|Day's Range||31.15 - 31.55|
One person was killed Friday night at a Southern California Costco when an off-duty police officer opened fire after an argument. Shoppers ran for their lives. Carter Evans reports.
Police said one man was killed and others were injured after a deadly shooting broke out at a Costco in California. There was an off-duty cop inside the Costco, but it’s not clear what role they played in stopping the shooting. Nicole Comstock of Los Angeles’ KCBS-TV reports.
Costco’s impressive comps and strong EPS growth supported its stock. However, the recent uptrend in Costco stock and rich valuation could limit the upside. Analysts expect Costco’s comps to continue to grow at a decent rate.
Costco faces tough year-over-year comparisons in fiscal 2019, which could restrict its bottom-line growth. The absence of a significant boost from the lower tax rate could limit the company's EPS growth.
Costco (COST) shares outperformed the broader markets. The shares have risen 27.7% on a year-to-date basis as of June 14. The company's impressive comps supported the uptrend in its stock.
In a frothy market you can get a mighty high multiple if you're in the right niche. Like marijuana. That's the story of New Age Beverages (NASDAQ:NBEV). NBEV stock tripled last September after announcing a drink containing CBD. Its drinks even have a picture of the late Bob Marley on them.But pot isn't NBEV's real business. Canned beverages are its business. Things like coffee, tea and kombucha. Sodas with strange combinations like watermelon and coconut, the kind of stuff you'll try at a soda ranch on Route 66.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSince that September explosion, where it briefly traded at almost $9, NBEV stock has lost its fizz, settling into a trading range of between $4-6 per share. But its market cap, $350 million, remains impressive for a drinks company with March quarter sales of $58 million, and no profit.But still. Pot! What NBEV Is Up ToNew Age Beverages has used its moment in the pot limelight to bulk up the product line. The highlight was this month's purchase of Brands Within Reach, for $6.4 million, only $500,000 of it cash. * 7 Top-Rated Biotech Stocks to Invest In Today Brands Within Reach has brand licensing and distribution rights for some mainstream beverages, like cold Nestea and Illy coffee. The idea is that this gets New Age in the door at mainstream retailers like Walmart (NYSE:WMT) and Costco Wholesale (NASDAQ:COST), which then might look at its more esoteric brands.This came just six months after buying Morinda Holdings, another small company but with distribution in 60 countries. The idea there was to expand the market for its CBD products.The Morinda combination is already in the numbers due to be reported August 8, where sales of $70.8 million are expected. Following on the first quarter take of $58 million, that's good growth and, if the pattern persists through the year, it could lead to sales equaling the stock's current market cap by this time next year.That's important, because New Beverage CEO Brent Willis knows he's in the drinks business, not the pot business. He promised to focus on execution after buying Morinda, but the chance to buy into serious beverages with just stock was too good to pass up. What Next for NBEV Stock?Some analysts got very bullish on New Age after the Morinda buy, predicting imminent profits and a steady rise to $9 per share, which would be double its current level.InvestorPlace's Josh Enomoto disagrees. He sees the Brands Within Reach acquisition as a turn away from CBD, the source of its frothy valuation. He also sees the current brands as nothing special.Personally, I like the Brands Within Reach deal. NBEV now has both brands that can get it into the door of big retailers and global distribution for its CBD products. But drinks remain a risky business, a land of giants in which NBEV is a mouse. If Coca-Cola (NYSE:KO), Pepsico (NYSE:PEP) or even Keurig Dr Pepper (NYSE:KDP) decided there was something to this CBD thing, they could blow NBEV out of the water quickly. The Bottom Line on NBEV StockI think the owners of Brands Within Reach know all this, so there's an overhang of almost $6 million in stock, itching to be sold right now.Much of the rest of the common stock is held by speculators looking for a quick payout. Institutions hold just over 13% of the common, against almost 26% held by insiders. I think they will bail, too, at the first sign of bad news. * 7 Top-Rated Biotech Stocks to Invest In Today In other words, NBEV stock has a sell-by date, and execution alone won't stave it off.Dana Blankenhorn is a financial and technology journalist. He is the author of the mystery thriller, The Reluctant Detective Finds Her Family, available at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. Compare Brokers The post NBEV Stock Is More Than Just CBD -- But It's Still Not Enough appeared first on InvestorPlace.
Under his leadership, the big bank has posted record profits and overcome the ugly legacy of its financial crisis-era missteps
Citigroup analyst Gregory Badishkanian isn’t ready to declare a victory in the grocery war, but he does have Buy ratings on Kroger, Walmart, and Amazon, and is Neutral on Costco.
Overall, the first quarter has been relatively strong for retailers, so let's look at what investors should expect from Kroger to see if they should consider buying KR stock heading into its Q1 earnings release.
Shares of Kroger (NYSE:KR) have been struggling over the longer term, but have seen a boost over the past few weeks. Coming off a late-May low of $22.44, we've seen a quick 10% rally in Kroger stock.Source: Shutterstock There are a number of concerns tied to Kroger at this point, most of which all point to growth. Essentially, there are concerns about whether the company keep up with not only ecommerce pressures like Amazon (NASDAQ:AMZN), but also bricks-and-mortar competition like Walmart (NYSE:WMT), Costco Wholesale (NASDAQ:COST), Target (NYSE:TGT) and again, apparently Amazon in the future.Further, with inflation remaining stubbornly low, Kroger loses pricing power, which stifles revenue growth. The grocery game is a tough business, despite everyone needing to eat. That said, maybe Kroger can get its growth from somewhere new: Cannabis.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 High-Quality Cheap Stocks to Buy With $10 Kroger Stock and CBD ProductsWhen you can't find growth from traditional outlets, it's time to find new ways to generate sales. That becomes even more important when it involves products that consumers are interested in.As a result, Kroger will reportedly start selling CBD products in its stores. Keep in mind, Kroger is no small operator. The country's largest grocery chain now plans to sell CBD lotions and balms in its 945 stores across 17 U.S. states.The company joins CVS Health (NYSE:CVS) as retailers begin to embrace CBD and cannabis products. That's interesting for CVS, given that the company stopped selling cigarettes a few years back.In any regard, CVS, Kroger and other retailers are seeing that there are health and pain-management benefits to these types of products. Management is also recognizing that demand and discussion around these products from their customers are heating up, and therefore it makes sense to carry them in the stores.While there are still regulatory concerns about CBD products as cannabis is not legal at the federal level it's clear that we're moving toward a more welcoming environment. Should that trend continue, more retailers like Kroger and CVS will likely embrace the products too.It's also more likely that big consumer brands will partner with cannabis players like Canopy Growth (NYSE:CGC), New Age Beverages (NASDAQ:NBEV), Cronos Group (NYSE:CRON), etc. to create and market new products together.That may be another boost for Kroger stock down the line. Trading Kroger Stock Click to EnlargeThe question ultimately boils down to whether selling CBD products will help KR stock. The answer in the short term is, probably not. At least from a fundamental perspective.If Kroger were to perform a quick rollout to all of its 900+ stores, it's possible we would see a flood of demand. But until it becomes more than just lotions and balms, the effect will likely be limited on its top and bottom line.That's not so much due to a lack of demand from consumers, but more because KR is already forecast to generate $123 billion in sales this year.Estimates call for a 1.6% revenue boost in 2019 and a 2.7% increase in 2020 to $126.4 billion. Perhaps that 2020 number can inch higher if Kroger really kicks CBD sales into high gear.As for the charts, KR stock is trying with all its might to stay above the 50-day moving average and the 10-week moving average near $24.50. If it can, perhaps Kroger stock can make a push north of $25 and potentially send it back to the Q2 highs near $26. Just above is the 61.8% one-year retracement at $26.19.This $26 to $27 area has been significant for a number of years, as the chart above shows. While Kroger stock would still face an uphill challenge, clearing this level would be an important hurdle for the bulls.On the downside, losing the 20-week moving average likely puts $24 back on the table. If this level fails to buoy KR stock, then a retest of $22.50 and channel support is on the table.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AMZN. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Quality Cheap Stocks to Buy With $10 * 7 U.S. Stocks to Buy With Limited Trade War Exposure * 6 Growth Stocks That Could Be the Next Big Thing Compare Brokers The post CBD Products May Offer the Competitive Edge to Move Kroger Stock Higher appeared first on InvestorPlace.
(Bloomberg Opinion) -- The changing nature of food retailing was laid bare on Thursday with lower-than-expected U.K. sales growth at Tesco Plc and Amazon.com Inc. expanding its partnership with the smaller British chain Wm Morrison Supermarkets Plc.Amazon’s agreement with Morrisons, while still fairly small right now, shows the ambitions of the online giant toward the U.K., already one of the world’s most competitive retail sectors. That will strike fear into the hearts of supermarket behemoths such as Tesco, Britain’s grocery leader. Tesco has been trying to bolster its defenses, and a slowdown in growth in the three months to May 25 shouldn’t be too surprising. All retailers face extremely difficult comparisons with the same period last year, when Britain was basking in sunny weather and enjoying a royal wedding. The company’s CEO, Dave Lewis, remains on course to hit his target for an operating margin of 3.5% to 4% by February next year.Still, the first-quarter slowdown doesn’t exactly inspire confidence about what happens once that margin target is reached. The company updates the City next week on how it can find ways to bolster sales and profit. It’s staying tight-lipped for now, but making more of its use of customer data — including through its Clubcard loyalty scheme — might be on the agenda. Lewis has talked before about developing the property around its stores. That could become a bigger part of cash flow, too.Tesco could also work more closely with Booker Group Ltd., a recently acquired food wholesaler. It’s experimenting already with putting cash-and-carry outlets in Tesco stores and introducing dedicated bulk-buy areas, with one eye on becoming Britain’s answer to America’s Costco Wholesale Corp. Wisely, it has also set up a purchasing alliance with Carrefour SA, the French supermarket chain.But as the quarter showed, life isn’t getting any easier for Tesco. Aldi and Lidl, the cutthroat German discount grocers, are still powering ahead in Britain, putting enormous pressure on the traditional giants.That makes Amazon’s advances all the more fraught. Morrisons, the U.K.’s fourth-biggest supermarket group, said on Thursday that it was expanding its super-fast grocery delivery service for Amazon customers. Nine regions in England and Scotland will now offer this, up from four. The aim is for nationwide coverage.The rapid roll-out of the Amazon partnership has been facilitated by another smart move by Morrisons chief executive David Potts, who started his supermarket career on the shop floor. He has negotiated an end to his company’s exclusive relationship with Ocado Group Plc, the specialist online grocer. That has opened the door to closer ties with Amazon.Beset by price-slashing German rivals on one side and savvy online operators on the other, Tesco and its ilk are going to have to work hard to keep food in their investors’ mouths.To contact the author of this story: Andrea Felsted at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Carter's (CRI) displays momentum on efforts to improve store productivity, boost e-commerce and enhance product offerings. However, loss of sales to Toys "R" Us and Bon-Ton stores remains a hurdle.
In the changing retail landscape, Costco (COST) has been able to create a niche for itself on the back of growth strategies. These factors are aiding the company in sustaining impressive comparable sales run.
The U.S. is currently operating in one of the tightest employment markets in the history of corporate America. To attract and retain talent in this challenging HR environment, Target (NYSE:TGT) is providing additional benefits to its employees so that they can be more productive and happy at work. Source: Mike Mozart via Flickr (Modified)InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat's excellent news if you own Target stock. Here's why. The Sandwich GenerationIf you're in your late 40s or early 50s, it's possible that you are taking care of kids and aging parents. possibly all under one household. The strain that takes on people's physical and mental well-being is highly documented. * 7 Stocks to Buy for the Coming Recession The Washington Post published a guest column in May by a woman named Aimee Christian, who wrote about what self-care looks like for people in their late 40s and early 50s. Christian is married with two kids, one of whom has a significant disability; not only does she work full-time, but she also helps her mother deal with her father's various ailments, both in and out of the hospital. That's not an unusual situation these days. So, when a country finds itself in one of the tightest employment markets it's ever experienced, companies either step up and meet the needs of their employees or they risk losing them to companies that will. Target's Bid to Keep Employees HappyTarget recently rolled out several benefits for its employees that will make it easier for its staff to take care of their loved ones. As an investor, you might not think that these things are an essential part of your decision-making process, but they ought to be because if companies don't take care of people working on their front lines, they're bound to lose market share to those that will. Many retailers, including Amazon (NASDAQ:AMZN) and Costco (NASDAQ:COST) have already tried to help their workers by raising their minimum wage to $15. Others, like TGT, are in the process of raising it. Target's minimum wage is currently at $13 and will hit $15 by 2020.While Target's wage hikes are a good start, the fact that it's fallen behind Costco and Amazon in this area is troubling. If you own Target stock, I wouldn't sell the shares, but you might want to write a letter to the company's investor relations department if you feel it's not doing enough on the minimum wage front. A Bigger IssueThe biggest issue for corporate America isn't the minimum wage, but gender equality. Until women are paid the same wages as men, from the bottom rung to the top, and are given an equal opportunity for career advancement, American companies are going to have trouble attracting and retaining employees. The fact that Target won the Network of Executive Women's William J. Grize 2019 award for gender diversity and inclusion is a sign that TGT is working hard to level the playing field. "Today almost half of Target's store managers are female, each overseeing up to 500 employees and responsible for maximizing profitability, guest experience and sales. Women make up 36 percent of Target's board and 45 percent of its executives," stated the January press release announcing Target's win. In 2016, Target signed the White House Equal Pay Pledge, showing its commitment to ensuring women working at the company are equal in every way. While TGT has a ways to go on the minimum wage, in most respects, it's doing a pretty decent job taking care of its employees. The Bottom Line on Target StockIf this seems like a commercial for TGT, it ought to. Every time the American economy heats up, companies get serious about benefits. Then, as in 2008, when unemployment spikes, companies forget that people are what makes them successful. If you own Target stock, you can feel good that you don't hold Walmart (NYSE:WMT) shares; WMT only pays $11 an hour to start for its front-line staff. As long as the economy remains strong, Target's efforts to help its employees cope will be positive for its top-and bottom lines, and good for TGT stock, over the long-term.At the time of this writing Will Ashworth 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 for the Coming Recession * 10 Smart Dividend Stocks for the Rest of the Year * 5 Tech Stocks That Are Far Too Risky Right Now Compare Brokers The post Target Stock Is Getting a Boost From Company's Employee Benefits appeared first on InvestorPlace.
Amazon.com (NASDAQ: AMZN) announced it would offer a credit card to those with bad credit and credit services and electronic payment firms barely noticed. Visa (NYSE: V) shares closed recently at a new high as did MasterCard (NYSE:MA). But Amazon.com's card issuer, Synchrony Financial (NYSE: SYF) fell on the news. Still, both Synchrony and Amazon stock stand to benefit from this initiative and shares for both companies will react positively as customers sign up for this credit card.Source: Shutterstock The rewards card, called Amazon Credit Builder, will target those who want to build their credit history. These include customers who either want to establish new credit or are recovering from a bad credit rating.Amazon.com is no stranger to the credit card business. Two years ago, it offered a Visa card with 5% cash back. With this new card, Prime members get the 5% back on purchases.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dark Horse Stocks Winning the Race in 2019 Credit Builder also gives the cardholder the ability to track their credit score. The credit details are displayed on a TransUnion CreditView Dashboard at no charge. By showing score changes over time, Amazon is helping the cardholder learn how to improve the credit score. This removes the need to rely on Equifax Inc. (NYSE:EFX) and more importantly, the service has no extra costs. Prime Subscriptions and Amazon StockThe new credit offering gives customers another incentive to have an Amazon Prime subscription. But the online retailer offers bigger reasons to be a member. For the current second quarter, the company is working to turn its Prime free Two-Day Shipping into a free One-Day Shipping program.This feat is possible because of the company's back-end fulfillment and logistics network. Still, Amazon needs to invest in this area to achieve this same-day delivery goal. It plans to spend $800 million in the second quarter.So, if one day Amazon brings One-Day shipping down to one or two-hour shipping, it will have a huge advantage over retailers like Target (NYSE:TGT) or Walmart (NYSE:WMT). In the last holiday season, Target could not offer more than getting online shoppers to drive to the store to physically pick-up the order.But even though Walmart is planning to launch in-home grocery delivery in three cities this fall, the food business something Amazon will build through its Whole Foods division. For now, growing the Whole Foods business depends on developing the physical storefront experience. Prime Subscriptions GrowJust as Costco (NASDAQ:COST) enjoys high profit margins through membership fees, Amazon Prime is of strategic importance. Last year, more people signed up for Prime than any year before. The more time people spend watching videos and listening to music, the more they are likely to renew their membership year after year. Telling friends about the great service encourages more people to sign up.When Amazon Web Services brought in an astonishing $30 billion in annualized revenue, the company's credit card initiative appears insignificant at best.Yet everything counts; the operating margin grew by 320 basis points. It may re-invest the cash to fulfill infrastructure needs while finding further efficiencies. The more profitable the business becomes the better programs like Prime get. And the more incentive there is, the more likely Amazon may win customers who happen to have bad credit and need to rebuild their credit score. Price TargetAnalysts on Wall Street have an average price target that is 20% above the recent $1,860 share price. Per Tipranks, the average price target is $2,242. Supporting this price target is a 10-year DCF Growth Exit Model. If Amazon keeps growing revenue by at least 10% annually, the stock has plenty of upside for investors.Amazon's high valuations do not make much sense to the conservative investor but the market knows better. In every type of business, the online retailer enters, it re-defines the business process and eventually dominates the sector. Your TakeawayShares of Amazon stock are already up nearly 10% in the last week thanks to a rebound in the stock market. Though the growth prospects suggest the stock may run higher, investors may still want to wait for a dip in the stock before buying.Disclosure: As of this writing, the author 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 Dark Horse Stocks Winning the Race in 2019 * 6 Chinese Stocks to Sell That Are Suffering From a Digital Ad Slowdown * 4 Technology Stocks Blasting Higher Compare Brokers The post Amazon Stock Is Poised to Offer Another 20% Upside appeared first on InvestorPlace.
Investing.com - On the surface, the stock market went nowhere. The reality was a bit different. The open was strong, stocks shot seriously higher just as they had in the prior five days, and then the rally stalled.
Everyone hates Kroger (NYSE:KR). This is a company with over $120 billion in sales and a market cap of under $20 billion. That's a price to earnings ratio of 6.5, half that of Ford Motor (NYSE:F). The dividend today yields 2.4%, against 2.16% for the U.S. 10-year bond.Source: Shutterstock What market watchers want to talk about is the dance among Walmart (NYSE:WMT), Amazon (NASDAQ:AMZN) and Costco Wholesale (NASDAQ:COST) that currently defines U.S. retailing. Kroger's grocery stores and (worse) department stores are thought to be stodgy, staid and old-fashioned. But Kroger is the fourth largest retailer in the U.S., and it's not going away.Kroger hasn't been passive. Kroger does curbside delivery just like Walmart. Kroger has house brands just like Amazon. Kroger will sell you vast quantities just like Costco. Kroger also has upscale markets filled with prepared foods like Amazon's Whole Foods.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Kroger Stock Partners With OcadoKroger also has something those other companies don't have -- an alliance with Ocado (OTCMKTS:OCDGF).Ocado isn't huge. Its annual sales are about $2 billion and its market cap around $8 billion. Ocado is all about making internet retailing profitable, and its automated warehouses make those of Amazon look primitive. * 7 Dark Horse Stocks Winning the Race in 2019 Kroger signed its alliance with Ocado a year ago and has already built one of its warehouses near Kroger's home office in Cincinnati, with plans to build two more in Florida and the mid-Atlantic region, both hot for grocery delivery. Each warehouse or "shed" costs about $55 million, about half the cost of a Costco store, and 20 are in the planning stages.Kroger is also working with Microsoft (NASDAQ:MSFT) on a new system that brings promotions right to the store shelf and does inventory through the cloud, meaning it can also get advertising revenue from the brands it stocks. They're launching a fleet of unmanned delivery vehicles. Progressive Grocer named Kroger its "retailer of the year" for 2018. Wait, There's MoreKroger has long produced much of its own product and run its own house brands. Through Ocado, that may also mean growing its own fruits and vegetables, using "vertical farms" the British company has just put $20 million into. Ocado has invested in a company that already does this profitably with herbs. It has a joint venture with other vertical farmers, including U.S.-based 80 Acres, to do the same thing with other produce.A lot of Kroger's leading-edge work involves pilot projects, or one-offs. The whole Kroger ecosystem, which operates under 17 different store labels including Dillon's, Fred Meyer, King Soopers and Ralphs, as well as Kroger (don't get me started on that) isn't being transformed all at once.But it is being transformed. Kroger isn't falling behind in the retail technology arms race. It's just going about things in a different, quieter way. The Bottom Line on KR StockSadly, no one seems to care.Kroger had net income of about $3 billion last year while Walmart had net income of $7 billion. Amazon basically broke even on retailing last year, its $10 billion in profit coming from its cloud and Prime Memberships.It is useless to write that a company "should" be worth more when it consistently isn't. Kroger had a vogue in 2015 when it traded near $40 per share, but for the last two years it's been in a trading range of $20-$30. It was trading at $24.40 early on June 11.I keep hoping Kroger would be more open about its ambitions, unify operations under a single Kroger brand and go toe-to-toe with its larger rivals.Until then, they're a defensive play with an affordable dividend. Just watch this space.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear , available now at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AMZN, MSFT and KR. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Dark Horse Stocks Winning the Race in 2019 * 6 Chinese Stocks to Sell That Are Suffering From a Digital Ad Slowdown * 4 Technology Stocks Blasting Higher Compare Brokers The post The Kroger Stock Price Doesn't Reflect Its True Worth appeared first on InvestorPlace.
Casey's (CASY) fourth-quarter results benefited from gross margin expansion, cost containment efforts and opening of more stores.