Dear Reader,

Your AI stock trading demo just went live – here's your viewing link.

It comes direct from one of America's top AI experts – Keith Kaplan.

Keith predicted the 2020 crash with eery accuracy. More than 100,000 folks use the tools he's pioneered. And he's spent $17 million building some of the most advanced AI models around.

Today, he's agreed to publicly demo a brand-new breakthrough, which he says could help you make more than 10X your money – without guesswork or speculating on which AI stock will soar next.

In fact, join Keith for this free demo today and you'll discover:

⇒ How some insiders are using AI to make millions of dollars faster than ever before – and how to follow in their footsteps.

⇒ Why the next phase of the AI market could be a "bloodbath" for millions (and which stocks you need to own to be on the right side of history).

⇒ PLUS: The one move every American can make today to potentially see 1,000% returns using AI, starting with just one trading day a month.

See how to try it out for yourself right here.

Best,

Allison Isla
Publisher, TradeSmith

Abercrombie’s Comeback Is a Work in Progress

Written by Peter Frank. Originally Published: 8/13/2026.

Abercrombie & Fitch (NYSE: ANF) has spent the past decade rewriting its story in American retail. Mostly written off by investors in the mid-2010s, the company has transformed itself from a fading mall brand that teenagers had outgrown into a closely watched turnaround. Powered by its popular Hollister sub-brand, Abercrombie posted 14 consecutive quarters of sales growth and once again became a favorite among investors, peaking dramatically in 2024.

Now, the story is less clear. After a punishing stock slide in the first five months of this year, the retailer’s stock is back up more than 50% over the past three months. Its business continues to expand, but pressures are beginning to surface.

Small Colorado Company (Backed by Sam Altman) Could Save U.S. Power Grid (Ad)

A small Colorado company has secured rights to technology that could prevent the U.S. public power grid from collapsing — and billionaire Sam Altman is now an investor.

This under-the-radar firm is drawing serious attention from those watching the energy infrastructure space closely.

Click here to learn this company's name for free today

The question for investors now is whether Abercrombie has already delivered its best performance or whether meaningful upside remains.

First-Quarter Growth Masks Softer Trends

The first-quarter report was mixed, though it still amounted to a beat. Net sales rose 1.5% year-over-year to $1.1 billion, marking the company’s 14th consecutive quarter of growth and a record for the period. Diluted earnings per share came in at $1.47, ahead of analysts’ expectations.

Investors initially cheered, but the underlying trend was softer than it first appeared. Comparable sales slipped 1%, and operating margin narrowed to 8% from 9.3% a year earlier. The company attributed some of the decline to higher marketing spending and costs related to the rollout of a new enterprise resource planning system.

Geographically, this international retailer told an even more interesting story. The Americas, the company’s largest market, grew sales by 3%, while the Asia-Pacific region surged 24%.

However, EMEA sales fell 10% as regional conflict in the Middle East weighed on demand, particularly for the youth-focused Hollister brand in the Middle East and Europe. This sales split is worth watching because the American brand is no longer a domestic story and is clearly affected by overseas volatility.

Hollister Remains the Key Growth Engine

The quarter’s results show just how quickly disruptions can affect performance. For full-year fiscal 2025, the picture looked strong. Abercrombie topped $5 billion in annual net sales for the first time in company history, reporting revenue of $5.3 billion, up 6%. Comparable sales rose 3% during the year.

Hollister was the real engine last year, posting its best year ever with 15% revenue growth. The flagship Abercrombie brand actually declined 1%, signaling just how much this remains a two-brand company, with one brand carrying the other.

For fiscal 2026, guidance calls for net sales growth of 3% to 5%, an operating margin of 12% to 12.5% and earnings per share of $10.20 to $11. Management also expects to complete roughly $450 million in additional buybacks.

Profitability Pressures Add to the Risks

That was the good news. None of it, though, erases the risks.

The most glaring concern is what the flagship Abercrombie brand’s ongoing weakness says about the future of Hollister’s momentum, particularly because fashion retail is decidedly fickle.

Although net sales for 2025 were promising, the company also showed some weakness further down the income statement.

Full-year operating income slid about 5.7%, and operating margin came in at 13.3% on a reported basis, down from 15% the prior year. Diluted earnings per share reached $10.46, marking the second straight year above $10, but declined from $10.69 the year before.

In the first quarter, although net income surpassed expectations, earnings of $1.47 per share were down from $1.59 a year earlier, while operating income fell to $88.8 million from $101.5 million.

Competition and China Add More Uncertainty

Competition is also intensifying, from American Eagle Outfitters (NYSE: AEO), Gap (NYSE: GAP) and Urban Outfitters (NASDAQ: URBN) to fast-fashion players such as Zara and H&M, which respond to trends more quickly and at lower prices.

There is fresh corporate uncertainty as well. A report surfaced in early August that Abercrombie was exploring options for its China business, including possibly bringing in local partners or selling a stake valued at several hundred million dollars. The deliberations were still described as being in the early stages.

Analysts Remain Cautiously Optimistic

Despite the mixed signals, analysts remain generally optimistic, though not particularly enthusiastic.

The stock carries a consensus rating of Moderate Buy from 13 analysts, including eight Buy ratings and five Holds. The 12-month price target is $117.55.

Overall, the target-price range runs from a high of $136 to a low of $87.

Abercrombie does not currently pay a dividend, but management has been aggressive in returning cash to shareholders.

The company repurchased $450 million of stock in fiscal 2025, retiring about 11% of its outstanding shares, and followed that with another $105 million in buybacks during the first quarter of fiscal 2026.

Next Earnings Report Could Be Pivotal

Putting the pieces together, Abercrombie remains a legitimately interesting, if unglamorous, story for investors interested in mall-retail brands that have successfully refreshed their image.

However, softening comparable sales, margin compression and EMEA weakness should remain on investors’ radar.

Still, the company’s next earnings report could reveal a great deal about its trajectory. The test is whether Hollister’s momentum last year can offset some of Abercrombie’s brand softness and whether younger generations still consider Abercrombie’s offerings among the latest trends.

4 Oil and Gas ETF Plays as Prices Stay Sky-High

Written by Nathan Reiff. Originally Published: 8/6/2026.

After six months of war in Iran and a long series of mixed signals about when the conflict might end, the oil market appears to be shrugging off some of its usual price drivers. At the same time, with the U.S. Petroleum Reserve at its lowest level in decades and a shortage of refinery capacity, there are plenty of reasons investors might expect oil and gas prices to remain high for the foreseeable future, even as the Trump administration will likely try to bring them down ahead of November's midterm elections.

The oil and gas industry is far from a monolith, though, and just because crude oil or gasoline prices are high does not mean that every investment in the space is equal. Refineries have seen major gains, for example, as crack spreads have reached record levels. To gain the broadest possible exposure to the industry, investors may turn to exchange-traded funds (ETFs). Even then, however, there are plenty of options to choose from, each with a different approach.

Gasoline Futures Have Shot Upward, but There Are Risks as Well

Small Colorado Company (Backed by Sam Altman) Could Save U.S. Power Grid (Ad)

A small Colorado company has secured rights to technology that could prevent the U.S. public power grid from collapsing — and billionaire Sam Altman is now an investor.

This under-the-radar firm is drawing serious attention from those watching the energy infrastructure space closely.

Click here to learn this company's name for free today

One of the most basic ways to access the energy sector is through a commodity fund focused on crude oil or gasoline. The United States Gasoline Fund (NYSEARCA: UGA) is just that: It charges investors an annual fee of 1.08% to participate in a commodity pool that holds gasoline futures contracts designed to mimic daily gasoline price movements.

With average gasoline prices nationwide approaching a full dollar per gallon higher in late July than they were a year ago, UGA has similarly surged. The fund has returned about 80% year to date (YTD).

Still, investors seeking to benefit from rising pump prices should consider several factors. First, UGA's use of futures makes it subject to contango risk, so the fund's greatest appeal may be for investors with a shorter-term horizon. However, the fund's average trading volume does not support highly liquid trading. In addition, gasoline prices are not a proxy for the broader crude oil market, nor are they guaranteed to match the spot price of gasoline because of the futures market's structure. Despite the fund's significant gains this year, these risks may dissuade some investors.

A Layered Options Play on an Oil Commodity Fund

The Defiance Oil Enhanced Options Income ETF (NASDAQ: USOY) can be viewed as a variation on a commodity fund like UGA, although this ETF uses an oil fund as its foundation rather than a gasoline fund. With a high annual fee of 1.12%, USOY provides indirect exposure to the United States Oil Fund LP (NYSEARCA: USO) while also using at-the-money put selling to generate income.

Layering an options strategy on top of a commodity fund adds complexity and risk, but USOY has delivered on its distribution goals, if not necessarily on share price appreciation this year. The fund's 61% dividend yield has provided substantial income, although USOY remains highly niche and has a very modest asset base.

3x Leverage for Short-Term Bets

Those willing to take on an even greater degree of risk might consider a fund like the MicroSectors Oil & Gas Exp. & Prod. 3x Leveraged ETN (NYSEARCA: OILU). OILU takes the common energy ETF approach of targeting large companies engaged in oil and gas exploration and production as a proxy for crude oil prices, then adds aggressive leverage to amplify returns, either positively or negatively.

Any leveraged fund requires caution, and a 3x fund in particular can amplify returns in a highly risky way for investors unprepared for this gamble. Like all leveraged funds, OILU is designed for short-term trading only. It serves as a tactical tool for investors seeking to maximize performance when they believe oil and gas producers' share prices will rise in a single day.

Even as the back-and-forth between cease-fire negotiations and renewed fighting in Iran has fatigued the market, geopolitical developments could still sway these prices. Investors willing to try to time those developments may be able to notch some wins here.

A Traditional Equities Approach With a Niche Sub-Industry Strategy

For many investors, a standard equities-focused fund still feels like the most secure bet. The Invesco Oil & Gas Services ETF (NYSEARCA: PXJ) focuses on around 30 U.S. companies in the oil and gas production, processing and distribution businesses. Similar in approach to OILU but without the leverage, PXJ may be the fund on this list most likely to appeal to buy-and-hold investors.

Still, the ETF's focus on oil and gas services companies leaves out some of the biggest players in the energy sector and makes it a more narrowly targeted strategy. Its value, then, is maximized for investors expecting bottlenecks in the energy services subindustry as the broader sector adapts to shifting conditions. For an annual fee of 0.63%, the fund has returned a healthy 47% YTD.