for larger defense opportunities beyond pure aircraft sales, potentially including integrated autonomous systems and battlefield mobility solutions.

The timing couldn't be better. Recent conflicts have demonstrated the strategic value of quiet, agile aircraft that can operate in contested environments where traditional helicopters face increasing vulnerability to drone swarms and advanced air defenses. The Department of Defense is actively investing in distributed operations concepts where eVTOL aircraft play a central role, creating immediate demand for proven capabilities.

Why this matters for short-sellers

Full disclosure: I am a long-term shareholder in Archer Aviation and a firm believer in the transformational potential of eVTOL technology. This perspective undoubtedly influences my optimistic view of the company's defense pivot and long-term prospects. However, the fundamental shift from commercial-focused to defense-enabled operations represents a measurable change in Archer's risk profile that short-sellers ignore at their peril.

For short-sellers betting on commercial aviation challenges, Archer's defense transformation represents a massive blind spot. While civilian air taxi operations face legitimate scaling hurdles, military contracts provide immediate validation and revenue potential that could sustain the company through any commercial development delays.

With key partnerships with established military contractors, shorting Archer looks increasingly like a bet against the inevitable militarization of eVTOL technology. In a market where defense spending continues accelerating and autonomous systems receive priority funding, that's a dangerous position to maintain.

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

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

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George Budwell has positions in Archer Aviation. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Shares of Joby Aviation (NYSE: JOBY) are flying higher on Wednesday. The company's stock spiked 30.2% as of 2:21 p.m. ET. The jump comes as the S&P 500 and the Nasdaq Composite were mostly flat.

The company, which develops electric vertical take-off and landing (eVTOL) aircraft, announced yesterday after the market closed that it has received $250 million from Toyota, the first tranche in $500 million of previously announced funding.

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Toyota releases its first payment

While the funding was not unexpected -- the total $500 million strategic investment had already been announced -- actually receiving it sparked renewed enthusiasm for the company and its relationship with the storied vehicle maker.

The funds will be used to help Joby attain certification for its eVTOL aircraft as well as to advance its manufacturing and production capabilities. Joby leadership is hoping the relationship will progress, saying that the release of the $250 million "puts the two companies a step closer toward a strategic manufacturing alliance."

Image source: Getty Images,

JoeBen Bevirt, founder and CEO of Joby, added that, "We're already seeing the benefit of working with Toyota in streamlining manufacturing processes and optimizing design. This is an important next step in our alliance with Toyota to scale the promise of electric flight."

Joby looks promising

The news comes on the heels of a damning report on its closest competitor, Archer Aviation, that alleges Archer is misleading investors regarding its development timeline and aircraft capabilities. If these allegations prove true, it would give a massive leg up to Joby in the race to commercial operations. Given Toyota's commitment to quality and reliability and its relationship with Joby, I would be surprised if the company faces similar allegations.

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

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The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Joby Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

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

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Thermon Group (NYSE:THR) delivered its fiscal 2025 fourth-quarter results on May 22, reporting 5% year-over-year revenue growth to $134.1 million, an adjusted EBITDA margin of 22.7%, and record annual free cash flow of $53 million. Management at the industrial process heating specialist highlighted a 29% year-over-year backlog increase as of March 31 (the quarter's end), strategic expansion into high-growth markets, and outlined the tariff headwinds it expects for fiscal 2026, as well as its plans for rigorous mitigation efforts.

Backlog Acceleration and Diversification Drive Competitive Resilience

As of fiscal 2025's end, the company's backlog was up by 29% year over year, with organic backlog up by 20%. It's benefiting from gains in the liquid natural gas (LNG) segment and from its exposure to diversified end markets. The backlogs point to sustained order strength despite a 37% annual decrease in revenue from large capital projects. Its book-to-bill ratio has remained above 1.0 for four consecutive quarters, supported by rebounding oil and natural gas activity and strategic wins in the LNG business after the U.S. moratorium on permits for new LNG export projects was lifted in January.

"As a result, our backlog as of March 31 increased 29% from last year, with the organic backlog up 20%, driven by momentum in diversified verticals coupled with a rebound in certain oil and gas markets."
-- Bruce Thames, CEO

LNG and Strategic M&A Expand Addressable Market

The lifting of the U.S. moratorium on permits for new LNG export projects catalyzed increased project bidding, and Thermon secured five major awards. The January 2024 acquisition of Vapor Power contributed to a 25% sales pipeline expansion. Later, in fiscal 2025, it acquired heating solutions specialist Fati, and demand from Thermon's legacy customers has approximately doubled Fati's backlog. Thermon management sees $80 million in potential opportunities for its offerings in the LNG space.

"We built a strong portfolio of products targeting the LNG market, have secured five major awards, and are well-positioned to capitalize on numerous other opportunities in our pipeline. ... The addition of Vapor Power has expanded our addressable market, increasing our sales pipeline by 25%, even though the business represents just 11% of total revenue today."
-- Bruce Thames, CEO

Thermon's proactive portfolio and M&A strategies are solidifying its competitive position in high-growth, high-barrier industries, directly supporting multiyear organic expansion and recurring revenue base shifts.

Tariff Headwinds Quantified and Countermeasures Deployed

Management's guidance factors in an expected annualized gross tariff headwind of $16 million to $20 million, with the net impact after mitigation estimated at $4 million to $6 million, primarily affecting its first-half margins. Management has raised prices, reconfigured supply chains, and enacted production shifts in its effort to offset the cost inflation caused by those new import taxes. Its planned $5 million investment in its Enterprise Resource Planning (ERP) system will be excluded from adjusted EBITDA and EPS, as well as from the guidance figures.

"Based upon these assumptions, we're expecting an annualized impact of roughly $16 [million] to $20 million on a gross basis prior to mitigating actions, which are already underway. ... We believe on a net impact, it's somewhere in the $4 [million] to $6 million range within the current fiscal year."
-- Bruce Thames, CEO

Looking Ahead

Management's guidance for fiscal 2026 is for $495 million to $535 million in revenue (3.5% growth at midpoint) and adjusted EBITDA of $104 million to $114 million, with a brief margin dip expected in the first half due to tariff lag, but with margins recovering as the company's pricing actions take effect in the second half. Management is neutral to cautious on its demand expectations, given the elevated levels of macroeconomic and trade policy risks, but is reinforcing aggressive capital allocation priorities in M&A, share repurchases, and organic growth investments.

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When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 962%* — a market-crushing outperformance compared to 169% for the S&P 500.

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This article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. The Motley Fool has positions in and recommends Thermon Group. The Motley Fool has a disclosure policy.