Building wealth in the stock market isn't about chasing hot trends. It's about owning high-quality businesses that can compound in value and potentially beat the market over long periods.

Amazon (NASDAQ: AMZN) and Visa (NYSE: V) are quality stocks that can help investors do exactly that. Analysts expect both companies to grow earnings at double-digit rates over the next several years. Here's why these growth stocks can deliver superior results for patient investors.

Image source: Getty Images.

1. Amazon

Amazon shares returned 560% over the past 10 years, beating the S&P 500's
251%. The stock has been roughly in line with the index so far in 2026. Even so, analysts expect Amazon's earnings to grow about 20% annually in the years ahead -- a pace that can still support market-beating returns.

Amazon reported 20% year-over-year sales growth last quarter, with two of its largest segments -- online retail and Amazon Web Services (AWS) -- showing accelerating revenue growth.

The cloud market is competitive, with Microsoft right behind Amazon in market share. But Amazon may continue to benefit from its lead. CEO Andy Jassy put it this way: "Customers choose AWS because we offer the broadest capabilities. They want their AI inference to reside near their other applications and data, and more of it resides in AWS than anywhere else."

AWS revenue grew 37% year over year in the second quarter to $42 billion, with a 39% operating margin. Jassy believes AWS could potentially reach $1 trillion in annual revenue. At today's margin, that could mean roughly $400 billion in operating profit from AWS alone.

Demand for cloud services continues to outpace data center capacity, which means Amazon can convert every dollar of new investment in data centers into revenue very quickly. Even with aggressive expansion, Jassy expects demand to outweigh supply through 2027, and he described demand for 2028 as "striking" on the Q2 earnings call.

AWS has a contracted backlog of $496 billion, growing at a triple-digit rate. If AWS approaches $1 trillion in annual revenue within a decade or so, Amazon's $2.8 trillion market cap leaves plenty of room for upside.

2. Visa

Shares of Visa climbed 366% over the last 10 years, outperforming the market, and it still operates one of the dominant payment networks with a long runway for growth.

Visa operates like a tollbooth on global payments. It doesn't issue credit cards or take on that credit risk. Instead, it runs the network that authorizes, clears, and settles transactions. It shares a virtual duopoly with Mastercard, allowing the company to earn an extraordinarily high profit margin of 50%.

Even with uneven consumer spending pressures from inflation and gas prices, Visa's payment volume rose 10% year over year in the second quarter, while revenue climbed 14% to $11.6 billion. Total volume topped $4 trillion for the first time in a single quarter.

One of Visa's biggest opportunities is in value-added services, such as fraud protection and software running on top of its network. Revenue from these services rose 34% year over year in constant currency last quarter. This growth reflects the strength of Visa's competitive position, as most of this revenue is tied to transactions, cards, and accounts already running on Visa's payment rails.

A sluggish economy can weigh on consumer spending and slow growth. Still, over the long term, Visa's revenue will likely continue to grow at double-digit rates, with earnings growing slightly faster. The opportunity ahead is still substantial, with more than $20 trillion in consumer spending still paid with cash, checks, and other non-card methods.

At 28 times forward earnings, Visa is trading within its historical range. The stock should compound with earnings over the long term -- a setup that can still produce market-beating performance.

John Ballard has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Mastercard, Microsoft, and Visa. The Motley Fool has a disclosure policy.

Shares of Constellation Brands (NYSE: STZ) have dropped 53% from their high to around $128, sitting just above a 52-week low of $126.45. The slide reflects muted growth expectations as weaker consumer spending has pressured sales.

The key question is whether those low expectations go too far. At roughly 11 times forward earnings, the stock looks cheap for a company with exclusive U.S. distribution rights to some of the country's most popular imported beers. At this price, it may look more like a buy than one to avoid.

Image source: Getty Images.

Why the stock is down -- and what the market might be missing

Constellation imports, markets, and sells several major Mexican beer brands, including Modelo, Corona, Pacifico, and Victoria, and it also owns wine brands like Kim Crawford. But higher gas prices and tighter discretionary budgets have made consumers more cautious, weighing on results over the past year.

In fiscal 2026 (ended in February), organic sales (excluding the impact of acquisitions and divestitures) fell 10% year over year, driven mainly by weakness in the wine segment. Results have begun to stabilize, but overall demand remains soft.

In the most recent quarter, comparable organic sales rose 3% year over year. Beer is the sales engine, representing more than 90% of the company's total sales.

Notably, the softness doesn't appear to be a loss of brand power, as the company's brands still resonate with consumers. Modelo Especial remains the top brand in U.S. beer by dollar sales. Overall, Constellation's beer portfolio was the biggest market-share gainer last quarter. That disconnect between strong brand momentum and a beaten-down stock price is why the shares look more like a buy than a sell today.

The highest dividend yield in the stock's history

Constellation continues to produce strong free cash flow, with trailing 12-month free cash flow of $1.83 billion. It returns about 39% of that to shareholders through dividends. Management raised the dividend by $0.01 earlier this year to $1.03 per share quarterly, pushing the forward yield to an attractive 3.2% -- the highest yield in the company's history.

Sales may be soft right now, but consumers aren't likely to stop buying beer. And the company's exclusive rights to distribute and market brands like Corona and Modelo create a durable competitive moat.

There are real risks, including shifting tariff policy, intense competition, and changing preferences across beer, wine, and spirits. Even so, at around 11 times expected earnings and 12 times free cash flow, much of the bad news already appears priced in.

Of course, a prolonged slump could still push the stock lower. But investors are being paid a relatively high dividend yield while they wait for demand to improve.

Over the long run, I don't think people are giving up beer. At this valuation, Constellation Brands looks undervalued in my view -- and positioned to rebound sooner or later.

John Ballard has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Brands. The Motley Fool has a disclosure policy.

The S&P 500 (SNPINDEX: ^GSPC) dividend yield is hovering around a historic low near 1%. If you're trying to generate more passive income, you don't have to settle for that. Some of the best-known consumer brands offer higher yields.

Three quality dividend stocks I'd buy this month are McDonald's (NYSE: MCD), Colgate-Palmolive (NYSE: CL), and Procter & Gamble (NYSE: PG). These stocks yield 2.3% or more, and their dividends are supported by strong free cash flow.

Image source: Getty Images.

1. McDonald's

At the time of this writing, shares of McDonald's are trading about 23% below their recent highs, pushing the forward dividend yield up to 2.89% -- nearly three times the market average.

The sell-off stems from soft U.S. comparable sales, which rose just 0.8% year over year in the second quarter. Notably, management didn't place the blame on high gas prices or other external headwinds. They pointed to execution issues -- and that kind of determination to improve operations is what can drive excellent returns for shareholders over time.

McDonald's remains a global powerhouse with a profitable business model, generating revenue from fees paid by franchised restaurants. About 95% of its restaurants are franchised. Over the last year, it generated $7.8 billion in free cash flow on $28 billion in revenue and paid out 67% of free cash flow as dividends.

Management also sees room to expand margins by reducing complexity and improving restaurant efficiency and service times. The dividend has grown about 7% annually over the past five years, and stronger margins should help maintain that trend.

With a 49-year streak of dividend increases and a renewed focus on productivity, McDonald's looks well-positioned to reward patient income investors.

2. Colgate-Palmolive

Colgate-Palmolive is trading roughly 17% off its recent highs, lifting its forward dividend yield to 2.35%. It's a classic staples business: steady demand, resilient cash flow, and a long history of annual dividend growth.

Trailing-12-month revenue rose 5% year over year to $21 billion, supported by premium products like Hill's pet nutrition and strength in international markets.

Colgate is a global leader in toothpaste, with 41% market share in 2025. Selling everyday essentials in oral and personal care generates reliable sales and the free cash flow that funds consistent dividend growth. TTM free cash flow increased 14% to $3.8 billion, and the company paid out 43% of that free cash flow as dividends.

Colgate has raised its dividend for 63 consecutive years. The dividend has grown at about 3% annually over the last five years. With management focused on lowering costs, including the use of artificial intelligence (AI) tools, to support margin expansion, investors should expect continued dividend growth over the long term.

3. Procter & Gamble

Procter & Gamble is down about 18% from its highs, bringing its forward dividend yield to 2.96%. That's compelling for a company whose products consumers buy year-round, in good economies and bad.

Growth has cooled amid sluggish consumer spending, but organic sales still increased 1% year over year. P&G is also dealing with margin pressure from higher costs, which has weighed on margins. Even so, adjusted earnings still grew 1%, showing the business can absorb turbulence.

Big consumer brands inevitably hit slower patches -- but P&G's dividend track record is hard to match. It has paid a dividend for 136 years and raised it for 70 straight years, including through every recession in the past half-century.

In fiscal 2026 (ending in June), P&G returned $10 billion in dividends out of $15 billion in free cash flow, a payout ratio of roughly 67%. With a five-year dividend growth rate of around 5% and a portfolio anchored by brands like Tide, Gillette, and Oral-B, P&G's dividend streak appears well-positioned to continue.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Colgate-Palmolive. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.

Procter & Gamble (NYSE: PG) is one of the largest consumer staples, and investors can currently buy it at a discount, trading about 19% off its highs.

Even as the S&P 500 is up about 12% year to date, investors are not getting much income from index funds these days, with the S&P offering just a 1% yield. P&G yields close to 3%, and that dividend is backed by household brands people buy in any economy, which is why I'd feel comfortable buying the stock this month.

Image source: Getty Images.

A quality dividend stock

P&G's quarterly dividend is $1.0885 per share, or $4.35 annualized. At today's $147.50 share price, the forward yield is 2.95% -- nearly three times the average stock in the S&P 500 index.

This is one of the most reliable dividend payers in the entire market. P&G has paid a dividend for 136 consecutive years and increased it for 70 straight years -- a track record few companies can match and one that has earned it the title Dividend King. It reflects steady sales and free cash flow from everyday essentials like Tide, Pampers, Crest, Gillette, and Olay.

The dividend has grown at a 5.6% annualized rate over the past five years. Over the last year, it paid just over $10 billion in dividends from about $15 billion in free cash flow -- a manageable payout ratio of around 67%.

Management plans to return about $15 billion in fiscal 2027 (ending in June): roughly $10 billion in dividends and $5 billion in buybacks. Those repurchases also steadily reduce the share count, helping support growth in earnings per share and dividends per share.

Why P&G will keep growing

About half of sales come from North America and 23% from Europe, but that leaves ample expansion opportunities in the rest of the world. In fiscal 2026, organic sales and adjusted earnings rose 1% year over year, which looks solid against the weak consumer spending trends in the U.S. due to inflation and higher fuel prices.

Over time, its brand strength, global distribution, and ongoing cost improvements should support more growth. The company continues to invest in product innovation and marketing while trimming weaker categories -- all of which is part of a long-term strategy to maintain excellent financial performance that can support a growing dividend.

P&G uses local consumer insights to win share in specific markets. For example, it found most U.K. households soak dishes before washing, so it introduced Fairy Skip the Soak Power Spray, lifting total brand household penetration by five points to 61%. This is how it can successfully expand into international markets over time.

Wall Street expects P&G's earnings to grow about 5% annually over the next few years, a pace that can support continued dividend growth. With high yields and recession-resistant brands, Procter & Gamble stock looks like a smart buy on the dip.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Costco Wholesale (NASDAQ: COST) stock has been a long-term winner, delivering a 481% return over the last decade. Its paid membership base has increased every year, including during the brief recession in the second quarter of 2020.

That consistency makes Costco easy to label a "forever hold." The real question, though, is whether today's valuation makes it a good buy right now.

Image source: Getty Images.

Consistent membership growth

The National Bureau of Economic Research says the last U.S. recession lasted just two months, from February through April 2020. Even with the COVID-19 shock, Costco still grew paid memberships like any other year.

For fiscal 2020 (ended in August), paid memberships reached 58.1 million, up from 53.9 million in fiscal 2019. That figure has climbed every year since, even as high inflation squeezed consumers, reaching 82.9 million through the fiscal third quarter of 2026.

The best thing about this membership model is that once customers sign up, they tend to stay. Costco's renewal rates are consistently near or above 90%. Shoppers love a bargain, and Costco has perfected the discount warehouse model, leading to consistent sales growth and returns for shareholders.

Importantly, Costco's razor-thin profit margin makes it very difficult, if not virtually impossible, for a competitor to successfully beat it without enormous financial strain. Through the first three quarters of fiscal 2026, Costco reported net sales of $203 billion -- just enough to cover merchandise costs of $181 billion. After paying operating expenses and taxes, the company's net profit margin was just 3% over the last year.

Is the stock a buy now?

Costco is continually reinvesting to secure more deals for members. Lower prices keep members coming back and attract new ones year after year. This cycle of generating high-volume sales and recycling the profits back into more value for customers gives Costco a durable moat. Few retailers can rival Costco's sales volume and value.

The only catch is the stock's valuation. It trades at a high 47 times trailing earnings -- well above the 30 price-to-earnings (P/E) multiple it traded at 10 years ago. That's expensive when earnings might only grow about 11% annually, based on the average estimate on Wall Street.

Costco has the durable business model that makes it a solid long-term investment. However, investors thinking of buying the stock today have to consider the potential for the stock to underperform if the P/E reverts back to its historical average. It might be better to wait for a lower price before starting a position.

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

As the entertainment landscape shifts from traditional cable to digital dominance, which media giant is the better addition to your portfolio? This comparison evaluates Walt Disney (NYSE:DIS) against Netflix (NASDAQ:NFLX).

Disney is a diversified entertainment giant that couples its streaming aspirations with a massive physical presence in theme parks. Netflix is the industry pioneer, focusing almost exclusively on digital content delivery and subscriber scale. Comparing these companies helps you decide between a legacy titan and a high-growth streaming leader.

The case for Walt Disney

The Walt Disney Company is one of the Big 6 media companies, with a portfolio that includes streaming, theme parks, and media networks. The company leverages its iconic intellectual property to drive revenue across Disney+ and its extensive vacation experiences. It maintains essential distribution agreements with multi-channel video providers.

In fiscal 2025 (ending in September), revenue reached nearly $94 billion, representing approximately 3% growth over the prior year. The company reported net income of roughly $12 billion, which was a significant increase from the $5 billion earned in fiscal 2024. This performance was supported by a net margin of nearly 13%, indicating improved bottom-line performance.

As of its September 2025 balance sheet, the debt-to-equity ratio is approximately 0.3x. This ratio compares total debt to the value of shareholder equity, indicating that Disney carries a moderate amount of leverage relative to its ownership stake.

The current ratio is nearly 0.7x, which measures the company's ability to pay its short-term debts with current assets. Free cash flow for the year was roughly $10 billion, representing the cash remaining after the company covers its operating expenses and capital expenditures.

The case for Netflix

Netflix operates as a pure-play streaming service with over 300 million paid memberships in more than 190 countries as of early 2026. The company delivers content directly to consumers and, through partnerships with telecommunications operators, integrates its service into set-top boxes.

For 2025, revenue reached $45 billion, which marked an increase of nearly 16% year-over-year. The company reported net income of close to $11 billion, up from $8.7 billion in the previous fiscal year. Its net margin was approximately 24%, indicating a high level of efficiency in converting revenue into profit.

Based on its December 2025 balance sheet, the debt-to-equity ratio is roughly 0.5x. This illustrates that for every dollar of equity, the company has fifty cents in total debt.

The current ratio is approximately 1.2x, indicating that current assets are sufficient to cover short-term liabilities. Free cash flow reached nearly $9.5 billion, representing the cash a company generates after accounting for cash outflows to support operations, including content production.

Risk profile comparison

Disney faces intense pressure from other streaming services and traditional media providers, which can impact subscription and advertising revenue. It also deals with high costs for sports programming rights and carries risks of inflationary pressure on production.

The company recently finalized a $50 million settlement to resolve antitrust claims arising from bundling practices that affected subscribers to live TV streaming services, such as FuboTV.

Netflix faces competition for consumer leisure time from a wide variety of sources, including video games and traditional broadcasters. The company also carries risks of operational disruption related to its reliance on third-party cloud infrastructure and potential content-related legal proceedings.

Valuation comparison

Netflix currently carries a higher price tag relative to its P/S ratio and Forward P/E based on future earnings estimates when compared to Disney.

Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

On almost every measure, Netflix looks like the stronger business and better stock to buy. It's growing revenue at double-digit rates, not only demonstrating stronger growth prospects but also showing that its strategy to maintain a healthy level of revenue per subscriber is working.

Netflix trades at a higher valuation multiple relative to sales and earnings, but that reflects a higher rate of growth and streaming profitability compared to Disney. For example, Disney+ is still operating at a single-digit operating margin, while Netflix reported a stellar 33% margin in the second quarter.

Moreover, the recent pullback in Netflix stock may offer investors a timely buying opportunity. The stock's forward P/E of about 23x is not asking much for a business that analysts expect to grow earnings over 20% annually in the coming years. On the same score, Wall Street analysts expect low-single-digit earnings growth from Disney.

The setup for Netflix looks more attractive for investors right now. Its scale, brand, and growth could deliver superior returns for investors.

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

Chief Operating Officer Bruce Ragsdale sold 10,587 shares of Ichor Holdings, Ltd. (NASDAQ:ICHR) on Sept. 1, 2026, according to a SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($51.93); post-transaction value based on September 01, 2026, market close ($51.76).

Key questions

• How was the execution price determined for this transaction?
  The shares were sold in multiple transactions at weighted average prices ranging from $51.05 to $52.63 per share on Sept. 1, 2026.
• What is the regulatory context of this divestment?
  The sale was conducted under a Rule 10b5-1 trading plan adopted by Bruce Ragsdale on June 2, 2026, which allows insiders to schedule trades in advance to avoid potential conflicts of interest.
• What is the current equity position of the Chief Operating Officer?
  Following the sale, Bruce Ragsdale retains direct ownership of 92,324 ordinary shares, representing a 0.26% stake in the company.
• What was the market valuation context of the sale?
  The transaction occurred when the stock was priced at $51.76 at the Sept. 1, 2026 market close, compared to $53.57 at the Aug. 31, 2026 market close.

Company Overview

Company Snapshot

• Ichor Holdings designs, develops, and manufactures fluid-delivery subsystems and components specifically engineered for semiconductor manufacturing capital equipment, with primary revenue derived from gas- and chemical-handling systems used in critical processes such as etching and deposition.
• The company generates revenue from the sale of precision gas delivery units and related subsystems that enable semiconductor manufacturers to supply, monitor, and regulate gases with precision throughout the fabrication process.
• Ichor serves semiconductor equipment manufacturers and foundries as primary customers, positioning itself within the critical supply chain for advanced semiconductor device fabrication and process technology.

Ichor Holdings operates as a specialized supplier within the semiconductor capital equipment ecosystem, with a market capitalization of $1.9 billion and TTM revenues of $1.0 billion.

The company has demonstrated significant momentum, with a 207% one-year share price appreciation, reflecting strong demand dynamics in the semiconductor manufacturing sector.

As a focused provider of mission-critical fluid delivery systems, Ichor maintains a differentiated competitive position serving the infrastructure requirements of advanced semiconductor production.

What this transaction means for investors

These sales represented a small percentage of the executive's holdings and shouldn't concern investors. Moreover, it was completed under a pre-scheduled plan commonly used by insiders to execute personal financial transactions, regardless of the company's fundamentals.

The company continues to grow revenue, with revenue up 15% sequentially in the recent quarter. It is positioned to meet the growing demand for semiconductor equipment to support a historic build-out in compute infrastructure. Management sees its ability to scale its manufacturing capacity to meet demand as a key competitive advantage.

Analysts anticipate a strong earnings ramp over the next several years, with the current consensus calling for 70% annualized earnings growth.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Todd M. Duchene, Chief Legal and Administrative Officer at Core Scientific, Inc. (NASDAQ:CORZ), sold 10,000 shares of common stock on Aug. 31, 2026, according to a recent SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($16.23); post-transaction value based on Aug. 31, 2026 market close ($16.30).

Key questions

• What is the significance of this transaction relative to the executive's total equity position?
  The 10,000 shares sold represent 0.52% of the executive's prior holdings, which indicates a limited adjustment to the overall position. Following this transaction, the executive continues to hold 1,927,896 shares directly, a position valued at ~$31.4 million as of the Aug. 31, 2026, market close.
• How does the timing of this sale relate to the executive's trading plan?
  This sale was non-discretionary and was executed pursuant to a Rule 10b5-1 trading plan adopted on Dec. 5, 2025. These plans allow corporate insiders to establish a predetermined schedule for selling shares, providing a structured approach to liquidity that is independent of ongoing market developments or non-public information.
• What is the recent performance context for the company's stock?
  As of the transaction date on Aug. 31, 2026, the stock had delivered a one-year total return of 13.6%. The shares were priced at $16.07 as of the Sept. 1, 2026 market close, compared with a weighted-average execution price of $16.23 for this filing.

Company Overview

Company Snapshot

• Core Scientific operates digital asset mining facilities and provides colocation services for distributed ledger technology infrastructure, generating revenue through proprietary cryptocurrency mining operations and hosting services for blockchain network participants.
• The company's business model leverages owned-and-operated data centers equipped with specialized computing hardware to process blockchain transactions in exchange for digital asset rewards, while simultaneously monetizing excess capacity through colocation and hosting services for enterprise clients.
• Core Scientific serves enterprise customers and digital asset mining operations seeking reliable, scalable infrastructure for blockchain network participation and cryptocurrency mining activities in North America.

Core Scientific operates as a significant North American infrastructure provider in the digital asset and blockchain technology sector, with a market capitalization of $5.4 billion and TTM revenue of $440.3 million.

The company differentiates itself through vertically integrated operations combining proprietary mining activities with third-party colocation services, enabling operational leverage and diversified revenue streams.

Despite current profitability challenges, Core Scientific maintains substantial scale, with 325 employees, and a strategic position in the growing digital asset infrastructure market.

What this transaction means for investors

This sale shouldn't concern investors. It represented a small percentage of the officer's holdings in the company's stock. The office still retains a large stake of over 1.9 million shares following the sale.

Moreover, it was executed under a pre-scheduled plan, which insiders commonly use to execute transactions for personal financial reasons, regardless of the company's fundamentals.

Although Core Scientific's financials look messy right now, with large net losses reported, analysts anticipate robust growth in the coming years. Total contracted revenue for the company's data centers has reached $24 billion for about 1.1 gigawatts of billable capacity. Analysts expect revenue to grow at an annualized rate of 90% over the next two years.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Chief Financial Officer Minchung Kgil sold 8,000 shares of Figure Technology Solutions, Inc. (NASDAQ:FIGR) on Aug. 24, 2026, according to a recent SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($38.69); post-transaction value based on Aug. 24, 2026, market close ($38.64).

Key questions

• What mechanism governed the execution of this sale?
  The transaction was executed pursuant to a Rule 10b5-1 trading plan adopted by the insider on Dec. 10, 2025. These plans allow corporate insiders to schedule share sales in advance to avoid concerns regarding the use of non-public information.
• How does the sale price compare to recent market levels?
  The executive sold the shares at a weighted-average price of $38.69, slightly higher than the $38.64 closing price on the transaction date. The stock has since moved higher, closing at $41.14 as of the Aug. 25, 2026 market close.
• What is the scale of the insider's remaining equity commitment?
  Following this disposition, the CFO retains direct ownership of 483,651 shares. This remaining stake represents 0.26% of the company's total shares outstanding and has a current market value of approximately $19 million based on the transaction-date close.
• Did the filing disclose any indirect holdings or derivative interests?
  The filing indicates that the insider holds 483,651 shares exclusively through direct ownership, with no reported indirect holdings in trusts or other entities. No derivative transactions, such as option exercises, were reported in this specific filing.

Company Overview

Company Snapshot

• Figure Technology Solutions specializes in blockchain-based distributed ledger technology platforms that enable marketplace activities, including lending, trading, and investing within the consumer finance sector.
• The company generates revenue through its comprehensive suite of advanced technology solutions that facilitate financial transactions and marketplace operations on its proprietary blockchain infrastructure.
• Figure Technology Solutions primarily serves financial institutions and consumer finance participants seeking to leverage distributed ledger technology to enhance operational efficiency and expand market access.

Figure Technology Solutions is a specialized financial technology provider with a $9 billion market capitalization, demonstrating significant institutional adoption of its blockchain-based solutions. The company achieved TTM revenue of $609 million and net income of $237 million, reflecting a 39% net profit margin and underscoring the scalability and efficiency of its technology platform.

As a pioneer in applying distributed ledger technology to consumer finance, Figure Technology Solutions differentiates itself through its proprietary blockchain infrastructure designed to streamline marketplace operations and reduce transaction friction across lending, trading, and investment activities.

What this transaction means for investors

These sales shouldn't concern investors. It represented a small percentage of the insider's stake in the company. Moreover, it was executed under a Rule 10b5-1 plan, which insiders commonly use to execute transactions for personal financial reasons, regardless of the company's fundamentals.

Importantly, the business is experiencing strong growth driven by Figure Connect, which now accounts for nearly two-thirds of the company's consumer loan marketplace volume.

Long term, analysts still see a lot of growth ahead. The current consensus calls for earnings to grow at an annualized rate of 43% in the next several years.

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

The Fidelity Investment Grade Bond ETF (NYSEMKT:FIGB) offers a yield-seeking approach via corporate and government debt, while the iShares 3-7 Year Treasury Bond ETF (NASDAQ:IEI) provides a lower-cost, pure-play on intermediate U.S. Treasuries.

Fixed-income investors often choose between the absolute safety of government debt and the slightly higher yields of investment-grade corporate bonds. This comparison examines how the Fidelity fund offers a diversified bond portfolio compared with the iShares fund's focused Treasury strategy.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

The iShares fund is more affordable, with an expense ratio 0.21 percentage points lower than the Fidelity fund. However, the Fidelity fund provides a higher payout, with a yield 0.4 percentage points higher than iShares.

Performance & risk comparison

What's inside

The Fidelity Investment Grade Bond ETF serves as a broad fixed-income solution, holding 979 positions across a wide range of highly rated debt instruments. Its largest positions include U.S. Treasury notes maturing in 2031 at 4.40% and 2036 at 3.85%, along with significant cash equivalents. It was launched in 2021.

Fidelity Investment Grade Bond ETF has paid $1.75 per share over the trailing 12 months, which, on its recent ~$42.30 share price, works out to a 4.1% yield.

The iShares 3-7 Year Treasury Bond ETF maintains a much narrower focus, holding 85 positions exclusively in U.S. government Treasury securities with remaining maturities between three and seven years. Its top holdings include Treasury notes maturing in late 2030 at 2.93% and early 2030 at 2.33%. It was launched in 2007.

iShares 3-7 Year Treasury Bond ETF has paid $4.31 per share over the trailing 12 months, which, at its recent ~$116.55 share price, works out to a 3.7% yield.

For more guidance on ETF investing, check out the full guide at this link.

Which looks like the better buy?

These ETFs approach bond investing differently, with the iShares focused purely on Treasuries while the Fidelity ETF gives you a balanced exposure across government and corporate bonds. This allows Fidelity's FIGB to offer a higher dividend yield, which favors investors who prioritize maximum passive income generation.

Unless income is a top priority, investors may be better off with iShares' IEI. It doesn't sacrifice much yield (about 0.4 percentage points lower than FIGB) in exchange for offering a smoother ride. The iShares' IEI has a lower beta (volatility) and a shallower drawdown over the past five years.

Moreover, the iShares makes up for its lower yield with an expense ratio that is about 0.2 percentage points lower than Fidelity's FIGB. Overall, iShares looks like the winner.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Investors choosing between the iShares Global REIT ETF (NYSEMKT:REET) and the FlexShares Global Quality Real Estate Index Fund (NYSEMKT:GQRE) may weigh the iShares fund's superior liquidity and lower cost against the FlexShares fund's higher yield.

Both iShares Global REIT ETF and FlexShares Global Quality Real Estate Index Fund provide exposure to global real estate markets, offering a way to diversify a portfolio away from traditional equities and fixed income. This comparison breaks down the underlying indexes, liquidity profiles, and historical volatility to help determine which fund better suits a specific income or growth strategy.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

The iShares fund is more affordable with an expense ratio of 0.14%. However, the FlexShares fund may appeal to income-focused investors, as its trailing-12-month dividend yield sits almost one percentage point higher than iShares.

Performance & risk comparison

What's inside

iShares Global REIT ETF holds 316 positions, providing broad exposure to developed and emerging real estate markets by tracking the FTSE EPRA/NAREIT Global REIT Index. The portfolio is 100% real estate, and its largest positions include Welltower at 9%, Prologis at 7%, and Equinix at 5%.

The fund was launched in 2014. iShares Global REIT ETF has paid $0.93 per share over the trailing 12 months, which, on its recent ~$28.1 share price, works out to a 3.4% yield.

FlexShares Global Quality Real Estate Index Fund holds 214 securities and tilts toward quality factors via the Northern Trust Global Quality Real Estate Index. The portfolio is 99% real estate and 1% consumer cyclical, and its largest positions include Equinix at 6.82%, Equity Residential at 5.85%, and Welltower at 4.47%.

This fund was launched in 2019. FlexShares Global Quality Real Estate Index Fund has paid $2.73 per share over the trailing 12 months, which, on its recent ~$64.6 share price, works out to a 4.2% yield.

For more guidance on ETF investing, check out the full guide at this link.

Which looks like the better buy?

The iShares (REET) offers significantly greater liquidity, a lower expense ratio, and a history of slightly lower volatility. The main advantage of the FlexShares is its higher dividend yield. Still, investors have to be willing to accept the potential for continued higher volatility and slightly lower returns than the iShares.

Overall, REET looks like the better buy. The only reason to select the FlexShares is for investors who need more income. The iShares' larger asset size gives investors the advantage of a more diversified portfolio. This also plays a factor in lowering the portfolio's volatility compared to the S&P 500 index.

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

The best dividend stocks usually share two traits: durable business models and plenty of free cash flow. When you find those qualities in tech companies riding the data center boom, you can get both income today and growth potential over time.

Texas Instruments (NASDAQ: TXN) and Qualcomm (NASDAQ: QCOM) fit that profile. Each has a real competitive edge in semiconductors, and each should be able to support and grow its dividend for years to come.

Image source: Getty Images.

Texas Instruments

Texas Instruments has been around since 1930 and has built a massive scale in analog chips and embedded processors. Those components handle power management and signal conversion in everything from factories and cars to consumer electronics and data centers. High margins and strong free cash flow have helped TI raise its dividend for 22 consecutive years.

Analog chips account for most of TI's revenue, and the market for these chips is less competitive than markets like GPUs. Many of TI's parts remain in production for years, strengthening customer relationships and reducing the need for constant innovation.

That advantage shows up in profitability. In the second quarter, revenue rose 23% year over year to $5.5 billion, driven by improving demand in industrial, data center, and automotive markets. Net income was nearly $2 billion, highlighting the high margins that support growing dividend payments.

The company has raised the dividend at a compound annual rate of 8% over the last five years. At the current quarterly payout of $1.42, the stock offers a forward yield of roughly 2.2%. If the recovery in its end markets continues, that yield looks especially attractive going into September.

TI's moat is also built on a wide product portfolio, long product lifecycles, and in-house manufacturing. Together, those strengths are hard for competitors to replicate.

The biggest risk is the usual cyclicality in semiconductors, especially when the economy slows. Over the past five years, softness in autos and consumer markets has limited growth, with revenue rising about 4% annually.

Even so, TI's scale has allowed it to keep investing while still returning cash to shareholders. Over the last year, the company generated $5.5 billion in free cash flow on $19.5 billion in revenue, and it continues to follow its policy of returning virtually all free cash flow to investors through dividends.

Qualcomm

Qualcomm is a leading supplier of wireless chips and connectivity solutions. Its Snapdragon processors power many Android smartphones, and the company's high profitability supports a dividend yield of about 2.2%.

What makes Qualcomm interesting today is that it's working to reduce its reliance on handsets by expanding into data centers, automotive, and other AI-driven markets. That shift, combined with the stock's recent pullback, creates a potentially compelling entry point.

Handsets still generate most of the company's revenue. The segment posted a 20% year-over-year decline in revenue last quarter, reflecting a weak smartphone market and lost business from Apple's upcoming iPhone. Much of that concern appears priced in, with shares down 36% from a recent high.

The longer-term story is diversification. Qualcomm is using its expertise in power-efficient computing to serve industrial devices, robotics, and data centers, where it could see accelerating growth. Management expects non-handset revenue to represent more than half of its chip business by fiscal 2029.

Specifically, management expects non-handset revenue to reach $40 billion by 2029, including $15 billion from data centers. The company is also gaining traction in the automotive sector, recently signing a deal with BMW to supply chips for next-generation driver-assistance and digital cockpit systems.

Qualcomm's ability to pivot is backed by scale and cash generation. Even with soft handset revenues, it still produced $10.4 billion in free cash flow over the last year on $44 billion of revenue. That's a healthy free cash flow margin of about 24%.

What's more, the company paid out only 36% of free cash flow as dividends over the last four quarters. The dividend has grown at a 6.5% annualized rate over the past five years, with the current quarterly payment at $0.92 per share. Its relatively low payout leaves room for future dividend increases while Qualcomm funds its expansion into new markets.

With a 2.2% forward yield and shares still off their highs, Qualcomm looks like an appealing buy on the dip.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Qualcomm, and Texas Instruments. The Motley Fool recommends Bayerische Motoren Werke Aktiengesellschaft. The Motley Fool has a disclosure policy.

Nike (NYSE: NKE) stock is down 78% from its 2021 all-time high -- the steepest drop in the company's history. Sales remain under pressure, and there's no clear catalyst for a near-term rebound.

But margins are stabilizing -- a sign that things are moving in Nike's favor as it continues its turnaround. If profitability continues to firm up and sales eventually recover, this could set up a rare chance to buy the world's leading footwear and sports apparel brand at a value price.

Image source: The Motley Fool.

Stabilizing margins

Nike's financials are messy. In fiscal 2026 (which ended in May), sales fell 1% year over year. A company with $46 billion in annual revenue isn't going to flip back to strong growth overnight. That's why investors should focus on early signals that the turnaround is working, such as gross margin performance.

In its latest reporting period (the fourth quarter of its fiscal 2026), Nike's cost of sales fell 16% year over year. That supported the gross margin, which improved to 49.2% from 40.3% in the year-ago quarter. It further drove a 21% increase in gross profit despite the decline in sales.

While that jump was tied to a tariff refund, the underlying trend is still improving. Excluding the refund, gross margin was 40.2% -- down just 10 basis points from the prior quarter and better than management's expectation for a 25- to 75-basis-point decline.

Management now expects gross margin to expand beginning in the first quarter of fiscal 2027 (ending in August). That's earlier than planned and points to structural cost improvements coming through in the supply chain.

Why the stock is a buy

Management still expects revenue to fall in the low- to mid-single-digit range this quarter. But part of that reflects a deliberate shift: pulling back on discounts and leaning harder into full-price sales. That can weigh on near-term revenue momentum while strengthening margins and earnings power.

Also, fiscal 2026's headline decline masks momentum in key categories like running. That suggests the issue isn't the brand -- it's the product mix. Nike's running category has now posted five straight quarters of double-digit growth, helping drive market-share gains across Western Europe and North America.

Nike shares trade at 23 times fiscal 2027 earnings estimates. That looks fair, but it also understates how inexpensive the stock could be if earnings rebound. Analysts expect earnings to reach $2.71 billion by fiscal 2029, which implies a cheaper forward multiple of 14 on those future earnings.

Nike still has to execute to get there. But the push toward supply chain efficiency and higher full-price sales lays the groundwork for stronger long-term profitability. This won't be a smooth turnaround, but the stock is priced low enough that if Nike simply meets consensus estimates from here, patient investors could see some upside.

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

Buying and holding shares of competitively positioned businesses is one of the best ways to build dividend income for the long haul. These companies generate more cash than they need to run the business, which supports steady (and often rising) dividend payments.

Stanley Black & Decker (NYSE: SWK), FedEx (NYSE: FDX), and Illinois Tool Works (NYSE: ITW) have paid dividends for years and currently offer attractive combinations of yield, safety, and growth. Here's why they can make income investments that pay off.

Image source: Getty Images.

1. Stanley Black & Decker

Stanley Black & Decker's competitive advantage starts with its top brands, including DeWalt, Stanley, and Craftsman. Over the last year, it produced $1.3 billion in free cash flow on $15.3 billion in revenue. The company has increased its dividend for more than 50 consecutive years, making it one of the elite Dividend Kings.

The quarterly dividend is currently $0.84 per share, putting the stock's forward dividend yield at 3.5%. Over the last five years, it has grown the dividend at a 3.5% annualized rate. That's not a lot of growth, but the company is also only paying out 39% of its free cash flow to fund the dividend, leaving room to sustain and raise the payout even in a recession.

The recent housing slump has weighed on results, but the business is starting to show progress in a weak environment. Organic revenue rose 3% year over year in the second quarter, led by strength in power tools that helped offset declines in outdoor products.

Just as important, management is working to lift margins -- and that's showing up in the numbers. Adjusted EBITDA (earnings before taxes, interest, depreciation, and amortization) margin hit 11.3% in the quarter, up 320 basis points from a year ago.

If those improvements hold, the company could deliver higher free cash flow once the housing market turns and revenue rises. Demand may remain soft in the near term, but Stanley's long record of dividend increases shows it has navigated multiple cycles while continuing to reward shareholders with rising income.

2. FedEx

FedEx has paid a growing dividend for many years, though it doesn't have as long a streak as Stanley. With a quarterly dividend of $1.22 per share, the stock offers a forward yield of about 1.5%, but it makes up for the lower yield with faster dividend growth.

The company has raised its dividend at a 17% annualized rate over the last five years, and it pays out just 27% of its free cash flow. That gives the company flexibility to keep increasing the dividend over time, even if the economy weakens.

FedEx has faced rising competition from Amazon, but it's still holding its own. Its edge is a global network built for speed, including premium and time-definite delivery that many shippers still rely on. The company's network -- aircraft, hubs, and last-mile infrastructure -- connects much of the world economy.

The company is expanding into higher-value opportunities, including shipments for the healthcare and data center markets. It exited fiscal 2026 (ending in May) with nearly $10 billion in health transportation revenue, while its data center-related revenue nearly doubled year over year.

With guidance calling for roughly 11% revenue growth in calendar 2026, FedEx is experiencing healthy growth. For income investors, the combination of dividend growth, conservative payout, and improving outlook makes it a solid dividend stock to consider buying now.

3. Illinois Tool Works

Illinois Tool Works is another Dividend King worth considering right now. It pays a quarterly dividend of $1.72 per share, or $6.88 annualized, which brings its forward yield to about 2.5%.

It also has the highest payout ratio of the three, returning 62% of free cash flow to shareholders. That's higher, but it fits the profile of a mature, highly profitable industrial business.

Illinois Tool Works focuses on specialized products valued for performance, including auto fasteners, test equipment, and welding systems. That strategy supports pricing power and consistently strong margins.

The company typically reports a high operating margin, which came to 26.7% in Q2. Organic revenue rose 4.5% year over year, led by strength in welding and testing equipment.

Free cash flow jumped 41% from the year-ago quarter. ITW has grown its dividend by about 7% annually over the last five years, and management still sees room to expand margins further -- an important lever for sustaining free cash flow and supporting future dividend increases.

John Ballard has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends FedEx and Illinois Tool Works. The Motley Fool has a disclosure policy.

Reuven Spiegel, Executive Vice President (EVP), Special Projects at Delek U.S. Holdings, Inc. (NYSE:DK), sold 10,000 shares of common stock on Aug. 18, 2026, as disclosed in a recent SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($68.21); post-transaction value based on Aug. 18, 2026, market close ($68.22).

Key questions

• How does this disposal impact the insider's long-term equity exposure?
  After the sale of 10,000 shares at $68.21 per share, Reuven Spiegel maintains direct ownership of 36,435 shares, which represents an insider ownership stake of 0.0594%.
• What role did pre-arranged scheduling play in this execution?
  The transaction was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c), meaning the sale was scheduled in advance to remove the insider's direct control over the timing of the trade.
• What is the recent performance context for the company's valuation?
  Delek U.S. Holdings realized a 205% total return over the 12 months ending on the transaction date of Aug. 18, 2026, with the firm carrying a market capitalization of $4.2 billion as of the latest close.

Company Overview

Company Snapshot

• Delek U.S. Holdings operates an integrated downstream energy business with three core segments: Refining, Logistics, and Retail, generating revenue through the production and distribution of petroleum products, including gasoline, diesel, aviation fuel, and asphalt.
• The company's business model centers on crude oil processing and downstream value creation, with the Refining segment converting raw materials into finished petroleum products, which are distributed through company-owned and third-party facilities.
• Delek serves a diversified customer base, including fuel retailers, commercial enterprises, and end consumers across the United States, leveraging its integrated operational structure to capture margins across the refining and distribution value chain.

Delek U.S. Holdings is a mid-sized integrated downstream energy corporation with approximately 1,902 employees and operations concentrated in the United States. The company generated $12.1 billion in revenue on a TTM basis, with net income of $282.6 million, reflecting its position as a significant crude oil processor and distributor of refined petroleum products.

With a market capitalization of $4.2 billion, Delek maintains competitive advantages through its vertically integrated operations spanning refining, logistics, and retail distribution.

What this transaction means for investors

These sales shouldn't concern investors. It was completed under a pre-adopted plan designed to allow insiders to make transactions for personal reasons that don't reflect views on a company's fundamentals or valuation.

Moreover, the sale represented a small portion of the executive's stake in the company's stock. The insider still retains the vast majority of his stake.

Delek has seen its TTM revenue increase by over 11% year over year. Strong second-quarter results reflect the successful turnaround of the Big Spring refinery and solid execution amid market volatility.

Investors should expect a pullback at some point after such a strong run over the past year. The stock is trading at a higher multiple of earnings, while analysts are maintaining modest expectations for the company's revenue growth over the next two years, with estimates projecting a decline in profits.

John Ballard has no position in any of the stocks mentioned. The Motley Fool recommends Delek Us. The Motley Fool has a disclosure policy.

Nadja West, Director at Tempus AI, Inc. (NASDAQ:TEM), sold 3,000 shares of Class A Common Stock on Aug. 28, 2026, according to a recent SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($69.00); post-transaction value based on Aug. 28, 2026, market close ($64.04).

Key questions

• What was the stated intent behind this transaction?
  The sale was non-discretionary and executed pursuant to a Rule 10b5-1 trading plan established on May 15, 2026. These plans allow insiders to set up a pre-determined schedule for selling stock to avoid concerns regarding material non-public information.
• How does this sale compare to the insider's remaining equity position?
  The 3,000 shares sold represent 9.00% of Nadja West's direct equity stake before the transaction. Following the sale, the insider retains 31,981 shares of Class A Common Stock.
• What has the equity's performance trend been leading up to this filing?
  Shares of the healthcare technology company returned -13% over the one-period ending on the Aug. 28, 2026, the transaction date. The stock was priced at $63.05 as of the Aug. 31, 2026, market close.

Company Overview

Company Snapshot

• Tempus AI operates a closed-loop healthcare technology platform that integrates clinician workflows with laboratory diagnostic capabilities, analytics, and multimodal data repositories, generating revenue through diagnostic testing services and platform licensing to healthcare providers.
• The company's business model centers on providing end-to-end next-generation sequencing (NGS) testing solutions and clinical applications through its Tempus platform and Hub product, enabling healthcare providers to deliver precision diagnostics while capturing value from data analytics.
• The company serves physicians, healthcare providers, and clinical laboratories seeking advanced diagnostic capabilities, with primary customers including hospital systems, oncology centers, and diagnostic laboratories across the United States.

Tempus AI is a healthcare technology company with a $11.5 billion market capitalization, generating $1.4 billion in TTM revenue through its integrated diagnostic and analytics platform.

The company operates at scale with 3,800 employees. It maintains a competitive position through its bi-directional clinical integration capabilities and proprietary multimodal data repository. However, it remains in an investment phase with TTM net losses of $254 million as it scales its platform adoption and expands its diagnostic service offerings.

What this transaction means for investors

This sale shouldn't concern investors. It was executed under a Rule 10b5-1 plan, which insiders commonly use to execute planned transactions without appearing to act on material non-public information.

Moreover, it represented a small percentage of the director's stake. Following the sale, the director still retains over 90% of the previous stake in the company's stock.

Importantly, Tempus AI continues to see rapid growth. TTM revenue surged 50% year over year. It's still primarily focused on scaling revenue, as it hasn't reported a profit yet. TTM operating loss was $283 million.

The stock trades at 8 times trailing revenue. That valuation implies more robust top-line growth and the expectation that Tempus AI will significantly improve its profitability as the business scales.

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

The share price of Amazon (NASDAQ: AMZN) has nearly doubled over the past three years, but is only up about 12% year to date at the time of writing -- performing roughly in line with the S&P 500.

However, the company's year-to-date performance doesn't reflect its surging cash flow and growth in cloud services. This disconnect suggests now might be a good time to buy shares.

Image source: The Motley Fool.

Amazon's trailing-12-month cash from operations surged to $161 billion in the second quarter. That has been growing faster than the share price, pushing the stock's price-to-cash flow multiple down to about 17.

Amazon stock traded at a 25x cash flow multiple, or higher, before the 2022 bear market. It hasn't returned to those higher cash-flow multiples, despite cash from operations increasing by 245% over that period, driven by lower costs from warehouse automation as well as growth in its cloud computing business.

Amazon Web Services (AWS) is the company's largest profit contributor, and its revenue is accelerating in 2026. AWS revenue climbed 37% year over year in the second quarter (excluding currency changes).

Further growth from AWS should translate into higher cash flow over time. Customers already run massive amounts of data and applications on AWS, making Amazon a key beneficiary as demand for AI cloud services grows.

With the core e-commerce business also accelerating, up 15% year over year in Q2, I believe now is a good time to buy Amazon stock. Investors are getting better value for the shares just as Amazon is seeing accelerating demand in its two largest businesses -- online retail and cloud computing.

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

ARM: Examining the Relatively Steady Revenue Generation Trends Over the Past Year

ARM (NASDAQ:ARM) primarily generates revenue through licensing and royalty collection on its proprietary chip designs. It conceptualizes, engineers, and licenses its core processing unit (CPU) designs, system intellectual property solutions, graphics processing units (GPUs), and supplementary software development tools to original equipment makers globally.

It published its quarterly financial results while engaging with external analysts on the broader computing infrastructure landscape, and recorded an operating margin of approximately 7.6% for the quarter ended June 30, 2026.

Sandisk: Tracking the Recent Acceleration in Overall Revenue Generation Trends

Sandisk (NASDAQ:SNDK) earns its revenue by designing, manufacturing, and supplying a broad and diverse array of digital storage solutions, embedded memory components, solid-state drives, and removable memory cards that rely entirely on advanced flash memory technology.

While it commenced manufacturing operations for its newest generation of flash memory at a facility in Japan and executed several regional workforce reductions, it reported an operating margin of approximately 78% for the quarter ended July 3, 2026.

Why Understanding Corporate Revenue Trajectories Matters for Everyday Retail Investors

Revenue here refers to the standardized income-statement revenue line item. Tracking this metric helps retail investors understand the absolute size and current growth trajectory of a company's operations before accounting for operating costs, corporate taxes, employee salaries, or other internal business expenses.

Comparing Quarterly Revenue Trends for ARM and Sandisk

Data source: Company filings. Data as of Aug. 26, 2026.

Foolish Take

Sandisk is on a much sharper growth trajectory, largely due to higher selling prices for its products. Demand for artificial intelligence (AI) is extremely high for high-capacity solid-state storage. The key factor to watch for Sandisk is whether its long-term supply agreements with customers can remove the historical quarter-to-quarter volatility in selling prices and drive more stable revenue generation over the next several years.

ARM's revenue shows consistent year-over-year growth, although it fell sequentially in the second quarter. While ARM is known for supplying chip designs widely used in consumer devices like smartphones, it is gaining momentum in expanding into the data center market. This will be a key source of growth for the company.

Whether Sandisk can maintain its massive revenue size and continue to grow comes down to demand and selling prices for storage products. The more long-term agreements it signs and the more the AI infrastructure boom continues, the more likely Sandisk will continue to scale its business.

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

Susan D. Lynch, a Director at Onto Innovation Inc. (NYSE:ONTO), reported a sale of 1,000 shares of common stock on Aug. 21, 2026. SEC Form 4 filing

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($302.30); post-transaction value based on Aug. 21, 2026, market close ($293.33).

Key questions

• How does the Rule 10b5-1 plan affect the interpretation of this transaction?
  The sale was executed under a trading plan established on May 22, 2026, which removes discretionary timing and suggests the move is part of a structured portfolio management strategy.
• What is the recent performance context for the stock at the time of the sale?
  As of the Aug. 21, 2026, transaction date, Onto Innovation had generated a one-year total return of 178%.
• What is the status of the insider's remaining direct equity position?
  Following this transaction, Lynch retains 2,684 shares of common stock, representing a direct ownership stake of 0.0054% in the semiconductor company as of the Aug. 24, 2026, market close.

Company Overview

Company Snapshot

• Onto Innovation designs, manufactures, and supports advanced process control solutions, including macro defect inspection tools, 2D/3D optical metrology systems, and lithography platforms, complemented by analytical software that enables customers to optimize manufacturing processes and enhance device yield.
• The company generates revenue through the sale of capital equipment and software solutions to semiconductor manufacturers and related industries, with recurring revenue streams from software licensing, maintenance contracts, and customer support services.
• Onto Innovation serves global semiconductor manufacturers, foundries, and integrated device manufacturers that require precision process control and yield-optimization technologies to maintain competitive manufacturing capabilities.

Onto Innovation is a global leader in semiconductor process control technology with a market capitalization of approximately $14 billion and TTM revenues of $1.1 billion, demonstrating strong operational profitability with TTM net income of $133 million.

The company's differentiated portfolio of inspection, metrology, and lithography solutions addresses critical manufacturing challenges across the semiconductor industry, positioning it as an essential partner for process optimization and yield enhancement.

With 1,867 employees and headquarters in Wilmington, Onto Innovation maintains a competitive edge through its comprehensive software-integrated platform approach and deep customer relationships with leading semiconductor manufacturers worldwide.

What this transaction means for investors

This sale represented a fairly large but minor portion of the director's holdings in the company's stock. It was executed under a pre-adopted trading plan, which allows insiders to make transactions without regard to any view of the company's fundamentals or valuation. Therefore, it shouldn't concern investors.

Importantly, TTM revenue grew 8% year over year, reflecting growing demand for the company's Dragonfly G5 systems coming from advanced memory manufacturers and Outsourced Semiconductor Assembly and Test (OSAT) partners.

Analysts are anticipating robust earnings growth in the coming years. The long-term estimate calls for 30% annualized growth. The stock looks expensive on a trailing price-to-earnings basis, but looking at earnings growth over the next year, the shares trade at a more reasonable 25 times forward earnings estimates.

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

Jeffrey W. Baumgartner, EVP, R&D of Cirrus Logic, Inc. (NASDAQ:CRUS), sold 1,166 shares of common stock on Aug. 20, 2026, as disclosed in a recent SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($117.89); post-transaction value based on Aug. 20, 2026, market close ($116.90).

Key questions

• What was the regulatory context of this disposition?
  The sale was executed pursuant to a Rule 10b5-1 trading plan that Jeffrey W. Baumgartner adopted on Feb. 27, 2026, which allows insiders to establish a predetermined schedule for selling company stock to mitigate concerns about material non-public information.
• What is the insider's remaining equity exposure in the company?
  Following this transaction, the EVP of R&D maintains direct ownership of 14,073 shares of common stock, representing an approximate 0.0279% ownership stake in the semiconductor firm.
• How has the stock performed leading up to this transaction?
  Shares of the company were priced at $117.89 during the execution, and the stock has delivered a 3.6% total return over the one year ending Aug. 20, 2026.
• What are the fundamental characteristics of the issuer?
  Cirrus Logic reported trailing twelve-month (TTM) revenue of $2.0 billion and net income of $431 million, maintaining a market capitalization of $5.9 billion as of the most recent data.

Company Overview

Company Snapshot

• Cirrus Logic designs energy-efficient mixed-signal semiconductor solutions, including audio codecs and smart codecs with integrated digital signal processors, serving the portable electronics market globally.
• The company operates as a fabless semiconductor design firm, outsourcing manufacturing while retaining design and engineering expertise to generate revenue through intellectual property licensing and chip sales.
• The company primarily serves consumer electronics manufacturers, including major portable device manufacturers, with specialized audio processing and signal conditioning solutions.

Cirrus Logic is a specialized semiconductor design company with a $5.9 billion market capitalization and $2 billion in TTM revenue, demonstrating strong profitability with $431 million in net income.

The company's fabless business model and focus on energy-efficient mixed-signal processing provide competitive advantages in the high-growth portable electronics segment, where precision audio and power management solutions command premium valuations.

What this transaction means for investors

This sale shouldn't concern investors. It was completed under a pre-adopted trading plan that allows insiders to sell regardless of the company's fundamentals. It also represented a small percentage of the insider's holdings in the company stock.

Importantly, TTM revenue grew 6% year over year -- consistent with the company's historical growth trend. Operating margin has also gradually expanded over the last few years, reaching 23% in 2025 and maintaining that level on a TTM basis.

The stock is modestly priced, trading at 13 times forward earnings estimates. Analysts still expect the company to post about 12% annualized earnings growth over the next two years. This could set up a buying opportunity after the recent pullback.

John Ballard has no position in any of the stocks mentioned. The Motley Fool recommends Cirrus Logic. The Motley Fool has a disclosure policy.

Gary Merrill, Chief Financial Officer of Commvault Systems, Inc. (NASDAQ:CVLT), sold 3,147 shares of common stock on Aug. 18, 2026, and Aug. 19, 2026. SEC Form 4 filing. The sale was non-discretionary, executed to cover tax obligations associated with the vesting of restricted and performance stock units, and does not reflect the insider's view on the stock.

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($143.29); post-transaction value based on Aug. 19, 2026, market close ($137.32).

Key questions

• What initiated this disposal of equity?
  The transaction was an automated sell-to-cover event intended to satisfy mandatory tax withholding requirements arising from the vesting of restricted and performance stock awards.
• How does the Rule 10b5-1 plan govern the CFO's trading activity?
  The sale was executed according to a pre-established Rule 10b5-1 plan adopted on Nov. 20, 2024, and later amended on June 13, 2025, which allows insiders to diversify their holdings at pre-determined intervals.
• What is the scale of the CFO's remaining equity position?
  Following this transaction, Merrill continues to hold 69,628 shares of common stock directly, which represented a total market value of $9.56 million as of the Aug. 19, 2026, market close.
• What is the company's current financial profile and market standing?
  Commvault Systems reported trailing twelve-month (TTM) revenue of $1.2 billion and net income of $68 million. At the same time, its common stock recorded a one-year return of -22% as of the transaction date of Aug. 19, 2026.

Company Overview

Company Snapshot

• Commvault Systems, Inc. provides a comprehensive cyber resilience platform that enables organizations to protect, back up, and recover data and cloud-native applications across on-premises and cloud environments worldwide.
• The company generates revenue through a software-as-a-service (SaaS) and subscription-based model, delivering operational recovery solutions, autonomous disaster recovery capabilities, and data mobility services that optimize infrastructure costs while ensuring business continuity.
• Commvault serves enterprise customers across multiple verticals, including financial services, healthcare, manufacturing, and government, targeting organizations with complex IT environments that require robust data protection and recovery capabilities.

Commvault Systems is a leading provider of cyber resilience solutions with a market capitalization of $5.9 billion and TTM revenue of $1.2 billion, demonstrating significant scale in the enterprise software market.

The company's platform addresses critical business needs around data protection, disaster recovery, and cloud workload mobility, positioning it as a strategic solution for enterprises navigating digital transformation and cybersecurity challenges.

With 3,300 employees and a diversified customer base, Commvault maintains a competitive advantage through its integrated approach to backup, recovery, and autonomous disaster recovery capabilities across hybrid and multi-cloud environments.

What this transaction means for investors

This sale shouldn't concern investors. It represented a small percentage of the insider's holdings in the company's stock. The insider also continues to hold the substantial majority of his stake worth about $9 million.

Importantly, CommVault's TTM revenue has continued to grow at a double-digit rate, and its operating margin remains stable at around 6%.

Analysts still expect the company's earnings to grow sharply over the next few years. However, some of this growth may already be reflected in the share price, which trades at a high price-to-earnings multiple.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Judging by their stock performance, PepsiCo (NASDAQ: PEP) and Coca-Cola (NYSE: KO) seem like their businesses are moving in opposite directions. Shares of PepsiCo have fallen 29% from their high and are trading near a 52-week low, while Coca-Cola is up 28% year to date and sitting near new all-time highs.

Coca-Cola is clearly executing better right now, but PepsiCo is still growing volumes, revenue, and earnings. That's why the sell-off looks less like a red flag and more like a potential opportunity, especially for dividend investors.

Image source: Getty Images.

Why Coca-Cola is up, and PepsiCo down

Many consumer goods companies are reporting softer demand as higher gas prices pressure household budgets. Coca-Cola has largely shrugged that off, delivering 6% year-over-year organic revenue growth last quarter, with unit case volume up a solid 5%. Better still, adjusted earnings per share climbed 11% year over year.

PepsiCo also grew organic revenue 2.4% over the year-ago quarter, slower than Coca-Cola's pace. Moreover, adjusted earnings rose just 1% and came in below Wall Street estimates, which helps explain why investors have been harder on the stock.

The difference in business models matters, too. Coca-Cola is a simpler, beverage-focused company, while PepsiCo splits its portfolio between beverages and snack foods. That structure can be a strength at times, but it also tends to produce lower margins.

In the second quarter, Coca-Cola posted a 35% operating margin, while PepsiCo delivered 16.5%. In a choppy macroeconomic environment, investors are rewarding Coke because of its stronger sales and margins.

Why PepsiCo still looks like the better buy

Coca-Cola trades at a forward price-to-earnings (P/E) multiple of 27, which appears to be a fair assessment of its brand value and financial performance. PepsiCo, however, trades at a modest 16 times forward earnings estimates -- a valuation that may be pricing in too much pessimism.

Importantly, PepsiCo is still growing. Global food volume rose 3% in the second quarter, and beverage volumes increased 2%. That's below Coca-Cola's 5% volume growth, but it's meaningful growth for PepsiCo when it's trading at a much lower forward P/E.

Management also expects PepsiCo's North American business to improve from here -- just at a slower pace than it previously thought. PepsiCo still has a wide competitive moat based on strong brands, such as Gatorade, Quaker Oats, and Doritos, among others, and a global distribution system. Over time, investors can expect a business with these assets to compound in value.

Meanwhile, shareholders are getting paid to wait. PepsiCo has a long history of dividend growth and just raised its quarterly payout by 4% to $1.48 per share, putting the forward yield at 4.2% -- nearly twice Coca-Cola's 2.35% forward yield.

That dividend is backed by cash generation. PepsiCo produced $9.3 billion in free cash flow over the past 12 months and paid $7.8 billion in dividends.

Coca-Cola has earned its rerating. But at today's prices, PepsiCo looks like the better value.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Shares of Costco Wholesale (NASDAQ: COST) have been terrific for long-term investors. Over the past five years, the stock is up 110%, beating the S&P 500's 73%. But over the past year, Costco has been roughly flat, while the index is up 19%; valuation has been a factor in that relative performance.

Image source: Getty Images.

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 business is doing great. Third-quarter sales rose 11.6% year over year, and comparable-store sales were up a healthy 6.6% once you strip out gas prices and currency swings in international markets.

Costco is also still firing on multiple cylinders. E-commerce sales climbed 21% year over year, the company set new fuel-volume records, and it boosted member value by cutting prices on staples like eggs and beef.

Valuation is the main factor holding the stock back. Costco traded at a stretched price-to-earnings multiple of 60 about a year ago. Even after that premium compressed, the stock still trades for about 47 times trailing earnings -- above its 10-year average of roughly 40.

At this price, Costco isn't an obvious buy. Investors may be better off waiting for the stock to move closer to its historical valuation, if not lower. Buying now risks owning a great business that still gets rerated to a lower P/E and continues to lag the market.

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

Martha A. Tirinnanzi, Director of Intercontinental Exchange, Inc. (NYSE:ICE), sold 1,340 shares of common stock on Aug. 26, 2026, according to a recent SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($161.16); post-transaction value based on Aug. 26, 2026 market close ($161.92).

Key questions

• How does the Rule 10b5-1 plan impact the interpretation of this transaction?
  Because the sale was executed under a Rule 10b5-1 trading plan adopted on May 11, 2026, it represents a scheduled disposition intended to satisfy diversification or liquidity needs without regard to material non-public information.
• What is the composition of the director's remaining equity position?
  Following the sale, Martha A. Tirinnanzi maintains direct ownership of 3,747 shares, which includes 1,698 restricted stock units scheduled to vest on May 18, 2027.
• What is the insider's total ownership interest in the company?
  The director's post-transaction holdings represent a 0.0007% ownership interest in the firm, which manages a global network of regulated exchanges and clearing houses.
• How has the stock performed leading up to this filing?
  Intercontinental Exchange shares generated a total return of -7% for the one year ending Aug. 26, 2026, the date the transaction was executed.

Company Overview

Company Snapshot

• Intercontinental Exchange operates a diversified portfolio of regulated financial venues, including exchanges, clearing houses, and listing platforms that generate revenue through transaction fees, market data licensing, connectivity services, and listing fees across commodities, equities, fixed income, and derivatives markets.
• The company operates a mission-critical infrastructure business model that derives recurring revenue from transaction volumes, subscription-based data services, and clearing operations, while maintaining high barriers to entry through regulatory licensing and established relationships with market participants.
• ICE serves institutional investors, asset managers, corporations, financial intermediaries, and market participants globally, with particular strength in North American and European markets, leveraging its comprehensive ecosystem of trading, clearing, and data solutions.

Intercontinental Exchange is a leading global operator of financial infrastructure with significant scale, operating one of the world's largest networks of regulated exchanges and clearing houses serving multiple asset classes.

The company's diversified revenue streams from trading, clearing, and data services provide resilience and recurring income characteristics typical of essential market infrastructure.

ICE maintains competitive advantages through its extensive regulatory licenses, established network effects, and integrated technology platform that connects thousands of market participants across geographies.

What this transaction means for investors

This sale represented a fairly large, although minor portion of the director's holdings in the company's stock. It was also completed under a pre-adopted plan, which shouldn't concern investors, as the Rule 10b5-1 plan is commonly used to allow insiders to execute sales for personal reasons, avoiding the appearance of acting on any view about the company's performance or valuation.

Importantly, the company continues to expand. TTM revenue grew nearly 11% year over year -- in line with its growth trajectory in recent years. Management raised its full-year guidance for fixed income and data services (FIDS) recurring revenue growth to 7%-8%.

The stock trades at a reasonable forward price-to-earnings multiple of 20, which seems supported by the consensus analyst estimate of ~12% long-term annualized earnings growth.

John Ballard has no position in any of the stocks mentioned. The Motley Fool recommends Intercontinental Exchange. The Motley Fool has a disclosure policy.

Chewy: Maintaining Steady Revenue Increments Over the Past Year

Chewy (NYSE:CHWY) primarily generates revenue by acting as an online retailer that sells roughly 100,000 unique items--including food, treats, prescribed medications, and everyday wellness supplies for domestic companion animals--supplied by thousands of partner brands across the United States.

While simultaneously expanding its physical veterinary care practices into new locations and launching a consolidated private-label brand identity for pet essentials, it reported an operating margin of approximately 4.2% for the quarter ended May 3, 2026.

Shopify: Accelerating Revenue and Seasonal Fluctuations

Shopify (NASDAQ:SHOP) primarily generates revenue by providing software and related commercial services across multiple international regions, enabling global merchants to set up digital storefronts, manage physical inventory, process payments, and coordinate shipping logistics.

It recently authorized an additional $3 billion for share repurchases and experienced intermittent service disruptions over the summer, while concurrently reporting an operating margin of approximately 17% for the quarter ended June 30, 2026.

Why Revenue Matters for Retail Investors Comparing These Stocks

Revenue here refers to the standardized income-statement revenue line item. This is the most fundamental measure of a company's performance. It serves as a practical gauge of the total incoming money a business generates from its daily operations during a specific quarter before accounting for any subsequent operating costs or taxes.

Quarterly Revenue for Chewy and Shopify

Data source: Company filings. Data as of Aug. 26, 2026.

Foolish Take

The relative performance of these companies' revenue largely reflects each company's addressable market. Chewy is seeing steady, but slower revenue growth in the $150 billion pet industry. However, Shopify serves the $6 trillion global e-commerce market, which is why it continues to grow revenue at higher rates.

Chewy is investing to expand into other business lines, such as pet health and vet care, to maintain revenue growth. Meanwhile, Shopify has seen a slight acceleration in revenue over the last year, driven by increased shopping activity from people using AI to find products.

It's unclear if Chewy will be able to meaningfully accelerate its revenue to regain the lead over Shopify in revenue size. Shopify seems to be racing ahead as it rides two major tailwinds: a growing e-commerce market and AI-driven commerce activity.

The question for investors is how much growth is already priced into Shopify stock relative to Chewy's. The latter may offer better value, with the pet food retailer trading at a forward price-to-earnings ratio of about 15, while Shopify trades at much higher multiples.

If Chewy can successfully expand margins through healthcare products and services, in addition to advertising, it could deliver market-beating returns.

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

Qualcomm: Observing a Gradual Downward Trend in Total Quarterly Revenue

Through its various operating segments, Qualcomm (NASDAQ:QCOM) primarily generates revenue by developing integrated circuits and licensing its extensive foundational intellectual property portfolio for the global wireless communication industry across multiple technological standards. It recorded an operating margin of 17% for the quarter ended June 28, 2026.

Sandisk: Experiencing Rapid Sequential Acceleration in Total Quarterly Revenue

Operating through multiple distinct product lines, Sandisk (NASDAQ:SNDK) primarily earns revenue by designing, manufacturing, and supplying data storage solutions, as well as various consumer devices, based on flash memory technology and foundational wafers.

It announced the commencement of production at a Japanese fabrication facility. It released an open technical specification with SK Hynix and reported an operating margin of approximately 78% for the quarter ended July 3, 2026.

Understanding Why Consistent Revenue Generation Matters for Everyday Retail Investors

Revenue here refers to the standardized income-statement revenue line item. Watching this metric helps investors properly evaluate the amount of money a company brings in before any operational expenses or corporate taxes are finally subtracted.

Comparing Reported Quarterly Revenue Results for Qualcomm and Sandisk Over Time

Data source: Company filings. Data as of Aug. 26, 2026.

Foolish Take

Sandisk's revenue acceleration follows a transformation in its business strategy over the last 18 months. It has pivoted from relying on quarterly price negotiations for its products to signing long-term agreements with customers. This has reduced the cyclical nature of its business, while adding visibility to future revenue. Revenue surged 371% year over year in the recent quarter, driven by AI demand.

Qualcomm benefits from substantial scale and hard-to-replicate intellectual property in wireless communication technologies. Its slowing revenue momentum reflects competition in the handset market.

Sandisk is seeing rapid growth, but investors will want to keep a close watch on Qualcomm over the next few years. It is transitioning its business to serve the data center market, where its expertise in providing wireless connectivity solutions could pay dividends. If successful, Qualcomm could see its revenue accelerate and maintain a revenue gap over Sandisk.

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

The Dow Jones Industrial Average tracks 30 industry leaders, making it a useful benchmark for identifying solid investments. Two Dow members I've been watching are Home Depot (NYSE: HD) and McDonald's (NYSE: MCD). These stocks are trading more than 20% off their highs, sending their dividend yields up. Here's what I like about each company's competitive position to justify buying the dip.

Image source: Home Depot.

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Home Depot

Home Depot is the leading home improvement retailer, and a sluggish housing market has weighed on sales, pushing the stock 25% below its 2024 all-time high of $431 per share. The dip has also lifted the forward dividend yield to 2.84%, based on its $2.33 quarterly payment.

With interest rates still elevated, many consumers have put off big-ticket home projects. In fiscal 2025, Home Depot's comparable sales rose just 0.3%. That improved to 1.7% last quarter, but transactions remain down.

This is a cyclical downturn, not a broken business. Home Depot's competitive position remains strong, and its large store base would be difficult to replicate. It has more than 2,300 warehouse stores and over 1,300 SRS Distribution branches. Over the last year, it generated $169 billion in revenue, yet that's still relatively small relative to its addressable market.

Its stores function as local hubs in residential markets across the U.S. The company rolled out express delivery nationwide last month, aiming to get tens of thousands of items to customers in under three hours -- an added convenience that should support demand when the market recovers.

Management sizes the North American home improvement market at $1.1 trillion, leaving Home Depot's share at only 15%. That leaves a meaningful runway for long-term growth.

The stock's value is best seen in the dividend. Home Depot pays an annualized dividend of $9.32 per share, or about 65% of earnings, which leaves room to maintain and keep growing the payout even in a weak housing environment. The dividend has risen at a 6.6% annualized rate over the past three years.

Home Depot's competitive position, long growth runway, and attractive yield are reasons I'd consider buying the stock now.

McDonald's

The Golden Arches are recognized worldwide, and that kind of brand power carries real value for investors. Execution missteps and a softer consumer backdrop have pushed the stock down 24% from its prior high of $341 per share. But McDonald's has raised its dividend for nearly 50 years and currently yields 2.82%, based on the current $1.86 quarterly payment.

McDonald's is a highly profitable business. About 95% of its 45,000-plus locations are franchised. The company typically owns or leases the land and buildings, while franchisees pay for the equipment, seating, and decor.

As a result, McDonald's earns a large share of its revenue from rents and royalties rather than burgers and fries. In 2025, it generated $16.5 billion in franchise revenue, with $9.7 billion coming from company-operated restaurants. Those high-margin rents and royalties helped produce $7 billion in free cash flow.

That said, sales have been pressured this year by execution issues and a cautious consumer. Global comparable sales increased just 1.3% year over year in the second quarter, reflecting weak traffic following management's pullback of certain digital offers.

Still, the brand's reach is hard to miss. McDonald's has nearly 220 million active loyalty users, which management says is one of the largest loyalty programs in the world.

Even with near-term pressure, management is investing for long-term earnings growth by streamlining operations, improving food quality, and using its data more effectively with artificial intelligence (AI).

The dip has pulled the forward price-to-earnings multiple down to 20, which looks reasonable enough, but the dividend is the clearest sign of value. The company pays out about 60% of earnings, supporting today's yield, and the dividend has grown at a 8% annualized rate over the past three years.

Sales could stay soft for a while, but investors are getting paid to wait. McDonald's franchise model, brand strength, and growing dividend make it a compelling buy on the dip.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.

Under CEO Tim Cook, Apple (NASDAQ: AAPL) has delivered an impressive 2,000%-plus return since 2011. Now, as Cook prepares to hand the reins to Apple's senior vice president of hardware engineering, John Ternus, he's doubling down on a stronger domestic supply chain -- with $60 billion earmarked for Texas.

The goal appears straightforward: reduce the risk of future tariff disruptions and protect Apple's margins and earnings path, freeing Ternus, who takes the top job on Sept. 1, to focus on what he does best: building world-class products and services.

Apple CEO Tim Cook. Image source: Apple.

Apple's domestic manufacturing push

The Texas investment is part of a broader $600 billion, four-year U.S. manufacturing commitment Apple announced last year. Apple still won't be making iPhones in the U.S., but it will manufacture the Mac mini at a new facility in Houston. The new facility will also build and ship Apple's advanced AI servers.

Separately, Apple recently announced a long-term agreement with Broadcom to design and produce custom silicon components and advanced wireless technologies -- a deal expected to exceed $30 billion.

On the company's fiscal Q3 earnings call, Cook said, "This marks our largest-ever American manufacturing program commitment. It's also an important step forward in our work to build an end-to-end silicon supply chain here in the U.S."

Even if making iPhones domestically remains out of reach without meaningfully higher prices, shifting more of the supply chain to U.S. sources should help Apple better manage future changes in tariff and trade policy.

What the domestic investment means for earnings

Apple's latest quarterly report showed how much tariff policies can swing results. Gross margin was 50.1%, with 2 percentage points coming from tariff refunds. Diluted earnings per share grew 29% year over year to $2.02, including $0.11 from refunds. Apple said it is reinvesting those tariff refunds into the U.S. supply chain.

The refunds are for tariffs already paid before the U.S. Supreme Court ruled in February 2026 that certain tariffs were unlawful. But that doesn't eliminate the risk of other tariffs being imposed under different statutes, prompting Apple to continue investing in the U.S.

The near-term pressure point is memory costs. Management described today's surge in memory pricing as a "100-year flood." For fiscal Q4 ending in September, Apple expects gross margin between 47% and 48%, including a one-point benefit from tariff refunds.

Overall, Cook will hand off to Ternus a more resilient U.S. supply chain. Analysts still expect Apple to grow earnings at a low double-digit rate over the long term. While the memory price surge could be a near-term headwind, Apple's efforts to bolster its U.S. supply chain essentially serve as tariff insurance over the long term, helping keep earnings and margins more stable in the event of future policy changes.

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

Finding companies with strong momentum and a clear competitive edge is one of the best ways to identify potential long-term winners. Duolingo (NASDAQ: DUOL) and Take-Two Interactive (NASDAQ: TTWO) both fit that profile.

Each company has momentum going in its favor and still has an attractive long-term opportunity. Here's why both look like compelling buy-and-hold investments for the next decade.

Image source: Getty Images.

1. Duolingo

Duolingo is a popular language-learning app, with courses also in chess, music, and math, and it recently reached 58 million daily active users. The stock is down about 74% from its prior peak after management shifted its priority from revenue growth to user growth. That resulted in revenue growth slowing from a 39% increase in 2025 to just 18% year over year in the second quarter of 2026.

The stock's sell-off, however, creates an attractive setup for patient investors. The strategic shift is about long-term value creation: retaining more users today can build a much larger business over time.

Management is still targeting 100 million daily active users by 2028, which would set the stage for meaningfully higher revenue and earnings. The company's 11.5% second-quarter operating margin shows a profitable business model built around getting users to sign up for a subscription that unlocks additional features. It just needs more of them.

Duolingo attracts and keeps users with a simple, gamified interface that makes learning feel like playing a game. It also uses data and feedback from its large user base to continuously refine the product and improve monetization -- an advantage that's easy to miss but hard to replicate.

Artificial intelligence (AI) is another lever. Duolingo is using open-source models to lower costs while expanding features like conversation practice in its language courses. As AI improves, Duolingo is continually adding more value to users while driving down costs. This cycle of lowering costs and reinvesting the savings into better features can be a powerful driver of user growth over time.

Investors should still watch for risks. There is potential for new entrants using AI to increase competition. If daily active user growth begins to slow enough to put the company off track of reaching its user target, that would be a valid reason to reconsider the investment thesis.

Still, continuing to grow daily users at high rates could translate into a larger and more valuable business over the next decade. The stock trades at a reasonable forward price-to-earnings (P/E) ratio of 22, setting up the potential for excellent returns.

2. Take-Two Interactive

Take-Two's Grand Theft Auto (GTA) V sold 230 million copies since launching in 2013, and the franchise has sold 475 million copies across all versions over the last few decades. With the next installment slated for a November release, the series could continue to drive the company's momentum. The stock has delivered a market-beating 443% cumulative return over the past 10 years, and analysts expect earnings to grow at an annualized rate of 27% in the coming years.

Take-Two's Rockstar Games, the studio behind GTA, shared an extended look of GTA VI on Netflix on Aug. 27. Landing that kind of showcase highlights the franchise's growing audience.

What makes these games attractive to investors is that they can generate revenue long after the initial purchase. That shows up in Take-Two's recurrent consumer spending, which includes in-game purchases and advertising. In fiscal 2026 (which ended in March), recurrent spending grew 16% year over year to $5.2 billion, making up roughly three-quarters of the business.

Beyond its release slate, management also sees room to expand internationally, where some regions are still underrepresented. Take-Two is aiming to grow its presence in Latin America, the Middle East, and Asia, with a long-term goal of making international revenue the majority of total revenue within 10 years.

Of course, new releases carry risk. Even with what management calls an "exceptional start" to GTA VI pre-orders, launch issues like bugs or glitches can hurt reviews and disrupt early sales momentum. That's simply the nature of making games.

The long-term upside is worth considering a small position ahead of the new GTA release. The stock trades at a forward P/E of 33, which isn't cheap, but that valuation can still deliver market-beating returns over the next decade if Take-Two executes on its pipeline and grows earnings in line with Wall Street's expectations.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Duolingo, Netflix, and Take-Two Interactive Software. The Motley Fool has a disclosure policy.

Buying growth stocks at a discount can be a rewarding strategy, especially if the companies in question remain competitively positioned for long-term growth. MercadoLibre (NASDAQ: MELI) and Coupang (NYSE: CPNG) trade 26% and 68% below their highs, respectively, yet their competitive advantages remain intact, and both are still delivering double-digit percentage revenue growth.

Image source: The Motley Fool.

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1. MercadoLibre

MercadoLibre shares are down by about 26% from their peak, even as the company just posted a standout 43% year-over-year revenue increase on a constant-currency basis in the second quarter. As Latin America's leading e-commerce and fintech platform, it has sustained strong growth for years.

The company's edge comes from combining its online marketplace with a fast-growing financial services ecosystem that includes payments and credit tools. The marketplace reached 89 million unique active buyers last quarter, up 26% year over year, while the fintech platform had 88 million monthly active users, up 30%. That tight integration is hard for competitors to replicate, which helps explain MercadoLibre's long track record of growth.

Management continues to strengthen the flywheel by offering benefits that work across both platforms. Its loyalty program, for instance, links marketplace perks like free shipping with fintech rewards such as cashback, increasing engagement and customer retention.

MercadoLibre also wins on logistics. With a growing warehouse footprint in Brazil, it has improved its delivery speed and expanded the scope of its free shipping offers. After it lowered the minimum purchase requirement for free shipping last year, items sold per buyer rose 19% year over year in Q2.

The stock's recent pullback reflects the market's worries about the margin pressure MercadoLibre is facing. However, management continues to prioritize long-term gains over short-term profits. Long-term investors will appreciate that its investments in free shipping, delivery infrastructure, and credit cards are intended to widen its competitive moat and deepen its customer relationships. That's a good reason to buy the dip.

Moreover, the company's advertising revenue, which grew by over 70% last quarter, could be a catalyst for margin expansion over the next decade.

Trading at about 2.8 times trailing sales, below its three-year average of 4.6 times, the stock looks appealing, particularly for a business still growing at this pace. The dip offers a chance to buy a proven long-term compounder at a discount.

2. Coupang

Coupang shares are down roughly 68% from their early all-time high in 2021, and have slumped by about 52% from their 52-week high as revenue growth has slowed over the past year. A data breach incident disrupted customer shopping behavior and weighed on momentum. Even so, revenue rose 10% year over year in Q2 on a currency-adjusted basis, compared to the 14% growth it delivered in 2025.

Coupang is headquartered in Seattle, but primarily operates in South Korea, where it remains the dominant e-commerce player. Its advantages in that market are difficult for rivals to replicate. Building a fast delivery network in a nation of dense cities filled with apartment buildings is expensive and complex, yet Coupang has done it -- and it delivers about 99% of orders within one day or faster.

Its moat is reinforced by its delivery infrastructure, warehouse automation, and its WOW membership program, which bundles free shipping, food delivery, streaming, and other perks. Once customers join, they tend to spend more with Coupang over time. Coupang's longest-tenured WOW members -- those acquired more than a decade ago -- now spend nearly 10 times what they did in year one, a strong sign of both the platform's stickiness and the limited nature of the alternatives.

That also helps explain the speed of its recovery from its data breach incident: Many customers who left have returned, and their spending has climbed above pre-incident levels.

Product commerce active customers increased 3% year over year to 24.7 million in Q2. Coupang is also applying its Korea strategy to Taiwan, which continues to show promise, with the business growing at a pace comparable to what it achieved in South Korea during its early years of expansion there.

With the stock trading at about 0.8 times sales -- roughly half its P/S ratio before the data breach incident -- it looks cheap. As the sting of that incident fades and WOW membership expands, growth could reaccelerate, giving investors who buy at today's discount a chance at excellent returns over the next decade.

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

Chris Rogers, President and CEO of Maplebear Inc. (NASDAQ:CART), sold 7,606 shares of common stock on Aug. 19, 2026, according to a SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($48.95); post-transaction value based on Aug. 19, 2026 market close ($50.67).

Key questions

• How does this transaction align with the executive's established trading schedule?
  The sale was executed pursuant to a Rule 10b5-1 trading plan adopted on Nov. 20, 2025, which permits insiders to execute pre-planned transactions to meet liquidity needs while maintaining an affirmative defense against potential insider trading claims.
• What is the scale of the CEO's remaining direct equity position?
  Following this transaction, Chris Rogers continues to hold a substantial direct stake of 916,636 shares, representing approximately 99% of the position held before this disposal.
• How do the current market levels compare to the transaction price?
  As of the Aug. 20, 2026, market close, the stock was priced at $51.07, which is 4.33% higher than the $48.95 weighted average execution price reported for the Aug. 19 transaction.
• What are the fundamental characteristics of the company at the time of this filing?
  Maplebear, operating as Instacart, currently has a market capitalization of $12 billion and reported trailing twelve-month revenue of $4 billion and net income of $480 million.

Company Overview

Company Snapshot

• Maplebear Inc., operating as Instacart, provides a technology-enabled marketplace platform that connects retailers with consumers for grocery delivery and pickup services, generating revenue through marketplace transactions, enterprise platform licensing, and advertising solutions.
• The company operates a multi-sided platform business model, monetizing through take rates on marketplace orders, subscription services, technology licensing fees from enterprise retailers, and brand advertising placements within its ecosystem.
• The company serves grocery retailers of all sizes across the United States and internationally, as well as consumer packaged goods brands seeking to reach grocery shoppers through targeted advertising and promotional capabilities.

Maplebear operates as a critical technology infrastructure provider for the grocery retail industry, serving as an enablement partner that bridges retailers, consumers, and brands.

With $4 billion in TTM revenue and $480 million in net income, the company has established a diversified revenue model spanning marketplace operations, enterprise software solutions, and advertising services.

The company's competitive advantage derives from its large, engaged consumer base, extensive retailer network, and proprietary technology platform that facilitates seamless fulfillment and shopping experiences across multiple channels.

What this transaction means for investors

This sale shouldn't concern investors. It was completed under a pre-adopted plan, which insiders commonly use to make sales for personal reasons that don't reflect the company's performance or valuation.

Moreover, the sale represented a small percentage of the insider's stake in the company. The CEO still holds the vast majority of his shares.

The most important thing is that Maplebear continues to grow. TTM revenue grew 12.6% year over year, with a solid operating margin of nearly 15%.

Analysts anticipate further growth, with the consensus calling for earnings to grow at a 32% annualized rate over the next two years.

John Ballard has no position in any of the stocks mentioned. The Motley Fool recommends Instacart. The Motley Fool has a disclosure policy.

Padmanabhan T. Srinivasan, Chief Executive Officer of DigitalOcean Holdings, Inc. (NYSE:DOCN), sold 5,697 shares of common stock on Aug. 17, 2026, according to a SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($129.11); post-transaction value based on Aug. 17, 2026, market close ($135.28).

Key questions

• What was the nature of this equity disposition?
  The transaction was a scheduled sale under a Rule 10b5-1 trading plan, which allows corporate insiders to sell a predetermined number of shares at set times to avoid concerns regarding material non-public information.
• How does the current price level relate to the transaction?
  Shares were sold at a weighted average price of $129.11, while the stock was priced at $125.25 as of the Aug. 18, 2026, market close.
• What is the scale of the executive's remaining equity position?
  Following this transaction, the Chief Executive Officer retains a direct position of 783,300 shares, representing a significant portion of the 0.67% total insider ownership of the $14 billion company.
• How do the company's financial fundamentals compare to the trade size?
  The ~$736,000 transaction is small relative to the company's $1.0 billion in trailing twelve-month (TTM) revenue and $235 million in net income.

Company Overview

Company Snapshot

• DigitalOcean provides cloud computing infrastructure and developer tools, including computing power, storage, networking capabilities, and application deployment services designed to serve individual developers, start-ups, and small to mid-sized businesses globally.
• The company operates a platform-based business model that generates revenue through subscription-based services for cloud infrastructure consumption, with customers paying for on-demand resources across multiple geographic regions spanning North America, Europe, Asia, and beyond.
• DigitalOcean's primary customer base consists of individual developers, early stage start-ups, and small- to mid-market enterprises seeking accessible, cost-effective cloud infrastructure solutions without the complexity of larger enterprise platforms.

DigitalOcean Holdings is a leading cloud infrastructure provider with a market capitalization of $14 billion and TTM revenue of $1 billion, demonstrating significant scale and profitability, with TTM net income of $235 million.

The company has achieved a 336% one-year stock price appreciation, reflecting strong market recognition of its growth trajectory and operational execution.

DigitalOcean's competitive advantage derives from its developer-centric platform design, global infrastructure footprint, and focus on simplifying cloud computing for underserved market segments that require straightforward, cost-effective solutions.

What this transaction means for investors

This sale shouldn't concern investors, as it represented a tiny percentage of the insider's stake in the company's stock. Moreover, it was executed under a pre-adopted plan that insiders often use to avoid appearing to act on material non-public information.

Importantly, TTM revenue grew 21% year over year. This continues the company's multi-year streak of reporting double-digit top-line growth, reflecting growing demand for its services.

Investors have recognized the opportunity for DigitalOcean's AI-native cloud platform, with the stock soaring over the past year. Even after the recent pullback, the stock's climb leaves the valuation at an elevated level, trading at high multiples of earnings and cash flow.

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

Charles J. Prober, Director at Life360, Inc. (NASDAQ:LIF), sold 7,930 shares of common stock at $48.59 per share on Aug. 13, 2026, according to a SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($48.59); post-transaction value based on Aug. 13, 2026, market close ($50.25).

Key questions

• What was the regulatory framework for this transaction?
  The sale was conducted pursuant to a Rule 10b5-1 trading plan adopted by Charles J. Prober on March 14, 2025, which permits automatic trades based on pre-established criteria.
• How does this move impact the insider's total equity exposure?
  Following the disposition, the Director retains direct ownership of 109,930 shares and holds an additional 23,790 derivative securities, including restricted stock units and vested options.
• What is the company's current financial position relative to this trade?
  As of the transaction date, Life360 reported a one-year return of -40% and maintains a market capitalization of $4.1 billion, with trailing twelve-month revenue of $572.6 million.
• Does the insider hold any other share classes?
  The reporting person does not hold shares in other classes, and all reported direct holdings are in the firm's common stock.

Company Overview

Company Snapshot

• Life360 operates a comprehensive mobile platform that provides location tracking, coordination, and safety features for individuals, animals, and personal belongings across North America, Europe, the Middle East, Africa, and other international markets, with the Life360 mobile application serving as its primary revenue-generating product.
• The company employs a freemium business model, offering core location coordination and safety services at no cost to users while generating revenue through premium subscription tiers that provide enhanced features and expanded functionality.
• Life360 primarily targets families and individuals seeking location-based coordination and safety solutions, with a particular focus on parents monitoring children and household members across multiple geographic regions.

Life360 is a mid-cap technology company with a market capitalization of $4.1 billion, generating $572.6 million in TTM revenue with net income of $147.3 million, demonstrating strong profitability within the consumer software-as-a-service sector.

The company's freemium platform model provides significant scale potential through its user base while monetizing through premium subscription offerings.

Life360's competitive positioning is reinforced by its comprehensive feature set, multi-geography presence, and established user network within the location-based services market.

What this transaction means for investors

This sale shouldn't concern investors. It was completed under a Rule 10b5-1 plan, which insiders commonly use to sell shares for personal financial management reasons. The sale represented a small percentage of Prober's stake in the company's stock.

Importantly, the business continues to grow at a steady pace. TTM revenue grew 34% year over year, up from a 32% increase in 2025 and a 22% increase in 2024, indicating momentum in the company's monetization strategy.

It still reports a narrow operating margin, but analysts are expecting growing scale and consumer reach to drive double-digit earnings growth over the long term. On a free cash flow basis, the stock appears reasonably valued relative to the company's growth, trading at a 35x multiple.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Life360. The Motley Fool has a disclosure policy.

Alexander Blum, SVP, Chief Operating Officer, executed a sale of 22,559 shares of Unity Software Inc. (NYSE:U) on Aug. 25, 2026, and Aug. 27, 2026, according to a SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($45.26); post-transaction value based on Aug. 27, 2026, market close ($43.49).

Key questions

• What were the specific mechanics of this disposal?
  The transaction was a "sell-to-cover" event in which shares were automatically sold to satisfy tax obligations arising from the vesting of equity awards. This type of activity is non-discretionary and does not reflect a change in the insider's investment thesis regarding the company.
• How does this sale relate to the executive's total equity exposure?
  Despite the sale of 22,559 shares, Alexander Blum maintains a substantial direct position of 705,411 shares. This remaining stake has a market value of $30.7 million as of the Aug. 27, 2026, market close.
• What is the context of the company's recent market performance?
  As of the Aug. 27, 2026, transaction date, Unity Software shares have delivered an 8% 1-year return. The sale occurred at a weighted average price of $45.26 per share, while the stock was priced at $44.38 as of the Aug. 26, 2026, market close.
• What role did the Rule 10b5-1 plan play in this transaction?
  The trades were executed pursuant to a Rule 10b5-1 plan adopted on May 9, 2025, more than a year ago. Such plans are designed to allow insiders to liquidate shares at predetermined times and prices to avoid concerns about possessing material non-public information.

Company Overview

Company Snapshot

• Unity Software provides a foundational real-time 3D development platform that enables content creators and developers to build, deploy, and monetize interactive 2D and 3D applications across mobile devices, personal computers, gaming consoles, and extended reality hardware.
• The company generates revenue through a diversified model encompassing subscription-based services for development tools, runtime monetization fees from deployed applications, and professional services, creating recurring and usage-based revenue streams.
• Unity serves a broad customer base, including independent game developers, enterprise software companies, automotive manufacturers, and media organizations seeking to create immersive digital experiences and interactive content.

Unity Software operates as a critical infrastructure provider in the interactive content creation ecosystem, supporting millions of developers globally with its cross-platform development capabilities.

The company maintains a significant market position through its comprehensive toolset that reduces development complexity and accelerates time-to-market for interactive applications.

With $2 billion in TTM revenue and a $19 billion market capitalization, Unity continues to expand its addressable market by extending its platform into emerging domains, including automotive software, digital twins, and enterprise metaverse applications.

What this transaction means for investors

This sale shouldn't concern investors. It was non-discretionary to satisfy tax obligations, while the executive maintains the vast majority of his stake in the company's stock.

Unity's business has shown improving results over the last year. TTM revenue grew 14% year over year -- a noticeable improvement over the 2% increase in 2025. This was punctuated by a record second quarter, driven by a 63% increase in Unity's Strategic Growth business.

The stock isn't cheap, trading at a high price-to-earnings multiple, but analysts expect earnings to rise sharply over the next few years. The current consensus has adjusted earnings per share growing from $0.84 in 2025 to $2.29 by 2028.

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

Buying growth stocks after a sell-off can be a smart path to a double, provided the business keeps its edge. Chewy (NYSE: CHWY) and Celsius (NASDAQ: CELH) fit that setup today.

Both of these consumer stocks trade well below their highs, carry reasonable forward earnings multiples, and still have clear growth runways. Here's why they look like potential double-baggers over the next five years.

Image source: Getty Images.

1. Chewy

Pet spending remains a large, resilient market. The industry reached $158 billion in 2025 and is expected to climb to $165 billion in 2026, according to the American Pet Association. Yet Chewy is trading 46% below its 52-week high, and the stock trades at a modest 16x forward price-to-earnings (P/E) multiple.

Chewy is still growing and taking share. In the first quarter, revenue rose 7.7% year over year to $3.36 billion. This is faster than the 4.4% increase expected in pet spending this year.

One of the most attractive qualities of Chewy's business is customer loyalty. Once customers start shopping at Chewy, they tend to stay. This is most evident in its Autoship sales, which grew more than 10% year over year last quarter and represented 84% of total sales.

Customer trends are also moving in the right direction. Chewy added nearly 170,000 net new customers in the quarter, reaching 21.5 million active customers, while average net sales per active customer increased to $597.

Profitability is improving, too. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin hit a record 7.5%, up more than a point from a year ago. Chewy has multiple ways to keep expanding margins, including sponsored ads, warehouse automation, and a bigger mix of higher-margin health offerings. However, some of these benefits will take time to show up as the company continues investing in vet care in the near term.

Share gains and rising margins suggest Chewy's moat is widening, making 16x forward earnings look inexpensive. If the market eventually values it closer to the broader market multiple -- and earnings continue to grow -- the stock could reasonably double over five years.

2. Celsius

Energy drinks have been one of the fastest-growing categories in beverages, and Celsius has become a major player. Even with its brands representing roughly 20% of U.S. energy drink sales, the stock sits 46% below its 52-week high.

A key advantage is distribution. Celsius' partnership with PepsiCo has helped it win shelf space and expand the core Celsius brand. At the same time, the company is building a more diversified portfolio with names like Alani Nu and Rockstar Energy.

In the second quarter, Celsius reported $818 million in revenue, up 11% year over year. But retail sales were up 31% across tracked U.S. channels, which better captures consumer demand. The gap largely comes down to the timing of shipments to bottlers and other customers, which can make reported revenue growth look choppier than what's happening at the shelf.

Portfolio adjustments are also pressuring near-term results. Management is reshaping Celsius's product mix and cutting weaker-performing units amid softer consumer spending. That can weigh on growth and margins now, but it doesn't necessarily change what the business can earn when conditions normalize and the mix improves.

International growth remains a major opportunity. Overseas sales rose 10% year over year last quarter but still represent a small portion of total revenue. Management's longer-term goal is for international revenue to reach 15% of total revenue over the next five years.

Celsius is also seeing productivity gains in distribution that could support better margins over time. If it can sustain double-digit revenue growth and expand earnings faster than sales, a five-year double is plausible. At 24x forward P/E, the stock looks reasonably priced for a top-tier brand in a growing category.

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

Walt Disney: Navigating Fluctuating Revenue Patterns Despite Maintaining Massive Global Scale

Walt Disney (NYSE:DIS) primarily generates its foundational business revenue by operating a vast global portfolio of iconic theme parks, distributing cinematic film and television productions, and managing multiple direct-to-consumer streaming platforms for audiences worldwide.

It detailed multiple upcoming infrastructure expansions across its international theme park properties and reported an operating margin of about 15% for the quarter ended June 27, 2026.

Netflix: Sustaining Consistent Double-Digit Revenue Expansion Across Its Global Subscriber Network

Netflix (NASDAQ:NFLX) earns the vast majority of its corporate revenue by providing a popular subscription-based streaming library composed of licensed television series, original motion pictures, and digital mobile games to an international consumer base.

It recently finalized a long-term content development and distribution agreement renewal with a major television production partner and posted an operating margin of approximately 33% for the quarter ended June 30, 2026.

Why Tracking Top-Line Revenue Metrics Matters for Everyday Retail Investors

Revenue here refers to the income statement revenue line item, and monitoring this fundamental financial figure across consecutive reporting periods helps everyday investors assess whether a business is successfully attracting new paying customers and expanding its broader commercial footprint before underlying operating expenses are factored into the final financial equation.

Comparing Quarterly Revenue Trends for Walt Disney and Netflix

Data source: Company filings. Data as of Aug. 26, 2026.

Foolish Take

These are two dominant entertainment businesses that reach massive audiences. But most of the growth in entertainment over the last decade has been on the digital side, benefiting Netflix.

Walt Disney's revenue comes from several businesses, with streaming accounting for only a small share. Most of its profit comes from its Experiences segment, including theme parks and cruise lines. This is not a fast-growing business, but it allows Disney to continue earning money from fans long after they watch a movie on Disney+ or in theaters.

As the pure-play in digital entertainment, Netflix has consistently grown its revenue faster than Disney. It commands a much larger subscriber base than Disney's streaming services, including ESPN+ and Hulu. This reflects Netflix's focus on making content that appeals to a wider audience beyond kids and families.

Netflix generates a much higher operating margin than Disney. Although it generates a smaller revenue base, it converts revenue into profit at a more efficient rate than Disney. This is why Netflix's market capitalization is currently $339 billion, compared to Disney's $189 billion, despite generating less revenue.

Investors should watch whether Netflix continues to outpace Disney's revenue growth or whether Disney can make strategic adjustments to accelerate its revenue growth, particularly its Entertainment segment, which includes results from the box office and streaming services.

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

Mike Slessor, CEO of FormFactor, Inc. (NASDAQ:FORM), sold 16,002 shares of common stock on Aug. 14, 2026, according to a recent SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($130.95); post-transaction value based on Aug. 14, 2026 market close ($131.60).

Key questions

• How does this sale align with the insider's established trading plan?
  The transaction was executed automatically under a Rule 10b5-1 plan adopted on Aug. 19, 2025, which allows insiders to diversify their portfolios through pre-set schedules to avoid concerns regarding non-public information.
• What was the market performance context for FormFactor at the time of the transaction?
  Shares were priced at a weighted-average price of $130.95 on Aug. 14, 2026, the date on which the stock achieved a 335% one-year return.
• What is the scale of the CEO's remaining direct investment?
  Following this 3% reduction in stake, Mike Slessor retains direct ownership of 484,204 shares, representing a substantial majority of his equity exposure in the firm.

Company Overview

Company Snapshot

• FormFactor designs, manufactures, and globally distributes advanced test and measurement solutions for the semiconductor industry, with primary revenue derived from its Probe Cards and Systems divisions that serve semiconductor manufacturers and research institutions.
• The company generates revenue through the sale of probe cards used to verify integrated circuit functionality and complementary test systems, leveraging its specialized expertise in semiconductor testing to maintain its competitive position.
• FormFactor's primary customers include leading semiconductor manufacturers and research institutions that require advanced testing solutions to ensure product quality and performance across diverse integrated circuit applications.

FormFactor is a specialized provider of critical testing infrastructure for the global semiconductor industry, with a market capitalization of $10 billion and TTM revenue of $902 million.

The company has demonstrated significant growth momentum, with a 335% one-year stock price appreciation, reflecting strong demand for semiconductor testing solutions.

FormFactor's competitive advantage derives from its proprietary probe card technology and integrated systems approach, positioning it as an essential supplier to semiconductor manufacturers navigating increasingly complex device architectures and testing requirements.

What this transaction means for investors

This sale represented a small percentage of the CEO's holdings and shouldn't concern investors. Moreover, it was completed under a Rule 10b5-1 plan, which insiders often use to make transactions for personal reasons that don't reflect a view on the stock's valuation or business performance.

Importantly, FormFactor's TTM revenue is up 18% year over year. TTM operating margin also looks strong, coming in at 12.9%. If that holds through the end of the year would mark the highest margin in years.

The stock trades at 32 times forward earnings estimates, with analysts forecasting earnings to grow at an annualized rate of 65% over the next two years.

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

Walter J. Scheller, Chief Executive Officer of Warrior Met Coal, Inc. (NYSE:HCC), disclosed the sale of 50,000 shares of common stock in an SEC Form 4 filing published on Aug. 26, 2026.

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($110.00); post-transaction value based on Aug. 24, 2026, market close ($106.60).

Key questions

• How does this transaction align with previous planning?
  The sale was executed under a Rule 10b5-1 trading plan adopted by Walter J. Scheller on March 2, 2026, which allows insiders to schedule trades in advance to avoid concerns regarding material non-public information.
• What is the current scale of the executive's remaining equity?
  Following the disposition, Walter J. Scheller maintains direct ownership of 267,793 shares, representing a position valued at $28.5 million based on the Aug. 24, 2026, market close.
• How does the current market valuation relate to the transaction price?
  Shares were sold at $110.00 per share, while the common stock closed at $105.29 as of the Aug. 25, 2026, market close.
• What are the primary operational drivers for Warrior Met Coal?
  The company operates underground mines in Alabama to produce coking coal for blast furnace steel producers in international markets, including Europe and Asia.

Company Overview

Company Snapshot

• Warrior Met Coal specializes in the extraction and international distribution of coking coal, a critical raw material for steel production. Also, it generates supplementary revenue from the sale of natural gas recovered as a byproduct of mining operations.
• The company operates a pair of underground mines in Alabama. It generates revenue through the sale of coking coal to blast-furnace steel producers and the monetization of natural gas byproducts recovered during mining operations.
• The company's primary customer base comprises blast furnace steel producers across Europe, South America, and Asia, positioning it as a key supplier to the global steel manufacturing industry.

Warrior Met Coal operates as a specialized coking coal producer with a focused operational footprint of two underground mines in Alabama, serving an international customer base of steel producers across three major continents.

The company benefits from the essential nature of coking coal in steel production and has demonstrated strong financial performance, with TTM net income of $219 million on revenues of $1.7 billion. Its diversified geographic customer base and byproduct revenue streams provide operational resilience within the energy sector.

What this transaction means for investors

This sale shouldn't concern investors, as it represented a minor portion of the executive's stock holdings and was executed under a pre-adopted trading plan. Insiders commonly use Rule 10b5-1 plans to execute sales for personal reasons that are not based on a view of the stock's valuation or business performance.

Importantly, Warrior Met Coal is on the verge of a very profitable stretch. In the second quarter, the company's Blue Creek mine reached operational status and is now contributing to earnings.

The company reported $87 million of net income in Q2, representing $1.65 per share. Analysts expect earnings to reach $6.33 in 2026, up from $1.22 in 2025, and to grow to $7.80 by 2028.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Apple (NASDAQ: AAPL) stock managed a 2,230% return since Tim Cook became CEO in August 2011. A $10,000 investment would have grown to roughly $233,000 (including dividends). That kind of performance creates big shoes to fill for incoming CEO John Ternus.

Apple's Senior Vice President of Hardware Engineering is set to take over the lead role on Sept. 1, 2026. With experience dating back to the Steve Jobs era and a product-first background, Ternus is well qualified to lead Apple's next leg of growth, although delivering another 22x return might be asking too much.

Apple CEO Tim Cook. Image source: Apple.

Apple's growth under Tim Cook

Some investors argue Apple has lost its innovation edge in the post-Jobs era. Products introduced under Cook -- like Apple Watch and Vision Pro -- are not the company's major growth engines. The biggest revenue driver is still the iPhone, which debuted under Jobs, and still accounts for more than half of Apple's sales.

What's easier to overlook is how much Cook expanded Apple into one of the world's most valuable companies. Alongside Watch, AirPods, and Vision Pro, Cook also scaled high-margin services such as iCloud, Apple Pay, Apple TV, and Apple Music.

Those services deepened Apple's ecosystem, increased customer stickiness, and helped keep the iPhone a must-have for millions of people.

Apple's revenue grew from $108 billion in fiscal 2011 to more than $466 billion on a trailing-12-month basis. Its market cap is now $4.5 trillion -- up from $338 billion in 2011 -- making Apple the second-most valuable company in the world as measured by market capitalization.

And you can't fully explain the continued strength of Apple's core products without John Ternus, who has led the company's hardware engineering team since 2013.

Ternus is committed to product quality

Ternus joined Apple's product design team in 2001, back in the early days of Apple's revival under Steve Jobs, when all it had was the Mac and iPod. Ternus has helped oversee the expansion of the company's hardware lineup. Cook called Ternus a "visionary whose contributions to Apple over 25 years are already too numerous to count," and "the right person to lead Apple into the future."

Recent hardware results already hint at how Apple could perform under his leadership. The iPhone 17 lineup has been a major hit, with iPhone revenue up 22% year over year through the first three quarters of fiscal 2026.

Apple is transitioning from a CEO with an operations management background (Cook) to one with a product design background (Ternus). This could serve Apple well as it begins to integrate artificial intelligence (AI) features more deeply into its products and software, starting with the upcoming overhaul of Siri.

Ternus has signaled his commitment to Apple's North Star: shipping only the best possible products and services. "I am humbled to step into this role, and I promise to lead with the values and vision that have come to define this special place for half a century," Ternus said.

Cook also benefited from growing Apple off a much smaller revenue base, so matching his shareholder returns may be a tall order. But if the goal is consistent execution and world-class product development, the early evidence suggests Apple won't miss a beat.

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

Axon Enterprise: Generating a Consistent Upward Revenue Trajectory

Axon Enterprise (NASDAQ:AXON) primarily generates revenue by manufacturing conducted energy devices under its signature brand and providing connected hardware alongside cloud-based digital evidence management software for domestic and international law enforcement agencies.

While it finalized two nine-figure contracts with major municipalities and advanced its integration of radar technology into public safety drone systems, it reported an approximately 6% operating margin for the quarter ended June 30, 2026.

Booking Holdings: Navigating Cyclical Quarterly Revenue Fluctuations

Booking Holdings (NASDAQ:BKNG) primarily generates revenue by operating a global network of digital platforms that connect everyday consumers with travel service providers for online accommodation bookings, flight reservations, vehicle rentals, and restaurant dining arrangements.

It faced ongoing regulatory scrutiny as a designated gatekeeper under European Union regulations and expanded software partnerships for its restaurant reservation platforms. At the same time, it recorded an operating margin of approximately 34% for the quarter ended June 30, 2026.

Why Tracking Revenue Matters for Individual Investors

Revenue here refers to the standardized income statement revenue line item, and evaluating this baseline metric provides everyday retail investors with an unfiltered view of the total sales volume flowing into the enterprise before any operating costs, administrative expenses, or taxes are deducted.

Quarterly Revenue Data for Axon Enterprise and Booking

Data source: Company filings. Data as of Aug. 21, 2026.

Foolish Take

These are completely different businesses operating at different scales. Still, the market is awarding a much higher price-to-earnings ratio for Axon Enterprise due to its industry leadership in supplying must-have technology for law enforcement. On the other hand, Booking trades at a lower valuation due to slower growth and a more competitive travel reservation market.

Much of Axon's past revenue has come from selling hardware (e.g., TASER), but its software services are expanding rapidly. As cloud-based software services become a greater contributor to the top line, margins could expand.

Booking could see much higher revenue as it expands its platform to include flights, car rentals, and other travel-related services. But it's unclear whether these add-on services will accelerate its revenue growth rate or merely extend its current trend.

Investors should watch whether Booking can continue delivering stronger growth as it executes its "Connected Trip" strategy, or whether Axon can maintain high revenue growth and gradually narrow the gap with the travel reservation leader.

John Ballard has positions in Axon Enterprise. The Motley Fool has positions in and recommends Axon Enterprise and Booking Holdings. The Motley Fool has a disclosure policy.

President Anthony Michael Denier reported a sale of 53,848 Class A Ordinary shares of Webull (NASDAQ:BULL) in a transaction on Aug. 25, 2026, according to a SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($8.83); post-transaction value based on Aug. 25, 2026 market close ($8.94).

Key questions

• What is the significance of the 10b5-1 trading plan?
  The transaction was pre-scheduled under a Rule 10b5-1 plan established on May 26, 2026, which allows corporate insiders to sell stock at set intervals to avoid concerns regarding material non-public information.
• How does this disposal affect the President's total equity position?
  Following the sale of 53,848 shares, Anthony Michael Denier continues to hold 2,332,295 shares directly, representing a 0.44% ownership interest in the company.
• What is the market context for the transaction?
  The sale occurred while Webull shares were priced at $8.83; the company currently has a market capitalization of $4.7 billion and reported a one-year return of -40% as of the Aug. 25, 2026, transaction date.
• What were the core fundamentals of the company at the time of filing?
  Webull is a digital investment platform that provides brokerage and wealth management services and generated $681 million in trailing twelve-month revenue with a net income of $42.4 million.

Company Overview

Company Snapshot

• Webull Corporation operates a comprehensive digital investment platform that generates revenue through brokerage commissions, wealth management product distribution, premium subscription services, and market data offerings.
• The company's business model centers on providing retail investors with low-cost trading execution, advanced market analytics, and educational resources while monetizing user engagement through commission-based transactions and value-added financial services.
• Webull primarily serves retail investors and individual traders seeking accessible, technology-enabled investment solutions with a focus on user community engagement and democratized access to financial markets.

Webull is a prominent fintech platform serving the retail investment segment through a scalable, technology-driven business model. The company has achieved substantial scale with $681 million in TTM revenue and $4.7 billion in market capitalization, demonstrating strong market penetration in the digital brokerage sector.

Webull's competitive positioning is reinforced by its integrated ecosystem, which combines commission-free trading, wealth management distribution, proprietary market research, and community-driven educational content, collectively enhancing customer retention and lifetime value.

What this transaction means for investors

This sale shouldn't concern investors. It was completed under a pre-adopted trading plan, which insiders commonly use to make periodic sales without appearing to act on material non-public information.

Moreover, the sale represented a small percentage of the insider's holdings in the company's stock.

Importantly, Webull is experiencing strong growth, with TTM revenue up 55% year over year. This is notable considering the competition in the financial services market.

Webull is also demonstrating it can grow the business profitably, with its operating income up nearly 300% year over year on a TTM basis to roughly $85 million.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Christian Ulbrich, CEO & President of Jones Lang LaSalle Incorporated (NYSE:JLL), sold 4,000 shares of common stock on Aug. 19, 2026, and Aug. 20, 2026, as disclosed in a recent SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($380.35); post-transaction value based on Aug. 20, 2026, market close ($386.50).

Key questions

• What was the primary driver for this transaction?
  The trades were conducted under a Rule 10b5-1(c) plan established in December 2025, which allows insiders to diversify their holdings through pre-scheduled transactions to manage personal liquidity and avoid conflicts regarding material non-public information.
• How does this affect the insider's total equity exposure?
  Following the sale, Christian Ulbrich retains direct ownership of 140,418 shares, representing a post-transaction equity value of approximately $54 million based on the Aug. 20, 2026, market close.
• What is the scale of the company's financial profile relative to this activity?
  Jones Lang LaSalle maintains an $18 billion market capitalization and reported trailing twelve-month (TTM) revenue of $27 billion, positioning this ~$1.5 million liquidation as a routine adjustment to the executive's portfolio.
• What is the current market context for the stock?
  The shares were priced at $380.35 per share during the transaction, reflecting a 29% total return over the 12 months preceding the valuation as of Aug. 20, 2026.

Company Overview

Company Snapshot

• Jones Lang LaSalle provides comprehensive real estate services, including tenant and landlord representation, capital markets advisory, and investment management solutions across the Americas, Europe, the Middle East, Africa, and Asia Pacific regions.
• The company generates revenue through a diversified service model encompassing real estate brokerage, property management, capital markets financing advisory (debt and equity), and integrated real estate solutions for institutional and corporate clients.
• JLL serves institutional investors, corporate occupiers, and real estate owners and operators globally, positioning itself as a trusted advisor for complex real estate transactions and strategic asset management.

Jones Lang LaSalle is a leading global professional services firm with a market capitalization of $18 billion and TTM revenues of $27 billion, reflecting its substantial scale across international real estate markets.

The company maintains a competitive advantage through its integrated service platform, extensive global footprint spanning multiple continents, and deep expertise in capital markets and investment management.

With 113,200 employees worldwide, JLL leverages its institutional knowledge and market relationships to deliver differentiated solutions in an increasingly complex real estate environment.

What this transaction means for investors

This sale shouldn't concern investors. It was completed under a pre-adopted plan, which implies it was for personal financial reasons. Moreover, the CEO retains a sizable equity stake in the company, valued at about $54 million based on recent trading prices.

Importantly, Jones Lang LaSalle's TTM revenue grew 11% year over year to $27 billion. Its operating income margin also continues to show improvement, inching up to 4.7% on a TTM basis.

Despite the stock's recent run, it still trades at a reasonable forward price-to-earnings multiple of about 15x. Analysts also expect the company's earnings to grow at an annualized rate of 9% in the coming years.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Christian E. Rothe, Sr. VP and CFO, sold 590 shares of Rockwell Automation, Inc. (NYSE:ROK) at $434.30 per share on Aug. 20, 2026, according to a SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($434.30); post-transaction value based on Aug. 20, 2026, market close ($431.45).

Key questions

• Does this transaction indicate a change in management sentiment?
  The sale was non-discretionary and executed under a Rule 10b5-1 plan specifically to satisfy tax obligations following the vesting of restricted stock units on Aug. 19, 2026.
• What is the executive's remaining equity exposure?
  Following the disposal, the executive retains 10,428.6941 shares held directly, valued at $4.5 million as of the Aug. 20, 2026 market close, as well as 1,257 derivative securities.
• How has the stock performed leading up to this transaction?
  The stock was priced at $431.45 at the Aug. 20, 2026 market close, having generated a 29% return over the preceding 12 months.
• When was this trading plan established?
  The Rule 10b5-1 plan used for this transaction was adopted on Nov. 25, 2025, roughly nine months before the automated execution occurred.

Company Overview

Company Snapshot

• Rockwell Automation provides industrial automation and digital transformation solutions through three primary segments: Intelligent Devices (hardware products including drives, motion control systems, and safety equipment), Software & Control (automation software and control platforms), and Lifecycle Services (maintenance, support, and optimization services).
• The company generates revenue through a diversified business model combining hardware sales, software licensing, and recurring service contracts, enabling both upfront capital equipment sales and long-term recurring revenue streams from customer support and digital solutions.
• Rockwell Automation serves a broad customer base across manufacturing, process industries, and infrastructure sectors, with particular strength in automotive, food and beverage, pharmaceutical, and energy markets globally.

Rockwell Automation, established in 1903 and headquartered in Milwaukee, Wisconsin, is a global leader in industrial automation with approximately 26,000 employees worldwide.

The company maintains a competitive advantage through its comprehensive portfolio spanning hardware, software, and services, combined with deep domain expertise in manufacturing optimization and digital transformation.

With TTM revenue of $9.0 billion and net income of $1.2 billion, Rockwell Automation demonstrates strong operational performance and profitability in the industrial automation sector.

What this transaction means for investors

This sale shouldn't concern investors. It represented a small percentage of the executive's holdings in the company's stock. Moreover, it was completed under a pre-adopted trading plan to satisfy tax obligations.

Importantly, Rockwell's business is posting solid growth and profitability. TTM revenue grew 11% year over year, with operating margin at 17.3%.

However, the stock is trading at a high price-to-earnings multiple relative to expected earnings growth. Analysts expect 13.5% annualized earnings growth in the next several years, yet the shares trade at a forward (12-month) earnings multiple of 30. This is slightly above its historical average.

John Ballard has no position in any of the stocks mentioned. The Motley Fool recommends Rockwell Automation. The Motley Fool has a disclosure policy.

Walt Disney's (NYSE: DIS) "experiences" segment -- led by its theme parks -- reported $3 billion in operating income on nearly $10 billion in revenue in the company's most recent fiscal quarter. Yet the stock still trades at a modest forward earnings multiple, suggesting that investors don't expect much growth ahead.

That gap between results and valuation reflects a more mixed picture across Disney's business, but it could also create an opening for long-term investors.

Image source: The Motley Fool.

Disney's core business delivered a record quarter

In Disney's fiscal 2026 third quarter, which ended June 27, the experiences segment grew revenue 10% year over year, while its operating income jumped 20%. Those results reflect healthy consumer demand at the heart of Disney's entertainment empire.

Theme park admissions rose 9% year over year, lifting spending on merchandise, food, and beverages. That matters because experiences is Disney's profit engine: It generated 54% of the company's total operating income for the quarter.

The company also continues to see strength in its cruise business with the launch of two new ships -- Disney Destiny and Disney Adventure -- during the past year. These results show the Disney flywheel at work. People watch movies and Disney+ content, which shows up later in spending on park visits, cruise bookings, and merchandise sales.

Why is Disney trading like a value stock?

Even after a strong quarter for the key experiences segment, Disney shares trade at around 16 times this fiscal year's consensus earnings estimate and about 15 times fiscal 2027's estimate. Historically, its forward price-to-earnings ratio (P/E) has been closer to 20.

The current discount reflects uneven performance elsewhere across the entertainment empire. Disney is still dealing with the impact that long-term declines in cable subscribership are having on its TV networks. Moreover, content costs continue to weigh on the company's streaming operating margin, which was 13% in the quarter, compared with Netflix's 33%.

Box office performance for the live-action remake of Moana came in below the company's expectations. Even so, the entertainment segment's operating income jumped 64% year over year.

Disney is also early in its leadership transition: New CEO Josh D'Amaro took over the role in March. Investors may be waiting to see more proof of his ability to set a fruitful strategy and execute on it before they decide if they're willing to put a higher earnings multiple on the stock.

Is the stock a buy?

Overall, there may be more to like here than not. The core growth in the experiences segment shows that Disney remains one of the world's top consumer brands. During the fiscal Q3 earnings call, management noted that guests, users, and audiences all increased year over year for experiences, Disney+, and ESPN.

If that growth continues, accompanied by a gradual improvement in streaming margins, the stock could drift back toward its historical P/E range over time -- making today's discount look more like an opportunity than a warning sign.

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

2026 has been a strong year for consumer staples. Shares of Coca-Cola (NYSE: KO) and Mondelez International (NASDAQ: MDLZ) have outperformed the S&P 500's 12% year-to-date return, rising 22% and 32%, respectively. Even after those gains, both still offer attractive dividend yields of 2.3% or more. Here's why they look like rock-solid income investments for the long term.

Coca-Cola

Coca-Cola has one of the best dividend track records in the market. It has raised its payout for 64 straight years, supported by a highly profitable beverage empire spanning dozens of brands.

Image source: Getty Images.

The stock offers an above-average forward (12-month) yield of 2.3%. Coca-Cola has grown its dividend at a 5% annualized rate over the past three years, backed by free cash flow. Over the past year, it returned 77% of that cash generation to shareholders through dividends.

The business has also proved resilient through high inflation and softer consumer spending. In the second quarter, global unit case volume rose 5% year over year, helping lift adjusted (non-GAAP) revenue by 6%, including a modest benefit from higher pricing. Being able to raise prices without sacrificing volume is a meaningful competitive advantage.

Coca-Cola's global distribution is another strength. Selling in more than 200 countries helps keep demand steady even when certain regions hit economic turbulence.

Management is also working to improve efficiency and strengthen margins, which matters for the long-term durability of the dividend. The company is expanding its use of digital tools, including artificial intelligence (AI), to sharpen execution and support revenue growth. Operating margin has climbed from the low 20s a decade ago to the low 30s today, with continued focus on higher-margin offerings like Fairlife's Core Power protein shakes.

One headwind to watch: Coca-Cola is in a dispute with the IRS over financial reporting from its foreign operations, which could force the company to pay higher taxes. Still, management remains focused on reducing debt, supporting dividend growth, and reinvesting in the business.

Over the long run, Coca-Cola's brands, global scale, and margin expansion make it a high-quality consumer staple that should continue to reward income investors.

Mondelez

Mondelez owns dozens of snack and candy brands, including Oreo, Cadbury, and Chips Ahoy. It has paid a dividend since 2001 and has continued to raise it. The stock currently offers a forward (12-month) yield of 3.2%, supported by free cash flow.

Earlier this year, the company increased its quarterly dividend by 4% to $0.52 per share. Over the past three years, the dividend has grown at nearly a 10% compound annual rate.

Even with consumers watching their spending, Mondelez has continued to invest to support growth. Last quarter, revenue rose 2% year over year, and other than a few weak quarters, the company has mostly delivered steady top-line growth over the past three years.

Management sees a tremendous opportunity in emerging markets. It's expanding distribution to support over a million stores selling its products across India and Brazil. As CEO Dirk Van de Put said on the Q2 earnings call, "We still have a long runway of more consumers consuming more every day."

The biggest near-term headwind has been elevated cocoa prices, which have weighed on margins and free cash flow. Mondelez paid out 82% of trailing-12-month free cash flow as dividends -- above its typical level of around 60%. That ratio should normalize as costs ease and profitability improves.

There are signs that it's already starting. Operating margin reached 27% in the second quarter, and cocoa prices -- while still above historical norms -- have begun falling from their peak. With pricing discipline and a push to run more efficient operations, lower input costs could lift near-term margins and free cash flow.

Mondelez offers an appealing setup: emerging-market expansion and margin improvement help make the high yield look sustainable -- and attractive -- for long-term dividend investors.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Laurel Hurd, President & CEO of Interface, Inc. (NASDAQ:TILE) reported a sale of 7,000 shares of common stock on Aug. 24, 2026, according to an SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($39.09); post-transaction value based on Aug. 24, 2026 market close ($38.27).

Key questions

• How does this transaction affect the CEO's overall alignment with shareholders?
  Following the disposition of 7,000 shares, Laurel Hurd retains direct ownership of 506,978 shares, representing a $19.4 million stake in the company as of the Aug. 24, 2026, market close.
• What is the significance of the 10b5-1 plan in this context?
  The disposal was conducted under a pre-arranged Rule 10b5-1 trading plan adopted in May, which automates trades to help insiders manage their equity positions while mitigating concerns regarding the use of non-public information.
• How has the stock performed leading up to this transaction?
  Shares of the company have generated a 41% one-year total return as of the Aug. 24, 2026 transaction date, with the stock priced at $38.94 as of the Aug. 21, 2026 market close.
• Are there additional equity incentives beyond the reported common stock?
  Footnotes in the filing indicate that a substantial portion of the reported holdings includes unvested restricted stock units.

Company Overview

Company Snapshot

• Interface, Inc. designs, produces, and sells modular carpet products, luxury vinyl tiles, modular resilient flooring, and rubber flooring solutions for commercial and residential interiors across global markets.
• The company generates revenue through the manufacture and distribution of specialty flooring products to commercial end-users, including offices, educational facilities, healthcare facilities, airports, hospitality spaces, and retail environments, supplemented by installation and replacement services.
• Interface serves a diversified customer base of commercial property owners, facility managers, interior designers, and contractors across North America, Latin America, Europe, Africa, Asia, and Australia.

Interface is a global leader in modular flooring solutions with approximately 3,570 employees and operations spanning multiple continents.

The company maintains a competitive position by focusing on sustainable, customizable flooring products for commercial interiors, supported by a comprehensive service offering that includes installation and replacement.

With TTM revenue of $1.4 billion and net income of $145 million, Interface demonstrates solid operational performance in the furnishings and fixtures sector.

What this transaction means for investors

This sale shouldn't concern investors. It was executed under a Rule 10b5-1 plan, which is commonly used by insiders to pre-plan transactions while avoiding the appearance of acting on material non-public information.

The sale also represented a small percentage of the CEO's holdings, with the CEO retaining the majority of the stake.

Importantly, the company's revenue has remained stable over the last year at about $1.4 billion. Yet operating margin has inched higher, reflecting effective cost management.

Despite the stock's climb, it still trades at a modest forward earnings multiple of about 16x, while analysts forecast earnings growth at an annualized rate of 15% over the coming years.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

John Tseng-Chung Lee, President & CEO of MKS Inc. (NASDAQ:MKSI), sold 10,000 shares of common stock on Aug. 14, 2026, for a total transaction value of ~$3.0 million, according to a SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($302.01); post-transaction value based on Aug. 14, 2026, market close ($310.73).

Key questions

• What was the primary driver behind the timing of this transaction?
  The sale was conducted through a pre-arranged Rule 10b5-1 trading plan adopted on Feb. 20, 2026, which allows insiders to schedule trades in advance to avoid concerns regarding material non-public information.
• How has the stock performed leading up to this executive sale?
  The transaction occurred following a period of appreciation, as the company delivered a 198% total return over the one-period ending Aug. 14, 2026.
• What is the scale of the company's current operations?
  MKS Inc. operates as a global technology company, providing instruments and systems for process control, generating $4.3 billion in trailing twelve-month revenue and employing approximately 10,200 employees.
• Does the executive maintain significant alignment with shareholders?
  Despite the sale, John Tseng-Chung Lee retains a direct equity stake valued at $41.88 million, while no indirect holdings or derivative securities were reported in this filing.

Company Overview

Company Snapshot

• MKS Inc. supplies sophisticated instruments, integrated systems, specialized components, and advanced process control solutions that enable manufacturers to measure, observe, deliver, evaluate, energize, and regulate critical operational parameters across diverse manufacturing environments globally.
• The company generates revenue through three primary business divisions: Vacuum & Analysis, which provides advanced measurement and analytical solutions; a second segment focused on specialized components and systems; and a third division delivering integrated process control solutions that optimize manufacturing efficiency and precision.
• MKS serves a broad customer base across semiconductor manufacturing, industrial processing, research institutions, and advanced manufacturing sectors, positioning itself as a critical supplier to industries requiring precision measurement and process control technologies.

MKS Inc. operates as a global leader in precision instrumentation and process control solutions, with a diversified product portfolio serving capital-intensive manufacturing industries.

The company's $4.3 billion in TTM revenue and $441 million in net income reflect strong operational performance and market demand for its advanced technological solutions.

MKS maintains a competitive advantage through its specialized engineering capabilities, comprehensive product integration, and deep customer relationships across mission-critical manufacturing applications.

What this transaction means for investors

This sale shouldn't concern investors. It represented a small portion of the executive's holdings in the company's stock. Moreover, it was executed under a pre-adopted trading plan that allows insiders to make transactions without appearing to act on material non-public information.

The company has been experiencing strong growth, with TTM revenue up 16% year-over-year through the second quarter. Profits are growing even faster due to higher margins.

Despite a recent pullback in the stock, analysts still forecast earnings growth at an annualized rate of close to 20% in the coming years. The stock now trades at a forward earnings multiple of about 17.7x.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Gregory Stephen Smith, President and CEO of Teradyne, Inc. (NASDAQ:TER), sold 4,000 shares of common stock on Aug. 17, 2026, according to a SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($425.00); post-transaction value based on Aug. 17, 2026 market close ($443.14).

Key questions

• Under what conditions was this sale executed?
  The transaction was carried out pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on Feb. 12, 2026, providing a structured schedule for the disposal of shares.
• What is the scale of the remaining equity position?
  Following the sale of 4,000 shares, the executive maintains a direct position of 112,495.4075 shares, representing approximately 0.0720% of the company.
• How has the stock performed leading up to this transaction?
  As of the Aug. 17, 2026 market close, the stock had achieved a 306% total return over the preceding 12 months.
• What is the current market value of the executive's total beneficial holdings?
  The remaining shares are valued at $49.85 million based on the market close of $443.14 as of Aug. 17, 2026.

Company Overview

Company Snapshot

• Teradyne designs, manufactures, sells, and services automated testing equipment and solutions for semiconductor manufacturers, with primary revenue derived from semiconductor test systems that validate microchips at both the wafer and finished-device stages across automotive, industrial, telecom, and consumer electronics applications.
• The company operates a diversified business model generating revenue through the sale of test equipment, software platforms, and support services, with recurring revenue streams from maintenance contracts and customer support services that provide stable cash flow and enhance customer retention.
• Teradyne serves semiconductor manufacturers, integrated device manufacturers, and fabless design companies globally, with particular strength in serving leading-edge chip producers in automotive, 5G telecommunications, and industrial computing markets.

Teradyne is a global leader in automated semiconductor testing solutions with a market capitalization of $69.3 billion and TTM revenues of $4.5 billion, demonstrating substantial scale and profitability with TTM net income of $1.2 billion.

The company has experienced significant momentum, with a one-year share price appreciation of 306%, reflecting strong demand for semiconductor test equipment driven by industrywide capacity expansion and advanced node development.

Teradyne's competitive advantage is anchored in its comprehensive portfolio of test platforms, deep customer relationships with major semiconductor manufacturers, and integrated software and services that create switching costs and generate recurring revenue.

What this transaction means for investors

This sale shouldn't concern investors. It represented a small percentage of the CEO's total stake and was a pre-planned transaction under a Rule 10b5-1 plan. This is commonly used to allow insiders to make planned sales while avoiding conflicts of interest or the appearance of acting on material non-public information.

Importantly, Teradyne is performing well, with TTM revenue soaring over the past year. This has also fueled a higher margin and earnings.

The stock is not cheap, trading at a high price-to-earnings multiple, yet analysts are also projecting strong earnings growth to continue. The current consensus estimate calls for earnings to grow at an annualized rate of 28% in the coming years.

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

Tarun Arora, Chief Accounting Officer of RingCentral, Inc. (NYSE:RNG), reported the disposition of 5,623 shares of Class A Common Stock on August 20 and August 21, 2026, according to a SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average sale price ($65.47); post-transaction value based on August 21, 2026 market close ($67.01).

Key questions

• What was the nature of the equity disposition?
  The transaction included a non-discretionary component of 3,747 shares remitted to the issuer to satisfy tax withholding requirements upon the vesting of restricted stock units, alongside 1,876 shares sold via a pre-scheduled trading arrangement.
• When was the trading plan for the open-market sales established?
  The 1,876 shares were sold pursuant to a Rule 10b5-1 trading plan that Arora adopted on May 22, 2026.
• How does this affect the insider's total equity exposure?
  Arora maintains a direct holding of 80,384 shares, representing an approximate 0.0932% interest in the $5.8 billion cloud communications company.
• What is the recent performance context for RingCentral stock?
  The shares were priced at $67.01 as of the August 21, 2026 market close, reflecting a one-year total return of 131% as of the transaction date.

Company Overview

Company Snapshot

• RingCentral delivers cloud-based software-as-a-service (SaaS) solutions that enable businesses to communicate, collaborate, and connect through its proprietary Message Video Phone (MVP) platform, with core offerings including RingCentral Office for unified communications and comprehensive contact center capabilities.
• The company operates on a subscription-based SaaS business model, generating recurring revenue from enterprise and mid-market customers who license its cloud communications and collaboration platforms on a per-user or per-seat basis.
• RingCentral primarily serves North American businesses across multiple verticals, including enterprises, mid-market organizations, and small-to-medium businesses seeking integrated unified communications and contact center solutions to enhance operational efficiency and customer engagement.

RingCentral is a leading cloud-based communications platform provider with approximately 7,378 employees and a market capitalization of $5.8 billion. The company has demonstrated significant growth momentum, with TTM revenue of $2.6 billion and net income of $110.3 million, reflecting strong operational leverage in its SaaS business model.

RingCentral's competitive advantage derives from its integrated MVP platform architecture, which consolidates unified communications, collaboration, and contact center capabilities into a single ecosystem, enabling customers to streamline operations and reduce technology complexity.

What this transaction means for investors

This sale shouldn't concern investors. It represented a small percentage of the insider's stake in the company's stock. Moreover, it was completed under a Rule 10b5-1 plan, which is commonly used by insiders to complete transactions while avoiding the appearance of acting on material non-public information.

Importantly, RingCentral's TTM revenue grew 5% year over year, while operating margin is showing considerable improvement rising to 6.7%. This builds on last year's margin of 4.8% in 2025 and just 0.1% in 2024.

The company's improved profitability has lifted the stock over the last year, and analysts estimate earnings will grow at an annualized rate of 15% in the next several years.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.