Commodity Channel Index
|Bid||326.25 x 900|
|Ask||326.79 x 1300|
|Day's Range||323.11 - 327.40|
|52 Week Range||262.71 - 328.98|
|Beta (5Y Monthly)||0.68|
|PE Ratio (TTM)||39.03|
|Earnings Date||Sep 24, 2020|
|Forward Dividend & Yield||2.80 (0.86%)|
|Ex-Dividend Date||Apr 30, 2020|
|1y Target Est||324.79|
The country's leading U.S. warehouse-club operator is hitting all-time highs, and that's big news to the lucky investors who bought in at the time of its 1985 IPO.
Costco increasingly looks like one of the retail industry's big winners during the COVID-19 pandemic.
Thursday was a wild day on Wall Street, with some stocks flying and others dying. And with so much variation between sector performance, it's increasingly becoming a market of haves and have-nots. So, whether you're happy with your portfolio this week very much depends on where you have exposure. Therefore, let's take a look at three of my favorite top stock trades.The hottest sector by a long shot remains technology. However, many leaders are skirting the stratosphere and thus, offer poor entries. I'm talking Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX) and the like. What's more attractive than chasing the big boys, though, is finding stocks to buy that are just now emerging from well-established bases. The risk is lower, and they arguably have more gas in the tank than the tech giants that have already run for so many consecutive sessions. * The 7 Best Stocks to Invest in Right Now In addition to their more tempting entries, all of these selections went absolutely bananas on Thursday. That said, I love the relative strength and think it suggests more gains to come in the following names:InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Advanced Micro Devices (NASDAQ:AMD) * Costco Wholesale (NASDAQ:COST) * Roku (NASDAQ:ROKU)As usual, we'll take a closer look at their charts and offer the technical reasons why they're such compelling plays. So, let's dive in. Monster Rally Stocks to Buy: Advanced Micro Devices (AMD) Click to EnlargeSource: The thinkorswim® platform from TD Ameritrade You might think our first pick is obvious because it hales from the tech sector. But before Thursday, Advanced Micro Devices hadn't participated in the tech boom virtually at all. Not since mid-April, at least. Bears might spin its relative weakness as a negative, but I think all it's done is made the eventual breakout all the more compelling.I see a beautiful cup-and-handle pattern on the weekly time frame that is now on the cusp of completion. AMD is on every momentum traders' radar, and I guarantee they're all perking up after this week's ramp back up to resistance.If you want more confirmation, you can wait for a push above $58 to signal the resistance breach is here. Given the volume behind Thursday's rally, however, I think an upside break is inevitable.The Trade: Buy the Aug. $57.50/$62.50 bull call for around $1.75. Costco Wholesale (COST) Click to EnlargeSource: The thinkorswim® platform from TD Ameritrade The hubbub surrounding Costco's unique positioning to profit from the novel coronavirus has died down considerably in recent months. And in that time, its stock price hasn't budged. Like AMD, the silver lining of an asset treading water for months is it creates a clear trading range to build bets around.One of my favorite technical analysis phrases is "the bigger the base, the higher in space." COST stock has been hugging $305 since last September, effectively creating a year-long base that we're now breaking out of. Thursday's nearly 3% jump saw a large influx of volume, and increase the likelihood that the resistance breach could have staying power.The implied volatility rank is low, and at $326, Costco is too expensive for long calls. Thus, I think bull call spreads are the way to go here. * 7 Earnings Reports to Watch Next Week The Trade: Buy the Oct. $330/$345 call spread for around $5.60. Roku (ROKU) Click to EnlargeSource: The thinkorswim® platform from TD Ameritrade Roku rounds out our trio of stocks to buy with an epic 12% jump on Thursday. More than 25 million shares traded throughout the day, marking its highest volume day since mid-April. That said, many of the biggest gainers on Thursday were those benefiting from the global pandemic. Coronavirus cases are on the rise, and investors seem to be warming up once more to companies like Roku.Remember, more people at home means more consumers streaming shows via Roku's media devices.Additionally, what else excites me about the ROKU stock chart is that it's just now breaking out of its three-month base. Unlike Apple or Amazon, which have already rocketed into orbit, Roku shares are just now blasting off. And I think it brings the stock's all-time high of $176.55 as a realistic upside target over the coming weeks.The Trade: Buy the Sep. $150/$160 bull call spread for around $3.90.For a free trial to the best trading community on the planet and Tyler's current home, click here! At the time of this writing, Tyler held bullish positions in AMD. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post 3 Stocks to Buy That Could Continue Their Monster Rallies appeared first on InvestorPlace.
The Zacks Analyst Blog Highlights: Amazon, Walmart, Big Lots, Kroger, Costco and Shopify
Dow futures fell as Covid cases soar and the Shanghai composite ended a win streak. The coronavirus market rally has been a stock picker's paradise.
More than one million people have filed for first-time unemployment insurance for 16 weeks in a row. Bed Bath & Beyond sees a 25% selloff. But Costco bounces back with 12% sales growth in June.
2020 has been a tale of two markets, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) has definitely been the big winner. Both the Composite index and the Nasdaq 100 Index reached new highs, climbing around 0.5% and 1%, respectively, even as other market benchmarks fell. Meanwhile, Amazon.com (NASDAQ: AMZN) raced to new record heights, and while some are concerned about the nearly uninterrupted ascent for the tech giant, there are solid reasons why Amazon is doing as well as it is.
Robin Hood Foundation CEO Wes Moore joins Yahoo Finance’s Kristin Myers to discuss how the Robin Hood Foundation is launching a new initiative aimed at financing nonprofits run by people of color.
Consumer spending could take a hit this summer as federal unemployment benefits run out for millions of Americans.
Last month six S&P 500 companies said they planned to boost their dividends, against two cuts and one suspension—the first time increases outnumbered cuts since the pandemic forced widespread business lockdowns in March.
The discount retailer said comparable sales jumped 11.5% in June, well ahead of consensus, which called for just over 4% growth.
The 30-stock Dow Jones has gained as much as 5.1% since the June 26 sell-off and key test of its rising 50-day moving average.
Costco said same-store sales jumped 11.5% in June, well above the consensus estimate of +4.2%.
We all make rookie mistakes, at least sometimes. At least that's what I tell myself when I recognize one in my own actions. I have written several times now about how both Amazon and Walmart came through for me and my family during the worst of what New York went through back when that region was the epicenter of the U.
There's not much direction on Wall Street this morning despite a slight downturn in weekly jobless claims. The market continues to sputter along ahead of earnings season, and might simply keep bobbing up and down on news of the day until earnings come along to provide more of an anchor. Weekly jobless claims of 1.314 million probably won't be enough to move the needle too much. That number was slightly below analysts' average estimate and down from a revised 1.43 million a week ago, which is definitely going in the right direction. However, the drop wasn't too dramatic. Anything above one million a week was basically uncharted territory before this year.With yesterday's gains, the market's risen six of the last seven sessions, and the Nasdaq (COMP) logged its 25th record close of the year. Not too shabby, especially when you consider the gains come along with daily jumps in virus cases across the country to all-time highs. This divergence is nothing new, and neither is asking if it can last. The answer? No one knows, because the virus is so out of anyone's experience following the market.We have an earnings sighting this morning. Dow Jones Industrial Average ($DJI) component Walgreens Boots Alliance, Inc. (NYSE: WBA) reported a quarterly loss as prescription-filling lost ground. Shares dropped more than 3% in pre-market trading. Earnings per share came up short of analysts' expectations while revenue was slightly above. The Wall Street Journal noted today that the pandemic has been challenging for drugstores, with patients putting off visits to doctors and other health providers. This also could be a challenge for big pharma and medical device companies, and might be reflected in Q2 earnings across that sector.While drugstores struggled to get traffic, grocery stores continue to pack the aisles. Costco Wholesale Corporation (NASDAQ: COST) reported an 11% rise in June sales, with same-store sales up more than 14%. E-commerce results went through the roof. The COST numbers looked great. You'd expect same-store sales to be up from a year ago, but that's pretty amazing and it's a good story.The dollar has been on the decline lately, a notable exception to action in other so-called "safe haven" investments like gold and bonds, which keep moving higher. Weakness in the dollar might reflect overseas investors shying away at a time when the U.S. appears to be leading the world in a category no one wants to lead: New cases of COVID-19.What a Wednesday! Retailers, Cruise Lines Revive "Buy the dip" shows no sign of going anywhere. At least that's how it looked Wednesday, when major indices bounced back very impressively from Tuesday's sharp descent and lackluster trading in the pre-opening hours. Even the travel and retail sectors got a lift, with cruise lines showing signs of life and retailer Kohl's Corporation (NYSE: KSS) jumping 9% after receiving an analyst upgrade. The retail sector has had more than its share of problems due to COVID-19, as anyone watching this market could probably tell you. Still, there are some companies that seem to be situated a little better than others, and KSS might have advantages because its stores generally aren't located in struggling shopping malls. Also, the firm making the upgrade cited what it said was a healthy balance sheet for KSS and more than 90% of its stores being open.It's important to remember that the retail sector, more than most, represents dozens of different stories. It's far too complex to think of as one monolith responding to a single set of fundamentals. There's going to be a drumbeat of retailers filing for Chapter 11 over the coming months, but within a slew of losers there are going to be some winners. Veteran investors typically look closely at individual balance sheets in this space for a sense of who's well situated and who's not. One thing interesting about the action yesterday was that only six of the 11 S&P 500 sectors actually recorded gains, led by Info Tech (what else is new?) and Consumer Discretionary. Still, no sector really fell out of bed except Materials, which dropped nearly 1.5% despite copper hitting five-month highs on what analysts said was optimism about Chinese demand. Dow, Inc. (NYSE: DOW) was a laggard in that sector, and its 3% decline helped keep the $DJI from posting bigger gains. We've said again and again that the market remains extremely headline-driven and could stay that way into earnings season. On Wednesday, the key headline appeared to come from St. Louis Fed President James Bullard telling CNBC that he's optimistic on a recovery. U.S. unemployment will likely decline to below 8% or "maybe even 7%" by the end of the year, Bullard said, according to a Reuters report.It's apples vs. oranges from the Fed lately, because earlier this week comments from another Fed official sounded pessimistic and helped push stocks lower. Another Fed speaker, Raphael Bostic, is scheduled to speak at midday. Investors lately seem to be grabbing onto optimism wherever they can find it, which helps explain how we've come back more than 40% from the March lows. More help came yesterday from the "mega-caps" as Amazon.com, Inc. (NASDAQ: AMZN), Apple, Inc. (NASDAQ: AAPL) and Microsoft Corporation (NASDAQ: MSFT) kept chugging along.Watching the RUT for Clues The gains aren't spread evenly since March, but over the last month things have been pretty neck-and-neck between the S&P 500 Index (SPX) and the small-cap Russell 2000 (RUT), both of which are up about 5% since then. That's a good sign for anyone bullish, because a healthy RUT is often associated with broader market gains--especially for domestic stocks, which dominate the RUT. Back in May, the RUT led the SPX for a while at a time when so-called "value stocks" began to get some love from the Street. That phase didn't last too long as investors embraced cyclicals over value through most of late June. If value stocks are coming back--and the 1% gains in the beleaguered Financial sector Wednesday were a promising sign--that might be what it takes for the major indices to take another stab at their post-crisis highs above 3200. Still, one day isn't a trend. Financials remain beaten down pretty badly as they approach key bank earnings next week, and analysts anticipate a pretty abysmal Q2 reporting period for the sector. Investors should consider watching which parts of the market lead over the next few days. If Financials and small-caps continue getting a bid, maybe that's the sign of another sector shuffle taking place.CHART OF THE DAY: MOVING "RUT" ALONG: Though the small-cap Russell 2000 Index (RUT--purple line) has lost a bit of ground to the S&P 500 Index (SPX--candlestick) over the last week or so, it's mostly been keeping pace pretty well with the larger caps in the SPX. Yesterday saw the RUT post slightly better gains than the SPX, harkening back to late May when a rally in the RUT helped key a wider rally in "value" stocks. We'll have to wait and see if this continues. Data Sources: FTSE Russell, S&P Dow Jones Indices. Chart source: The thinkorswim® platform from TD Ameritrade. For illustrative purposes only. Past performance does not guarantee future results. Technically Speaking ... From a technical perspective, yesterday's action in the SPX looked pretty constructive. The SPX made its lows relatively early on, testing an area of technical support some analysts had pegged near 3130 and bouncing right back. The close well above 3150 put the SPX back on what in normal times might be a positive track.However, trading has been pretty thin lately, so you can't necessarily depend on technical indicators to provide too much direction. Basically, we've been in a relatively tight trading range between 3000 and 3150 over most of the last month, and at least up until now there hasn't really seemed to be much buying interest above that or selling interest below it. So we might stay parked here for a bit unless there's a major new catalyst. But remember: Next week, banks are set to kick off what will be a barrage of earnings releases over the next few weeks. With expectations already discounted substantially, anything positive could lead to a renewed test of the highs for SPX. But if executives were to, for example, paint a less rosy picture than what's baked in, we could certainly retest recent lows.Still in Dry Dock: By now, it's no secret that the ship has left port on that little bounce for cruise line stocks back about a month ago. Continued delays in getting back out on the high seas put the kibosh on many investors' hopes, though cruise lines remained net-buys among retail investors tracked by the June TD Ameritrade Investor Movement Index® (IMXSM). The problems for cruise lines go well beyond just getting ships in the water. These companies have to burn a lot of cash to maintain their boats, and now there's a special task force on cleanliness. Beyond that, everyone is likely to be ultra-conservative because they don't want someone to get sick on board and file a lawsuit. This industry really needs a piece of good news, and it's hard to see where it might come from in the short-term. It may take a couple weeks of cases going down around the country to get people optimistic again about getting back onboard this particular sector.Back in the Game: One thing the market seemed to draw some enthusiasm from early this week was legendary investor Warren Buffett's first deal since the pandemic. Dominion Energy, Inc. (NYSE: D) agreed to sell its natural gas assets to Berkshire Hathaway, Inc. (NYSE: BRK-B) for $4 billion in cash.Buffett, as most investors probably know, has a big stash of cash that hasn't exactly been burning a hole in his pocket lately. When Buffett doesn't buy, it can cause concern about his confidence level, which is closely tracked since he's the "Oracle of Omaha." This deal might have helped ease some minds. Sometimes when the market sees Buffett's hand going to his wallet, a tight M&A picture can loosen up a bit.Good Trading, JJ @TDAJJKinahanTD Ameritrade® commentary for educational purposes only. Member SIPC. See more from Benzinga * Waiting For Earnings: Bed, Bath & Beyond, Walgreens Straight Ahead Before Banks Next Week * How Did The Comms Sector Play Through Q2 And What's Ahead? * New Day, New Sentiment: Travel And Tech Stocks On Defense After Monday's Big Gains(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Costco reported an 86.7% surge in e-commerce activity over the month of June, helping sales rise more than 11% from last year to $16.2 billion.
Growing initiatives by Walmart (WMT), Target, Costco and others are likely to pose a serious challenge to Amazon's e-commerce lead.
Costco (COST) remains one of the dominant warehouse retailers based on the breadth and quality of merchandise offered. The company's e-commerce sales are witnessing a sharp increase.
The big shareholder groups in Costco Wholesale Corporation (NASDAQ:COST) have power over the company. Insiders often...
Costco Wholesale Corp. reported comparable sales rose 11.5% in June, beating the consensus estimate for a gain of 4.2%. In the daily bar chart of Action Alerts PLUS holding COST, below, we can see that the shares declined in the second half of June and should have stopped us out of our long recommendation.
Costco's (COST) comparable sales rose 11.5% in June fueled by e-commerce revenue growth.Analysts had estimated an advance of about 4.2% in comparable sales for the five weeks ended July 5. E-commerce sales were up almost 86% during the reported period. On a geographical breakdown comparable sales advanced 11% in the U.S., 8.4% in Canada, and 18% in other global markets.In the 44 weeks ended July 5, the food retail chain reported net sales of $136.37 billion, an increase of 8.1% year-on-year. Costco had in recent months suffered from a sales drop as stay-at-home orders and social distancing restrictions have led to a traffic decline at its warehouses, while e-commerce revenue didn’t offset the trend during the outbreak of the coronavirus pandemic.Shares gained 1.4% to $320.65 in Thursday’s pre-market trading. The stock is currently up 7.6% year-to-date.Following the sales data, five-star analyst Rupesh Parikh at Oppenheimer ramped up the stock’s price target to $355 (12% upside potential) from $335 and maintained a Buy rating, saying that shares have lagged since the March market lows, but that he sees the potential for a catch up trade from here.“We are lifting our forecasts and reiterate our top pick status to reflect the stronger than expected June results,” Parikh wrote in a note to investors. “A special dividend is also increasingly likely in 2021 following the recent debt issuance.”The analyst views Costco as both an attractive shorter-term beneficiary of money flows related to coronavirus fears and a longer-term winner, which should help drive continued outperformance.Meanwhile, the rest of the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 8 Buy ratings versus 6 Hold ratings. The $326.64 average price target implies shares are slated to advance a modest 3.3% in the coming 12 months. (See Costco stock analysis on TipRanks).Related News: Burger Chain Shake Shack Drops 5% As Preliminary Q2 Sales Disappoint Lookout Walmart, Amazon Is Coming for Your Grocery Customers, Says Analyst Walmart To Launch Online Subscription Service For $98 Per Year- Report More recent articles from Smarter Analyst: * AstraZeneca’s Wins FDA Priority Review For Heart Drug Brilinta * Biogen Files FDA Application For Potential Alzheimer Treatment * Airbus First-Half Deliveries Drop 49% Amid Covid-19 Aviation Crisis * Google Stops Project For Cloud Services In China