NESTLE S.A S/ADR

In recent trading, shares of NSRGY (Symbol: NSRGY) have crossed above the average analyst 12-month target price of $103.23, changing hands for $103.94/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 3 different analyst targets within the Zacks coverage universe contributing to that average for NSRGY, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $85.00. And then on the other side of the spectrum one analyst has a target as high as $120.00. The standard deviation is $17.546.
But the whole reason to look at the average NSRGY price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with NSRGY crossing above that average target price of $103.23/share, investors in NSRGY have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $103.23 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover NSRGY:
»
Current
1 Month Ago
2 Month Ago
3 Month Ago
Strong buy ratings:
3
3
3
3
Buy ratings:
0
0
0
0
Hold ratings:
13
13
13
12
Sell ratings:
0
0
0
1
Strong sell ratings:
0
0
0
0
Average rating:
2.63
2.63
2.63
2.69
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on NSRGY — FREE.
Also see:
Defense Dividend Stocks
Funds Holding RNXT
NRDY market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

NSRGY Reaches Analyst Target Price

Key Points
International stocks trade at 16.2-times earnings versus 28-times for U.S. stocks due to lower margins, slower growth, and structural challenges.
The fund's 27% rally in 2025 reflects weakening dollar trends and China's reopening, not just valuation mean reversion.
A 10% to 20% portfolio allocation makes sense for diversification, but this isn't a core holding replacement.
The Vanguard Total International Stock Index Fund ETF (NASDAQ: VXUS) has surged 27% year-to-date through Oct. 3, 2025, its best performance in years after averaging just 5.8% annually since 2011. The rally prompts a simple question -- is there still value in this exchange-traded fund (ETF) after such a strong run?
The answer is yes, but with crucial caveats. International stocks trade at 16.2-times earnings versus 28-times for the S&P 500, a 42% discount that reflects real fundamental differences, not just market inefficiency. Before chasing this valuation gap, investors need to understand both why it exists and what sparked 2025's sudden reversal after years of underperformance.
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Why international stocks trade cheaper
The valuation gap isn't arbitrary. U.S. companies generate average returns on equity above 20%, while European firms manage roughly 12% and emerging markets hover around 10%. American businesses dominate the high-margin technology and healthcare sectors, while international indices overweight banks, industrials, and energy -- sectors with structurally lower profitability.
Geographic composition matters too. The fund spreads across 8,621 holdings with approximately 40% in Europe, 30% in Pacific developed markets, and 30% in emerging markets. Top holdings include Nestlé, Samsung, ASML, and Taiwan Semiconductor -- though ASML and Taiwan Semiconductor dominate their respective markets, these companies represent tiny weights in the fund compared to how Apple or Microsoft dominate the S&P 500.
Currency risk adds another discount factor -- the fund doesn't hedge, meaning a strengthening dollar directly reduces returns. These structural realities explain why international stocks have traded cheaper for years, not months.
What changed in 2025
Three shifts have helped drive international equities in 2025. First, the dollar has weakened significantly -- down around 10% to 11% in the first half -- reducing currency headwinds for foreign assets. Second, China is rolling out targeted stimulus tools and loosening property constraints to spur investment, signaling a willingness to prop up growth. Third, Europe's economy is showing signs of stabilization, with euro-zone factories returning to growth in recent surveys, helping lift optimism that earnings could surprise to the upside.
These tailwinds won't last forever. The dollar could rebound if U.S. growth accelerates. China's stimulus may prove transient, as weak demand and real estate stress still weigh heavily. Europe's recovery remains fragile -- Germany, in particular, is only just avoiding recession in some forecasts. But after years of underperformance, international markets finally aligned with positive momentum, helping explain the strong performance in funds like the Vanguard Total International Stock Index Fund.
The income and diversification case
Despite the rally, the fund still offers value for specific purposes. Its 2.78% dividend yield nearly doubles the S&P 500's 1.3%, providing real income in a low-yield world. The fund's 0.05% expense ratio costs almost nothing compared to actively managed international funds charging 1% or more. Geographic diversification reduces dependence on U.S. tech giants that now comprise nearly 30% of the S&P 500.
But diversification isn't a free lunch. The fund's emerging market exposure adds volatility -- expect 20% drawdowns during global sell-offs. European banks face negative rates and weak loan growth. Asian exporters depend on global trade remaining open. The fund works best as portfolio insurance against U.S. concentration risk, not as a path to market-beating returns. History shows international stocks can underperform for decades, not just years.
The allocation answer
So is the Vanguard Total International Stock Index Fund still a buy? Yes, but only as a 10% to 20% portfolio allocation, not a core position. The valuation gap reflects genuine quality differences that won't disappear. The 2025 rally had specific catalysts that may not repeat. The fund's 5.8% annual return since 2011 reminds investors that cheap can stay cheap.
For investors overweight U.S. stocks after years of outperformance, adding international exposure makes sense. The fund provides geographic diversification, higher yield, and valuation upside if conditions align. Just recognize that the valuation discount reflects real structural differences -- lower returns on equity, currency risk, and different sector composition. The fund works best as a complementary holding, not the foundation for building wealth.
Should you invest $1,000 in Vanguard Total International Stock ETF right now?
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George Budwell has positions in Apple, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends ASML, Apple, Microsoft, Taiwan Semiconductor Manufacturing, and Vanguard Total International Stock ETF. The Motley Fool recommends Nestlé and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is The Vanguard Total International Stock Index Fund ETF Still a Buy?

Key Points
The persistent high-interest rate environment has prevented the Vanguard Real Estate ETF from rallying.
International stocks have outperformed but still look attractively valued.
There's an excellent high-dividend Vanguard ETF that could still be a smart buy.
The S&P 500 recently reached a new all-time high, and many stocks are at or near their own 52-week highs. But there are two important things for ETF investors to know.
First, not all ETFs are near all-time highs. In fact, some are still down by 10% or more from their recent peaks. Second, just because a certain ETF is at a new high doesn't always mean that it's expensive. And with these principles in mind, here are three Vanguard ETFs that look incredibly attractive even with many stocks reaching new highs.
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Rate-sensitive sectors are still a bargain
The real estate sector hasn't exactly been a strong performer in recent years. In fact, the Vanguard Real Estate ETF (NYSEMKT: VNQ) has produced a 73% total return over the past decade, compared with 264% for the S&P 500.
However, it's important to point out that the last decade has seen two Federal Reserve rate hike cycles and a pandemic that essentially rendered commercial real estate inoperable for a period of time. The actual businesses of real estate investment trusts (REITs) have generally performed well -- it's just a highly rate-sensitive business. Not only do higher rates cause borrowing costs to rise, but commercial property values have an inverse relationship with the prevailing risk-free interest rates, like Treasuries.
While there's no way to know when the Fed will start cutting rates again, most experts agree that the general direction of interest rates over the next couple of years is likely to be downward. This should provide the tailwind the Vanguard Real Estate ETF needs to start producing outsized returns.
At a new high, but not expensive
The Vanguard International High Dividend Yield ETF (NASDAQ: VYMI) just hit a new all-time high on the day this article was written. But that doesn't necessarily mean it's expensive. In fact, compared with U.S. high dividend stocks, it looks extremely cheap.
This ETF owns a portfolio of about 1,550 companies based outside of the United States that have above-average dividend yields. But these aren't just companies you haven't heard of -- household names like Toyota and Nestle are among the top holdings, and there are several other major components that you're probably familiar with. As of this writing, the ETF has a 4.1% dividend yield, but of course it might be slightly different by the time you're reading.
Here's the key point. The average stock in the Vanguard International High Dividend Yield ETF's index has grown earnings at a 13.7% annual rate over the past five years and trades for just 12 times earnings. That's a remarkably low valuation, especially considering that the stocks in the U.S. counterpart Vanguard High Dividend Yield ETF (NYSEMKT: VYM) have an average P/E of more than 19 and have grown earnings slower.
Of course, there are additional risks when investing in international stocks, such as foreign exchange rate risk, and there is still quite a bit of uncertainty surrounding U.S. trade policy. But this is a massive valuation gap, and it could still be a good time to buy.
Buy as long-term investments
To be clear, I think all three of these ETFs are attractive right now, and I own shares of all three in my own portfolio. But I bought them because I think they'll perform very well over the next few years -- not the next few weeks or months. Keep that in mind when considering if they're right for your goals.
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Matt Frankel has positions in Vanguard International High Dividend Yield ETF and Vanguard Real Estate ETF. The Motley Fool has positions in and recommends Vanguard Real Estate ETF and Vanguard Whitehall Funds-Vanguard High Dividend Yield ETF. The Motley Fool recommends Nestlé. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

All-Time Highs for Stocks: These 2 ETFs Still Look Undervalued

There are some excellent high-dividend ETFs you can buy, and with a strong economy and a high likelihood that interest rates will come down soon, now could be a great time to invest. But my favorite way to get high-dividend stock exposure right now isn't with a U.S. dividend ETF.
I recently added the Vanguard International High Dividend Yield ETF (NASDAQ: VYMI) to my portfolio. Not only does it have a higher yield than its U.S. counterparts and a less concentrated portfolio, but it also looks extremely cheap right now. Here's what you need to know.
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What is the Vanguard International High Dividend Yield ETF?
As the name suggests, this is an index fund that invests in international stocks with above-average dividend yields. But there are some important details to unpack here.
First, this is a highly diversified ETF. It is a weighted ETF, which means that larger companies make up more of its assets, but there are more than 1,500 stocks in its benchmark index and no stock makes up more than 2% of the portfolio.
Second, as a Vanguard index fund, the Vanguard International High Dividend Yield ETF is a low-cost way to invest in non-U.S. companies. It has a 0.22% expense ratio, which is higher than you'd pay for something like an S&P 500 ETF but is significantly lower than the industry average for an international stock fund.
In addition, the Vanguard International High Dividend Yield ETF receives dividends from the underlying stocks in its portfolio and passes them through to investors. As of this writing, the ETF has a dividend yield of about 4.2%, which is significantly higher than most "high dividend" ETFs that invest in U.S. stocks pay.
Finally, although this is an international stock ETF, that doesn't mean you're investing in a portfolio of obscure businesses you've never heard of. There is certainly some element of that, but top investments in the portfolio include household names such as Nestle, Novartis, Toyota, and Royal Bank of Canada. They just all happen to be based outside the United States.
A bargain ETF?
The Vanguard International High Dividend Yield ETF is trading near its 52-week high, but that doesn't necessarily mean it's expensive. In fact, most of the key metrics would indicate the exact opposite.
For example, the average stock in the ETF trades for 12 times earnings and 1.4 times book value, and the average earnings growth rate in the portfolio is 13.7%. This implies a price-to-earnings growth (PEG) ratio of about 0.88. I generally consider anything under 1 to be very cheap.
To put this in perspective, consider that the U.S. version of the ETF, the Vanguard High Dividend Yield ETF (NYSEMKT: VYM) owns 585 stocks with an average P/E ratio 19.1 and an average earnings growth rate of 10.7%, a PEG ratio of 1.78, which still isn't terribly expensive. Of course, there are some additional risks involved with investing in international stocks, such as currency fluctuations and tariff uncertainty, but this is still a massive valuation gap.
With a cheap valuation, a portfolio that owns some excellent businesses, and a high dividend yield, the Vanguard International High Dividend Yield ETF could be worth a closer look right now. I recently added it to my own portfolio, and I plan to continue to gradually add shares over time.
Should you invest $1,000 in Vanguard International High Dividend Yield ETF right now?
Before you buy stock in Vanguard International High Dividend Yield ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard International High Dividend Yield ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $966,931!*
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*Stock Advisor returns as of June 23, 2025
Matt Frankel has positions in Vanguard International High Dividend Yield ETF. The Motley Fool has positions in and recommends Vanguard Whitehall Funds-Vanguard High Dividend Yield ETF. The Motley Fool recommends Nestlé. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Could This Be the Best High-Dividend ETF to Buy Right Now?

Investors interested in Consumer Staples stocks should always be looking to find the best-performing companies in the group. Has Nestle SA (NSRGY) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Consumer Staples peers, we might be able to answer that question.
Nestle SA is one of 178 companies in the Consumer Staples group. The Consumer Staples group currently sits at #15 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Nestle SA is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for NSRGY's full-year earnings has moved 5.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, NSRGY has gained about 21.7% so far this year. Meanwhile, the Consumer Staples sector has returned an average of 5.1% on a year-to-date basis. This means that Nestle SA is performing better than its sector in terms of year-to-date returns.
Another stock in the Consumer Staples sector, Philip Morris (PM), has outperformed the sector so far this year. The stock's year-to-date return is 52.3%.
The consensus estimate for Philip Morris' current year EPS has increased 4.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Nestle SA belongs to the Consumer Products - Staples industry, a group that includes 38 individual companies and currently sits at #180 in the Zacks Industry Rank. This group has lost an average of 3% so far this year, so NSRGY is performing better in this area.
Philip Morris, however, belongs to the Tobacco industry. Currently, this 6-stock industry is ranked #44. The industry has moved +40.4% so far this year.
Going forward, investors interested in Consumer Staples stocks should continue to pay close attention to Nestle SA and Philip Morris as they could maintain their solid performance.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Nestle (NSRGY) Stock Outpacing Its Consumer Staples Peers This Year?

An updated edition of the May 5, 2025 article.
In the world of investing, a wide moat describes companies with enduring competitive advantages that shield them from competitors — much like a moat safeguards a castle. Popularized by Warren Buffett, this investment approach focuses on businesses capable of maintaining strong profitability over the long run, thanks to factors such as unique market positioning, powerful brand loyalty, cost efficiencies, network effects and regulatory protections.
Several companies known for their wide moats include Intuit Inc. INTU, Nestle S.A. NSRGY, Costco Wholesale Corporation COST and Visa Inc. V. These firms operate in industries characterized by high barriers to entry, which help protect their market positions and support steady revenue growth by limiting competitive threats.
Wide-moat companies often gain their edge from factors like strong brand recognition, network effects, high switching costs for customers, regulatory barriers and economies of scale. These attributes create significant obstacles for new entrants or existing competitors looking to capture market share. As a result, such companies usually enjoy robust pricing power, consistent profit margins, and the ability to reinvest in their operations, further strengthening their long-term competitive position.
The appeal of investing in wide-moat businesses lies in their potential to generate reliable, long-term returns. Unlike companies in intensely competitive industries, where earnings often fluctuate due to pricing pressure and fierce competition, wide-moat firms typically demonstrate stronger resilience during economic slowdowns and market volatility. Their strong market positions and healthy balance sheets equip them to withstand challenges that could significantly affect less defensible businesses.
Investing in wide-moat companies offers a strong approach to long-term wealth building, as these firms generally generate consistent cash flows and create shareholder value through dividends and stock appreciation. While no investment is entirely risk-free, companies with strong economic moats provide a level of durability that many investors seek in an ever-changing market. Our Wide Moat Screen makes it easy to identify high-potential stocks at any given time — just like the ones mentioned above.
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4 Wide-Moat Stocks to Keep an Eye on
Intuit, the financial software giant, has established a powerful economic moat through brand loyalty, network effects and high switching costs. Its widely used tax and accounting software has become the industry standard for small businesses, accountants and individual users. The company continuously enhances its artificial intelligence (AI)-driven automation features, further embedding users within its ecosystem. Once customers adopt Intuit’s services, switching to a competitor becomes difficult due to the integration of financial data and the learning curve involved in adapting to a new system. This lock-in effect strengthens Intuit’s pricing power and enables it to maintain strong margins.
Intuit has two main products — QuickBooks, which offers financial and business management online services and desktop software to small businesses, and TurboTax, which offers income tax preparation products and services. The space in which Intuit operates has a huge growth opportunity. There are over 29 million small and medium businesses in the United States alone. Intuit, with its QuickBooks Online Advanced solution, is now targeting the midmarket. Furthermore, the number of individuals preferring to file their income tax themselves is increasing rapidly, thereby expanding the scope for Intuit’s TurboTax software.
For the last few years, the company has been trying to shift its business model from selling software to cloud-based subscription providers. Cloud-based solutions, against software-based ones, have gained popularity as they offer anywhere, anytime access. Cloud is a flourishing part of the technology space and has been gaining momentum in recent years. It is a process by which data or software is stored outside of a computer and is accessible from anywhere at any time via the Internet. This revolutionary idea can lower the IT costs of companies by cutting down the need for servers and staff. The acquisition of Credit Karma has also expanded Intuit’s customer base, allowing it to help this Zacks Rank #1 (Strong Buy) company’s customers better manage their personal finance requirements. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nestle, the world’s biggest food and beverage company, possesses durable competitive advantages. One of its biggest strengths lies in its powerful brand portfolio, boasting over 2,000 brands including globally recognized names such as Nescafe, KitKat, Purina and Gerber. These brands enjoy deep consumer trust, built over decades, creating strong pricing power and customer loyalty. Powerful brands, global reach and operational excellence combine to create a formidable economic moat that positions it for enduring success.
Nestle, a Zacks Rank #2 (Buy) stock, benefits from vast global distribution networks and scale efficiencies. Operating in more than 190 countries, the company can reach diverse markets quickly and cost-effectively — something few competitors can replicate. NSRGY’s unparalleled R&D capabilities further enhance its edge, allowing it to innovate in areas like health, nutrition and plant-based foods.
The company’s consistent cash flows, resilience across economic cycles and strong dividend record make it an attractive choice for long-term investors. Its commitment to sustainability and shifting consumer trends, like health-conscious products, adds another layer of future-ready moat protection.
Costco Wholesale leverages a cost leadership moat, offering low prices through a membership-based model and efficient supply-chain management. The company’s ability to negotiate lower prices with suppliers and pass the savings on to customers results in strong customer loyalty, high membership renewal rates and consistent revenue growth. Being a consumer defensive stock, Costco has been surviving the market turmoil pretty well. Its key strengths are strategic investments, a customer-centric approach, merchandise initiatives and an emphasis on membership growth.
Costco stands tall as a dominant force in the warehouse retail sector, boasting a wide array of high-quality merchandise. The company's emphasis on bulk sales and efficient inventory management allows it to keep prices low, making it a preferred shopping destination for budget-conscious consumers. This competitive pricing strategy helps Costco maintain steady store traffic and robust sales volumes.
COST continues to impress with its stellar revenue performance, showcasing its ability to navigate shifting economic dynamics. The consistent growth in membership fee income, coupled with a high renewal rate in key markets like the United States and Canada, underscores its effective customer retention strategies and strong member engagement. With a substantial base of paid household members and increasing executive memberships, Costco ensures a steady flow of high-margin recurring revenues.
Costco's digital and e-commerce initiatives also continue to gain traction, contributing to overall sales growth. Its expansion strategy continues to look pretty impressive. The company remains committed to opening new clubs in the domestic and international markets. Costco currently carries a Zacks Rank #3 (Hold).
Visa, the global leader in digital payments, benefits from an extensive payment network that connects millions of merchants, banks and consumers worldwide. Its economic moat stems from the network effect, where the value of its services increases as more users and businesses participate. With a near-monopoly in card transactions, Visa generates significant revenues through transaction fees while facing minimal competition due to high regulatory and technological barriers in the payment processing industry.
Visa consistently achieves growth in payments volume and processed transactions. The company's robust market position, strategic acquisitions and digital payment trends contribute to revenue expansion. Visa's strategic emphasis on inorganic growth through mergers, acquisitions, and partnerships has solidified its dominance, boasting 50% more payment volume than its closest competitor, Mastercard. The company's partnerships and investments underscore its ongoing efforts to extend its network and maintain a leading position in the payment industry. These strategic moves have expanded its global network, resulting in continuous growth in cross-border volumes.
Visa's commitment to technological innovation is evident in solutions like Visa Token Service, Visa Checkout, and Visa In-App Provisioning, which reinforce its leadership position in the evolving payments landscape. Focused on security, the company drives advancements in digital platforms, promoting technologies such as contactless, scan-to-pay, tap-to-pay, and secure remote commerce. With a significant increase in digital transactions and a decline in traditional methods, Visa anticipates substantial growth in emerging payment trends. This positions Visa for continued success in the evolving financial landscape. Visa currently carries a Zacks Rank #3.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Visa Inc. (V) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
Nestle SA (NSRGY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Top Wide-Moat Stocks Worth a Look for Steady Long-Term Returns

Consumer food manufacturing giant General Mills (NYSE:GIS) reported mixed fiscal 2025 third-quarter earnings on Wednesday, March 19. Revenue of $4.8 billion fell short of analysts' consensus estimates of $4.96 billion and was down 5% year over year. This was primarily due to retailer inventory reductions, slow snack sales, and foreign currency challenges. Adjusted EPS fell to $1.00, representing a 15% decline year over year, but it beat the $0.96 expectation.
Overall, the quarter suggested financial pressures, and the company lowered its guidance for the remainder of the fiscal year.
Metric
Q3 2025
Analysts' Estimate
Q3 2024
Change (YOY)
Adjusted EPS
$1.00
$0.96
$1.17
(15%)
Revenue
$4.84 billion
$4.96 billion
$5.1 billion
(5%)
Adj. operating profit
$801 million
N/A
$914.5 million
(12.4%)
Gross margin
33.9%
N/A
33.5%
0.4 pps
Source: General Mills. Note: Analyst consensus estimates for the quarter provided by FactSet. YOY = Year over year.
Company Overview and Focus Areas
General Mills is a major player in the global consumer-food industry, managing over 100 brands in 100 countries. Its portfolio includes various consumer favorites in the categories of snacks, cereals, and pet foods. A key focus for the firm is leveraging its brands to reach a wider consumer base, maintain strong customer loyalty, and drive innovation. Strategic joint ventures, such as those with Nestlé (OTC:NSRGY) in the cereal sector, support its international footprint.
The company’s growth strategy involves ongoing investment in product innovation and marketing to remain competitive. Critical success factors include capitalizing on its strong brand equity and staying attuned to consumer preferences across diverse markets. Sustainability and corporate responsibility are also central to its business model, ensuring long-term competitiveness and market trust.
Quarterly Highlights
General Mills faced notable challenges in Q3, with sales down across several segments. North America Retail experienced a 7% net sales drop, while North America Pet saw an operating profit decrease of 20%. Meanwhile, the International segment's sales fell by 4%, largely due to unfavorable currency impacts. Despite these losses, the North America Foodservice segment exhibited resilience, with sales ticking up by 1%.
The decline in operating profit was exacerbated by lower gross profit and elevated selling, general, and administrative expenses. The company's reported operating profit decreased to $891 million, down 2% year over year, while its adjusted operating profit dropped 12.4% in constant currency. The decrease in diluted EPS to $1.12 reflects these fiscal pressures, compounded by a higher effective tax rate.
In response to current market conditions, General Mills implemented the Holistic Margin Management (HMM) strategy which yielded slight improvements in gross margin (up 40 basis points). However, rising input costs were an ongoing challenge. The external market environment, including inventory reductions by retailers in key segments, weighed heavily on performance.
Looking Ahead
Looking forward, management acknowledged the impact of supply chain dynamics and committed to addressing these issues to stabilize future sales. Management's focus on cost reductions and strategic initiatives reflects an intention to improve financial stability in the coming quarters. General Mills revised its full-year guidance downward, predicting a 1.5% to 2% decline in organic net sales. It also expects a 7% to 8% decline in both adjusted operating profit and EPS. Management remains optimistic about its strategic initiatives, including targeted cost efficiencies, expected to reduce the cost of goods sold by 5% in fiscal 2026.
Investors should watch for updates on General Mills' ongoing investments in innovation and brand support. The company is poised to enhance its competitive edge through acquisitions, like the partial acquisition of premium pet food brands. As external pressures like commodity price volatility persist, the company’s risk management strategies in its supply chain and pricing will be key focal areas following upcoming earnings releases.
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JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool recommends Nestlé. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

General Mills Q3 Revenue Falls 5%

What to invest in now -- that may seem like a tough decision, given the current economic uncertainty in the U.S. including ongoing tariff-related concerns. Investors are worried about inflation, about stock market declines, and even a potential recession.
Let's say you have $1,000 to invest right now. The Vanguard International Dividend Appreciation ETF (NASDAQ: VIGI) is a strong option to consider investing in with that amount -- or any other amount. (Remember that an exchange-traded fund (ETF) is a fund that trades like a stock.)
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Dividend appreciation
First off, the "dividend appreciation" in the title likely refers to the fund's goal of focusing on stocks that not only pay dividends, but that pay growing (i.e., appreciating) dividends. But let's take a moment to simply appreciate dividends.
Per S&P Global:
Numerous academic studies have shown that dividend-paying stocks have historically outperformed non-dividend payers. However, much of the available dividend research focuses on the U.S. and other developed markets. A study published by Morgan Stanley Research showed that there is a strong relationship between dividend yield and total return in developed and emerging markets, with this link being the strongest in emerging markets.
And per Dan Lefkovitz at Morningstar in February:
Both the Morningstar Global Markets ex-US High Dividend Yield Index and the Morningstar Global ex-US Dividend Growth Index have outperformed the broad market for developed- and emerging-markets stocks outside the US. Whereas their US counterparts have failed to keep up, the international dividend benchmarks have been on top for the past five years.
This is great news for anyone worried about the U.S. market and looking into deploying dollars abroad.
Note that one reason dividend payers outperform is that they have generally grown to a meaningful size and are generating fairly reliable income before they commit to paying a dividend.
Meet the Vanguard International Dividend Appreciation ETF
The ETF "seeks to track the performance of the S&P Global Ex-U.S. Dividend Growers Index." Its primary focus is on large-cap stocks from both developed and emerging markets that have been hiking their dividend payouts regularly. It excludes U.S. stocks, so any portion of your portfolio that you devote to this ETF will fully expose you to foreign companies.
How has the fund performed over time? Well, as of this writing, it's up 4.5% year to date, and up 5.57% over the past year. Its three-year and five-year average annual returns are 4.18% and 7.83%, respectively.
The ETF's expense ratio (annual fee) is a very modest 0.1, meaning that you'll pay $10 annually per $10,000 you have invested in it. (Vanguard is known for ultra-low fees.)
The Vanguard International Dividend Appreciation ETF recently held about 327 stocks, with between 16% and 20% of its assets in healthcare, industrial, and technology stocks. Nearly half of its assets were recently in European companies, with 30% in Pacific companies, close to 9% in emerging markets, and 12.6% in North America -- excluding the U.S., of course.
Here are its recent top holdings:
Stock
Percent of ETF
SAP SE
5.85%
Roche Holding AG
4.56%
Novartis AG
3.85%
Nestle
3.16%
Sony Group
3.13%
Data source: Vanguard.com, as of Jan. 31, 2025.
So what's this Vanguard ETF's dividend yield? Well, it's 1.85%. That's not huge, but it's not paltry, either. It's actually well above the S&P 500's recent yield of 1.23%. Better still, it's designed to grow. The S&P 500, for example, encompasses dividend payers and non-payers, and payers that are growing their payouts regularly along with those that are increasing their dividends minimally or not at all.
So give this fund some consideration -- especially if you're worried about the state of the U.S. economy and/or you think that companies based outside the U.S. have a lot to offer.
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Selena Maranjian has positions in Novartis Ag and Roche Holding AG. The Motley Fool has positions in and recommends S&P Global. The Motley Fool recommends Nestlé and Roche Holding AG. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Best Vanguard ETF to Invest $1,000 in Right Now

The U.S. stock market hasn't exactly started 2025 on a high note. Through the first week of March, the S&P 500 has fallen by 2%, and the tech-heavy Nasdaq Composite is down by 6%.
However, there is one area of the market that is generally outperforming: international stocks. One ETF that has done quite well is the Vanguard International High Dividend Yield Index ETF (NASDAQ: VYMI), which has gained more than 10% so far this year.
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With that in mind, here's a rundown of what investors should know about this ETF, why it has performed so well in 2025, and why it could still be an excellent opportunity for long-term investors right now.
The Vanguard International High Dividend Yield ETF
As the name suggests, this ETF invests in international companies that have above-average dividend yields. To clarify, it owns stocks of companies based outside the United States, although as you'll see in a bit, many of them are also listed on U.S. stock exchanges.
It's also worth noting that you might see some ETFs described as "international," while others may use the word "global." The difference is that international funds invest only in companies based outside the U.S., while global funds invest in the U.S. as well as other markets around the world.
More specifically, the Vanguard International High Dividend Yield Index ETF tracks the FTSE All-World ex U.S. High Dividend Yield Index, which is a weighted index of about 1,450 stocks. And although every company is based outside the U.S., some of the top holdings are household names to Americans, including Toyota, Nestlé, Shell, and Toronto-Dominion Bank, all of which are among the ETF's 20 largest holdings.
About 44% of the portfolio is based in Europe, with 26% in the Asia-Pacific region and 21% in emerging markets. As of this writing, the ETF has a 4.4% dividend yield.
The Vanguard International High Dividend Yield ETF has an expense ratio of 0.17%, which is a bit higher than some other Vanguard index funds but is still relatively cheap. This means that for every $10,000 in assets, your annual investment fees are $17. To be clear, this isn't a fee you have to pay -- it will simply be reflected in the performance over time.
Why has this ETF performed so well in 2025?
There are a few factors that have driven the International High Dividend Yield ETF higher in 2025. Currency tailwinds are one big explanation: The U.S. dollar has generally weakened against many foreign currencies so far this year, especially over the past couple of weeks.
VYMI data by YCharts.
Plus, interest rates have generally fallen recently. For example, in the U.K. (the second largest market represented in the ETF), bond yields, especially on the short-term end, have fallen significantly since the beginning of 2025. Without turning this into an economics lesson, with all other factors being equal, a falling-rate environment is typically a positive catalyst for dividend stocks.
Despite the strong performance, international high-dividend stocks still look remarkably cheap. The average stock in the Vanguard International High Dividend Yield ETF has a price-to-earnings (P/E) multiple of 11.8 and trades for 1.4 times book. Meanwhile, the average stock in the U.S. counterpart, the Vanguard High Dividend Yield ETF (NYSEMKT: VYM), has a P/E and price-to-book of 19.8 and 2.8, respectively.
The bottom line is that if you're looking for income and diversification in your portfolio, the Vanguard International High Dividend Yield Index ETF could be worth a closer look right now.
Should you invest $1,000 in Vanguard International High Dividend Yield ETF right now?
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Matt Frankel has positions in Vanguard International High Dividend Yield ETF. The Motley Fool has positions in and recommends Vanguard Whitehall Funds-Vanguard High Dividend Yield ETF. The Motley Fool recommends Nestlé. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Best Stocks in the World? This ETF Is Crushing the S&P 500 in 2025.

In trading on Monday, shares of Nestle S A (Symbol: NSRGY) crossed above their 200 day moving average of $96.30, changing hands as high as $97.93 per share. Nestle S A shares are currently trading up about 2.8% on the day. The chart below shows the one year performance of NSRGY shares, versus its 200 day moving average:
Looking at the chart above, NSRGY's low point in its 52 week range is $80.11 per share, with $110.46 as the 52 week high point — that compares with a last trade of $97.80.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
Also see:
Materials Dividend Stock List
Top Ten Hedge Funds Holding DWX
Funds Holding FXG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

NESTLE S.A S/ADR

Price history and volume

Shares 360

Investment risk — medium

Investment potential — low

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