NESTLE S.A S/ADR

Key Points
International stocks are trading for significantly cheaper valuations than U.S. companies.
The Schwab International Equity ETF can be a great way to get international exposure.
The ETF has a rock-bottom expense ratio and almost 1,500 stock holdings.
Even after the recent market turbulence caused by the onset of the Iran conflict, stock valuations in the U.S. market are rather expensive on a historical basis. The average S&P 500 stock trades at nearly 23 times earnings, a historically elevated level, making it difficult for investors to find true "bargains" to add to their portfolios.
One potential solution is to take a closer look at adding some international stocks. Right now, virtually every major notable international stock index is trading for a significant discount to its U.S. counterparts. As one example, the MSCI EAFE index, which tracks international stocks from developed countries, trades for just over 15 times earnings. Not only that, but most foreign stock indices have higher dividend yields as well -- the MSCI EAFE has a 3.4% yield as of this writing, compared to about 1.5% for the S&P 500.
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International stocks spent the better part of the last decade underperforming their U.S. counterparts, but that changed last year. Non-U.S. stocks outperformed the S&P 500 by more than 10 percentage points in 2025 and are substantially outperforming so far in 2026. And they still trade at the valuation discount described earlier.
The Schwab International Equity ETF
You don't need to pick and choose individual stocks to get excellent international exposure in your portfolio -- there are some excellent international ETFs that could be worth a closer look.
One in particular is the Schwab International Equity ETF (NYSEMKT: SCHF), which tracks an index of mid- and large-cap stocks from developed countries outside the United States. Top markets represented in the fund's holdings are Japan, the U.K., Canada, and France.
There are approximately 1,500 stocks in the ETF, with the largest holding accounting for just 1.64% of its assets, so it's not highly concentrated. Top holdings include several companies you're probably familiar with, such as ASML Holding, Samsung, AstraZeneca, and Nestle, just to name a few.
This is an extremely low-cost index fund, with an expense ratio of just 0.03%, so you'll keep more of your investment gains than with most other ETFs. This means that for every $10,000 in assets, your annual investment expenses will be just $3. It has a dividend yield of more than 3.2%, making it a solid choice for income investors, and has the potential to produce market-beating long-term returns, especially given the relatively cheap valuations of international stocks.
To be sure, there are some notable risks of investing in international stocks. Currency headwinds and geopolitical headwinds are two examples, and it's worth keeping in mind that international index funds don't have as much exposure to the AI trend as their U.S. large-cap counterparts. But if you're looking for an attractive value in an expensive market, the risk-reward dynamics of the Schwab International Equity ETF make a lot of sense.
Should you buy stock in Schwab International Equity ETF right now?
Before you buy stock in Schwab International Equity 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 Schwab International Equity 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 $508,607!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,122,746!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 188% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 14, 2026.
Matt Frankel, CFP has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML and AstraZeneca Plc. 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 International ETF Be One of the Best Investments of 2026?

Key Points
The Vanguard International High Dividend Yield ETF has a yield of about 3%.
The stocks in its index trade at a significant discount to their U.S. counterparts.
Even with shares near all-time highs, this could be a great addition to your portfolio.
With the S&P 500 reaching yet another all-time high recently, many stocks and ETFs feel expensive right now. However, there are excellent opportunities for long-term investors if you know where to look.
In the world of dividend stocks, there are still some great places to put money to work, and that's especially true when it comes to international dividend stocks. That's why the Vanguard International High Dividend Yield ETF (NASDAQ: VYMI) deserves a second look, even though its shares are near their own all-time high.
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Broad exposure to international dividend stocks
As the name suggests, the Vanguard International High Dividend Yield ETF tracks an index of stocks based outside of the United States that pay above-average dividends. It has a 0.17% expense ratio, which is solid for a specialized index fund like this -- especially because many of the stocks it owns are only listed on foreign stock exchanges.
This is a broad index with exposure to both emerging and developed markets worldwide. The fund holds over 1,500 stocks, most of which are larger companies. Although it's a weighted index, meaning larger companies account for more of the assets, it isn't nearly as top-heavy as an S&P 500 index fund. In fact, no single stock makes up more than 1.8% of the portfolio.
Speaking of the stocks, don't think that just because this is an international stock ETF that it's a bunch of companies you've never heard of. Top holdings include Novartis (NYSE: NVS), Nestle (OTC: NSRGY), and Toyota (NYSE: TM), just to name a few.
Cheaper than you think
Despite being near an all-time high, you might be surprised by how much of a bargain this ETF is. The average stock in the portfolio trades for just 13.5 times earnings and is growing those earnings at an average rate of 12.8% annually. Meanwhile, the average stock in the U.S.-focused Vanguard High Dividend Yield ETF (NYSEMKT: VYM) has a P/E ratio of more than 20 and a slower earnings growth rate of 11.6%. VYM-Vanguard High Dividend Yield ETF | Vanguard
To be sure, there are some risks associated with investing in international stocks, such as currency fluctuations and geopolitical headwinds, but this ETF trades for a massive discount even with those things in mind. At the current price, the Vanguard International High Dividend Yield ETF has a roughly 3% dividend yield and could be an excellent addition to your portfolio for diversification, income, and total return potential.
Should you buy stock 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 $450,256!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,171,666!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 196% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 31, 2026.
Matt Frankel, CFP 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.

Even Near an All-Time High, This Dividend ETF Looks Extremely Cheap

Key Points
With a portfolio of solid, low-cost index funds, you might be surprised at how much wealth you can build.
Vanguard ETFs are excellent low-fee products and there are many to choose from.
The Vanguard Total Stock Market ETF, Vanguard Dividend Appreciation ETF, and Vanguard International High Dividend ETF are three great wealth builders.
As Warren Buffett has said, it isn't necessary to do extraordinary things in investing to achieve extraordinary results. While it's completely possible to produce superior returns with a portfolio of individual stocks, there are effective ways to invest that aren't quite as hands-on.
In fact, you might be surprised at the wealth-building potential of low-cost index funds, specifically those offered by index fund pioneer Vanguard. Here are three in particular that could be smart additions to your portfolio now.
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 »
3 wealth-building Vanguard ETFs to buy now
To be sure, there are dozens of excellent Vanguard ETFs, but here are three that could be excellent wealth-building additions to your portfolio:
Vanguard Total Stock Market ETF (NYSEMKT: VTI): Tracks an index designed to reflect the performance of the overall stock market over time. This is the largest Vanguard ETF by assets and has a rock-bottom 0.03% expense ratio. In a nutshell, as the stock market rises over time, this ETF should rise accordingly.
Vanguard Dividend Appreciation ETF (NYSEMKT: VIG): As many long-term dividend investors know, it isn't necessarily about what your dividend stocks pay now; it's about what they'll pay in the future. The Vanguard Dividend Appreciation ETF focuses on stocks with strong dividend-growth records. It has a 0.05% expense ratio and top investments include Broadcom (NASDAQ: AVGO) and Microsoft (NASDAQ: MSFT).
Vanguard International High Dividend Yield ETF (NASDAQ: VYMI): International stock exposure can be a smart idea for several reasons, including diversification. Right now, international dividend stocks are trading at a steep discount to their U.S. counterparts, and the Vanguard International High Dividend ETF has a roughly 3% yield at its current price. And just because it's international doesn't mean it's a bunch of stocks you've never heard of -- top holdings include familiar companies like Nestle (OTC: NSRGY) and Toyota (NYSE: TM).
What kind of returns should you expect?
To be clear, as with any stock-based investment, returns from these ETFs can vary dramatically from year to year. But over the long term, consider their average annualized returns:
Vanguard Total Stock Market (since May 2001): 9.21% annualized
Vanguard Dividend Appreciation (since April 2006): 9.99% annualized
Vanguard International High Dividend Yield (Since Feb. 2016): 10.61% annualized
Here's what this means to you. This is an overall average annual return of just under 10%. Although past performance doesn't guarantee future returns, if you were to invest just $500 per month at this rate of return, you'd have a million-dollar portfolio after 30 years.
Should you buy stock in Vanguard Total Stock Market ETF right now?
Before you buy stock in Vanguard Total Stock Market 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 Total Stock Market 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 $461,527!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,155,666!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 29, 2026.
Matt Frankel, CFP has positions in Vanguard International High Dividend Yield ETF. The Motley Fool has positions in and recommends Microsoft, Vanguard Dividend Appreciation ETF, and Vanguard Total Stock Market ETF. The Motley Fool recommends Broadcom and 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.

3 Wealth-Building Vanguard ETFs to Buy Hand Over Fist in 2026

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Wednesday, shares of Nestle S A (Symbol: NSRGY) entered into oversold territory, hitting an RSI reading of 29.3, after changing hands as low as $92.83 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 65.1. A bullish investor could look at NSRGY's 29.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of NSRGY shares:
Looking at the chart above, NSRGY's low point in its 52 week range is $80.11 per share, with $109.31 as the 52 week high point — that compares with a last trade of $93.47.
Also see:
FactSet Research Systems Technical Analysis
FDM Historical Stock Prices
CCX Options Chain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Oversold Conditions For Nestle (NSRGY)

At this early hour in pre-market trading, we’re mixed on major market indexes. The Dow is -46 points currently, the S&P 500 is +14, the Nasdaq +144 and the small-cap Russell 2000 +1 point. Over the past month of trading, we’re also mixed: the Dow and S&P 500 are up +1.2% and +0.55%, respectively, the Nasdaq -0.7% and Russell 2000 -0.02%.
We comb the last confetti out of our hair from holiday season and gear up for Q4 earnings, which begin next week with the big Wall Street banks like JPMorgan JPM and Citigroup C, as well as early reporting majors like Delta Air Lines DAL. At that point, we’ll begin to have sone idea how strong the U.S. economy has performed in the final quarter of 2025.
Biggest News of the Week: Jobs Numbers
We like to call the first full week of the month “Jobs Week,” which typically — not always, such as when we have government shutdowns — bring us monthly tallies in both private and overall non-farm employment. On Wednesday, we begin with private-sector payrolls from Automatic Data Processing ADP, which last month brought us negative -32K private-sector jobs, the worst number in nearly three years.
In fact, ADP payroll numbers have posted negative headlines in four of the last six months, averaging +10K new private-sector jobs filled per month over that time. Compare this with the previous six months’ +81K new private-sector jobs, which was no great shakes but at least covered the amount of monthly Baby Boomer retirees. Forecasts are for +45K new jobs having been created in the private sector for December.
Also on Wednesday are the November Job Openings and Labor Turnover Survey (JOLTS) numbers, which have bounced back over the previously reported two months, off summer lows around 7.2 million openings to 7.67 million in October. Job Quits sank to their lowest levels since April 2020 in October, +1.8%, signaling a level of employment insecurity among the American workforce.
On Thursday, Weekly Jobless Claims report. These have remained the outlier in labor data, with last week’s +199K diving to sub-200K for only the second time in the last two years. For a year or more we’d been supposing that older members of the workforce — the aforementioned Baby Boomers — were taking their pink slips as indications their retirements should begin immediately, but with the youngest Boomers now at traditional retirement age, we now expect these levels to be dwindling.
Continuing Claims sank back below 1.9 million in the last report, where we had been for literally half of 2025. Taken together, these jobless claims assert a perceived strength in American labor — or at least a reluctance on the part of companies to lay off staff. This notion is countered by news reports such as 14K layoffs at Amazon AMZN and 16K at consumer goods giant Nestlé NSRGY.
Friday’s Employment Situation report is the Big Kahuna, and may provide a “tie breaker” of sorts. Combining data collected from the U.S. Census Bureau and Bureau of Labor Statistics (BLS), we not only see a monthly snapshot of non-farm payroll adds including government jobs, but supply us with a fresh Unemployment Rate.
Let’s start there, as the Unemployment Rate is likely to capture some headlines late this week, especially if it comes in at +4.7%, as expected. This would be the highest level of unemployment since September of 2021, when the rate was shrinking rapidly month over month. November came in at +4.6% and the previously reported rate was +4.4% in September (the government shutdown had us skip October), so we would be interested in seeing a leveling-off of this metric in this week’s report.
Non-farm payrolls are projected to come in at +54K for December — suggesting a persistent weakness in American hiring, but at least not a negative headline, which we’ve seen in three of the past six months. Any surprise to the upside would likely be welcome by the market; on the other hand, a disappointing BLS report may be a way of increasing the odds for a Fed rate cut at the end of this month.
What to Expect from the Stock Market Today
Much of the day’s headlines will revolve around the U.S. invasion of Venezuela and its impact on commodities, most especially crude oil. At this hour, oil prices are up, as are gold and silver — hedges against risks to stock market equities. Meanwhile, bond yields have remained somewhat sanguine, with the 10-year currently sub-4.18%.
ISM Manufacturing numbers for December come out after today’s open, expected to tick up 10 basis points (bps) to +48.3% month over month. However, this still places manufacturing data beneath the 50 level, which is the demarcation point between growth and loss. ISM Services come out Wednesday, and are expected to reach +52.1%, +10 bps month over month.
Zacks' Research Chief Picks Stock Most Likely to "At Least Double"
Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.
See Our Top Stock to Double (Plus 4 Runners Up) >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Nestle SA (NSRGY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Market Awaits Labor Market Reports

Monday, January 5th, 2026
At this early hour in pre-market trading, we’re mixed on major market indexes. The Dow is -46 points currently, the S&P 500 is +14, the Nasdaq +144 and the small-cap Russell 2000 +1 point. Over the past month of trading, we’re also mixed: the Dow and S&P 500 are up +1.2% and +0.55%, respectively, the Nasdaq -0.7% and Russell 2000 -0.02%.
We comb the last confetti out of our hair from holiday season and gear up for Q4 earnings, which begin next week with the big Wall Street banks like JPMorgan JPM and Citigroup C, as well as early reporting majors like Delta Air Lines DAL. At that point, we’ll begin to have sone idea how strong the U.S. economy has performed in the final quarter of 2025.
Biggest News of the Week: Jobs Numbers
We like to call the first full week of the month “Jobs Week,” which typically — not always, such as when we have government shutdowns — bring us monthly tallies in both private and overall non-farm employment. On Wednesday, we begin with private-sector payrolls from Automatic Data Processing ADP, which last month brought us negative -32K private-sector jobs, the worst number in nearly three years.
In fact, ADP payroll numbers have posted negative headlines in four of the last six months, averaging +10K new private-sector jobs filled per month over that time. Compare this with the previous six months’ +81K new private-sector jobs, which was no great shakes but at least covered the amount of monthly Baby Boomer retirees. Forecasts are for +45K new jobs having been created in the private sector for December.
Also on Wednesday are the November Job Openings and Labor Turnover Survey (JOLTS) numbers, which have bounced back over the previously reported two months, off summer lows around 7.2 million openings to 7.67 million in October. Job Quits sank to their lowest levels since April 2020 in October, +1.8%, signaling a level of employment insecurity among the American workforce.
On Thursday, Weekly Jobless Claims report. These have remained the outlier in labor data, with last week’s +199K diving to sub-200K for only the second time in the last two years. For a year or more we’d been supposing that older members of the workforce — the aforementioned Baby Boomers — were taking their pink slips as indications their retirements should begin immediately, but with the youngest Boomers now at traditional retirement age, we now expect these levels to be dwindling.
Continuing Claims sank back below 1.9 million in the last report, where we had been for literally half of 2025. Taken together, these jobless claims assert a perceived strength in American labor — or at least a reluctance on the part of companies to lay off staff. This notion is countered by news reports such as 14K layoffs at Amazon AMZN and 16K at consumer goods giant Nestlé NSRGY.
Friday’s Employment Situation report is the Big Kahuna, and may provide a “tie breaker” of sorts. Combining data collected from the U.S. Census Bureau and Bureau of Labor Statistics (BLS), we not only see a monthly snapshot of non-farm payroll adds including government jobs, but supply us with a fresh Unemployment Rate.
Let’s start there, as the Unemployment Rate is likely to capture some headlines late this week, especially if it comes in at +4.7%, as expected. This would be the highest level of unemployment since September of 2021, when the rate was shrinking rapidly month over month. November came in at +4.6% and the previously reported rate was +4.4% in September (the government shutdown had us skip October), so we would be interested in seeing a leveling-off of this metric in this week’s report.
Non-farm payrolls are projected to come in at +54K for December — suggesting a persistent weakness in American hiring, but at least not a negative headline, which we’ve seen in three of the past six months. Any surprise to the upside would likely be welcome by the market; on the other hand, a disappointing BLS report may be a way of increasing the odds for a Fed rate cut at the end of this month.
What to Expect from the Stock Market Today
Much of the day’s headlines will revolve around the U.S. invasion of Venezuela and its impact on commodities, most especially crude oil. At this hour, oil prices are up, as are gold and silver — hedges against risks to stock market equities. Meanwhile, bond yields have remained somewhat sanguine, with the 10-year currently sub-4.18%.
ISM Manufacturing numbers for December come out after today’s open, expected to tick up 10 basis points (bps) to +48.3% month over month. However, this still places manufacturing data beneath the 50 level, which is the demarcation point between growth and loss. ISM Services come out Wednesday, and are expected to reach +52.1%, +10 bps month over month.
Questions or comments about this article and/or author? Click here>>
Zacks' Research Chief Picks Stock Most Likely to "At Least Double"
Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.
See Our Top Stock to Double (Plus 4 Runners Up) >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Nestle SA (NSRGY) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Looking Ahead to a New "Jobs Week"

In trading on Monday, shares of Nestle S A (Symbol: NSRGY) crossed above their 200 day moving average of $115.90, changing hands as high as $117.59 per share. Nestle S A shares are currently trading up about 3% 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 $102.775 per share, with $133.86 as the 52 week high point — that compares with a last trade of $117.07.
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
Also see:
Energy Stock Channel
CLBR Options Chain
Top Ten Hedge Funds Holding VGLT
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Bullish Two Hundred Day Moving Average Cross - NSRGY

In trading on Thursday, shares of Nestle S A (Symbol: NSRGY) crossed below their 200 day moving average of $97.98, changing hands as low as $97.75 per share. Nestle S A shares are currently trading down about 0.3% 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 $109.31 as the 52 week high point — that compares with a last trade of $98.09.
Click here to find out which 9 other stocks recently crossed below their 200 day moving average »
Also see:
HEDJ YTD Return
Coterra Energy Average Annual Return
RDS Options Chain
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Nestle (NSRGY) Shares Cross Below 200 DMA

In this podcast, Motley Fool contributors Tyler Crowe, Lou Whiteman, and Rachel Warren discuss:
Kimberly-Clark's deal to acquire Kenvue.
Portfolio shake-ups in consumer brands.
Jerome Powell's comments on AI bubbles.
What AI businesses are thriving versus spinning their wheels.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. When you're ready to invest, check out this top 10 list of stocks to buy.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
A full transcript is below.
Should you invest $1,000 in Kimberly-Clark right now?
Before you buy stock in Kimberly-Clark, 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 Kimberly-Clark 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 $599,785!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,165,716!*
Now, it’s worth noting Stock Advisor’s total average return is 1,035% — a market-crushing outperformance compared to 191% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of November 17, 2025
This podcast was recorded on Nov.05, 2025.
Tyler Crowe: Big brands are making moves, but are they the right ones? This is Motley Fool Money. Welcome to Motley Fool Money. I'm Tyler Crowe, and today I'm joined by longtime Fool contributors Lou Whiteman and Rachel Warren. Now, it's November 5th, but I think it's Groundhog Day for me because I think today's show is going to sound a lot like the last time that I spoke with both of you on this Wednesday show. We're going to talk about whether M&A activity in consumer goods is a sign of strength or desperation. But first, we're going to get into the bubble talk again because that's what seems to be on everybody's mind. Last week, at a Federal Reserve policy meeting, Chairman Jerome Powell was asked about the frothiness of the AI market and trying to give him a chance to talk about the comparisons to the dot-com bubble. He said this, and I'm going to quote it specifically. He says, "This is different in the sense that these companies, the companies that are so highly valued, actually have earnings and stuff like that". Now, I'm not going to get into Powell's future as a CNBC talking head after that quote, but it does sort of echo a lot of statements we've heard from prominent tech folks, Jeff Bezos and Sam Altman, have more or less said, Yeah, but it's worth it. We've seen some abrupt market reactions during earnings this past week, like Meta's 17% slide since earnings after mentioning ambitious capital plans. I'm going to pose the question to both of you and Lou. I'm going to ask you to go first. Has your opinion on AI market frothiness basically since the last time we did this show?
Lou Whiteman: I mean, with all respect to the chairman, they do have earnings and stuff, and we love stuff, so it's good they have stuff. Yes, I do think that makes this different than 1999, when a lot of the companies they didn't have stuff. They had swag that they gave out, but not earnings and stuff. But at the end of the day, all of these earnings, all of this cash is being reinvested into AI, so at least it's something to watch. It's great to have earnings, but if you're blowing it all on something that doesn't work out, you still end up in a pretty tough place. The question is, are they blowing it on something that doesn't work out? I don't think anyone knows. AI is a real thing. I think that there is value there, but is there value that can generate, I don't know, a trillion dollars worth of revenue or whatever they're putting into the investment? Is there the value that can eventually recoup all of this investment? I don't think any of us really know how this all plays out for them in terms of how this investment will impact their bottom line. Yes, it's different this time, but that doesn't mean that things can't go wrong.
Rachel Warren: This was interesting. Powell very explicitly pushed back on the direct comparison to the dot-com bubble, and he also really emphasized that AI investments are, as he put it, fueling a genuine engine of US growth. This concept of hundreds of billions of dollars, eventually trillions, being poured into data centers, semiconductors, there's real economic activity there. I think that's fair. I think there's some other points to underscore, as well. A lot of the frothiness that we are seeing in the markets it is being led by very profitable, established companies. Think the NVIDIAs, Microsoft, Alphabet. They are generating substantial AI-related revenue. if you go back to the dot-com bubble days, many companies were pre-profit. They had no revenue. They were valued based on these eyeball metrics or website traffic rather than cash flow. That's very different than a lot of the companies we're talking about today that are driving these movements in the market. I do think it's very, very different than the landscape that companies were operating in two plus decades ago. One thing as an example, AI infrastructure, GPUs, data centers are being deployed and utilized immediately, intensively, because there's genuine immediate demand there. This isn't the days of overinvestment in infrastructure, think back to the dot-com bubble, fiber optic cables that went unused for years. It's just a completely different paradigm. I will say valuations are high. I do think there is a speculative element to what we're seeing. But I think the speculation is more about the magnitude and speed of the anticipated returns on these investments, not so much whether or not the business models exist themselves. I think there's a lot of really intriguing businesses at play in the AI space right now.
Tyler Crowe: When you were saying they don't have stuff like the 1990s, all I can think of is like an old Simpsons episode where basically certificates of stock were being used as toilet paper in an episode, and that's all I can seem to think of when I think of the nineties dot-com boom. Not to put blue on fold that with stuff, though. It was stuff. It just wasn't what they were hoping. Lou, I'm sorry. I'm going to put you on full blast here because you might have a little bit more experience of investing around that time than perhaps Rachel and I did. Comparing to that time, what do you say to this being a bubble?
Lou Whiteman: A couple of things to think of, for one, no matter how you want to write the history of the late '90s, the bottom line was that not all companies were created equal and that some did fine and some didn't the real lesson is whether we're in a bubble, whether or not it can all be justified is that there is almost no way that this works out storybook ending for everyone involved. There's almost no way that everyone just loses their shirt. I do think it's time to differentiate between companies. You mentioned Meta was down big this week, and I think Meta is a special case right now. I don't want to be Chicken Little and say, they're in trouble. But for Meta, the argument for all these guys have been they're funding all of this out of free cash flow. That's no longer a talking point for Meta. They are taking on billions of debt. they have moved past the Hey, they earn a lot of money. They spend a lot of money. It's something that they can handle. Debt is fine if used correctly, but it is just changing the calculus. The other thing that makes them special is that I don't know. We talked about this will all be wise or not wise based on their ability to monetize. I see how Microsoft monetizes this. I see how Alphabet monetizes it. I see how Amazon even monetizes it. Meta talks about how making their ads more efficient and things like that. That's not worth $1 trillion. I think their path to monetization is harder. I think the fact that they seem to be stretching themselves the thinnest, perhaps with some of this off-balance sheet work, and they are the one that it's hardest for me to see how they monetize. The combination there, I get why the market is being a little harder on them than they are for some of the others.
Tyler Crowe: I'll give the last question to Rachel here after this, we'll move on. Again, thinking of the idea of separating the hype ideas that we saw during the last dot-com bubble and the ones that frankly are starting to pop up now. Everyone today is mentioning something about driven by AI or utilizing AI. It's almost criminal these days to not have artificial intelligence in some SEC disclosure for a company. You could be hauling trash, and you have to use AI. But thinking about it in that way, how do you separate, like what is just SEC disclosure fluff and real fundamental drivers for businesses with AI?
Rachel Warren: You think about these real companies are already generating or have a clear line to generating solid revenue streams tied directly to their AI solutions. It's not just speculation. I think that's where we've talked about this on the show before, in this day and age, and I anticipate this will change, particularly over the next 5-10 years. But if you're investing in the public markets, a lot of the really compelling investment opportunities for AI are in these big tech companies. That's really the funnel as a retail investor to gain a slice of the action, if you will, of what's happening in AI. That will change. I think we'll see some of these newer entrants to the market that become publicly traded as the markets relax a bit. That will also then provide an opportunity to see, OK, are there businesses here that really warrant an investment, as a long-term buy-and-hold investor? Or is there hype there? But looking again, for those traditional financial metrics whether it's cash flow, consistent earnings, or a manageable debt level that's really key. One final thing I'll note is genuine AI innovators, they often build a moat, if you will, by gathering very proprietary, high-quality data that constantly improves their systems. Of course, you think of names like Alphabet and Amazon here. You can also think of healthcare companies, that are wading into the AI revolution, like Eli Lilly and Johnson & Johnson they're leveraging these vast amounts of proprietary data and training models to accelerate drug discovery and improve clinical trials and other key endpoints there. There's a lot of exciting things happening. I think the investability of it is really just in the very early stages at this point.
Tyler Crowe: Well, speaking of companies that probably could use a little AI juice to help them out, we're going to talk about consumer brands coming up after the break. Now, I don't think consumer staples investors will be bouncing their grand kids on their laps, talking about the past few years. The three-year performance for the consumer Staples SPDR ETF has underperformed the S&P 500, 15%-82%. Nobody's talking about that. It's not a great number. Now, I bring this up because there's been a lot of corporate deals picking up in the consumer staples space. Earlier this week, we saw Kimberly Clark acquire Kenvue for $40 billion and change. Kraft Heinz is splitting itself in two. PepsiCo has opened up the checkbook quite a bit lately with several smaller acquisitions, but the total adds up over time. Unilever is IPOing its ice cream business. Private equity is circling Nestle. Mondelez has tried to acquire Hershey. The stories go on. Now, I say this because the list is expensive, and the question I have, and I'll start with you, Rachel, is whether this under performance in corporate and these corporate shakeups that we're seeing in the consumer space, is it just the market cycles that we see in every day or these desperate moves from an industry that's facing a lot of challenges?
Rachel Warren: I think the industry is facing a lot of challenges, and I think it's also very much a trend of consolidation that we've seen for a while now. There's a couple key points here. There was a study that came out from Boston Consulting Group that found that global M&A activity increased by about 10% in the first nine months of 2025 compared to the same period last year. Now, in the second quarter of this year, according to a separate KPMG report, the consumer sub sector saw roughly 175-year-over-year increase in deal value. Bear in mind, we are very much not even close to a time where M&A activity is heating up like it was in the 2021 era. We are seeing more activity in certain sectors, the consumer space being one of them. I think some of these deals could be taken on their own merits. You know, Kimberly Clark, for example, that pending acquisition of Kenvue, that's going to create a combined entity that they think is going to bring in about 32 billion in annual revenue. Kimberly Clark, they've lagged behind rivals like Procter & Gamble. They're hoping this will help them become a leading consumer company, particularly in the higher-margin consumer healthcare space. Bear in mind, Johnson & Johnson spun off its consumer business into Kenvue just a few years ago, and this was one of the oldest and slowest-growing segments. I think that's a perfect example of a company that really makes sense as part of a larger consumer goods or multinational conglomerate, rather than as a stand-alone. But there's a lot of consolidation happening in the space right now. You think back to Mars, they're nearly $40 billion acquisition of Kellogg, which was the snacking spinoff from Kellogg. Ferraro's $3.1 billion acquisition of WK Kellogg. A lot of this is consolidation. A couple more examples. Foot Locker, they got acquired by DICK'S Sporting Goods. Sketchers was acquired by 3G Capital. I think we're going to continue to see these movements in the space. I don't think this is a one-off, and I would expect that a lot of consolidation could still lie ahead.
Tyler Crowe: There's a lot going on and a lot of activity. Like you said, this is really navigating a lot of different angles. After the break, we're going to put the real rubber to the road on a lot of these deals and figure out which ones are actually going to work. We covered a lot of different deals in the previous segment, Lou, and I really want to get to your thoughts on this on how it all comes together and whether some of these deals are going to work. Like you said, some of these assets are being hot potatoed from company to company, and M&A isn't always the best way to grow. Looking across that spectrum that we just talked about, what do you see working out of any of this?
Lou Whiteman: It's funny. I love that you started with Kraft Heinz, because Kraft Heinz is what I keep thinking of when I see this Kenvue deal. Kraft Heinz, I think we can say it now, almost universally agreed as a failed merger attempt. That's why they're breaking up. It just hasn't worked out. Again, I look at the Kimberly Clark deal, and I worry about the outcome. Here is sort of, for me, the big overall theory of what's going on. The middle in retail has just been totally hollowed out. Consumers are still willing to pay for red hot brands, celebrity endorsements, something with Bieber on it, whatever it is. We love to pay up for that. We will still pay a premium for some things, on holding shoes, too. There are some things that we will pay just through the roof for. But we also really like the commodity, just the store brands. that middle ground. That middle ground, which makes up a lot of Kraft Heinz's portfolio, and a lot of Kimberly Clark's portfolio, and a lot of Kenvue's portfolio, that is what is suffered. Look, do we really care about Kleenex and Band-Aid anymore? That doesn't resonate to consumers when the Kroger brand or the Walmart brand is a few dollars cheaper? Glass half full here, the only answer is scale. The only way to do this is to do it just with great efficiency. Kimberly Clark, buying Kenvue, all of these deals, consolidate, grab scale. It gives yourself a chance. But if you look at the Kimberly Clark deal, it's glass-half-empty, they're just adding a whole new portfolio of question marks to an already pretty big existing portfolio of question marks. I'm not sure how a whole bunch of question marks really turns into a winning investment, unfortunately.
Tyler Crowe: I'm going to put this both to you at the end here, and you can be very quick about it. But of the M&A activity or the deals that we've been talking about in this space, and a lot of the ones that Rachel covered earlier, which of those ones do you think is actually going to work?
Rachel Warren: I tend to think Kimberly Clark's acquisition of Kenvue makes sense. I understand why Johnson & Johnson spun that one off. It was dragging on their business. They really wanted to focus on the pharmaceutical side. I think it makes a lot more sense as part of a bigger organization like Kimberly Clark. Certainly one to watch, though. But I think it makes sense as part of the overall organization.
Lou Whiteman: One she mentioned that I think is different from all of these, I do like DICK'S deal for Foot Locker. I think that makes sense for different reasons from what we're talking about. That's the one I would pick.
Tyler Crowe: As the host, I get to punt and not give an answer. I don't know if I'm terribly excited for any of them. With that, that's going to be the end of our show. Tune in tomorrow, where I'll be hosting along with Matt Frankel and John Quass, we'll be going over software earnings, stocks on radar, and a bunch of other stuff. As always, people on the program may have interest in the stocks they talk about, and the Motley Fool may have formal recommendations for or against. Don't buy or sell stocks based solely on what you hear. All personal finance content follows Motley Fool editorial standards and is not approved by advertisers. Advertisements are sponsored content and provided for informational purposes only. To see our full advertising disclosure, please check out our shows. For Lou Whiteman and Rachel Warren, our production leader, Dan Boyd and the entire Motley Fool team. I'm Tyler Crowe. Thanks for listening, and we'll chat again soon. Thanks.
Lou Whiteman has positions in Walmart. Rachel Warren has positions in Alphabet, Amazon, and Johnson & Johnson. Tyler Crowe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Kenvue, Meta Platforms, Microsoft, Nvidia, and Walmart. The Motley Fool recommends Johnson & Johnson, Kraft Heinz, and Nestlé and recommends the following options: long January 2026 $13 calls on Kenvue, 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.