Tag: Stock Advisor

Is Costco Stock an Obvious Buy Right Now?

Costco Wholesale (NASDAQ: COST) has delivered strong returns for long-term investors. Over the past five years, Costco stock has gained 110%, outperforming the S&P 500’s 73% return. However, the shares have been roughly flat over the past year, while the index has risen 19%. Valuation has been a key factor behind that underperformance.

Image source: Getty Images.

Costco’s business remains strong

Costco’s underlying business continues to perform well. Third-quarter sales increased 11.6% year over year, while comparable-store sales rose 6.6% after excluding the effects of gasoline prices and currency fluctuations in international markets.

The warehouse retailer is also growing across several important areas. E-commerce sales climbed 21% year over year, Costco set new records for fuel volume, and it increased member value by lowering prices on staples such as eggs and beef.

Costco stock valuation remains elevated

Valuation is the main issue weighing on Costco stock. The shares traded at a price-to-earnings multiple of about 60 roughly a year ago. Although that premium has since narrowed, Costco still trades at approximately 47 times trailing earnings, above its 10-year average of around 40.

At its current price, Costco is not an obvious buy. Investors may be better served by waiting for the stock to move closer to its historical valuation, or potentially below it. Buying now carries the risk of owning an excellent business while its valuation is reduced further and the shares continue to lag the broader market.

Should you buy Costco stock now?

Costco remains a high-quality business with strong sales growth, resilient membership economics, and expanding digital operations. However, its elevated earnings multiple limits the margin of safety for new investors. A more attractive entry point could emerge if the stock’s valuation moves closer to its long-term average.

The Motley Fool Stock Advisor analyst team has identified what it believes are the 10 best stocks for investors to buy now, and Costco Wholesale was not included among them. The selected companies are positioned for long-term growth and could deliver significant returns in the coming years.

Stock Advisor cites past recommendations including Netflix on December 17, 2004, when a $1,000 investment would have grown to $440,710, and Nvidia on April 15, 2005, when the same investment would have grown to $1,335,252.

Stock Advisor returns as of August 31, 2026.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

08/31/2026
CrowdStrike Stock Hits a Fresh Record High: Is It Still Time to Buy?

CrowdStrike (NASDAQ: CRWD) stock surged to a record closing high of $227.96 on Thursday, Aug. 27, after the cybersecurity company reported blockbuster fiscal second-quarter results the previous evening. The stock has returned 94% in 2026, dramatically outperforming the S&P 500, which has gained 13%.

CrowdStrike’s Falcon platform is one of the cybersecurity industry’s few all-in-one enterprise solutions. It protects cloud networks, employee identities, endpoints, and other critical systems. Comprehensive protection has become increasingly important as cybercriminals use artificial intelligence (AI) to identify vulnerabilities in corporate networks more quickly.

CrowdStrike believes its total addressable market will more than double to $325 billion by 2030. But with the stock trading at an all-time high, should investors buy CrowdStrike stock now?

CrowdStrike’s Falcon platform is expanding rapidly

The cybersecurity industry was once highly fragmented, with vendors typically specializing in one or two products. Enterprises often had to purchase security tools from multiple providers, and those products did not always work well together. That created gaps in their defenses—an increasingly serious problem in the AI era.

Falcon allows enterprises to choose from 33 modules to create a security platform tailored to their needs. Through its Flex subscription, customers can set a fixed annual budget and add or remove modules as their requirements change.

AI is creating new security risks for businesses, too. Enterprises can expose themselves to threats whenever they deploy an AI chatbot, agent, or other software application. Chatbots, for example, may be vulnerable to prompt injection, a technique in which a hacker disguises malicious instructions as legitimate prompts and directs the application to ignore its guardrails.

In some cases, attackers can persuade a chatbot to disclose sensitive information or provide access to restricted networks. CrowdStrike launched a Falcon module called AI Detection and Response (AIDR) to address those threats. The module monitors inputs and outputs from trusted AI applications to detect attempts to orchestrate a breach through prompt injection.

AIDR can also identify unauthorized agents and chatbots operating inside an organization, enabling security teams to shut them down immediately. During CrowdStrike’s fiscal 2027 second quarter, which ended July 31, annual recurring revenue (ARR) from AIDR nearly tripled from the previous quarter, signaling strong demand for the product.

CrowdStrike’s revenue growth accelerated again

CrowdStrike ended the second quarter with $5.84 billion in total ARR, up 25% from the same period a year earlier. Falcon Flex represented $2.29 billion of that total and grew 101% year over year, suggesting that customers value the flexibility to add and remove security modules.

The second quarter marked the fourth consecutive quarter in which CrowdStrike’s total ARR growth accelerated. The company’s momentum prompted management to raise its fiscal 2027 full-year ARR forecast by $64 million to $6.607 billion at the midpoint of its guidance range.

CrowdStrike’s valuation could limit stock returns

Strong operating results do not guarantee further gains for CrowdStrike stock because valuation remains important. The company currently trades at a price-to-sales (P/S) ratio of 43.5. That is a record high and nearly four times CrowdStrike’s historical average P/S ratio of 11 since its 2019 initial public offering.

CrowdStrike’s stock is now valued at roughly seven times the Nasdaq-100, which has a P/S ratio of 6.2. It is also significantly more expensive than Palo Alto Networks, its closest competitor, which has a P/S ratio of 26.4.

Investors buying CrowdStrike stock in anticipation of strong gains over the next 12 months could therefore be disappointed. The company’s elevated valuation leaves little, if any, room for further upside in the near term.

However, CrowdStrike believes it can more than triple ARR to $20 billion by fiscal 2036. If that target is achieved, the company could generate positive returns for investors willing to hold the stock for roughly a decade. Whether CrowdStrike is a buy may therefore depend largely on an investor’s time horizon.

Should you buy CrowdStrike stock now?

The Motley Fool Stock Advisor analyst team recently identified what it believes are the 10 best stocks for investors to buy now, and CrowdStrike was not among them. The selected stocks could deliver significant returns over the coming years.

For example, when Netflix appeared on the list on Dec. 17, 2004, a $1,000 investment based on the recommendation would have grown to $440,710. When Nvidia appeared on the list on April 15, 2005, a $1,000 investment would have grown to $1,335,252.

Stock Advisor’s total average return is 978%, compared with 213% for the S&P 500. The service’s latest top 10 stock list is available through Stock Advisor.

Stock Advisor returns as of August 31, 2026.

Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy.

“CrowdStrike Stock Just Set a Fresh Record High, but Is There Still Time to Buy? The Answer Might Surprise You.” was originally published by The Motley Fool.

Source: finance.yahoo.com

08/31/2026
Investing in the Stock Market at the Worst Possible Time: History Offers Reassuring News for Investors

Over the past few years, the stock market has remained remarkably resilient. Despite several periods of short-term volatility, the S&P 500 (SNPINDEX: ^GSPC), Nasdaq Composite (NASDAQINDEX: ^IXIC), and Dow Jones Industrial Average (DJINDICES: ^DJI) have all reached new all-time highs in recent months.

However, record stock market highs can create a hidden risk. When the next bear market arrives—and it will eventually—investors who buy at peak prices could see their portfolios fall soon afterward.

In 2009, a “Double Down” signal flashed for the little-known chipmaker Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia.

Investing near record highs can feel intimidating, and some investors may be tempted to avoid the market and wait for a pullback. But how damaging would it really be to invest at the “worst” possible moment? History suggests the outcome may not be as bad as many investors fear—with one important caveat.

The worst recessions have one trait in common

Even the most severe recessions, market crashes, and bear markets are temporary. Although they can cause significant short-term financial and economic damage, long-term investors have historically been rewarded for staying invested.

For example, imagine investing in an S&P 500 ETF in October 2007, the month the Great Recession officially began. The downturn was the most severe economic contraction in the post-World War II era, and the stock market took years to fully recover.

The most important point for investors is that a decline in value is not the same as a permanent loss of money. An S&P 500 ETF would have lost 55% of its value during the Great Recession. But an investor who stayed invested until the market recovered would not have locked in those losses.

From October 2007 to today, the S&P 500 has generated total returns of more than 600%. If you had invested $10,000 in an S&P 500 ETF at that time and made no additional contributions, you would have more than $70,000 today.

The same pattern has appeared repeatedly throughout market history. The dot-com bubble officially burst in March 2000, creating a bear market that was arguably even more challenging for many investors. It was one of the longest bear markets in S&P 500 history, and the Great Recession struck shortly after the market began reaching new highs again.

Even so, an investor who bought an S&P 500 ETF in March 2000—immediately before two consecutive recessions—would have earned total returns of around 722% by today.

What history teaches long-term investors

If there is one key lesson for investors, it is that the timing of an investment matters less when the investment horizon is long enough.

Could an investor theoretically have earned more by waiting for the bottom of a bear market before buying? Certainly. But hindsight is 20/20, and it is impossible to know in real time where the market is heading.

Instead of waiting for the perfect buying opportunity, investors may benefit more from investing consistently and remaining in the market for the long term. Even if you invest at the “wrong” time, history indicates that the market can more than compensate for that timing over time.

Should you buy the S&P 500 Index right now?

Before buying stock in the S&P 500 Index, consider this: The Motley Fool Stock Advisor analyst team has identified what it believes are the 10 best stocks for investors to buy now—and the S&P 500 Index was not one of them. The 10 stocks on that list are designed for long-term growth and could generate substantial returns in the coming years.

Netflix made the list on December 17, 2004. If you had invested $1,000 at the time of the recommendation, you would have $440,710 today.* Nvidia also made the list on April 15, 2005. A $1,000 investment at the time of that recommendation would be worth $1,335,252 today.*

That performance is why investors pay attention. With a track record of beating the S&P 500 by nearly five times, Stock Advisor offers a distinct advantage. The latest top 10 list is available through Stock Advisor, along with access to an investing community focused on long-term results.

See the 10 stocks »

*Stock Advisor returns as of August 30, 2026.

Katie Brockman 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.

Source: finance.yahoo.com

08/30/2026
If You’d Invested $1,000 in McDonald’s 25 Years Ago, Here’s How Much It Would Be Worth Today

McDonald’s (NYSE: MCD) has delivered market-beating returns over the past 25 years, largely because of its franchise-focused business model. A $1,000 investment in the consumer discretionary stock 25 years ago would be worth $16,670 today.

About $10,000 of that gain came from dividends, while McDonald’s stock itself slightly underperformed the S&P 500 over the same period. The company began paying a dividend in 1976 and has increased it every year since.

How McDonald’s franchising model drives returns

Most McDonald’s restaurants are franchised, giving the company a more asset-light structure than restaurant operators such as Chipotle, which owns and operates all of its locations.

Franchising is common across the restaurant industry, but McDonald’s places particular emphasis on brand consistency. Its revenue depends heavily on fees paid by franchisees, including a 4%-5% fee on sales and a minimum 4% fee for advertising and promotions.

McDonald’s also owns the building at every restaurant. That means it continues to collect rent even when a location’s fast-food operations slow. This real estate component helps the company generate relatively steady revenue across different economic conditions.

McDonald’s has expanded its footprint to more than 45,000 restaurants in more than 100 countries. That scale may raise concerns about market saturation, but higher rents and population growth could continue to support expansion. The company’s business model may therefore keep driving stock-price appreciation and dividend growth for years to come.

Should you buy McDonald’s stock now?

Before buying McDonald’s stock, investors should consider that The Motley Fool Stock Advisor analyst team recently identified what it believes are the 10 best stocks to buy now—and McDonald’s was not among them.

The selected stocks are positioned for long-term growth and could deliver substantial returns in the coming years. When Netflix appeared on the list on December 17, 2004, a $1,000 investment made at the time of the recommendation would have grown to $440,710. When Nvidia was selected on April 15, 2005, a $1,000 investment would have grown to $1,335,252.

Stock Advisor’s reported track record of beating the S&P 500 by nearly five times is a key reason investors follow the service. The latest top-10 stock list is available through Stock Advisor, which offers access to an investing community focused on long-term results.

See the 10 stocks »

*Stock Advisor returns as of August 29, 2026.

Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald’s, short January 2028 $340 calls on McDonald’s, and short September 2026 $35 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.

Source: finance.yahoo.com

08/29/2026
History Says All Bear Markets Share One Trait—and It’s Fantastic News for Investors

Investors are growing increasingly nervous as several bear market indicators flash red. The Buffett Indicator, named after Berkshire Hathaway legendary investor Warren Buffett, suggests that the U.S. stock market is historically overvalued.

Investor sentiment is also weakening. The American Association of Individual Investors reports that 44.4% of individual investors expect a bear market within the next six months, compared with 32.9% who anticipate a bull market. The share predicting a bear market rose by 4.5 percentage points in just one week.

Still, even if a bear market arrives soon, history offers an important reason for long-term investors to remain focused. There is no way to know exactly when the next bear market will begin, but every bear market in U.S. history has shared a significant trait.

Bear markets are shorter than bull markets

A bear market is generally defined as a decline of more than 20% in a broad market index such as the S&P 500, the benchmark most commonly used to gauge the health of the U.S. stock market.

Even the most severe and longest bear markets in U.S. history have been followed by bull markets that lasted longer—often much longer. The steepest decline was the 56.8% drop during the Great Recession, while the longest was the 31-month bear market that followed the bursting of the dot-com bubble.

The bear market following the dot-com crash lasted 31 months from peak to trough, running from March 2000 through September 2002. It was followed by a 60-month, or five-year, bull market that continued until October 2007.

The Great Recession then brought a 17-month bear market that lasted until March 2009. That downturn was followed by the longest bull market in history, which continued for nearly 11 years before the one-month COVID-19 bear market in February 2020.

Since the S&P 500 was created in 1957, the stock market has spent most of its time in a bull market. There have been approximately 12 total years of bear markets, compared with about 57 years of rising markets.

Bull market gains have historically exceeded bear market losses

By definition, each bull market since the S&P 500 was created has produced a gain greater than the loss recorded during the preceding bear market.

For investors, the more encouraging pattern is that bull markets have typically returned at least twice as much as the preceding bear market lost. Of the 13 bull markets since the S&P 500’s creation, only one—the 1966-1968 bull market—returned less than 1.9 times the losses from the preceding bear market.

In some periods, the difference was substantially larger. The 1982-1987 bull market returned nine times the losses from the preceding 1980-1982 bear market. The 1990-2000 bull market returned 21 times the losses from the 1990 bear market.

History therefore suggests that any future bear market is likely to be relatively short-lived compared with the bull market that follows. Investors who remained invested in the S&P 500 through previous bear markets eventually recovered their losses and generally achieved substantial gains after the downturn ended.

Should you invest in an S&P 500 index fund now?

Before investing in an S&P 500 index fund, investors should consider that The Motley Fool Stock Advisor analyst team has identified what it believes are the 10 best stocks to buy now—and the S&P 500 Index was not among them.

The Motley Fool says the 10 selected stocks could generate significant returns in the coming years. When Netflix appeared on the list on December 17, 2004, a $1,000 investment made at the time of the recommendation would have grown to $440,710. When Nvidia appeared on the list on April 15, 2005, the same investment would have grown to $1,335,252.

Stock Advisor’s total average return is 978%, compared with 213% for the S&P 500. The service promotes its latest list of 10 stocks and an investing community for individual investors.

See the 10 stocks »

*Stock Advisor returns as of August 29, 2026.

John Bromels has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.

History Says All Bear Markets Have 1 Trait in Common — and It’s Fantastic News for Investors was originally published by The Motley Fool

Source: finance.yahoo.com

08/29/2026