Toyota Motor Corporation designs, manufactures, assembles, and sells passenger vehicles, minivans and commercial vehicles, and related parts and accessories in Japan, North America, Europe, Asia, Central and South America, Oceania, Africa, and the Middle East. It operates in Automotive, Financial Services, and All Other segments. The company offers subcompact and compact cars; mini-vehicles; mid-size, luxury, sports, and specialty cars; recreational and sport-utility vehicles; pickup trucks; minivans; trucks; and buses. It offers vehicles under the Toyota and Lexus brand names. Further, the company provides financial services, such as retail financing and leasing, wholesale financing, insurance, and credit cards. Additionally, it operates GAZOO.com, a web portal for automobile information, as well as engages in telecommunications and other businesses. The company was founded in 1933 and is headquartered in Toyota, Japan.

Toyota looks like a large and financially resilient business, but its current valuation no longer appears cheap across all key metrics. A P/E ratio of 10.69 is notably below the industry median, which supports the idea of moderate undervaluation; however, the P/S ratio is above the median, and the P/FCF is significantly above the industry level, which limits the potential for re-rating. A P/B ratio of around 1.01, also below the median, looks supportive as well, but this advantage is partially offset by weak returns on capital: ROE, ROA, and ROI are below industry benchmarks, and ROE has declined noticeably compared with previous years. Profitability overall remains acceptable, especially the net profit margin and operating margin, but the gross margin is below the industry average and has been gradually declining, indicating pressure on cost of goods sold and sales mix. The trends in gross profit, operating income, and EBITDA over recent periods are also more negative than positive, as these figures are below earlier levels. At the same time, revenue remains very large and generally continues to grow, while the balance sheet remains strong: equity is high, the quick ratio is above the median, and debt/equity is moderate, which reduces the risk of financial stress. The debt burden does not look critical, but long-term debt is increasing, and cash on hand has declined noticeably from higher levels, slightly weakening the company’s cushion. Dividend yield is currently zero, whereas it was positive previously, so the dividend factor does not support the valuation. Overall, the picture is mixed: strong scale, good liquidity, and moderate leverage are combined with weakening profitability and a less attractive valuation on cash flow. For an investor, this means the base forecast should be lowered slightly, since the fundamentals remain solid but do not justify an aggressive increase in the target price. At the same time, the reduction should be modest, as the company remains profitable, resilient, and supported by a very strong market position.

Toyota Motor Corporation

Слабый индекс, незначительно упал. Быки продолжают терять уверенность.

Weak index, slightly down. Bulls continue to lose confidence.

Слабый индекс, значительно вырос. Рынок не поддерживает быков.

Weak index, significantly up. The market does not support the bulls.

Слабый индекс, незначительно вырос. Отток средств из лонгов остается значительным.

Weak index, slightly up. The outflow of funds from longs remains significant.

Toyota remains financially stable, but weak profitability, an expensive FCF multiple, and declining cash flow limit revaluation potential.

Key Points
Joby Aviation would sport a $64 billion market cap if it grew tenfold from today.
To support that valuation, however, Joby would have to scale its business immensely.
A stock that grows 10 times its original value -- a 900% increase -- is something most investors would be happy to have in their portfolios. But it rarely happens in one sudden leap, if it even happens at all, with most eventual 10-baggers needing several years to decades to deliver a tenfold gain to those who patiently hold on.
Could Joby Aviation (NYSE: JOBY), the air taxi company, be one of these tenfold winners?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The long flight to 10
Joby Aviation is making electric air taxis, also called electric vertical takeoff and landing (eVTOL) aircraft.
If you've never heard of or seen an eVTOL, that's because this type of aircraft hasn't been approved for commercial operations in the U.S. But if they are approved, well, buckle up -- not only could your daily commute look different (from the air, that is), but the skies above cities could have fewer helicopters and more of these quiet, electric, drone-like vessels whizzing to and fro.
The eVTOL market is expected to account for a sizable share of the global economy, with Morgan Stanley once predicting a total addressable market of a trillion by 2050.
That brings us to Joby: What makes Joby so exciting is that it is the frontrunner of this nascent market. I mean that literally: Joby has logged more than 50,000 flight miles, and its aircraft is now in the fifth and final stage of FAA type certification. It earns revenue through its passenger helicopter business, Blade, and it is also working with Toyota (NYSE: TM) to lay the groundwork for producing air taxis at scale.
All this is to say: If the eVTOL industry becomes the billion-dollar market analysts are predicting, then Joby would be its most obvious beneficiary.
But would it be enough to make Joby a 10-bagger?
At the time of writing, Sept. 10, Joby had a market cap of roughly $6.4 billion. A tenfold gain would bring that market cap up to about $64 billion, assuming the share count stayed the same, which would imply about $14 billion in annual revenue if its price-to-earnings multiple were 30 and its net margins were 15%. Put differently: If every Joby eVTOL aircraft were earning $2 million annually, then it would need a fleet of 7,500 aircraft to rake in $15 billion a year.
Those are lofty numbers, requiring aggressive growth. If Joby were to make 1,000 eVTOL vehicles annually, it would have 7,500 in 7.5 years -- 15 years if it were to produce 500 annually. Right now, Joby has built five aircraft, with 12 more in production.
So yes, Joby could grow into a $64 billion market cap -- though getting there will take years of expansion. Indeed, a tenfold return, if it ever comes, will need time, possibly a decade or longer. That could be a long flight if you need your money sooner -- not a flight every investor can take, at any rate. Given Joby's speculative nature right now, I would only invest if you have the time horizon to see it grow; otherwise, there are plenty of other great opportunities that require less patience and fewer leaps of faith.
Should you buy stock in Joby Aviation right now?
Before you buy stock in Joby Aviation, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Joby Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $417,413!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 210% 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 September 12, 2026.
Steven Porrello has positions in Joby Aviation. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Joby Aviation Could Deliver 10x Returns for Patient Investors

Key Points
Joby's acquisition of Blade Air Mobility has given it routes, paying passengers, and experience.
Joby and Atoms have teamed up to develop vertiports.
Toyota's manufacturing expertise could be showing up in Joby's 40% reduction in nonconformance rate.
A stock that sets you up for life usually asks you to take a chance, a big chance, one with high risks if its main business fails, but high reward if it succeeds. Joby Aviation (NYSE: JOBY) could be one of these stocks. Here's why.
Joby is building a business before takeoff
The electric vertical takeoff and landing (eVTOL) maker wants to launch an air taxi service that carries passengers over heavy traffic. Anyone who has slogged through congested city streets -- say, in New York City, Atlanta, Los Angeles, or Chicago -- can understand Joby's appeal. Still, the bull case for Joby stock requires some imagination, as the company's eVTOL lacks regulatory approval to fly commercially and does not yet have a large enough fleet to serve the areas where it wants to fly.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The lack of FAA type certification, which Joby needs to move forward, might be obscuring how far Joby has actually come in building its business. Indeed, many, if not most, investors may not realize how many pieces Joby has assembled to build a platform ready to welcome passengers when the FAA finally gives the green light.
We can start with Blade Air Mobility, whose passenger business Joby acquired in August 2025. Blade, which lets you book helicopter trips through an app, gave Joby access to existing routes, along with ready-made terminals and lounges in busy markets. The business itself has been growing -- seats booked in the second quarter increased more than 50% year over year -- but the experience and data could be just as valuable. Joby can start measuring where people want to fly, when they want to leave, and how much they're willing to pay. This could help Joby make some big decisions about putting its first commercial eVTOLs to work.
Then, there's the August partnership with Atoms. Joby has wisely teamed up with this infrastructure company to develop vertiports in Florida, New York, and Texas. These locations aren't random: They were selected under the White House-backed eVTOL Integration Pilot Program (eIPP) as markets where Joby can prepare for early operations. Additionally, the two companies plan to develop vertiports in California, which wasn't among Joby's initial eIPP markets but is obviously important to Joby's long-term plans.
Finally, we have to mention Joby's longtime partnership with Toyota (NYSE: TM). Not only has Toyota committed about $894 million to Joby, but it has also formed a joint venture with it to prepare Joby for commercial production. That might sound like a "soft" advantage, but progress might be showing up concretely on the factory floor: Joby's manufacturing nonconformance rate fell nearly 40% in the first half of 2026. That essentially means production is meeting specifications more often, which, in turn, reduces the need for rework.
Of course, without a profitable eVTOL service, Joby will be a risky, speculative stock over the near term. In short, Joby needs its investors to provide a lot of time -- five to 10 years seems realistic -- before it might deliver the growth expected of it. I would not recommend this stock if your time horizon is short. But if you can give Joby time to grow, the rewards could make the wait worthwhile.
Should you buy stock in Joby Aviation right now?
Before you buy stock in Joby Aviation, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Joby Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $410,024!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,372,815!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 211% 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 September 10, 2026.
Steven Porrello has positions in Joby Aviation. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Prediction: Buying Joby Aviation Today Could Set You Up for Life

Key Points
Joby’s vertically business model has more growth potential than Archer’s OEM business.
Joby’s stock deserves to trade at a premium to Archer’s stock.
In 2009, NASA released a concept video of an electric vertical take-off and landing (eVTOL) aircraft, which could hover, take off, and land vertically. That video prompted many aerospace companies to develop their own eVTOLs, but many of those projects fizzled out.
Today, two of those early movers have risen to the top of the nascent market: Joby Aviation (NYSE: JOBY) and Archer Aviation (NYSE: ACHR). Both companies could soon be cleared by the Federal Aviation Administration (FAA) to launch their first commercial flights. However, I think it makes more sense to buy Joby instead of Archer as the top eVTOL play.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Why is Joby a better buy than Archer?
Joby's S4 and Archer's Midnight both carry a single pilot and four passengers. But the S4 travels up to 150 miles on a single charge at a maximum speed of 200 miles per hour, while the Midnight has a shorter range of 100 miles and a lower top speed of 150 miles per hour.
The S4 uses single-tilt-rotor propellers for lifting and cruising. That makes it lighter, faster, and more energy efficient than the Midnight, which uses separate propellers for both tasks. Joby is also developing a hydrogen-powered eVTOL, but Archer isn't.
Joby aspires to become a vertically integrated "transportation as a service" provider that manufactures, owns, and operates its own fleet as a first-party air taxi network. To support that expansion and streamline its supply chain, it mainly uses first-party components. Archer plans to become an OEM for other aviation companies and relies heavily on third-party suppliers.
Joby and Archer have plenty of support from big investors and partners. Toyota, Delta, and Uber (NYSE: UBER) back Joby. Stellantis and United Airlines support Archer. Both eVTOL makers also plan to launch their first commercial flights in the U.S. and the UAE.
However, Joby is farther along in the FAA's multi-stage certification process than Archer. With some help from Uber -- which plans to integrate Joby's S4 flights into its new Uber Air service -- Joby could expand its commercial flights at a much faster rate than Archer.
Why does Joby deserve a premium valuation?
From 2025 to 2028, analysts expect Joby's revenue to rise from $53 million to $435 million, and Archer's revenue to surge from less than $1 million to $512 million. Archer might generate more revenue than Joby by selling more eVTOLs to other companies. But as an OEM, Archer will naturally have less pricing power than Joby's vertically integrated operator business model.
Archer only trades at 8.5 times its 2028 sales, while Joby trades at 15.5 times that estimate. Archer might seem like the cheaper stock, but it's also a weaker eVTOL maker than Joby. That's why I believe investors should pay a premium for Joby but avoid Archer.
Should you buy stock in Joby Aviation right now?
Before you buy stock in Joby Aviation, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Joby Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $446,157!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,377,357!*
Now, it’s worth noting Stock Advisor’s total average return is 984% — a market-crushing outperformance compared to 212% 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.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines, Stellantis, and Uber Technologies. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

1 eVTOL Stock to Buy, and 1 to Avoid

Key Points
Joby is burning over $200 million in cash per quarter.
It’s raising more cash with stock and debt offerings.
It claims to have enough cash for the next two to three years.
Joby Aviation (NYSE: JOBY), a developer of electric vertical take-off and landing (eVTOL) aircraft, is a divisive stock. The bulls expect its revenue to soar after the Federal Aviation Administration (FAA) fully certifies its first commercial flights. Still, the bears warn that its stock is overvalued, its share count is soaring, and that it's burning too much cash.
But is Joby actually in danger of running out of cash before it launches its first commercial flights? Let's see how much cash it's burning through, and if it needs to rein in its spending.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
How much cash is Joby burning each quarter?
To figure out how much cash Joby is burning through each quarter, we should add its net cash used in operating activities to its total capex to calculate its free cash flow (FCF) outflow. That figure has gradually risen above $200 million over the past year. However, its total liquidity -- which includes its cash, cash equivalents, and short-term investments -- more than doubled.
Period
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Q2 2026
FCF Outflow
($118.7 million)
($153.2 million)
($167.0 million)
($222.4 million)
($201.8 million)
Total Liquidity
$991 million
$978 million
$1.41 billion
$2.47 billion
$2.30 billion
Joby's cash burn increased as it accelerated its flight testing, manufacturing setup, and FAA certification activities. To offset that pressure, it raised more cash with a $576 million stock offering in the fourth quarter of 2025, followed by another $600 million stock offering and $690 million convertible debt offering in the first quarter of 2026.
As a result, Joby's share count rose 13% over the past 12 months. It's also increased its share count by 63% over the past five years, and that dilution will likely worsen as it burns more cash. Its total liabilities also surged 156% year over year to $985 million in its latest quarter.
On the bright side, Joby expects its cash runway to last for the next two to three years. That should give it enough time to obtain a full FAA certification for its S4 eVTOLs -- which it expects by the end of 2026 -- and to launch its first commercial flights.
Should investors be worried about Joby's cash?
For now, investors shouldn't fret too much about Joby's cash usage. It's still firmly backed by Toyota, Delta, and Uber, and it's ahead of its closest peer -- Archer Aviation -- in the FAA certification process. They should only worry if Joby doesn't launch its first commercial flights before its cash runs out.
Should you buy stock in Joby Aviation right now?
Before you buy stock in Joby Aviation, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Joby Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $435,803!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,577!*
Now, it’s worth noting Stock Advisor’s total average return is 966% — a market-crushing outperformance compared to 211% 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.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines and Uber Technologies. The Motley Fool has a disclosure policy.

Joby Aviation Is Burning Over $200 Million a Quarter. Here's How Long the Cash Actually Lasts.

For Immediate Release
Chicago, IL – September 2, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Toyota Motor Corp. TM, CrowdStrike Holdings, Inc. CRWD, Welltower Inc. WELL, Blue Ridge Bankshares, Inc. BRBS and Franklin Financial Services Corp. FRAF.
Here are highlights from Tuesday’s Analyst Blog:
Top Research Reports for Toyota Motors, CrowdStrike and Welltower
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Toyota Motor Corp, CrowdStrike Holdings, Inc. and Welltower Inc., as well as two micro-cap stocks Blue Ridge Bankshares, Inc. and Franklin Financial Services Corp.. The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today's research reports here >>>
Today's Featured Research Reports
Toyota Motor's shares have outperformed the Zacks Automotive - Foreign industry over the past year (+1.6% vs. -19.4%). The company is well positioned to benefit from rising hybrid adoption, with expanding HEV sales, higher electrified vehicle penetration and continued investments in next-generation battery capacity supporting long-term demand.
Toyota Motor's growing value-chain businesses, including financing and connected services, provide stable recurring earnings, while a higher fiscal 2027 sales outlook and manufacturing expansion in key markets reinforce growth prospects.
However, the investment case is tempered by expectations for lower fiscal 2027 operating income due to higher labor, depreciation and R&D costs. Persistent weakness in China, elevated leverage and Middle East uncertainty also pose risks. Thus, the stock warrants a cautious stance.
(You can read the full research report on Toyota Motor here >>>)
Shares of CrowdStrike have outperformed the Zacks Security industry over the past year (+123.5% vs. +90.2%). The company remains supported by sustained cybersecurity demand as enterprises consolidate tools on Falcon and expand adoption through Falcon Flex. AI security, cloud, identity and next-generation SIEM broaden the platform opportunity, while recurring subscriptions, partner reach and cash generation support continued investment and cross-sell.
Record net new ARR and deeper Flex adoption point to healthy demand and improving customer expansion. At the same time, fiscal 2027 revenue growth remains below CrowdStrike's earlier hypergrowth years, while sales, R&D and stock-based compensation remain elevated.
Competitive pricing and macro-sensitive sales cycles could also slow bookings or constrain margins. These offsets balance the company's expanding platform and improving operating leverage, supporting a Neutral stance.
(You can read the full research report on CrowdStrike here >>>)
Welltower's shares have outperformed the Zacks REIT and Equity Trust - Other industry over the past year (+42.9% vs. +14.1%). The company's investment case remains balanced. Favorable senior housing demographics, limited new supply and continued occupancy gains support pricing and operating leverage, while the Welltower Business System may extend margin expansion over time.
Capital deployment remains focused on seniors housing, and ongoing outpatient medical sales are reshaping the portfolio toward rental housing for aging seniors. Low leverage and ample liquidity provide funding flexibility, and the higher dividend reflects confidence in cash flow durability.
Offsetting these positives, competition and partner concentration remain relevant, interest expense is elevated, and the pace of acquisitions and dispositions raises execution risk. The Neutral view reflects attractive structural growth alongside transaction, financing and concentration risks.
(You can read the full research report on Welltower here >>>)
Shares of Blue Ridge have outperformed the Zacks Banks - Northeast industry over the past year (+36.8% vs. +24.7%). This microcap company with a market capitalization of $349.79 million sees its investment case increasingly tied to its proposed HomeTrust combination, which would expand regional scale and deliver meaningful earnings-per-share accretion once cost savings are realized.
The shift toward community banking is gaining traction, supported by loan growth, lower brokered funding and ample liquidity. Cost rationalization is improving operating leverage. However, earnings remain constrained by a smaller earning-asset and fee-income base, while core funding growth is yet to support the lending recovery.
Rising nonperforming loans, reduced capital flexibility and merger execution risks warrant attention. The valuation suggests investors are assigning meaningful value to the turnaround and merger prospects, leaving less room for setbacks and making sustained earnings, credit quality and integration progress important for further upside.
(You can read the full research report on Blue Ridge here >>>)
Franklin Financial Services' shares have outperformed the Zacks Banks - Northeast industry over the past year (+36.5% vs. +24.7%). This microcap company with a market capitalization of $278.75 million has its investment case rests on a large commercial real estate franchise supported by disciplined concentration management and targeted remediation of isolated problem credits.
A growing core deposit base and an improved funding mix are lowering funding costs, supporting loan growth and strengthening liquidity without greater reliance on wholesale borrowings. These trends, along with expense discipline, are improving margins, profitability and operating leverage. Wealth management provides recurring fee income and revenue diversification.
Strong capital generation, tangible book value growth and a well-capitalized balance sheet support continued expansion and shareholder distributions. While commercial real estate credit quality requires monitoring, improving watch-list trends, higher specific reserves and ample liquidity provide safeguards.
(You can read the full research report on Franklin Financial Services here >>>)
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Toyota, CrowdStrike, Welltower, Blue Ridge Bankshares and Franklin Financial Services

Tuesday, September 1, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Toyota Motor Corp. (TM), CrowdStrike Holdings, Inc. (CRWD) and Welltower Inc. (WELL), as well as two micro-cap stocks Blue Ridge Bankshares, Inc. (BRBS) and Franklin Financial Services Corp. (FRAF). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-Market Futures Lower to Start September
Today's Featured Research Reports
Toyota Motor’s shares have outperformed the Zacks Automotive - Foreign industry over the past year (+1.6% vs. -19.4%). The company is well positioned to benefit from rising hybrid adoption, with expanding HEV sales, higher electrified vehicle penetration and continued investments in next-generation battery capacity supporting long-term demand.
Toyota Motor’s growing value-chain businesses, including financing and connected services, provide stable recurring earnings, while a higher fiscal 2027 sales outlook and manufacturing expansion in key markets reinforce growth prospects.
However, the investment case is tempered by expectations for lower fiscal 2027 operating income due to higher labor, depreciation and R&D costs. Persistent weakness in China, elevated leverage and Middle East uncertainty also pose risks. Thus, the stock warrants a cautious stance.
(You can read the full research report on Toyota Motor here >>>)
Shares of CrowdStrike have outperformed the Zacks Security industry over the past year (+123.5% vs. +90.2%). The company remains supported by sustained cybersecurity demand as enterprises consolidate tools on Falcon and expand adoption through Falcon Flex. AI security, cloud, identity and next-generation SIEM broaden the platform opportunity, while recurring subscriptions, partner reach and cash generation support continued investment and cross-sell.
Record net new ARR and deeper Flex adoption point to healthy demand and improving customer expansion. At the same time, fiscal 2027 revenue growth remains below CrowdStrike’s earlier hypergrowth years, while sales, R&D and stock-based compensation remain elevated.
Competitive pricing and macro-sensitive sales cycles could also slow bookings or constrain margins. These offsets balance the company’s expanding platform and improving operating leverage, supporting a Neutral stance.
(You can read the full research report on CrowdStrike here >>>)
Welltower’s shares have outperformed the Zacks REIT and Equity Trust - Other industry over the past year (+42.9% vs. +14.1%). The company’s investment case remains balanced. Favorable senior housing demographics, limited new supply and continued occupancy gains support pricing and operating leverage, while the Welltower Business System may extend margin expansion over time.
Capital deployment remains focused on seniors housing, and ongoing outpatient medical sales are reshaping the portfolio toward rental housing for aging seniors. Low leverage and ample liquidity provide funding flexibility, and the higher dividend reflects confidence in cash flow durability.
Offsetting these positives, competition and partner concentration remain relevant, interest expense is elevated, and the pace of acquisitions and dispositions raises execution risk. The Neutral view reflects attractive structural growth alongside transaction, financing and concentration risks.
(You can read the full research report on Welltower here >>>)
Shares of Blue Ridge have outperformed the Zacks Banks - Northeast industry over the past year (+36.8% vs. +24.7%). This microcap company with a market capitalization of $349.79 million sees its investment case increasingly tied to its proposed HomeTrust combination, which would expand regional scale and deliver meaningful earnings-per-share accretion once cost savings are realized.
The shift toward community banking is gaining traction, supported by loan growth, lower brokered funding and ample liquidity. Cost rationalization is improving operating leverage. However, earnings remain constrained by a smaller earning-asset and fee-income base, while core funding growth is yet to support the lending recovery.
Rising nonperforming loans, reduced capital flexibility and merger execution risks warrant attention. The valuation suggests investors are assigning meaningful value to the turnaround and merger prospects, leaving less room for setbacks and making sustained earnings, credit quality and integration progress important for further upside.
(You can read the full research report on Blue Ridge here >>>)
Franklin Financial Services’ shares have outperformed the Zacks Banks - Northeast industry over the past year (+36.5% vs. +24.7%). This microcap company with a market capitalization of $278.75 million has its investment case rests on a large commercial real estate franchise supported by disciplined concentration management and targeted remediation of isolated problem credits.
A growing core deposit base and an improved funding mix are lowering funding costs, supporting loan growth and strengthening liquidity without greater reliance on wholesale borrowings. These trends, along with expense discipline, are improving margins, profitability and operating leverage. Wealth management provides recurring fee income and revenue diversification.
Strong capital generation, tangible book value growth and a well-capitalized balance sheet support continued expansion and shareholder distributions. While commercial real estate credit quality requires monitoring, improving watch-list trends, higher specific reserves and ample liquidity provide safeguards.
(You can read the full research report on Franklin Financial Services here >>>)
Other noteworthy reports we are featuring today include Gilead Sciences, Inc. (GILD), Apollo Global Management, Inc. (APO) and United Therapeutics Corp. (UTHR).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Revenue Growth Supports Apollo (APO) Amid Rising Expenses
Per the Zacks analyst, Apollo's strong revenue growth, driven by Asset Management and Retirement Services, supports its financials. However, rising expenses may pressure profitability.
United Therapeutics (UTHR) Gains From Tyvaso & Pipeline; Risks Remains
UTHR's progress in idiopathic pulmonary fibrosis (IPF) and pulmonary arterial hypertension (PAH) is encouraging. Rising competition and generic pressure on marketed products concern the Zacks analyst.
Renewable Growth, Data-Center Demand and LNG Support AES Corp. (AES)
Per the Zacks analyst, AES will benefit from renewable expansion, contracted demand and data-center growth. Portfolio transition and LNG exposure should support long-term growth.
Diversified Businesses Aid UFP Industries (UFPI) Amid Weak Housing
Per the Zacks analyst, UFP Industries is gaining from a diversified portfolio, acquisitions and cost-control efforts. However, weak residential construction and lumber price volatility are concerns.
Alaska Air (ALK) Benefits From on Air Travel Demand, Labor Costs Ail
The Zacks Analyst is impressed with the fact that increased air-travel demand is aiding Alaska Air's top-line performance. Escalated labor and airport costs weigh on bottom-line growth.
Bath & Body Works' (BBWI) Consumer First Formula to Support Growth
Per the Zacks analyst, Bath & Body Works' Consumer First Formula is expected to support sustainable growth as digital gains, product innovation and wider distribution gain momentum.
AMN Healthcare (AMN) Gains From Workforce Demand and Technology
Per the Zacks analyst, improving travel nursing & allied staffing demand, MSP relationships and technology investments support growth, while declines in some segments and pricing pressures remain risk
New Upgrades
Strong HIV Franchise, Cancer Drug Trodelvy Fuel Gilead (GILD)
Per the Zacks analyst, Gilead's strong momentum in HIV franchise and breast cancer drug Trodelvy drive growth for the company. However, the Cell therapy franchise is facing challenges.
Etsy (ETSY) Gains From AI Personalization and Rising Engagement
Per the Zacks analyst, Etsy's AI-driven personalization, growing mobile engagement and stronger Gen Z and Millennial reach support marketplace growth and shareholder returns.
Credit Sales, Solid Balance Sheet Aid Bread Financial (BFH)
Per the Zacks analyst, Bread Financial is set to grow on strong credit sales aided by solid consumer spending. Moreover, its healthy balance sheet should drive long-term growth.
New Downgrades
Debt, Long Equipment Lead Times & Rising Costs to Hurt Archrock (AROC)
Per the Zacks analyst, debt, long equipment lead times, Permian exposure, softer aftermarket demand and rising costs increase execution risk, limiting Archrock's earnings visibility and flexibility.
Weakness in Europe & Challenges in Specialty Segment Ail LKQ
Per the Zacks analyst, LKQ slashed full-year 2026 organic growth guidance to a 1% to 3% decline due to weakness in its European business. Profitability in Specialty also remains a concern.
Optimum (OPTU) Plagued by Weak Demand in Residential Business
Per the Zacks analyst, declining broadband and video subscribers in the residential business will likely impact Optimum's top line. High debt burden remains a concern.
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.
Free: See Our Top Stock And 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
This article originally published on Zacks Investment Research (zacks.com).

Top Research Reports for Toyota Motor, CrowdStrike & Welltower

Key Points
Joby’s stock has gone nowhere since its public debut.
But it could soar after the FAA certifies its first commercial flights.
Joby Aviation (NYSE: JOBY), a developer of electric vertical take-off and landing (eVTOL) aircraft, went public through a merger with a special purpose acquisition (SPAC) company five years ago. Its stock opened at $10.62 on the first day, but it now trades at less than $7.
Joby's stock failed to take off because the Federal Aviation Administration (FAA) hasn't approved its first commercial flights yet. But over the next three years, it could skyrocket.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
What are Joby's biggest advantages?
Joby's S4 eVTOL can carry a single pilot and four passengers, travel up to 150 miles on a single charge, and reach a maximum speed of 200 miles per hour. Compared to helicopters, they're more environmentally friendly and easier to land in dense urban areas.
The S4 travels faster than many other eVTOLs, including Archer Aviation's (NYSE: ACHR) Midnight, because it uses single tilt rotor propellers for lifting and cruising. Other eVTOLs typically use separate propellers for both modes, making them heavier, slower, and less energy-efficient.
Unlike Archer, which produces eVTOLs for other aviation companies as an OEM, Joby aims to become a vertically integrated "transportation as a service" provider that manufactures, owns, and operates its own fleet through a first-party air taxi network. Joby also has a tighter supply chain than many of its peers because it primarily uses first-party components rather than third-party ones.
Joby's biggest supporters include Toyota (NYSE: TM), which will help mass-produce the S4; Delta Air Lines (NYSE: DAL), which will use the S4 to provide "airport-to-home" flights; and Uber (NYSE: UBER), which will integrate its flights into its new Uber Air service. Joby is also slightly ahead of Archer in the FAA's multi-stage certification process.
How much larger could Joby grow?
According to Fortune Business Insights, the global eVTOL market could expand at a 36.8% CAGR from 2026 to 2034. From 2025 to 2028, analysts expect Joby's revenue to surge from $53 million (primarily from its defense contracts and early orders) to $435 million (as it launches its first commercial flights and expands its fleet).
But with a market cap of $6.8 billion, Joby is already valued at 16 times its 2028 sales. Archer, which is expected to grow its revenue from nearly nothing in 2025 to $512 million in 2028, is only valued at $4.5 billion -- or nine times its 2028 sales. Nevertheless, Joby's aforementioned advantages against Archer could justify its higher valuation.
However, analysts also expect Joby to remain unprofitable for the foreseeable future. It's also increased its share count by 63% since its market debut, and it will likely continue to dilute its investors as it burns more cash to ramp up its production. Its insiders have also sold more than 33 times as many shares as they bought over the past 12 months.
Where will Joby's stock be in three years?
Over the next three years, Joby will need to achieve a full FAA certification, launch its first commercial flights in the U.S., the UAE, and other international markets, fulfill its existing government contracts, and scale its contract manufacturing partnership with Toyota.
Assuming it matches Wall Street's estimates through 2028, doubles its revenue to $870 million in 2029, and trades at 16 times its current year's sales, its market cap could roughly double to $14 billion over the next three years. At a more bullish 20 times sales, its market cap could reach $17.4 billion by 2029 -- and rise even higher through the end of the decade.
Joby will remain a speculative stock, even after the FAA fully certifies its commercial flights. However, its early mover advantage in the nascent eVTOL market -- and its clear-cut advantages over competitors -- couold still make it a worthwhile investment for bold investors.
Should you buy stock in Joby Aviation right now?
Before you buy stock in Joby Aviation, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Joby Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $437,097!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,355,077!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% 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 September 1, 2026.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines and Uber Technologies. The Motley Fool has a disclosure policy.

Prediction: Here's What a $5,000 Investment in Joby Aviation Will Be Worth in 3 Years

Key Points
Battery-only electric vehicles aren't the only alternative to combustion-powered autos.
A slightly different technology has actually become much more popular.
While Tesla and BYD garner much attention, investors may want to keep tabs on a third name.
Electric vehicle makers Tesla (NASDAQ: TSLA) and China's BYD (OTC: BYDDY) may be the industry's most talked about companies because they're the industry's two biggest names.
Yet, there's a third carmaker that both BYD and Tesla and their shareholders might want to start keeping a closer eye on since it's coming on strong within the electrified vehicle market.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
That's automobile maker Toyota Motor (NYSE: TM). Yes, that Toyota.
Missing the boat (so to speak)
Most investors probably know that Toyota has been tinkering with hybrids and even battery-only vehicles for a while now. What these investors might not fully appreciate is just how deep the world's biggest carmaker has waded into the electric vehicle market.
For the quarter ended in June, 1.41 million (or 51.9%) of the 2.71 million automobiles that Toyota manufactured during that three-month stretch were electric rather than combustion-powered.
The vast majority of these cars were hybrids, which are distinctly different from all of the EVs made by Tesla, and roughly half the so-called new-energy vehicles manufactured by BYD. Teslas are only powered by a rechargeable battery, whereas hybrids combine battery power with a combustion engine, making them practical even when recharging them is impractical.
The thing is, Toyota's dedication to the continued development of its hybrid automobile business may be a brilliant one despite all the hype being generated by the proliferation of battery-only electric vehicles. For perspective, while sales of battery-electric vehicles (or BEVs) within the United States grew slightly to 1.26 million cars in 2025, according to data from the National Automobile Dealers Association (NADA), hybrid sales quietly but decisively topped that figure at 2.05 million, up 27.6% year over year.
And the U.S. market hasn't been particularly receptive to either alternative to conventional combustion-powered automobiles. Of the roughly 90 million cars that were sold worldwide last year, industry research outfit Imarc reports nearly 16.3 million were hybrids, up 24.8% year over year, easily outpacing sales and sales growth of battery-only EVs. Electric vehicle market leaders Tesla and BYD only delivered 3.86 million BEVs between them last year, for reference.
Moreover, Imarc expects hybrid automobile sales to reach nearly 126 million units per year by 2034, once consumers recognize this option sidesteps most of the concerns that are crimping interest in battery-only EVs here and abroad. Already the leading name of the hybrid market with last fiscal year's sales of over 4.6 million hybrid cars, Toyota stands ready to capture at least its fair share of this growth.
A development that's too big to ignore
Only time will tell whether hybrids will displace battery-only EVs, or if there's room for both options. What is clear is that the demand for hybrids is very real, and growing, posing at least an indirect threat to Tesla, which is already contending with a formidable BYD on the electric vehicle front. In the meantime, BYD is also becoming a respectable contender in the hybrid business that's proving a marketable alternative to BEVs.
Arguably more than anything, though, Toyota may be an investment prospect that too many investors are looking right past, assuming it's no longer relevant. It very much is.
Should you buy stock in Toyota Motor right now?
Before you buy stock in Toyota Motor, 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 Toyota Motor 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 $430,571!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,399,268!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 214% 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 August 28, 2026.
James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends BYD Company. The Motley Fool has a disclosure policy.

Toyota's Electrified Vehicles Now Make Up Nearly 52% of Its Quarterly Volume

Key Points
Joby’s stock has stumbled since its market debut five years ago.
But a few major catalysts could drive its stock much higher over the next decade.
Joby Aviation (NYSE: JOBY), a developer of electric vertical takeoff and landing (eVTOL) aircraft, went public through a merger with a special purpose acquisition company (SPAC) five years ago. It started trading at $10.62, but it now trades at about $7 per share.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Why could Joby be a multibagger stock?
Joby's stock hasn't taken off yet because the FAA hasn't fully approved its first commercial flights. But when it does, its shipments of S4 eVTOLs -- which carry a single pilot and four passengers for up to 150 miles at up to 200 miles per hour -- could skyrocket.
Joby's backers include Toyota (NYSE: TM), which will manufacture the S4; Delta Air Lines (NYSE: DAL), which will use the S4 for last-mile "airport-to-home" flights; and Uber (NYSE: UBER), which will integrate its air taxi flights into its new Uber Air service. Over the long term, it plans to become a vertically integrated "transportation as a service" business that manufactures, owns, and operates its own air taxi network.
Once the FAA fully approves its first flights, analysts expect its revenue to surge from $53 million (mainly from its Blade Air Mobility helicopter services) to $435 million in 2028. Joby's stock might seem expensive at 18 times its 2028 sales, but Fortune Business Insights expects the global eVTOL market to expand at a 36.8% CAGR from 2026 to 2034. As an early mover in this nascent growth market, Joby could generate a tenbagger gain (or more) over the long term.
Should you buy stock in Joby Aviation right now?
Before you buy stock in Joby Aviation, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Joby Aviation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $432,621!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,314!*
Now, it’s worth noting Stock Advisor’s total average return is 973% — a market-crushing outperformance compared to 213% 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 August 20, 2026.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines and Uber Technologies. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

How Buying Joby Aviation Stock Today Could 10X Your Net Worth

Key Points
Buying a diversified portfolio of stocks can help investors stay grounded and humble through the ups and downs of investing.
The Vanguard Morningstar Total Stock Market ETF holds more than 3,500 U.S. stocks and has delivered almost 15% annualized returns for 10 years.
The Vanguard International High Dividend Yield ETF holds more than 1,500 international value stocks, often from overlooked industries, that pay strong dividends.
A big part of investing is psychological. It's not just about math; it's about managing your mindset, your moods, your attitude. I wish I could teach all investors to have an attitude of humility about the stock market.
I try to be humble in my approach to investing. No one knows the future. No one knows for sure which stocks will do best, which industries will grow faster, which companies or countries will outperform the rest.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
It's good to have convictions. It's good to believe in what you're investing in. And some of the best investors have a certain dash of ambition and healthy ego that drives them to succeed in the first place. But investors need to guard against arrogance and overconfidence.
As a humble investor, I try to own a well-diversified portfolio that includes basically all the stocks in the U.S., and some international stocks. With a well-diversified portfolio, even if I'm wrong about some of my ideas about the future, even if some stocks or sectors disappoint or underperform, my money can keep growing.
Let's look at two exchange-traded funds (ETFs) that could be a good fit for this humble-investor approach.
This fund is a foundational piece of my portfolio. It's how I invest in U.S. stocks -- all of them. That's right: The Vanguard Morningstar Total Stock Market ETF (NYSEMKT: VTI) lets you own pretty much the entire publicly traded U.S. stock market. It holds 3,531 U.S. stocks, including large caps, mid-caps, and small caps. It's delivered powerful annualized returns of almost 15% during the past 10 years, and just shy of 12% during the past five years.
Why do I own this fund instead of an S&P 500 index ETF? There's nothing wrong with buying S&P 500 ETFs. But I want even more diversification. I'm not confident that the biggest names in the stock market will always deliver better results than the smaller companies.
What if mid-caps and small-cap stocks outperform the large-caps of the S&P 500 for the next 10 years? Sometimes underrated companies and underdog stocks end up surprising people who counted them out. This total stock market ETF lets you own the underdogs and overlooked sectors of the stock market, as well as the big names that get lots of glory and praise.
Vanguard International High Dividend Yield ETF: 1,565 stocks from 45 countries
Sometimes U.S. investors are overconfident about the success and strength of the U.S. stock market. They assume that domestic stocks are always the best in the world, and that the U.S. is the only place they need to put their money.
One fair argument against buying international stocks is that major U.S. companies already do a lot of business with other countries. Goldman Sachs research says that S&P 500 companies earn about 28% of their revenue outside the U.S. market. That might be enough international exposure for some U.S. investors.
But I like to own some international stocks. I want diversification. There are billions of other people in the world who get up every day and go to work to build the future. I've lived in Japan and traveled in Europe, and I know that not all the best ideas and success stories happen in America.
For that reason, I like what I've read about the Vanguard International High Dividend Yield ETF (NASDAQ: VYMI). I don't own this fund, but sometimes I wish I had bought it a few years ago. It's delivered annualized returns of about 14% for the past five years, 22% for the past three years, and an impressive 35% in the past year.
This international ETF holds 1,565 stocks from 45 countries. It's much less tech-heavy than the U.S. stock market. The top 20 stock holdings include:
Major international banks from Australia, Canada, Japan, Spain and the U.K.
Global pharmaceutical giants from Denmark and Switzerland.
Why buy either fund...or both?
Ultimately, for me, the point of investing is not to impress other people or win arguments on the internet. The point is to have financial security -- to have more than enough money for my family at every stage of life.
I own the Vanguard Morningstar Total Stock Market ETF because it's a low-cost way to own thousands of U.S. stocks of all types and sizes. I don't know which sectors or companies will do best, so I want to own them all. The market can move faster than I can.
And I also own international stocks. The Vanguard International High Dividend Yield ETF is a good example of an international ETF for humble investors, because it owns a wide range of dividend-paying value stocks that might be off the radar of other investors.
Sometimes the less glamorous stocks and industry sectors end up being big winners, right when the less humble investors least expect it.
Should you buy stock in Vanguard Morningstar Total Stock Market ETF right now?
Before you buy stock in Vanguard Morningstar 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 Morningstar 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 $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!*
Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% 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.
Ben Gran has positions in Vanguard Morningstar Total Stock Market 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.

Toyota Motor Corporation

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