295.30 -0.00 (-0.00%)
Pre-Market: 8:37AM EST
|Bid||295.10 x 800|
|Ask||295.30 x 1000|
|Day's Range||293.07 - 296.35|
|52 Week Range||189.51 - 307.34|
|Beta (3Y Monthly)||0.88|
|PE Ratio (TTM)||35.75|
|Earnings Date||Dec 12, 2019|
|Forward Dividend & Yield||2.60 (0.88%)|
|1y Target Est||305.38|
Costco stock has had a good year. Shares are up about 45% year to date. Investors hope the strong performance will continue after the company reports earnings after the close of trading Thursday.
Futures: Lululemon Athletica fell late on weak guidance after Apple and chips led Wednesday's stock market rally. Thursday night's Adobe, Broadcom and Costco earnings will be key.
Here’s the math behind that projection: Each Qualcomm (QCOM) 5G modem costs about $20, and Apple (AAPL) will start making all its iPhone 5G compatible next year. The introduction of 5G iPhones next year is widely expected, but Apple hasn’t confirmed anything yet. Instead, Apple has been talking about its newly released slate of iPhones and increased subscription offerings.
Investing.com - U.S. stock futures pointed to a slightly higher open on Thursday a day after the U.S. Federal Reserve held interest rates steady and signaled that borrowing costs are likely to remain on hold through 2020.
It's difficult to lock down the absolute best stocks to buy for any year - but 2020 could be particularly challenging.For one, 2019's run-up has lifted stocks to sky-high prices only seen a handful of times in history. Also, the global economy is starting the year at a potential inflection point - growth has been weakening for months, but signals of a turnaround are starting to pop up. And the 2020 presidential cycle is almost certain to cause headaches for a number of politics-sensitive sectors.The year ahead could be every bit as volatile as 2019, if not moreso. Thus, the best stocks for 2020 will need to have not just decent-to-robust growth prospects, but a little durability too. That's quite the needle to thread ... but several companies do fit that bill.Here are the 20 best stocks to buy for 2020, rain or shine. A few of these possess typical defensive characteristics such as recession-resistant businesses and/or high dividend yields. A few possess qualities that could protect them from 2020-specific dangers, such as trade turbulence or the upcoming presidential elections. But all of them merit a place in most stock portfolios in the coming year. SEE ALSO: 20 Dividend Stocks to Fund 20 Years of Retirement
Georgetown leaders hope the big box store will pull in shoppers from Temple, Killeen, Fort Hood and even Waco. Click through for more details on the incentives package as well as some concerns about how Costco's arrival could affect small businesses.
Costco Wholesale just cleared that benchmark with an upgrade from 79 to 82. Costco Wholesale broke out earlier, but is now around 3% below the prior 304.98 entry from a cup with handle. In the scenario where a stock breaks out then falls 7% or more below the entry price, it's considered a failed breakout.
Costco's (COST) comps are likely to have aided its overall performance in the first quarter of fiscal 2020. The company recently posted comps and sales numbers for November and the first quarter.
Costco Wholesale isn't done growing its Issaquah headquarters. The property is where a Regal Cinebarre operates at 1490 NW 11th Ave., next to Costco's expanding headquarters. "We want to have room to continue to grow here over time," said Costco CFO Richard Galanti.
Costco's (COST) growth strategies, better price management, decent comparable sales performance and strong membership trends are likely to have fueled first-quarter top line.
Several retailers and some tech companies highlight this week’s earnings reports. Plus, the Federal Open Market Committee’s December meeting and some inflation data.
STOCKSTOWATCHTODAY BLOG Three numbers to start your day: (COST) is Expected to Have Grown its Earnings 6.2% —from a year ago. The retail giant releases its results for the last quarter on Thursday. Costco Wholesale (COST) is one of several notable companies reporting this week.
The Federal Open Market Committee’s (FOMC) last policy-setting meeting of this year and November’s retail sales data will take centerstage this week.
Editor's note: InvestorPlace's Earnings Reports to Watch is updated weekly. Please check back next week for our latest earnings picks.The earnings calendar is surprisingly full next week. And next week's earnings reports, including several from big names, come at an interesting time for the market.After all, U.S. stocks saw their first real stumble in almost two months this week. A three-session decline that began on Friday took nearly 2% off the S&P 500. Investors started buying the modest dip on Tuesday afternoon, though flat trading on Thursday suggests even that optimism has faded.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn other words, equities look a little shaky heading into the rest of the year. Next week's earnings reports could change overall sentiment -- or at least signal just how confident, or worried, the market truly is.That said, reports from two big names don't have quite the juice they might normally have. Adobe (NASDAQ:ADBE) already has released guidance for fiscal 2020, with its shares gaining nicely on that news. There's likely little in the way of surprises coming when it reports on Thursday.Costco Wholesale (NASDAQ:COST) released sales for its fiscal fourth quarter this week, and doesn't give guidance. It's worth keeping an eye on shaky trading of late, but there, too, earnings don't seem likely to drive a major move. * 7 Hot Stocks for 2020's Big Trends Still, there are plenty of other key earnings reports to watch next week. Several retailers report as the important (and shortened) holiday shopping season ramps up. A pair of big value plays in tech will try to maintain recent momentum. And a leader in one of the market's hottest sectors will try and avoid a pothole. Next week seems potentially important for a market that seems to have cooled off, and these earnings reports could have a lot to do with where stocks go from here. Earnings Reports to Watch: AutoZone (AZO)Source: Robert Gregory Griffeth / Shutterstock.com Earnings Report Date: Tuesday, December 10, before market openAutoZone (NYSE:AZO) isn't the biggest company reporting next week. Its fiscal first quarter earnings report isn't going to move the markets, and may not even generate all that much in the way of headlines.Still, AutoZone earnings bear watching. At the least, they could move shares of rivals O'Reilly Automotive (NASDAQ:ORLY) and Advance Auto Parts (NYSE:AAP), which like AZO sit in an interesting spot at the moment.All three stocks fell rather sharply in 2017 amid fears of online competition from the likes of Amazon (NASDAQ:AMZN). They've since rebounded -- AZO stock has more than doubled from late 2017 lows -- but there's a question of just how much rally is left.Indeed, the three names have traded relatively flat in recent months. As a result, this is a sector that looks like it needs a catalyst; blowout AutoZone earnings certainly would qualify.Meanwhile, AZO stock looks like an interesting test for the market after earnings. Fears of online competition persist. Valuation is attractive relative to the market, but seems to make sense given external risks. Are investors willing to focus on valuation over risk? If they are with AZO, they might be elsewhere in the market too. American Eagle Outfitters (AEO)Source: Helen89 / Shutterstock.com Earnings Report Date: Wednesday, December 11, before market openAmerican Eagle Outfitters (NYSE:AEO), too, isn't one of the largest companies reporting next week. It's not even the largest apparel retailer: that honor goes to Lululemon (NASDAQ:LULU), which also releases third quarter earnings on Wednesday afternoon.But Lululemon is an outlier in retail given its impressive growth. American Eagle, on the other hand, is one of many retailers trying to adapt to the "new normal." Lately, that hasn't been good news for AEO stock, which has declined 22% so far this year and sits not far from a two-year low.That weakness seems surprising given what American Eagle has delivered over the past two years. As a company, American Eagle has performed better than most, and maybe all, other mall-heavy retailers. Its aerie brand has posted spectacular same-store sales growth. The namesake brand has outperformed many of its peers. Earnings have risen.And yet shares keep heading in the wrong direction. In that context, American Eagle earnings look important for the entire apparel retail sector.If American Eagle Outfitters posts another solid earnings report next week, AEO stock has to rally. Because if it can't get at least a bounce at this valuation, investors will rightly wonder if the industry's other, often weaker, stories are worth buying. Meanwhile, if American Eagle disappoints (particularly relative to its outlook for the holiday season), that's a concerning data point at a critical time for the industry. * 10 Stocks That Should Be Every Young Investor's First Choice Mall retailers need good news from American Eagle next week. Anything less could be a big problem at close to the worst possible time. Oracle (ORCL)Source: Jonathan Weiss / Shutterstock.com Earnings Report Date: Thursday, December 12, after market closeOracle (NYSE:ORCL) might well make a big move next week. ORCL stock has lacked much in the way of direction going back to April. Shares have pulled back in recent sessions. Investors don't seem to have much confidence in Oracle stock right now, with a push/pull between an attractive valuation and worries about whether the business can adapt to the new environment in tech.Indeed, recent trading suggests the key question I asked about ORCL stock last year remains unanswered: Is Oracle the next Microsoft (NASDAQ:MSFT) or the next IBM (NYSE:IBM)? Fiscal second quarter earnings on Thursday afternoon won't definitely answer that question, but a solid report could convince investors that the company is at least on the right track.And that would be enough, with ORCL stock still trading at less than 13x earnings. With Broadcom (NASDAQ:AVGO) also reporting on Thursday afternoon, investor appetite for value plays in tech will be tested. That has, of course, been a sector where investors have strongly favored growth. Strong earnings from Oracle and Broadcom might be a modest step toward the long-awaited shift back to value.As of this writing, Vince Martin did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Marijuana Penny Stocks That Have Ridiculous Possibilities * 7 High-Yield ETFs to Buy Now * 4 Dow Jones Industrial Average Stocks to Sell The post 3 Earnings Reports to Watch Next Week appeared first on InvestorPlace.
Costco's (COST) better price management and strong membership trends have been playing a crucial role in driving comps. The metric improves 5.3% during the month of November.
I'd like to start this article on Costco (NASDAQ:COST) stock by saying two really important things. First, Costco is as good as it gets in the retail world.Source: Helen89 / Shutterstock.com Costco has been dominant because it has utilized two successful retail models: the warehouse retail model, which is successful because it optimizes convenience by putting everything under one roof and the membership retail model, which is successful because it enables Costco to sell goods at low prices. COST's high-margin membership fees make up for any profits the company loses by selling products for low prices.Second, Costco stock is a great long-term holding. In the long run, COST stock will hold its own against the likes of Amazon (NASDAQ:AMZN), Walmart (NYSE:WMT), Target (NYSE:TGT), and others. COST's market share in the continuous- growth North America retail market will naturally stay steady. Its margins will also remain largely stable. Thus, the company's revenues and profits will march higher over time, propelling Costco stock higher.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut investors should not buy COST stock at its current levels.Costco stock has been on fire in 2019. The shares are up 44% in 2019 amid a plethora of positive developments. But, while Costco is a great company, Costco stock is dramatically overvalued at its current levels.Sure, hot stocks can keep going higher for a long time despite their high valuations But there are multiple catalysts on the horizon which could cause investors to become concerned about the valuation of Costco stock, ultimately causing COST stock to drop by a large amount. * 7 Hot Stocks for 2020's Big Trends Costco Stock Is OvervaluedPut very simply, Costco stock is overvalued.Costco operates in the North American retail market, which is growing steadily, due to population growth, labor force growth, and wage gains. But the retail market is not growing rapidly. U.S. retail sales have been rising all year long at a 3%-5% clip. Canadian retail sales have been growing at a 1%-4% clip. Thus, North American retail sales are currently increasing 1%-5%.Costco's share of this market has been rising. Its comparable sales growth has been north of 5% for more than two years. It will likely continue to gain market share as the retail world consolidates around a few central players. But its revenue growth probably won't be too impressive. Costco's revenue growth has been stuck in the 5%-10% range for the past decade. It will stay stuck in that range for the foreseeable future.Its gross margins have peaked around 11%, as they haven't risen much in over two years. At the same time, Costco's comparable sales growth trends have slowed from about 7% in fiscal 2018, to about 6% in FY19 to roughly 5% in fiscal Q1. As a result, Costco's profitability hasn't climbed much. These dynamics should persist, so Costco's margins are likely to be stable going forward.So, at best, Costco's earnings growth is likely to rise about 10% over the next several years. Costco stock trades at 34 times analysts' average forward earnings estimate. That is a ridiculously rich multiple for a retail stock. Simply consider that the entire consumer discretionary sector trades at a much lower forward earnings multiple of 22, and its projected earnings growth rate of 12% is higher than Costco's earnings growth.In other words, Costco's valuation has exceeded its fundamentals, and that makes COST stock dangerous. Negative Catalysts on the Horizon Present Huge RisksThe scary thing about Costco stock isn't its excessive valuation. Rather, it is the fact that there are multiple excessive catalysts on the horizon which could spark a major decline by COST stock.On the bright side, the economy and consumer spending are improving thanks to easing U.S.-China trade tensions. But, nonetheless, Costco's sales trends are deteriorating. Its comparable sales growth has slowed from about 7% in FY18 to roughly 6% in FY19 to 5% in Q1. The growth of the company's e-commerce sales has slowed from 20%-plus throughout most of 2018 and 2019 to less than 20% over the past three months.In other words, Costco's growth has been slowing for years. At the same time, its margins could come under pressure because the company may be forced to invest more to offset rising e-commerce competition.So Costco stock could be hit with slowing growth and falling margins in 2020. That combination is a recipe for disaster for a richly valued growth stock. The Bottom Line on COST StockCostco stock is a long-term winner that's trading at a highly unattractive valuation. The game plan for COST stock, then, is simple. Let the company's slowing growth and stagnant margins pop the bubble of Costco stock in 2020 Then, once the stock falls back towards the $250 level, consider buying the shares on weakness.As of this writing, Luke Lango was long WMT. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Hot Stocks for 2020's Big Trends * 7 Lumbering Large-Cap Stocks to Avoid * 5 ETFs for Oodles of Monthly Dividends The post Beware the Valuation of Costco Stock appeared first on InvestorPlace.
AutoZone's (AZO) fiscal Q1 performance is expected to have benefited from growing DIY retail and commercial businesses, despite high capital expenditure and U.S.-Sino trade tensions.