Core Viewpoint - Concerns about a potential recession are rising, but certain energy companies, specifically Enbridge and Brookfield Renewable, have resilient business models that can withstand economic downturns [1][12]. Group 1: Enbridge - Enbridge operates one of North America's largest energy infrastructure businesses, with a low-risk model supported by cost-of-service agreements and long-term contracts that backstop 98% of its cash flows [4][6]. - The company has achieved its annual financial guidance for 19 consecutive years, including during two major recessions [4]. - Enbridge pays out 60% to 70% of its stable cash flow as dividends, currently yielding 5.6%, providing a solid return for investors [5]. - The company has a significant backlog of growth capital projects expected to come online through the end of the decade, anticipating a 3% compound annual growth rate in cash flow per share through next year, accelerating to about 5% thereafter [6]. Group 2: Brookfield Renewable - Brookfield Renewable is one of the largest renewable energy producers globally, with 90% of its electricity sold under long-term, fixed-rate power purchase agreements, which are indexed to inflation for about 70% of its revenue [8]. - The company expects its existing power portfolio to deliver 4% to 7% growth in annual funds from operations (FFO) per share through the end of the decade, driven by inflation escalations and margin enhancements [9]. - Brookfield has a vast pipeline of renewable energy projects, including 10.5 gigawatts for Microsoft, which is expected to add 4% to 6% to its FFO per share annually as they come online [9][10]. - The company has financial flexibility for acquisitions, recently agreeing to invest up to $1 billion in Isagen, which will add 2% to its FFO per share next year [10]. - Overall, Brookfield anticipates more than 10% annual FFO-per-share growth for the foreseeable future, with expected dividend increases of 5% to 9% each year [11].

Tesla just might be viewed more as a robotics stock than an electric vehicle stock someday.Tesla (TSLA 0.43%) released part four of its "master plans" recently -- and there was a twist. The company's first master plan document dates back to August 2006. That document focused on electric vehicles. The next two parts included electricity generation and storage. However, Tesla's latest master plan update mentioned the company's Optimus humanoid robot for the first time. CEO Elon Musk responded earlier this mon ...

Broadcom stock has delivered a return of more than 885% over the last five years.Most artificial intelligence (AI) development happens with the help of data centers filled with purpose-designed chips and networking equipment. Nvidia (NVDA 3.85%) CEO Jensen Huang predicts tech giants will spend an eye-popping $4 trillion on AI data center infrastructure by 2030 to help further this AI development. That suggests a gargantuan financial opportunity for the semiconductor industry. Broadcom (AVGO 10.07%) wants to ...

If you want exposure to the AI boom without the hassle of picking individual stocks, these three AI-focused ETFs offer diversified, long-term opportunities.Artificial intelligence (AI) has been a huge catalyst for the portfolios of many investors over the past several years. Large tech companies are spending hundreds of billions of dollars to build out their AI hardware infrastructure, creating massive winners like semiconductor designer Nvidia.But not everyone wants to go hunting for the next big AI winner ...

Core Viewpoint - Alphabet has transitioned from a pure growth company to a growth-and-income company, now paying a quarterly dividend with the potential for future increases, supported by strong operating performance and cash generation [2][3]. Group 1: Dividend Growth and Cash Flow - Alphabet's quarterly dividend was increased by 5% to $0.21 per share in April 2025, reflecting confidence in long-term cash generation [5]. - In Q2 2025, Alphabet reported a revenue increase of 14% to $96.4 billion and earnings per share rose 22% to $2.31, with trailing-12-month free cash flow at approximately $66.7 billion, sufficient to cover dividends and ongoing investments [6]. Group 2: Capital Return Strategy - Alphabet combines its dividend with significant share repurchases, with an additional $70 billion authorized for buybacks in April 2025 [9]. - In Q2, the company returned $15.8 billion to shareholders, comprising about $13.3 billion in repurchases and $2.5 billion in dividends, while maintaining a strong cash position of $95.1 billion [9]. Group 3: Growth Engines - Google Services revenue grew 12% to $82.5 billion in Q2, driven by gains in Search and YouTube, while Google Cloud revenue surged 32% to $13.6 billion, with operating income rising to $2.8 billion [10]. - The expansion of Alphabet's Cloud business enhances its overall capacity for cash returns, complementing its established services business [10]. Group 4: Future Outlook - Despite some pressures on cash flows and potential impacts on margins due to heavy AI infrastructure investments, Alphabet's diverse and profitable business segments provide multiple avenues for earnings and cash flow growth [12]. - The current dividend payout is conservative, supported by strong free cash flow and a low payout ratio, with a clear path for future increases as profits compound [13].

Core Viewpoint - Lululemon Athletica has faced significant challenges in 2023, with a stock decline of 56% year to date, attributed to internal missteps and external market pressures [2][3]. Group 1: Financial Performance - The company has reduced its full-year earnings per share guidance from a range of $14.58 to $14.78 down to $12.77 to $12.97 [2]. - Comparable sales in the Americas fell by 4% in the second quarter, highlighting struggles in the U.S. market [9]. - The stock is currently trading at a forward price-to-earnings ratio of around 13, marking it as the cheapest it has ever been [16]. Group 2: Challenges Faced - The removal of the de minimis exemption on imports has impacted the company's ability to ship e-commerce orders from Canada to the U.S. without tariffs [3]. - There is a noted fashion trend away from leggings, which are a core product for Lululemon, leading to stale offerings in categories like lounge and social wear [4][6]. Group 3: Strategic Initiatives - Management acknowledges past shortcomings and plans to increase the percentage of new styles in merchandise from 23% to 35% by next spring [7]. - The company aims to accelerate its design process to reduce lead times by several months for select items [8]. Group 4: Growth Opportunities - Lululemon's international segment, particularly in China, has shown strong performance with a 25% revenue increase and 17% comparable sales growth [10][11]. - The company has opened 63 new stores in the last four quarters, bringing the total to 784, with plans for nearly 45 new openings in 2025 [12][13]. Group 5: Historical Resilience - Lululemon has previously faced significant downturns, such as an 80% drop during the financial crisis and a nearly 50% loss after a product recall in 2014, but has managed to recover and reach new highs [14][15].

Core Viewpoint - Walmart's recent earnings report indicates a decline in performance, with adjusted earnings per share falling short of expectations, raising concerns about future price increases and potential challenges for the company and its shareholders [3][5][10]. Financial Performance - Walmart reported fiscal Q2 revenue of $177.4 billion, exceeding analysts' expectations of $176.2 billion, but adjusted earnings per share were $0.68, below the projected $0.74 [5]. - The company's sales increased by approximately 5% year over year, while operating income declined by over 8% to $7.3 billion [8]. Tariff Impact - The impact of tariffs on Walmart's customers has been described as "somewhat muted," but rising costs are expected to continue affecting the company [6][7]. - CEO Doug McMillon acknowledged that costs are increasing weekly as inventory is replenished at post-tariff price levels, which may lead to further price hikes [7]. Stock Valuation and Market Position - Walmart's stock is trading at a high price-to-earnings multiple of 38, compared to the S&P 500 average of 25, indicating elevated investor expectations [9]. - The stock has nearly doubled since 2024, driven by a shift towards safe-haven investments amid macroeconomic concerns [9]. Long-term Outlook - Despite short-term challenges, Walmart is viewed as a solid long-term investment due to its strong fundamentals and growth opportunities in e-commerce and advertising [10][12]. - However, potential price hikes could lead to reduced discretionary spending by customers, impacting the company's performance in the near term [11].

Core Viewpoint - Alphabet has recently experienced a significant surge in its stock price following a favorable ruling in its antitrust case, which has alleviated market concerns about its monopoly status and potential revenue impacts [2][4][5]. Group 1: Antitrust Case Developments - A federal judge ruled that Alphabet holds a monopoly in internet search but allowed the company to retain its Chrome browser, which is crucial for its advertising revenue [4][5]. - The ruling prohibits Alphabet from entering into exclusive distribution agreements that would make it the default search engine for third-party developers, impacting its market strategy [5]. Group 2: Financial Performance - Following the ruling, Alphabet's shares surged nearly 10% in one day, reflecting strong market confidence in the company's future [6]. - In Q2, Alphabet reported $71.3 billion in advertising revenue, a 10.4% increase year-over-year, and $13.6 billion in cloud revenue, which grew by 31.7% compared to the previous year [9]. Group 3: Growth Potential - Alphabet's AI initiatives have led to over 2 billion monthly active users for its AI overviews, driving a 10% increase in search volume for relevant queries [8]. - The company has doubled the number of deals worth $250 million for its AI products compared to the same period last year, indicating strong growth in its AI business [10]. - Alphabet is well-positioned in various markets, including streaming through YouTube and autonomous vehicles, which could provide significant long-term growth opportunities [11].

Nvidia faces growing competition in the market for artificial intelligence chips, but that isn't the company's greatest threat.In 2023, Nvidia's (NVDA 3.91%) H100 graphics processing unit (GPU) for the data center was the world's most popular artificial intelligence (AI) chip, granting the company a staggering 98% market share. Nvidia still has an edge over every other chip maker, but some of its biggest customers are now also buying AI chips from Advanced Micro Devices and Broadcom, which are quickly catch ...

Core Viewpoint - The Vanguard S&P 500 ETF is a viable investment option for those looking to capitalize on the performance of significant companies driving the economy, particularly as it has shown resilience and potential for growth in the coming years [1][11]. Group 1: Market Performance - The S&P 500 has experienced volatility in 2023, initially starting strong but facing declines due to tariff concerns, before recovering and achieving record highs with a 10% increase year-to-date [2][3]. - The index has a long-term average annual return of 10% since its inception in the late 1950s, indicating a strong historical performance for investors [8]. Group 2: Investment Strategy - Investing in ETFs like the Vanguard S&P 500 ETF provides instant diversification, allowing investors to gain exposure to multiple stocks with a single purchase, which can help mitigate risks associated with individual stocks [5][9]. - The Vanguard S&P 500 ETF has a low expense ratio of 0.03%, making it an attractive option for cost-conscious investors [7]. Group 3: Future Outlook - Potential catalysts for the Vanguard S&P 500 ETF in 2025 include Federal Reserve interest rate decisions, U.S. tariff policies, and upcoming earnings reports, which could influence market movements [10]. - Historical trends suggest that any dips in the ETF present buying opportunities, reinforcing the notion that it is a solid long-term investment choice [11].