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The American Federation of Teachers, a union representing some 1.8 million members, has said that the U.S. Department of Education is denying student loan borrowers their legally required rights to affordable repayment plans and loan forgiveness programs. 
According to court records from mid-August, more than 1.3 million borrowers are stuck in a backlog of IDR plan applications. Meanwhile, 72,730 people are waiting for a determination on their PSLF status.

American Federation of Teachers President Randi Weingarten speaks to the audience at the annual convention of the American Federation of Teachers Friday, July 13, 2018 at the David L. Lawrence Convention Center in Pittsburgh, Pennsylvania.
Jeff Swensen | Getty Images

The American Federation of Teachers filed a class action complaint earlier this month against the Trump administration, related to its student loan policies.
AFT, a teacher’s union representing some 1.8 million members, has said that the U.S. Department of Education is denying student loan borrowers their legally required rights to affordable repayment plans and loan forgiveness programs. The class action effort is part of an amendment to AFT’s initial legal action against the Trump administration in March, also over the government’s actions impacting student loan borrowers.

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The programs AFT is accusing Trump officials of denying borrowers access to include income-driven repayment plans, or IDRs, which tie a borrower’s monthly bill to their income and lead to debt cancellation after a certain period, and Public Service Loan Forgiveness, or PSLF, which cancels the debt of public servants and certain nonprofit workers after a decade of payments.
“The Department’s decision to withhold IDR and PSLF benefits is actively harming borrowers,” the AFT filing reads.
The U.S. Department of Education did not respond to requests for comment.

Class action after government data on backlog

As part of the AFT’s initial legal challenge, the Education Department has regularly shared data on the high number of borrowers waiting to access IDR plans and PSLF.

According to court records from mid-August, more than a million borrowers are stuck in a backlog of IDR plan applications. Meanwhile, 72,730 people are waiting for a determination on their PSLF status.
“The backlog provides evidence that the U.S. Department of Education is not adequately fulfilling the statutory requirements” to offer those relief programs, said higher education expert Mark Kantrowitz.

The AFT’s amended complaint seeking class action status includes several student loan borrowers who’ve been impacted by the Trump-era changes.
One plaintiff owes around $198,000 in federal student loan debt, according to the AFT filing. The woman has been in repayment for more than 25 years and “has been eligible to have her loans cancelled through the IDR program since May 2025,” the filing said, “but the Department has not cancelled her loans.”
Another plaintiff, who owes around $756,000 in student debt, has been eligible for debt forgiveness since around February but is yet to get the relief, according to the filing.
By the end of July, more than 1.3 million applications for an IDR plan remained pending, according to the legal challenge, while the Education Department has been processing only around 87,823 applications per month.
“At this rate, borrowers may have to wait years to receive the benefits that Congress directed should be provided to them,” the AFT filing reads.

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The Federal Reserve is expected to cut interest rates when it concludes its meeting on Wednesday. 
Many types of consumer products will be impacted once the Fed starts trimming its benchmark.
Here’s how you can position yourself to benefit.

The Federal Reserve is widely expected to lower its benchmark rate when it meets this week, despite the latest hotter-than-expected inflation data.
The market is now pricing in a 96% chance of a 25 basis-point rate cut this month, according to the CME Fedwatch tool.

“The betting is currently that the Fed will embark on rate cutting, concerned about burgeoning downside risks in the economy, and the job market, in particular,” Mark Hamrick, Bankrate’s senior economic analyst, said in an email.
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For Americans struggling to keep up with sky-high interest charges, a likely September rate cut could bring some welcome relief.
The federal funds rate, which is set by the U.S. central bank, is the interest rate at which banks borrow and lend to one another overnight. Although that’s not the rate consumers pay, the Fed’s moves still affect the rates they see every day.
From credit cards to car payments and the interest on your savings account, here’s a breakdown of what to expect when the Fed starts trimming its benchmark — and what you can do now to be in a better position to benefit.

1. Pay down high-interest debt

“Rate cuts are welcome news for Americans with debt, but one small reduction won’t make much difference when bills come due,” said Matt Schulz, LendingTree’s chief credit analyst. 
With a rate cut, the prime rate lowers, too, and the interest rates on variable-rate debt — most notably credit cards — are likely to follow. But even then, APRs will only ease off extremely high levels.
“Borrowers should get some relief in the coming months, although it’s worth pointing out that interest rates are still elevated,” said Ted Rossman, Bankrate’s senior industry analyst. “Especially credit cards, which carry an average rate of 20.13%.”
That means that if the central bank cuts rates by a quarter point, it won’t have a significant impact on your credit card rate. “Existing borrowers could see their rates go down by half a point or so,” Rossman said.

Rather than wait for a small adjustment in the months ahead, borrowers could switch now to a zero-interest balance transfer credit card or consolidate and pay off high-interest credit cards with a personal loan, experts often say.
“For people who have high-interest debt — credit cards or double-digit interest on car loans — that is the priority, you want to target that as much as possible,” said Stephen Kates, a certified financial planner and financial analyst at Bankrate.
Although auto loan rates are fixed for the life of the loan, ballooning payments have become another pain point for consumers. Experts say many car shoppers could benefit from paying down revolving debt and improving their credit scores, which could pave the way to even better loan terms in the future.

2. Put your savings to work

Since rates on online savings accounts, money market accounts and certificates of deposit are also poised to go down with a Fed rate cut, experts say this is the time to secure some of the best returns available.
“Many high-yield savings accounts and CDs currently offer rates over 4% — more than 10 times the national average,” said Swati Bhatia, head of retail banking at Santander Bank. 
Even once the Fed lowers interest rates, savers can still benefit from those competitive rates, especially with a CD, which allows them to lock in a higher interest rate for a set term, she said.

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A typical saver with about $8,000 in a checking or savings account could earn an additional $320 a year by moving that money into a CD or high-yield account that earns an interest rate of 4% or more, according to a recent survey by Santander Bank.
Still, many Americans keep their savings in traditional accounts, Santander found, which FDIC data shows are currently paying 0.39%, on average.

3. Consider making a big move

“The housing market would be the biggest beneficiary of lower rates as they would unlock frozen sales by homeowners who are reluctant to give up the low-rate mortgages taken out in the decade following the Great Recession,” Bob Schwartz, senior economist at Oxford Economics, said in an email.
Although mortgage rates are fixed and tied to Treasury yields and the economy, they’ve already come down significantly from their peak at over 7% back in January.
The average rate for a 30-year, fixed-rate mortgage is now just under 6.3% as of Friday, according to Mortgage News Daily.

“Over the last several weeks, the consumer sentiment around mortgages has become a little healthier, we are starting to see some nice momentum,” said John Hummel, head of retail home lending at U.S. Bank.
As more potential home buyers enter the market, that frees up more inventory, Hummel added. And, “if we see some additional rate cuts, that bodes well as we get into the later half of the year.”

4. Improve your credit score

Ultimately, across virtually all consumer products, those with better credit will qualify for the best loan terms at the lowest interest rate.
Boosting your credit score largely comes down to paying your bills on time every month, keeping balances low and only applying for credit as needed, according to Tommy Lee, senior director of scores and predictive analytics at FICO.
As a general rule, keep revolving debt below 30% of available credit and “don’t go out and open 10 credit cards,” Lee said. 

You may also be able to improve your credit score by regularly checking your credit report and addressing any errors, added Schulz. “Even a single late payment on your credit report can knock 50 points or more off of your credit score, so if there’s one listed wrongly on your report, you need to get it fixed.”
That can be the difference between a “good” score, which is generally is above 670, and a “very good” score over 740, which could qualify you for the most favorable terms. (FICO scores, the most popular scoring model, range from 300 to 850.) 
“It is important for people to understand that they can have a far bigger impact on their interest rates than the Fed ever will,” Schulz said.
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The share of consumers whose rent payments are reported to credit bureaus rose to 13% in 2025, up from 11% in 2024, according to a new survey by TransUnion, one of the three major bureaus. 
“It’s a good thing that more people’s rent payments are getting reported to credit bureaus because it can really help people improve their credit,” said Matt Schulz, chief credit analyst at LendingTree. 
Here are key questions to ask yourself before you enroll in a rent reporting service, according to experts.

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Who benefits the most from rent reporting services

Rent reporting services track a user’s rent payment history and report them to one or more of the three credit bureaus: Experian, Equifax and TransUnion.
Sharing rent payment activity has shown to be beneficial for participants, especially those who are “credit invisible,” or do not have any credit history, experts say.

Those who have enrolled typically see their credit scores increase. When rent payments are included in credit reports, consumers see an average growth of 60 points to their credit score, according to a 2021 TransUnion report.
Rent reporting services can also help younger adults, as they are more likely to have short credit histories and to rent, said Schulz.

In 2025, about 18% of Gen Zers surveyed reported their rent payments to the credit bureaus, according to TransUnion’s report. While that declined from 26% in 2024, it’s still the largest share when compared to other generations. 
About 16% of millennials surveyed reported their rent activity in 2025. That’s followed by 12% of polled Gen Xers and 8% of surveyed baby boomers, according to the report.
Gen Z made up 15% of TransUnion’s 2,006 respondents. Millennials were 28% of the survey base, and Gen X, represented 30%. Baby boomers accounted for 27%.

5 questions to ask before you report your rent payments

However, not all rent reporting services work the same way, experts say. For example, while some only share on-time payments, others report late payments as well. If you fall behind, that activity could be also reflected in such tools, negatively affecting your score.
Before you enroll in a rent reporting service, consider the negative consequences or the worst-case scenario, like a job loss, said Chi Chi Wu, a senior attorney at the National Consumer Law Center.
Schulz agreed: “If you are concerned about your job, for example, and unsure if you’re going to be able to make your rent payments six months from now, maybe it’s not the best time for you to sign up.”
Ask yourself these five questions before enrolling.

1. Do you truly need it?

You might not even need to leverage rent payments to improve your credit.
For those with a thin or non-existent credit file, even a small amount of positive rent history “can have a really significant impact” to their credit, Schulz said. But if you already have a long credit history and a good score, adding another data point won’t make a significant change, he said. 
Check your credit score first and assess if reporting your rent payment activity will make a difference, said Wu.

2. What is the cost?

Some rent reporting services are free of charge, while others require a fee that can range from $6.95 to $9.95 a month, according to Apartment List. Services may also charge a one-time enrollment or setup fee that can cost from $25 to $95, the site found.
See if rent reporting would come at an additional cost to you or if your landlord covers any of the fees.

3. Does the service report to the three credit bureaus? 

Make sure that the service reports to all three of the major credit bureaus: Experian, Equifax and TransUnion.
Sometimes, rent reporting services will only share the data with one or two of the three bureaus, experts say.
That can be an issue down the line when you apply for loans or credit cards, said Schulz. If your lender checks your report from one of the bureaus that are not included in the service, then the reported data “is largely irrelevant because it won’t be seen,” he said.

4. What data does the service report? 

Some services only report on-time, in-full rent payments to credit bureaus, while others might also report late payments, experts say. But even if the servicer only reports positive history, it can be a risk, said Wu. 
Say you report rent payments for a year and then “all of a sudden the data stops,” she said. 
“Is a future landlord going to look at that and make assumptions?” Wu said.

5. What is the cancellation policy?

Cancellation policies for rent reporting services will likely differ from provider to provider, as there’s a lack of standardization, said Wu. 
Before you sign up, find out how you can cancel the service and understand what the implications are, “especially when you’re talking about something related to your credit,” said Schulz.  More

About 26.6% of trade-ins toward new car purchases had negative equity in the second quarter of 2025, according to Edmunds. That is up from 26.1% in the first quarter of the year. 
Being “underwater,” “upside down” or having negative equity on a car loan is when someone owes more on the auto loan than what the vehicle is worth.

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More drivers across the country are “underwater” or “upside down” on their auto loans — meaning they owe more money than the car is worth. That’s costing them when it comes time to buy a new car.
About 26.6% of trade-ins toward new car purchases had negative equity in the second quarter of 2025, according to Edmunds, an auto site. That figure is up slightly from 26.1% in the first quarter of the year, and the highest it’s been in the last four years, said Ivan Drury, the director of insights at Edmunds.

The last time it was higher was in the first quarter of 2021, when 31.9% of new car trade-ins were underwater, according to the report.
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Such drivers are not underwater by insignificant amounts. The average amount owed on upside-down loans in the second quarter was $6,754, down slightly from the prior quarter’s $6,880, Edmunds found.
“It’s a staggering figure to look at,” said Drury.
Drivers trading in an upside-down car will need to come up with cash to pay that balance, or roll it into their new loan, experts say.

How drivers end up ‘underwater’

To be sure, it’s not unusual to see underwater auto loans.
You may already be underwater on your loan from the moment you drive out of the dealer with the new vehicle, as cars are depreciating assets, said Brian Moody, senior staff writer at Autotrader and Kelley Blue Book.
But other choices you make, such as taking on a longer loan term or making a smaller down payment, can exacerbate the issue.

Still, lengthening an auto loan’s terms is “the one thing consumers can do to decrease costs,” said Drury.
It has gotten to the point where 84-month auto loans have become “increasingly common,” he said. In the second quarter of 2025, 84-month auto loans comprised of 21.6% of new auto loans, up from 19.2% the quarter prior, according to Edmunds data provided to CNBC.
To compare, 72-month loans were at 36.1% in the second quarter, down from 38.6% in the same timeframe, according to the data.
It isn’t a problem to have negative equity when you still own and drive the car, Moody said. It becomes an issue when you need to sell or trade it in.
Negative equity can also be problematic if your vehicle is totaled. After an accident, your insurer will typically pay the actual cash value of the car. If that’s less than what you owe on your loan, you’re responsible for the remaining cost.

How to buy a new car when you’re underwater

Keep your current vehicle if you can, experts say, to avoid having to roll that debt into a new loan or come up with cash to cover it.
If you truly need a new car, it’s important to do preliminary research before you even walk into a car dealership. If you have negative equity from a prior auto loan, rolling it over to a lower-interest car loan can help you save on borrowing costs, Drury said.
First, understand what your credit score is, said Moody. Generally speaking, the higher your score, the better the interest rate and loan terms lenders offer you.
“Knowing your credit score and knowing what interest rate you qualify for is important to know upfront,” Moody said.
Try to get pre-approved for different auto loans across several banks or lenders, said Drury. This helps you get a better gauge of the terms you can qualify for and distinguish the best offers.
Once you’re ready to buy, the auto dealer might either try to match the deals you have or offer better financing options, he said.

If you’re going to be underwater on that new loan — say, because you’re rolling in debt from your prior vehicle or taking on a long loan term — ask your auto dealer or insurer about guaranteed asset protection insurance, also known as gap insurance, said Moody.
“Gap insurance covers the difference between what the vehicle is worth, and what is owed on it” if your vehicle is in an accident, according to the Insurance Information Institute, an industry group.
In most policies, adding gap insurance alongside collision and comprehensive coverage can cost an additional $20 per year to the annual premium, according to III. More

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The latest earnings season has addressed investors’ concerns about the artificial intelligence boom, thanks to the robust growth outlook and capital spending projections of many tech companies.
Investors seeking exposure to companies that are well-positioned to capture AI-led growth can track the recommendations of top Wall Street analysts, who can help pick the stocks that can deliver attractive returns over the long term.

Here are three stocks favored by the Street’s top pros, according to TipRanks, a platform that ranks analysts based on past performance.

Broadcom

Semiconductor company Broadcom (AVGO) reported impressive fiscal third-quarter results and issued solid guidance, thanks to AI tailwinds. AVGO stock rallied following the results, as the company stated that it has secured a new $10 billion customer. 
Citing strong fundamentals, JPMorgan analyst Harlan Sur reaffirmed a buy rating on Broadcom stock and boosted the price target to $400 from $325, saying that AVGO remains a top pick in semiconductors. Likewise, TipRanks’ AI Analyst has an “outperform” rating on AVGO stock with a price target of $396.
Sur attributed Broadcom’s strong results and solid revenue outlook for the October quarter to accelerating AI demand, stabilizing non-AI semiconductors, and impressive momentum in the VMware business.
The 5-star analyst noted the 18% sequential growth in AVGO’s Q3 FY25 AI revenue, with the company guiding a 19% quarter-over-quarter growth to $6.2 billion for the fiscal fourth quarter. He added that Broadcom is on track to deliver about $20 billion in AI revenue in fiscal 2025.

Sur believes that the new customer from whom Broadcom secured orders worth $10 billion is OpenAI, considering the AI inference use case and his prior research. The analyst now expects AI revenue to increase by 125% to $45 billion in fiscal 2026, followed by a 60% increase in fiscal 2027. Sur said the strength in AVGO’s AI revenue supports his view that the company’s internally developed custom AI chips offer meaningful differentiation, efficiency and improved economics.
“Despite macro volatility, Broadcom’s diversified portfolio and product cycles support a solid revenue growth profile,” concluded Sur.  
Sur ranks No. 39 among more than 10,000 analysts tracked by TipRanks. His ratings have been profitable 67% of the time, delivering an average return of 26.1%. See Broadcom Statistics on TipRanks.

Zscaler

Next on this week’s list is Zscaler (ZS), a cybersecurity company that recently delivered strong results for the fourth quarter of fiscal 2025, driven by demand for its Zero Trust and AI security solutions.
Impressed by the Q4 FY25 print, Stifel analyst Adam Borg reiterated a buy rating on Zscaler stock and raised the price forecast to $330 from $295. Interestingly, TipRanks’ AI Analyst has a “neutral” stock on ZS stock with a price target of $298.
Borg stated that Zscaler delivered solid results, consistent with Stifel’s positive checks. He added that the company’s Q4 FY25 performance was strong across key metrics, driven by strong execution and demand for the company’s broadening Zero-Trust portfolio. Borg was particularly pleased with robust growth in billings and remaining performance obligations. Notably, RPO growth (31%) accelerated for the fourth consecutive quarter.
The 5-star analyst is optimistic about the adoption of Zscaler’s offerings across emerging areas, like AI security. Borg is also upbeat about the company’s newer solutions like Z-Flex. He continues to believe that “Zscaler’s leading-portfolio helps improve an organization’s security posture, drives vendor consolidation, and reduces costs.”
Bord expects Zscaler to sustain at least high-teens top-line growth and margin expansion in the coming years, driven by multiple drivers.
Borg ranks No. 324 among more than 10,000 analysts tracked by TipRanks. His ratings have been successful 77% of the time, delivering an average return of 16.9%. See Zscaler Ownership Structure on TipRanks.

Oracle

Database software maker and cloud infrastructure company Oracle (ORCL) saw its stock spike this week, as the company’s robust cloud growth projections overshadowed its Q1 earnings miss. The company surprised the market by reporting a 359% year-over-year growth in its remaining performance obligations, a measure of contracted revenue, to $455 billion.
Oracle’s robust outlook made Jefferies analyst Brent Thill increase his price target to $360 from $270 while reiterating a buy rating on the stock. TipRanks’ AI Analyst also has an “outperform” rating on ORCL stock with a price target of $264.
“RPO stole the show in F1Q,” stated Thill. The 5-star analyst added that Oracle’s Q1 RPO crushed estimates and reinforced his confidence in the company’s narrative about acceleration in its growth.
Thill highlighted that Oracle added $317 billion sequentially in RPO, nearly five times the fiscal 2026 total revenue estimate of $67 billion, which supports growing AI optimism. He noted that this massive growth can be mainly attributed to four multi-billion-dollar contracts across three customers, with more such deals expected to close soon and drive RPO beyond $500 billion.
The analyst also pointed out that the Oracle Cloud Infrastructure (OCI) business is expected to grow by 77% to $18 billion in fiscal 2026 and then jump to $144 billion by fiscal 2030. Thill added that this impressive growth forecast indicates the rising demand for AI inference and training workloads, which management sees as a massive total addressable market that the company can capture.
Additionally, Thill mentioned the impressive surge in Oracle’s multicloud database revenue, though off smaller numbers, suggesting rapid adoption of the company’s multicloud strategy. In fact, Oracle now expects notable growth in multicloud revenue every quarter for the next several years while expanding to 71 (net addition of 37) data centers across hyperscaler peers.
Thill ranks No. 128 among more than 10,000 analysts tracked by TipRanks. His ratings have been successful 67% of the time, delivering an average return of 14.9%. See Oracle Insider Trading Activity on TipRanks.

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Company: Performance Food Group (PFGC)
Business: Performance Food Group is a food and foodservice distribution company that operates through three segments: foodservice, specialty (formerly “Vistar”), and convenience. Its foodservice segment distributes a line of national brands, customer brands, and its proprietary-branded food and food-related products to independent and multi-unit chain restaurants and other institutions. Its specialty segment specializes in distributing candy, snacks, beverages, and other items nationally to vending, office coffee service, theater, retail, hospitality, and other channels. Its convenience segment distributes candy, snacks, beverages, cigarettes, other tobacco products, food and foodservice related products and other items to convenience stores across North America. It markets and distributes over 250,000 food and food-related products to customers across the United States from about 144 distribution facilities to over 300,000 customer locations in the food-away-from-home industry.
Stock Market Value: $16.34 billion ($104.40 per share)

Stock chart icon

Performance Food Group shares year to date

Activist: Sachem Head Capital Management

Percentage ownership: ~2 – 4%
Average Cost: n/a
Activist Commentary: Sachem Head was founded in 2013 by Scott Ferguson, the first investment professional hired at Pershing Square, where he worked for nine years. Sachem Head has a history of solid value investing, but we believe that they really found their activist stride in 2020 with their investment in Olin. Scott Ferguson took a board seat at Olin – the first public company board seat he took in an investment that was not part of a group – and created tremendous value there. More recently, after nominating a majority director slate, Sachem Head settled for three board seats at US Foods, and most recently settled for a board seat at Twilio in April 2024. Taking board seats signifies both commitment and contribution and this philosophy and style is really paying off for Sachem Head.
What’s happening
On Aug. 21, Sachem Head delivered a nomination notice for the following four candidates to stand for election to Performance Food Group’s Board at the 2025 Annual Meeting: Scott D. Ferguson, David A. Toy, R. Chris Kreidler and Karen M. King. Additionally, Sachem Head has urged the company to explore a potential business combination with US Foods and, absent a transaction, further improve margins.
Behind the scenes
Performance Food Group is the third largest foodservice distribution company in North America, behind Sysco and US Foods, which all together command approximately 38% market share. The company operates through three segments. The core foodservice segment (61.8% of EBITDA) distributes national, customer, and proprietary-branded food and food-related products. Convenience (20.6%) distributes candy, snacks, beverages, cigarettes, and other tobacco products to convenience stores. Specialty (17.61%) distributes candy, snacks, beverages and other items to specialty vendors.

On Aug. 21, Sachem Head delivered a nomination notice for the following four candidates to stand for election to PFG’s board at the 2025 Annual Meeting: Scott D. Ferguson (founder and managing partner of Sachem Head), David A. Toy, R. Chris Kreidler and Karen M. King.
Additionally, Sachem Head has urged PFG to explore a potential business combination with US Foods and, absent a transaction, further improve margins.
Ferguson and Toy previously served together on the US Foods board as part of a Sachem Head Cooperation Agreement. At US Foods, Sachem Head helped install a new CEO and management team, which catalyzed a successful turnaround for the company. Since Sachem Head filed its 13D at US Foods, the company’s stock has more than doubled.
The other two candidates have just as much experience: Kreidler was the CFO for Sysco for six years and King is an executive vice president at McDonald’s and serves on the Aramark board. This is an all-star team of nominees that are well positioned to navigate PFG through operational improvements and a strategic evaluation.
While there is an opportunity to improve operating margins at the company, the main catalyst here is the merger with US Foods. The potential synergies that could be attained in such a combination make it very hard to ignore. These synergies are evident from another proposed industry consolidation, Sysco’s 2013 attempt to merge with US Foods. Publicly, this deal was projected to deliver annual synergies of at least $600 million within three to four years relative to US Foods’ $826 million of EBITDA at the time. In other words, the projected synergies represented more than 70% of US Foods’ EBITDA, and the numbers that were thrown around privately were even larger. This is an extraordinary figure, and largely unique to the food distribution landscape and the amount of purchasing, logistics and warehouse rationalization synergies that these companies have. Extrapolating these numbers to a US Foods/PFG merger and applying similar levels of synergies using the EBITDA of PFG’s foodservice segment ($1.2 billion), which holds most of the synergistic potential, a merger could be expected to yield $800 million to upwards of $1 billion in synergies. Moreover, if there is anyone who could validate this analysis, it would be Sachem director nominee Chris Kreidler, who was the CFO of Sysco at the time.
However, the Sysco/US Foods deal was ultimately blocked by the Federal Trade Commission due to antitrust concerns centered around a merger of #1 and #2 that would eliminate Sysco’s only national competitor. There are a few reasons why a merger between US Food and Performance Food Group may have a different outcome. First, this would be a merger of the second and third largest players, rather than first and second; and unlike Sysco, PFG is not a national competitor, with little to no footprint on the West Coast. Additionally, today’s regulatory environment under the Trump administration is significantly more favorable than it was when the Sysco deal was reviewed under the Obama administration. While any approved deal would likely require divestitures in certain markets and there is no guarantee of an approval, with potential synergies like this, the Board owes it to its shareholders to at least explore the possibility of a US Food merger. And that is all Sachem Head is asking. They are not forcing the company to sell but rather pleading with them to evaluate this potentially lucrative opportunity that has been brought to them.
In July 2025, US Foods confirmed in an 8-K filing that they had approached PFG about a potential combination. But it takes two to tango and, so far, PFG has not meaningfully engaged with them. Given this current sentiment, sincere consideration of this transaction appears unlikely to occur without asserting a little pressure on the board, and Sachem Head is doing that in the form of a threatened proxy fight that they would have an excellent chance of winning. Not only are proxy fights about the power of the argument, and Sachem Head has a great one here, but the company’s shareholder base contains many alternative asset managers that are more likely to support an activist agenda like this than the traditional index funds. These shareholders have a history of being receptive to good activist campaigns and the potential upside this plan could deliver and would also be impressed by the strong slate Sachem Head is nominating should be enough for them to hear the fund out.
Moreover, there is speculation that even prior to Sachem Head’s engagement, changes in the C-Suite were imminent. For more than 17 years, the company has been run by CEO George Holm, a widely respected industry leader. Now, it has been rumored that Holm will soon step down, likely to be replaced by the company’s President Scott E. McPherson. A CEO transition like this creates the perfect time for a strategic transaction for everyone involved, except maybe McPherson. When two companies of similar size merge in a merger of equals, valuation is often the easy part. It is the social issues that are often the dealbreakers. And that dynamic could be exacerbated when the merger is proposed just as the sitting president is finally getting the call up to CEO. However, McPherson hasn’t been a PFG lifer and has only been with the company for a year and a half, so the social issues surrounding leadership of the surviving entity should be achievable.
Boards and their advisors and certain shareholders often viscerally oppose any type of “sell the company” activism, and often for good reason. Often, we are the biggest critics of that type of short-term activism that gives the future value creation to a private equity fund or a strategic acquirer instead of the shareholders. But a “merge the companies” thesis is different, especially when there are such compelling synergies that create value for all shareholders. A transaction between players of this size would have to come primarily in the form of a stock-based combination, which would allow PFG and US Foods shareholders to participate in the long-term value creation that would arise from the merger.
We expect that an experienced activist like Sachem Head will be able to convince the board of this and a great outcome for shareholders would be a settlement to add two to three directors to the board along with the establishment of a new committee focused on evaluating strategic alternatives with at least one of the new directors on that committee. That could lead to a transaction that could be a windfall for everyone involved.
But if ultimately an evaluation is done and a standalone path is determined to be the best outcome, this remains a strong company and a high return on capital business with room to improve on costs and margins around the edges – areas which Sachem Head’s directors would also be valuable.
Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist 13D investments. Performance Food Group is owned in the fund. More

ETF Strategist

ETF Street
ETF Strategist

ETFs brought in $540 billion in new money during the first half of 2025, which surpassed total inflows for the same period in 2024, according to Morningstar.
But “convenience can also breed complacency,” said certified financial planner Jon Ulin, managing principal of Ulin & Co. Wealth Management.
Many investors are vulnerable to big ETF mistakes, which threaten financial goals, experts say.

Businessman working in the office
Pixelfit | E+ | Getty Images

Demand for exchange-traded funds continues to grow as investors seek lower-cost, tax-friendly options to meet their financial goals. But missteps can happen, experts say.   
ETFs brought in $540 billion in new money during the first half of 2025, which exceeded total inflows for the same period in 2024, according to Morningstar. Meanwhile, companies have launched 464 new ETFs through June, which could pass the 2024 record of more than 700.

“The rise of ETFs has been great for investors, but convenience can also breed complacency,” said certified financial planner Jon Ulin, managing principal of Ulin & Co. Wealth Management in Boca Raton, Florida.
“The biggest mistakes” aren’t about the products, but how investors use them, he said.

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Here’s a look at other stories offering insight on ETFs for investors.

Here are some pitfalls to know before pouring money into new ETFs, experts say. 

Investors should ‘look under the hood’

Some investors assume all ETFs are the same, without considering the underlying assets, according to Jared Gagne, a CFP with Claro Advisors in Boston. 
For example, some ETFs track broad indexes, like the S&P 500, while others, such as sector funds, invest in a specific industry or part of the economy, he said. Others could include thematic ETFs, focusing on themes or trends, or leveraged ETFs, with derivatives that amplify profits and losses.   

“If you don’t look under the hood, you may think you’re buying a diversified fund when in reality you’ve bought something extremely narrow and risky,” Gagne said.

‘Chasing performance’ can be costly

Like any investment, your ETF picks should match your risk tolerance, goals and timeline, experts say.
But a common mistake is “chasing performance” based on past returns, which may not continue, according to CFP Michael Lofley with HBKS Wealth Advisors in Stuart, Florida. He is also a certified public accountant.
Ulin said many investors “rush into buzzworthy ETFs” like bitcoin, cannabis or clean energy after seeing a rally. But “these funds can fall just as quickly as they rose,” he said.

You can ‘erode returns’ with frequent trading

One of the benefits of ETFs is the ability to buy and sell the assets throughout the day, similar to a stock. But some investors trade too often, Gagne said.
“The beauty of ETFs is low cost and tax efficiency, but investors often treat them like trading vehicles instead of long-term building blocks,” he said. “That behavior can quietly erode returns.” 
Over the past 10 years through 2024, investors in U.S. open-end funds and ETFs hurt returns by trading, according to a Morningstar report released in August.   
On average, these investors earned 7%, which was less than the funds’ 8.2% aggregate annual total return. That 1.2 percentage point “investor return gap” was due to poorly timed buying and selling, the report found. More

Due to lingering inflation and uncertainty around tariffs, consumers are concerned that holiday gifts will be more expensive this year, several reports show.
As a result, many shoppers plan to get a jump on the season.

Holiday decorations on display at a Costco in Princeton, N.J.
Jessica Dickler | CNBC

It’s barely the start of fall and yet, by some measures, the holiday season is in full swing.
Seasonal décor items — including pre-lit Christmas trees, wreaths, wrapping paper and a popular nativity set — are already on display at my local Costco, near Princeton, N.J., with some items even starting to sell out, according to sales associates.

Consumers began shopping for the holiday season as early as July this year, hoping to make the most of sales events such as Amazon Prime Day, said Brian McCarthy, a principal at Deloitte Consulting.
Nervousness about higher prices was a motivating factor, he said.
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Between lingering inflation and President Donald Trump’s tariff agenda, “consumers are more concerned about their economic outlook,” McCarthy said.
According to Deloitte’s recent holiday retail survey, retail sales will rise again this year, but at a slower pace compared to 2024.

Holiday shoppers are expected to spend $1.61 trillion to $1.62 trillion between November and January, up about 3% from last year, according to Deloitte’s report. The year before, holiday sales grew by 4.2%.
However, this year’s holiday sales will get an extra boost from e-commerce, which is projected to grow between 7% and 9% year-over-year during the 2025-26 holiday season, Deloitte’s survey also found.
“We expect this holiday season to demonstrate the resiliency of consumers as they continue to face economic uncertainty,” Natalie Martini, Deloitte’s vice chair and U.S. retail and consumer products leader, said in a statement.

Fears of higher prices over the holidays

Yet, heading into the holiday shopping season, 41% of consumers are concerned that gifts will be more expensive this year and 30% said they expect to spend less this holiday than they did last year, according to a separate report by Bankrate.
On average, consumers plan to spend about $1,552 on holiday gifts, travel and entertainment — a 5% drop from the planned holiday spending average in the year-ago period, according to another survey by consulting firm PwC.

Nearly half of shoppers, or 49%, have already begun or plan to begin shopping before Oct. 31, according to Bankrate’s survey, which polled more than 2,500 adults in July.
But for those who aren’t in the holiday spirit just yet, prices near the peak season may not be as high as previously thought.
“Retailers will have to offer discounts to get deal-conscious consumers to spend, and we should see the best deals roll out starting in early October and continue through Christmas,” said Ted Rossman, Bankrate’s senior industry analyst.

The impact of tariffs on holiday gifts

“The impact of tariffs for the upcoming holiday season is already baked in because for the most part, retailers have already acquired the items they are going to be putting on the shelves for the holiday season or they are already in transit,” said Marbue Brown, a consumer trends analyst and author of “Blueprint for Customer Obsession.” 

According to Deloitte’s McCarthy, many retail buyers placed their holiday orders earlier than usual this year, which can make it harder to manage inventory but helps guard against price shocks.
Tariff delays also “allowed a lot of retailers to get holiday merchandise in early at pre-tariff pricing,” Rossman said. As a result, “the holiday season could largely be insulated from tariff price hikes.”
At my local Costco in New Jersey, an artificial 7.5-foot, pre-lit Christmas tree is currently priced at $459.99, in line with last year. 
At least for now, “retailers are absorbing more of the hit than expected, although this might not last forever,” Rossman said.
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