Walmart Inc. engages in the operation of retail, wholesale, other units, and eCommerce worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, and discount stores under Walmart and Walmart Neighborhood Market brands; membership-only warehouse clubs; ecommerce websites, such as walmart.com.mx, walmart.ca, flipkart.com, PhonePe and other sites; and mobile commerce applications. The company offers grocery and consumables, including dairy, meat, bakery, deli, produce, dry, chilled or frozen packaged foods, alcoholic and nonalcoholic beverages, floral, snack foods, candy, other grocery items, health and beauty aids, paper goods, laundry and home care, baby care, pet supplies, and other consumable items; fuel, tobacco and other categories. It is also involved in the provision of health and wellness products covering pharmacy, optical and hearing services, and over-the-counter drugs and other medical products; and home and apparel including home improvement, outdoor living, gardening, furniture, apparel, jewelry, tools and power equipment, housewares, toys, seasonal items, mattresses and tire and battery centers. In addition, the company offers consumer electronics and accessories, software, video games, office supplies, appliances, and third-party gift cards. Further, it operates digital payment platforms; and offers financial services and related products, including money transfers, bill payments, money orders, check cashing, prepaid access, co-branded credit cards, installment lending, and earned wage access. Additionally, the company markets lines of merchandise under private brands, including Allswell, Athletic Works, Equate, and Free Assembly. The company was formerly known as Wal-Mart Stores, Inc. and changed its name to Walmart Inc. in February 2018. Walmart Inc. was founded in 1945 and is based in Bentonville, Arkansas.

Walmart Inc.

Key Points
Dividend stocks have historically outperformed non-dividend paying stocks.
Sonoco Products has radically reshaped its business to focus on its core.
Target significantly improved its digital presence during the COVID-19 pandemic.
Investing in dividend stocks is one of the most popular and powerful strategies for generating a steady income stream, building wealth through the power of compounding and mitigating portfolio risk with historically more stable and resilient businesses. With all of that said, here are two excellent dividend stocks with yields topping 5%.
Better packaging. Better investment.
With a motto of "Better Packaging. Better Life." it seems fitting that Sonoco Products (NYSE: SON) might be the total package for income investors. Not only does it have a high-yield dividend at 5.4%, the company has delivered dividends to shareholders for 402 consecutive quarters, or for 100 years, and has increased its dividend for 42 consecutive years.
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 »
Throughout its 100-year history, Sonoco has collected a diverse portfolio of industrial and consumer packaging that includes reels and spools, rigid plastics, pallets, and composite containers, and serves consumer and industrial end markets across North America. Sonoco has two primary segments, consumer packaging and industrial packaging, and has reshaped its business over the past few years. The company now focuses more on a few core businesses and has divested from products such as high-density film and European contract packing, among others.
Further, the company has been busy expanding its food packaging portfolio while reducing its exposure to more cyclical industrial end markets with acquisitions. In 2022 Sonoco acquired Ball Metalpack for about $1.4 billion, and then in 2024 acquired Eviosys for roughly $3.9 billion. Both acquisitions will increase the company's exposure to the valuable metal food packaging industry. Another positive for income investors is that much of the company's sales are under contracts that include price escalators and help stabilize margins and indirectly drive dividends.
Competing digitally
Target (NYSE: TGT), serving as the nation's seventh-largest retailer, has built itself on a strategy to deliver a more gratifying in-store shopping experience with a wide range of apparel, home goods, and other household essentials that appeals to a more affluent customer base. What some investors aren't aware of, however, is the company's long history with dividends: This year's fourth quarter dividend will be Target's 233rd consecutive dividend paid since 1967 when it went public. The dividend also sits at a robust 5.1% dividend yield.
One reason for investors to be optimistic about Target's future is its recent past. One of the largest concerns facing investors has been Target's ability to combat digital retailers such as Amazon and omnichannel giants like Walmart. Target's investments in its stores and its digital prowess proved hugely important during the pandemic, helping power the company's sales from 2019 through 2022, as you can see in the chart below.
Target will have to keep investing in cost-saving initiatives, product innovation, and store renovations to keep up with the competition, both in-store and online. But its performance during the pandemic proves the company is capable of driving growth and its iconic brand combined with a better in-store experience should continue driving recurring foot traffic.
What they offer
Both Sonoco and Target are excellent options for income investors. They both offer a long, consistent history of delivering dividends, and both are finding ways to expand through acquisitions or organic and digital growth.
Should you invest $1,000 in Target right now?
Before you buy stock in Target, 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 Target 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 $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% 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 October 27, 2025
Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Target, and Walmart. 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.

2 High-Yield Dividend Stocks to Buy With No Hesitation

In the latest trading session, Walmart (WMT) closed at $104.47, marking a -1.6% move from the previous day. This change lagged the S&P 500's daily gain of 1.23%. Elsewhere, the Dow saw an upswing of 0.72%, while the tech-heavy Nasdaq appreciated by 1.86%.
Shares of the world's largest retailer have appreciated by 2.92% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 1.39%, and the S&P 500's gain of 2.45%.
The investment community will be paying close attention to the earnings performance of Walmart in its upcoming release. The company is slated to reveal its earnings on November 20, 2025. On that day, Walmart is projected to report earnings of $0.6 per share, which would represent year-over-year growth of 3.45%. In the meantime, our current consensus estimate forecasts the revenue to be $177.01 billion, indicating a 4.38% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.6 per share and a revenue of $708.94 billion, signifying shifts of +3.59% and +4.11%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Walmart. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Walmart boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Walmart is at present trading with a Forward P/E ratio of 40.79. This indicates a premium in contrast to its industry's Forward P/E of 17.01.
We can also see that WMT currently has a PEG ratio of 5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Supermarkets industry currently had an average PEG ratio of 2.38 as of yesterday's close.
The Retail - Supermarkets industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Walmart (WMT) Stock Falls Amid Market Uptick: What Investors Need to Know

Investors interested in Retail - Supermarkets stocks are likely familiar with Tesco PLC (TSCDY) and Walmart (WMT). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Tesco PLC has a Zacks Rank of #1 (Strong Buy), while Walmart has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TSCDY is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
TSCDY currently has a forward P/E ratio of 15.92, while WMT has a forward P/E of 40.79. We also note that TSCDY has a PEG ratio of 1.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WMT currently has a PEG ratio of 5.00.
Another notable valuation metric for TSCDY is its P/B ratio of 2.77. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, WMT has a P/B of 8.77.
These metrics, and several others, help TSCDY earn a Value grade of A, while WMT has been given a Value grade of C.
TSCDY stands above WMT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TSCDY is the superior value option right now.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

TSCDY or WMT: Which Is the Better Value Stock Right Now?

Build-A-Bear Workshop, Inc.’s BBW asset-light strategy is emerging as a key driver of its growth momentum. The company’s partner-operated retail model is enabling rapid international expansion without the heavy capital burden of corporate ownership. In the second quarter of fiscal 2025, Build-A-Bear added 14 net new global experience locations, of which nine were partner-operated. These stores now account for roughly 25% of the total location base.
CEO Sharon Price John emphasized that this model allows the brand to scale efficiently while leveraging partners’ local knowledge and operational capabilities. The company’s expansion to 32 countries demonstrates how the approach accelerates market penetration with minimal incremental investment. Partners such as Great Wolf Lodge and Girl Scouts in the United States, and international operators in emerging markets like Georgia and Uzbekistan, highlight the effectiveness of this framework.
The benefits are visible across several metrics. For the first half of fiscal 2025, Build-A-Bear’s EBITDA margin rate of nearly 17% had more than tripled the rate achieved in the first half of fiscal 2019. Pre-tax income surged 32.7% in the second quarter to a record $15.3 million, while the gross margin expanded 340 basis points to 57.6%.
The model also extends to wholesale distribution, with partner-operated toy stores driving additional sales of Build-A-Bear’s Mini Beans collection. By outsourcing capital-intensive retail buildouts, Build-A-Bear converts fixed costs into variable ones, strengthening margins and cash flow. The model’s scalability supports long-term brand growth and profitability, reinforcing its role as a sustainable engine of expansion.
What the Latest Metrics Say About Build-A-Bear
Build-A-Bear, which competes with Walmart Inc. WMT and Target Corporation TGT, has surged 43.2% over the past year, outperforming the industry’s growth of 10%. While Walmart shares have rallied 28.3%, Target has declined 36.9% in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Build-A-Bear's forward 12-month price-to-earnings ratio stands at 12.81, lower than the industry’s ratio of 17.97. BBW carries a Value Score of A. Build-A-Bear is trading at a discount to Walmart (with a forward 12-month P/E ratio of 37.36) but at a premium to Target (11.90).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Build-A-Bear's current financial-year sales and earnings per share implies year-over-year growth of 7.4% and 6.9%, respectively.
Image Source: Zacks Investment Research
Build-A-Bear currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Build-A-Bear's Asset-Light Model the Key to Sustainable Growth?

Costco Wholesale Corporation’s COST core membership model faced a slight hiccup in the final quarter of fiscal 2025, with the worldwide renewal rate easing to 89.8% from 90.2% in the preceding quarter. U.S. and Canada membership renewal rate stood at 92.3%, down 40 basis points on a sequential basis. This figure is a marginal step down from previous high-water marks and raises the question of whether this is a temporary blip or a signal of market saturation.
The decline, attributed to a rising share of online sign-ups, follows a surge in digital membership growth, including a large Groupon campaign in December 2023 that introduced younger members to the brand. While management emphasized that online members renew at slightly lower rates, it also views this trend as a positive evolution that expands Costco’s reach to a new demographic.
Nearly half of new members are now under 40, signaling an important generational turnover within the company’s member base. Costco’s challenge will be to engage these digital-first shoppers effectively through auto-renewal programs and targeted communication that deepens brand loyalty beyond initial discounts.
The renewal rate remains historically strong but could see minor pressure as the new mix of online members continues to flow through the system. Management expects this dynamic to persist for a few quarters before stabilizing. For a company known for decades of consistency in membership metrics, the shift underscores a new balancing act between digital expansion and retention discipline.
The question now is whether Costco’s push into online acquisition marks a temporary dip in loyalty or the beginning of a redefined membership model in the digital era. Costco reported a 14% year-over-year increase in membership fee income during the fourth quarter of fiscal 2025, reaching $1,724 million.
Walmart & BJ’s Wholesale Snapshot on Membership Income
Walmart Inc. WMT is leaning heavily into membership economics as Walmart+ and Sam’s Club continue to deliver outsized growth. In the second quarter of fiscal 2026, Walmart reported a 15.3% surge in global membership fee income, outpacing overall sales growth. Walmart+ delivered double-digit growth in fee income, while Sam’s Club posted a 7.6% rise fueled by higher Plus member penetration. Management emphasized that Walmart’s membership strength is now a critical profit lever alongside advertising and e-commerce, giving Walmart the flexibility to offset rising costs and reinforce its price leadership.
BJ's Wholesale Club Holdings, Inc. BJ is also showing notable traction in membership fees, supported by its digital ecosystem. BJ’s Wholesale posted record membership income of $123.3 million in the second quarter of fiscal 2025, up 9% from last year, with total membership reaching 8 million. BJ’s Wholesale noted that digitally engaged members are twice as valuable as in-club-only shoppers, underscoring how technology integration and higher-tier penetration, now at 41%, are fueling loyalty and retention.
What the Latest Metrics Say About Costco
Costco stock has risen 4.7% over the past year, underperforming the industry’s growth of 6.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 46.02, higher than the industry’s ratio of 29.94. COST carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 7.7% and 11%, respectively.
Image Source: Zacks Investment Research
Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Costco's Renewal Rate Slips to 89.8%: Temporary Dip or New Normal?

Key Points
IBM trades at a fraction of Microsoft's and Nvidia's valuations despite leading positions in quantum computing and AI.
American Express continues its streak of beating analyst expectations while embracing blockchain and AI technologies.
Walmart is successfully borrowing strategies from Amazon and Costco while leveraging its massive physical footprint.
The Dow Jones Industrial Average (DJINDICES: ^DJI) market index is an elite club. Its 30 components are some of the best businesses in America, hand-picked and maintained by the five financial experts on S&P Global's Averages Committee.
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 »
The Dow members jumped through many hoops to reach that lofty position, and most of them should be solid investments in any economy. The well-known "Dogs of the Dow" investing strategy even looks for Dow stocks trading at a discount, with the assumption that these giants will recover from short-term problems. It's not an infallible strategy, but still a famous and theoretically reasonable one.
But there are different levels of excellence even in this top-shelf group. Three of the current Dow stocks strike me as no-brainer buys right now.
1. IBM
Quantum computing and artificial intelligence (AI) are two of the hottest business trends on the planet right now. IBM (NYSE: IBM) is a leading player in both fields, but Big Blue's stock is lagging behind other quantum and AI winners.
I mean, the market is starting to catch on. IBM's stock gained 29% year-to-date as of this writing on Oct. 23. But it still looks undervalued trading at 4.0 times sales and 23.4 times forward earnings estimates.
Last week's earnings report underscored IBM's AI and quantum computing muscle. AI-based contracts rose to $9.5 billion, up from $7.5 billion three months earlier. On theearnings call IBM management celebrated technical advances in the quantum arena, targeting 2028 for the first error-corrected quantum computer.
And you can invest in IBM's thrilling technology at a deep discount. Fellow Dow members Microsoft (NASDAQ: MSFT) and Nvidia (NASDAQ: NVDA) also offer exposure to the AI and quantum computing trends, but their stocks are quite expensive. Microsoft trades at 11.3 times sales, while Nvidia's shares change hands at 44.3 times sales. IBM's price-to-sales ratio of 4.0 is a downright steal.
2. American Express
I don't get excited about bank stocks and financial services too often, but American Express (NYSE: AXP) makes the grade nowadays.
This longtime Warren Buffett favorite keeps beating analyst expectations, often with double-digit percentage growth on the top line and even stronger earnings gains. But it's more than just another boring bank-like success story.
American Express has always focused on customer service and unique card features. The legacy continues in 2025 as the company highlighted AI adoption among small businesses, added a substantial Squarespace credit to its business-class Gold card, and shipped a brand-new travel app built on the Ethereum (CRYPTO: ETH) blockchain.
There's nothing boring or old-school about American Express, despite its centennial history and Warren Buffett's deep-value stamp of approval. The stock is neither cheap nor too expensive, but it's a no-brainer investment with share prices in the Goldilocks zone. If American Express keeps up its winning ways and next-gen technology development, the premium prices should come later.
3. Walmart
And if you thought American Express was an unexpected guest on this list, the third name might downright shock you.
Good old Walmart (NYSE: WMT) is evolving before my eyes. The world's largest big-box retailer is borrowing entire chapters from the playbooks of Amazon (NASDAQ: AMZN) and Costco Wholesale (NASDAQ: COST), building its own take on e-commerce with a massive physical footprint.
In August's second-quarter report, Walmart's online orders grew 25% year over year. The shipping service is catching up to Amazon Prime's benefits in many ways, providing same-day delivery for paying members of the Walmart+ club. Like Costco's memberships and Amazon Prime's subscriptions, Walmart's customer loyalty program represents a low-cost stream of pure bonus revenue.
Here's one last surprise: Walmart stock comes with a premium price tag today.
The stock trades at 36 times forward earnings estimates, which is a lofty valuation for a business that redefined low-cost retail operations. Investors have noticed that Walmart is up to a whole bunch of new tricks, setting the stock up for great long-term returns. So the rich stock price makes sense, and it's a no-brainer buy right now.
Should you invest $1,000 in International Business Machines right now?
Before you buy stock in International Business Machines, 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 International Business Machines 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 $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% 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 October 20, 2025
American Express is an advertising partner of Motley Fool Money. Anders Bylund has positions in Amazon, Ethereum, International Business Machines, Nvidia, and Walmart. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, Ethereum, International Business Machines, Microsoft, Nvidia, S&P Global, and Walmart. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 No-Brainer Dow Jones Stocks to Buy Right Now

Key Points
Focus on profitable, proven companies with strong brands and steady cash flow.
Buffett recommends S&P 500 index funds for long-term wealth building.
Compounding works best for those who stay invested through market cycles.
Few investors command the same level of respect as Warren Buffett, the billionaire chairman and CEO of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). Nicknamed the "Oracle of Omaha," Buffett has spent six decades compounding wealth at an extraordinary pace for the company -- generating a staggering 5,502,284% total return over that span.
To put that into perspective, Berkshire's long-term compound annual growth rate (CAGR) of 19.9% is roughly double the long-term performance of the S&P 500 (SNPINDEX: ^GSPC), even when accounting for dividend reinvestment in the index.
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 »
While Buffett's track record is nearly unmatched, the good news is his investment strategy is surprisingly straightforward. His approach can be distilled into a few timeless principles -- simple enough for any first-time investor to follow, yet powerful enough to build generational wealth.
1. Focus on businesses you understand
Buffett's investing philosophy is refreshingly simple: Buy high-quality companies at fair prices and hold them for the long haul -- often decades. He avoids complex or speculative ventures, instead focusing on businesses with durable competitive advantages, steady earnings growth, and trustworthy management.
Buffett's portfolio reflects this discipline. It's concentrated in consumer staples, financial services, and energy -- sectors he believes will remain indispensable through all economic cycles. Berkshire's top holdings -- Apple, American Express, Bank of America, Coca-Cola, Chevron, and Occidental Petroleum -- share some common threads: predictable cash flow, powerful brands, and shareholder-friendly capital allocation programs.
Equally telling are the companies Buffett tends to avoid. He's long steered clear of unproven tech start-ups, cyclical industries, and commoditized businesses that lack pricing power.
For investors, his example underscores a timeless truth: Resist the temptation to follow herd mentality. In investing, such an approach is similar to being a victim of the greater fool theory. Instead, seek out businesses with a long record of profitability, reliable dividends, and management teams that treat shareholders as partners.
2. The power of passive investing
Buffett long acknowledged that most investors are better off buying index funds rather than picking individual stocks. His reasoning is simple: Over time, the S&P 500 mirrors the growth of the American economy. It's composed of world-class companies like Apple, Microsoft, Johnson & Johnson, Walmart, and JPMorgan Chase that consistently reinvest profits, raise dividends, and drive long-term wealth creation.
For first-time investors, buying an S&P 500 exchange-traded fund (ETF) through providers like Vanguard, Fidelity, or Charles Schwab is one of the smartest, most stress-free ways to follow Buffett's playbook. This approach provides instant diversification across hundreds of top U.S. companies -- with no need for market timing, stock picking, or guesswork.
3. Think long-term and stay consistent
Buffett's success never hinged on predicting market moves -- it's built on patience, discipline, and the power of compounding. He's held some of his core positions for decades, steadily reinvesting dividends and allowing time do the heavy lifting.
The key lesson for beginners is consistency. Invest regularly, reinvest your dividends, double down on winners, and trim laggards. Avoid chasing hot stocks, cryptocurrencies, or viral trends that promise quick riches but lack fundamental strength.
Market corrections and downturns will happen, but Buffett views them as opportunities, not setbacks. They allow disciplined investors to buy quality companies at attractive prices. As he has famously advised, "You want to be greedy when others are fearful, and you want to be fearful when others are greedy."
In the end, wealth creation is less about timing the market and more about spending long periods of time in the market. Staying calm, patient, and committed to your long-term plan is what separates successful investors from emotional traders -- and it's the mindset that turns ordinary savers into extraordinary investors.
Should you invest $1,000 in S&P 500 Index right now?
Before you buy stock in S&P 500 Index, 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 S&P 500 Index 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 $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% 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 October 20, 2025
Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Charles Schwab is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Adam Spatacco has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Chevron, JPMorgan Chase, Microsoft, and Walmart. The Motley Fool recommends Charles Schwab, Johnson & Johnson, and Occidental Petroleum and recommends the following options: long January 2026 $395 calls on Microsoft, short December 2025 $95 calls on Charles Schwab, 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.

Warren Buffett's Investing Playbook -- Simplified for First-Time Stock Buyers

Key Points
Plug Power has achieved a lot in 2025, and its stock price has more than doubled in just six months.
Plug Power's worst days could be over as its electrolyzer sales boom and hydrogen costs come down.
Its stock price could zoom if Plug Power can become profitable as planned.
Plug Power (NASDAQ: PLUG) was one of the hottest IPOs of its time. The company started off as a developer of fuel cell systems for residential electricity generation. Erstwhile General Electric was an early investor, and the two companies also formed a joint venture in 1999.
Its collaboration with General Electric was one of the biggest selling points for Plug Power's initial public offering (IPO) in October 1999. Investors who bought the IPO weren't disappointed. It was the peak of the dot-com era, and Plug Power shares skyrocketed from a reverse split-adjusted IPO price of $150 per share to an all-time high closing price of $1,498 apiece on March 10, 2000 before subsequently crashing.
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 »
Today, Plug Power stock is trading below $3 per share. What happened?
In its Form S-1 filed in 1999 ahead of its IPO, Plug Power said it expected to incur losses through at least 2003. Now, more than two decades later, the company has yet to turn a profit. Plug Power's inability to meet goals and become profitable has been a major factor in eroding investor confidence and sending the hydrogen stock plunging over the years.
However, shares of Plug Power have surged nearly 250% in just the past six months, as of this writing. A lot is happening at Plug Power, including a recent major project milestone, substantial deals, and a new incoming CEO. In early October, one analyst even raised Plug Power stock's price target to $7 per share. That's a more than 100% upside in just 12 months. Industry experts, meanwhile, project the hydrogen industry to grow exponentially in the coming years.
Could this mark the start of a powerful bull run that transforms Plug Power into a monster stock in five years?
Why has Plug Power stock surged in 2025?
From a business standpoint, 2025 is proving to be a pivotal year for Plug Power. Some of its key moves and achievements this year include:
Launching Project Quantum Leap to reduce annual costs by $150 million to $200 million.
Shifting focus from material-handling equipment like fuel-cell forklifts to green hydrogen production and electrolyzers.
Securing a 5-gigawatt (GW) electrolyzer deal from Australia's Allied Green Ammonia.
Delivering the first of its 10-megawatt GenEco electrolyzer to Galp's Sines refinery in Portugal (Plug Power's largest project worldwide).
Achieving record production at its hydrogen plant in Georgia -- the largest green hydrogen plant in the U.S.
The last two are significant milestones. Scaling up hydrogen production will reduce Plug Power's dependence on third-party suppliers and lower costs, making it become a vertically integrated company. The delivery of its first electrolyzer to Galp validates Plug Power's ability to deliver full-scale commercial hydrogen solutions, unlocking substantial growth opportunities in major markets like Europe.
Most importantly, Plug Power's cost-cutting efforts and better hydrogen pricing are showing up on its numbers.
In the second quarter, revenue from electrolyzers tripled year over year, driving its overall revenue higher by 21%. Plug Power's gross margin, although still negative at 31%, improved drastically from a negative 92% in the year-ago quarter.
Could Plug Power stock become a multibagger in five years?
Plug Power has a game plan for the next five years. It sees "sustainable growth" over the next five years and expects to break even on its gross margin on a run-rate basis by this year's Q4. By the end of 2027, Plug Power expects to become operating-income positive and achieve overall profitability by 2028.
A leadership reshuffle is also underway, with Jose Luis Crespo all set to replace Andy Marsh as the CEO from March 2026. Since joining Plug Power in 2014, Crespo has been instrumental in overseeing the company's global operations, growing its sales funnel to more than $8 billion, and building relationships with key customers like Amazon, Home Depot, and Walmart.
Analysts project Plug Power's sales to grow by roughly 24% each in 2026 and 2027. If Plug Power can grow at this pace for the next five years, its sales could triple to $3.5 billion by 2030 and the stock price cross $12 a share, assuming the same number of shares outstanding as of June 30 and a low price-to-sales ratio of 4. That could still be a conservative estimate if Plug Power turns profitable in between.
Of course, a lot could go wrong in between, and it could be too early for Plug Power to become a 10-bagger in five years. Yet, given Plug Power's progress in 2025, the odds look stacked in favor of a lot more upside in the stock price than downside.
Should you invest $1,000 in Plug Power right now?
Before you buy stock in Plug Power, 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 Plug Power 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 $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% 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 October 20, 2025
Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Home Depot, and Walmart. The Motley Fool recommends GE Aerospace. 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.

Where Will Plug Power Be in 5 Years?

Target Corporation TGT is taking bold steps in response to mounting competitive pressures. According to CNBC, the retailer announced plans to eliminate about 1,800 corporate positions, a move that includes 1,000 layoffs and the removal of roughly 800 roles, representing about 8% of its global workforce. The decision, revealed in a memo from incoming CEO Michael Fiddelke, underscores the company’s urgency to revive growth.
The Minneapolis-based retailer aims to streamline decision-making, create a leaner operating structure and prioritize critical projects to rebuild customer loyalty. The timing of the layoffs, just before the holiday shopping season, signals Target’s push to fast-track its turnaround and strengthen competitiveness ahead of the busiest retail period.
For a brand long known for affordable style and convenient shopping, Target’s recent performance signals operational challenges. Despite past investments in supply-chain improvements and owned-brand development, TGT has yet to regain steady sales growth. The company has struggled to maintain momentum in an increasingly competitive retail landscape, where Walmart Inc. WMT and Amazon.com, Inc. AMZN have continued to expand their market share through pricing power, logistics efficiency and digital reach.
Target experienced a decline of 1.9% in comparable sales during the second quarter, following a 3.8% drop in the first quarter. Target had guided a low-single-digit decline in sales for fiscal 2025. We anticipate comparable sales to decrease 1.4% and 1.3% in the third and fourth quarters, respectively.
While short-term hiccups are inevitable, Target looks focused on getting back on a growth path. The real test will be whether these workforce reductions translate into faster execution, sharper merchandising and renewed customer engagement.
What the Latest Metrics Say About TGT
Target has seen its shares decline 37.6% in the past year against the industry’s growth of 7.8%. On the other hand, shares of Walmart and Amazon have rallied 29.5% and 17.3%, respectively, in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Target's forward 12-month price-to-earnings ratio stands at 11.91, lower than the industry’s ratio of 30.26. TGT carries a Value Score of A. Target is trading at a discount to Amazon (with a forward 12-month P/E ratio of 29.45) and Walmart (37.64).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Target’s current financial-year sales and earnings per share implies a year-over-year decline of 1.4% and 16.3%, respectively.
Image Source: Zacks Investment Research
Target currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Target Restructures Workforce: Will the Bold Move Pay Off?

Key Points
Walmart ranks as the 11th most valuable public company in the world.
It has been impressively growing its e-commerce and advertising businesses.
This year marked the 52nd consecutive year Walmart has increased its annual dividend.
The trillion-dollar market-cap club is an exclusive club that not too many companies are a part of yet. When Apple became the first company to hit the mark in 2018, it was a major feat in the business world. Now, it's currently joined by 10 other companies, including the likes of Nvidia, Microsoft, Alphabet, Amazon, and Meta Platforms.
Looking at the companies that currently have at least a market capitalization of $1 trillion, there's one obvious theme: they're mostly tech companies (nine out of the 11). However, there is one non-tech company that has a good chance at becoming the newest member of the trillion-dollar club, and that's retail giant Walmart (NYSE: WMT).
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 »
At the time of this writing, Walmart's market cap is just over $850 billion. This means its stock price would need to increase by around 18% to reach $1 trillion. It's not guaranteed, but Walmart's business is well-positioned to make it happen.
Going beyond just retail
Walmart's mission has remained consistent throughout its history: to provide everyday products at low prices. It's a mission that has remained strong and made it the go-to for millions of people globally. It also helps that Walmart has over 5,200 U.S. retail stores, making it accessible for most of the U.S. population.
Walmart's retail business speaks for itself, but it's growing in areas that should help improve its profitability and margins -- like memberships, e-commerce, and advertising.
Walmart+ is Walmart's membership service that offers customers perks like same-day delivery, fuel discounts, Scan & Go checkout, and streaming service benefits. Growing Walmart+ memberships has two main benefits: It's recurring, high-margin revenue since it doesn't rely on products being sold, and it also encourages customers to shop at Walmart to take advantage of the perks that come with the membership.
The convenience of Walmart's same-day delivery has been a spark for its e-commerce business. In-store sales will likely always be its bread and butter, but it's encouraging to see the growth of its e-commerce business. In its latest quarter, Walmart's global e-commerce sales were up 25% year over year. This far outpaced the 4.8% its total revenue increased by in the quarter.
You may not think of advertising when you think of Walmart, but that has also been a promising area for the company. Walmart has tons of customer shopping data that it can use to help brands target their ads more effectively through its Walmart Connect platform.
Walmart also acquired smart TV manufacturer Vizio last year for $2.8 billion, which gives it another means of selling ads. In the latest quarter, Walmart's global advertising sales grew 46% year over year (including from Vizio).
The stock market is notoriously irrational, but Walmart's stock should be rewarded if the company continues to grow in these areas and improve its financial health. That's the main reason I'm confident it can make the trillion-dollar club in the relatively near future.
You can't overlook Walmart's dividend reliability
Walmart has posted impressive gains over the past decade, up over 445%. However, if you consider its dividends paid during that time, its total returns are over 560%. For perspective, the S&P 500 is up 230% (290% with dividends) in that span.
It's worth noting Walmart's dividend because it's one of the selling points for investing in the stock. It's a Dividend King (a company with at least 50 consecutive years of dividend increases), with 52 years of straight increases under its belt. Its recent stock price growth (up 19% year to date through Oct. 20) has reduced its dividend yield, but one thing you can count on is the annual increase.
In the past decade, Walmart has increased its annual dividend by around 44% to $0.94 per share. There are no guarantees when it comes to stock price performance, but Walmart's dividend is as reliable as they come. It's an added bonus as Walmart chases the trillion-dollar mark.
Should you invest $1,000 in Walmart right now?
Before you buy stock in Walmart, 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 Walmart 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 $600,550!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,116,616!*
Now, it’s worth noting Stock Advisor’s total average return is 1,032% — a market-crushing outperformance compared to 192% 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 October 20, 2025
Stefon Walters has positions in Apple and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Walmart. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Meet the Stock That Soared 445% Over the Past Decade. Now, It's Poised to Join Apple, Nvidia, Microsoft, Alphabet, Amazon, and Meta in the $1 Trillion Club.

Walmart Inc.

Sign up and unlock all the capabilities of the AI-screener