|Bid||249.65 x 900|
|Ask||249.74 x 1200|
|Day's Range||249.14 - 251.01|
|52 Week Range||189.51 - 251.01|
|Beta (3Y Monthly)||1.04|
|PE Ratio (TTM)||32.06|
|Forward Dividend & Yield||2.60 (1.06%)|
|1y Target Est||N/A|
Investors in wholesale retailer Costco (COST) have been richly rewarded over the last year. Shares of Costco are currently trading at all-time highs. Warning! GuruFocus has detected 7 Warning Sign with COST.
Moody's Investors Service ("Moody's") today assigned a B2 Corporate Family Rating and B2-PD probability of default rating to Sage Borrowco, LLC ("Smart Foodservice"). In addition Moody's also assigned a B2 rating to the company's senior secured revolving credit facility and senior secured term loan. "Smart Foodservice has a good business model servicing an attractive market niche of underserved smaller food service operators at competitive prices", Moody's Vice President Mickey Chadha stated.
Costco Wholesale (NASDAQ:COST) is back where it was in more ways than one. The Costco stock price has reached new all-time highs of late, eclipsing levels reached last September. And once again, COST stock, as impressive as it has been, looks like it might be getting too expensive.Source: Shutterstock It's a replay of where COST sat last September. As I wrote at the time, just a few sessions after those all-time highs, analysts had turned cautious on Costco stock. The earnings multiples driving the Costco price were at decade-long peaks just two weeks ahead of earnings.Those earnings would be solid, but COST stock sold off anyway. By mid-December, amid a market rout, it had lost a quarter of its value.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt seems unlikely that history will repeat to that extent, barring another market-wide sell-off. But COST does seem to be in a precarious position with earnings on the way next week. The reaction to the report seems likely to focus on one key metric, and the Costco stock price already is assuming quite a bit of success. * 7 Stocks to Buy for Over 20% Upside Potential Here We Go AgainThere's little question that Costco's business is one of the best in all of American industry. It's one of the few companies seemingly immune to Amazon.com (NASDAQ:AMZN), as I wrote last year. Sales growth continues to be impressive: Costco already has reported comparable sales, which included 5.4% growth in April and 6.6% through 35 weeks YTD.The question comes down to valuation. Certainly, investors so far have been rewarded for paying up for COST stock, which has tripled over the past seven years or so. But even by past standards, Costco stock is expensive, trading at 29x next year's EPS. Even historically bullish analysts haven't been able to keep up: the average target price of $250 is just a dollar above Monday's close.Again, this is pretty much exactly where COST stock sat eight months ago. And it didn't turn out well. Will this time be different? Margins and COST StockWhat will determine the answer to that question likely will be one metric: margins. Again, Costco already has disclosed same-store sales growth, so there will be little in the way of surprises on the top line. As such, it's the earnings number on which investors will focus.And margins have been a bit volatile of late. Costco beat EPS expectations by a whopping 31 cents with its Q2 report, which led COST stock higher the next day and for several weeks after. But the stock tumbled after a modest Q1 miss with analysts focusing intently on margins on the post-earnings conference call.In the current environment, that focus may only heighten. Rival Walmart (NYSE:WMT) is raising prices because of tariffs. Will Costco have to do the same? Will it be able to do the same? Or does its hyper-efficient model mean that tariff troubles at Walmart, pricing pressure at Kroger (NYSE:KR), and spending concerns at Target (NYSE:TGT) all will work to the company's advantage? Watching Costco Stock After EarningsTo be sure, it's exceedingly unlikely that the report is going to lead to a major move in Costco. Options markets at the moment price in just a 4% move between now and next Friday. Again, this is a wonderful business, and the argument will come down to valuation.But in this market, at least from a short-term standpoint, Costco does look a bit dicey. There's going to be some disruption to the company from tariffs. Walmart posted a blowout quarter and yet trades modestly below pre-earnings levels. And at nearly 30x next year's earnings, valuation may be at or near a ceiling.Longer-term, admittedly, investors still can't go wrong with Costco stock. But for even the best stocks, valuation matters. COST itself proved that back in September. And while history may not repeat, investors should remember that even a very strong quarter looks priced in.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Over 20% Upside Potential * 5 Large-Cap Stocks Holding Steady Amid Trade War Concerns * 7 ETFs for Healthy Healthcare REITs Compare Brokers The post Costco Stock Looks Dicey Now, but Solid Over the Long Term appeared first on InvestorPlace.
After Costco Wholesale Corporation's (NASDAQ:COST) earnings announcement in February 2019, analysts seem cautiously...
Foot Locker (FL) is trying to improve performance through operational and financial initiatives. This is likely to favorably impact first-quarter results.
Soft comps & lower margin will likely mar Williams-Sonoma (WSM) fiscal Q1 results. E-commerce growth, digital leadership, product innovation & operational excellence will partly offset the negatives.
Supply-chain initiatives, enhancement of digital capabilities and the Best Buy 2020 plan bode well for Best Buy's (BBY) Q1 results.
Deckers (DECK) has been grappling with falling sales from the Sanuk Brand. Management has guided that sales from the brand will be down in mid-single digit in fiscal 2019.
Target (TGT) is chalking out strategies to adapt to the fast-changing retail landscape. These are likely to favorably impact first-quarter results.
Dismal Turkey market and rising input costs are likely to weigh on Hormel Foods (HRL) in Q2. However, robust food service performance may provide some support to the stock.
As should be no surprise, Costco (NASDAQ:COST) has logged a nice gain for the year, up about 20%. Part of this has been due to the strength of the consumer as well as the overall bullishness of the markets. But then again, Costco stock tends to do well regardless of the environment.Source: Shutterstock The fact is that the company is highly disciplined and focused. For the past decade, the average annual return on Costco is an impressive 19.51%. To put this into perspective, the gain for Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) is about 15.59% during the same period!Now it's true that the valuation of Costco stock is pricey, with the forward price-to-earnings multiple at a steep 28.5X. Yes, for a retailer, this is really a stretch. However, Costco is no ordinary retailer. The company has several major competitive advantages that should help keep up the performance. If anything, Costco stock is likely to remain fairly resilient if the recent market volatility continues.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Chinese Stocks That Could Pop On a Trade Deal So then, what are the key drivers for the company? Well, let's take a look at three: Costco Stock: Business ModelThe business model for Costco is very simple - but quite powerful. By requiring an annual fee, the company is able to essentially guarantee its profits. This is why Costco is often called the Amazon (NASDAQ:AMZN) Prime for the brick-and-mortar world.With recurring revenues as a cushion, the company can then focus its efforts on finding ways to provide low prices and quality merchandise for customers. The result is that Costco has built significant loyalty. For example, the renewal rate in the U.S. is an impressive 90%. In fact, the total number of cardholders is 96.3 million.For the most part, the Costco business model would prove extremely difficult to disrupt. Consider that there are 772 warehouses and an extensive supply chain for thousands of products. Costco has also been able to provide many benefits for its members, such as with cruises, hotels and even car purchases. Costco Stock: GrowthEven with its massive scale (it's the No. 2 retailer in the US) Costco is still able to gin up growth. During the latest quarter, total revenues increased by 7.2% and the comparable sales were 6.7%.Furthermore, the company continues to generate substantial cash flows (they were about $2.7 billion for the past year). This allows Costco to have a strong buyback program - which is at $4 billion - and to periodically pay special dividends.The company has also been investing heavily in its ecommerce platform and same-day delivery system. In the quarter, the sales from this unit jumped by 25.5% (the company does not disclose the totals).There have also been other investments in technology. For example, Costco has introduced self-checkout registers and kiosks. There is even a plan to develop a key fob to pay for gas with a single swipe. Costco Stock: Private-Label StrategyThe Kirkland Signature brand is Costco's private-label products. They generally have lower prices as well as higher margins.The Kirkland Signature has certainly become a big part of the business. Last year, the revenues from this segment came to $39 billion, up from $35 billion in 2017.Keep in mind that Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) considers that the Kirkland Signature business is the most important competitive advantage for Costco.In a CNBC interview, he noted that the packaged-goods products are taking share away from major operators like Kraft Heinz (NASDAQ:KHC). In other words, The Kirkland Signature brand is probably only in the early phases of the market opportunity.Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post 3 Reasons Costco Stock Is Definitely Worth the Price appeared first on InvestorPlace.
Is Target a 'Buy' ahead of Q1 Earnings?(Continued from Prior Part)Recent performance The profit margins of mass merchandisers including Target (TGT), Costco (COST), and Walmart (WMT) are under stress and have declined in the past several quarters.
Let's see if investors should consider buying Walmart (WMT) stock as it ramps up its fight against Amazon (AMZN).
Walmart (NYSE:WMT) reported earnings last night and so far WMT stock is holding a rally on the headline.Source: Shutterstock WMT beat earnings even though they were lower than last year's this time. Revenues were higher than last year's but the company missed its forecast. Management cited currency headways that may have interfered with this report card. WMT had some good news on comparable sales, especially in the U.S. which beat estimates.In summary, Walmart delivered more good news than bad so the bulls have the upper hand … for now. So that brings us to the big question: is Walmart stock a buy here?InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe answer, for the most part, is yes. I would suggest holding onto your longs, but don't chase it unless the investment time frame is long term. This is not a knock against the company's prospects as I am a fan of it. But it's a concern with the price action at these levels.So let me justify my answer: The stock market is still suffering from a massive trade war between the U.S. and China so they do have a host headwinds. This is a big unknown. WMT will probably pass the costs along to the consumers, but since margins are already thin there they will probably need to negotiate better sourcing terms if possible. * 10 Stocks to Sell Before They Tank Your Portfolio So it is not the time to get aggressive chasing Walmart stock up 3%.Walmart's management team is a proven winner. They are making many correct moves to adapt to the changing retail environment. They are pursuing e-commerce aggressively; for example, they just announced next-day shipping and beat Amazon (NASDAQ:AMZN) to the punch. Their advertising segment is also growing. These are hot topics for AMZN and Facebook (NASDAQ:FB) to name two.Some of these changes until they mature will be a drag on profitability. This includes e-commerce as it becomes a larger portion of the total business. It's not cheap to enter and grow a business that is so competitive already.I am not bearish on the stock. In fact, if you own it, I would suggest keeping it. It's a good defensive position in a jittery stock market. But its valuation is close to full as it sells at a price-to-earnings ratio of 42X. This is 25% more expensive than Costco (NASDAQ:COST). I don't see the panic to build a new big position now.Short-term traders could try and scalp momentum moves. Above $104, it could catch a second leg higher as it would invite momentum buyers. But for that purpose there are better vehicles.This morning, management delivered a report that confirms that they are executing well on their plan. But there are still risks that loom. This week Macy's (NYSE:M) sold off hard on its earnings results. I believe that most brick-and-mortar retailers are still struggling to survive the AMZN effect. Some of them will not make it, but Walmart will is not one to struggle. WMT will thrive in spite of Amazon. Bottom Line on WMT StockWalmart has become more aggressive in its fight against AMZN. Just this week it announced free overnight delivery for orders? AMZN had announced a similar benefit, but WMT beat them to the market. Clearly, they know that it's a fight that they need to win.Not many retailers can do this to AMZN. WMT built its empire by growing with very thin margins. It has been the low price leader for decades. So when Amazon came to the scene, WMT was best ready for the fight. The only other major retailer with a similar advantage is Costco. So it's no coincidence that these three stocks are thriving. * 7 Stocks to Buy that Lost 10% Last Week So the bottom line is that the fundamental opportunity for Walmart has never been better. They have the new technology to streamline their business even further and the money to make it happen. So, long term it's a stock to own as it will be higher … I just don't see the reason to chase it until it breaks out from $104.These are turbulent times for as long as the U.S. and China are in a full-blown economic war and they are fighting it in the social sphere. Stocks will whipsaw by tweets and state media blurbs. This is likely to linger for at least late June when the two presidents can meet during the G20 meetings.But the resolution is most likely not possible for months to come. So I should be cautious when taking on new bullish positions. I should start with partials so I'd have room to add in case gthe price goes against the thesis.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Sell Before They Tank Your Portfolio * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Low-Priced, High-Potential Tech Stocks to Buy Compare Brokers The post Walmart Stock Is a Buy … If It Meets These Requirements appeared first on InvestorPlace.
Increased focus on discounted retailing and rising number of active customers may provide cushion to Vishop's (VIPS) Q1 results. Also, it is on track to improve margins via cost containment efforts.
Ross Stores' (ROST) store-expansion efforts are likely to drive its top line in first-quarter fiscal 2019. However, higher freight costs remain a persistent concern.
Costco is scheduled to reports its fiscal third-quarter earnings after the close on May 30. Analysts are already starting to weigh in.
It's time to take a look at why Target stock might be worth buying as the company heads into its first quarter 2019 earnings results on Wednesday, May 22.
If regular dividends are the bread and butter of income investors, then special dividends are the icing on the cake, making the investment that much sweeter. These "one-time" payouts are used for several reasons ... and occasionally, they are paid out more than just one time.Companies sometimes pay special dividends to share windfall profits, either from exceptional earnings or a gain on an asset sale, with investors. However, other stocks will use special dividends consistently as a way of supplementing a modest regular dividend with income based on their operational results. These distributions can swell in boom times and recede during tighter years.Special dividends frequently fly under investors' radar because financial databases don't track them well. They're not included in calculating dividend yield, because they're not regular programs. But these payouts are cash all the same and can add significantly to shareholder wealth - in some cases they increase the annual yield several times over.Here are 14 stocks with special dividends to watch. Not all of them are buys at the moment. But given past precedent and current financial standing, the potential for more special dividends is in the cards, making them all stocks to put on your radar. In many cases, these stocks pay regular distributions as well. SEE ALSO: 33 Ways to Get Higher Yields (Up to 12%!)
Strong demand for certain product categories along with rise in processed meat production are likely to aid Sanderson Farms' (SAFM) fiscal Q2 results.
Oppenheimer's Ari Wald offers 3 hot retail stocks. With CNBC's Melissa Lee and the Fast Money traders, Pete Najarian, Tim Seymour, Dan Nathan and Guy Adami.