|Day's Range||53.70 - 53.70|
Costco Wholesale Corporation (NASDAQ:COST) stock is about to trade ex-dividend in 3 days time. Ex-dividend means that...
A developer who turns nuclear-hardened missile silos into luxury condos is betting that prepping for the end of the world is a growth industry.
Costco Wholesale (NASDAQ:COST) is the best retail stock besides Amazon (NASDAQ:AMZN). The shares are up almost 22% in the last year, 82% over the last two years and 130% over the last five. It delivers a small, but steady dividend that has doubled over the last five years.Source: Helen89 / Shutterstock.com Costco's reputation as the best place to buy goods in bulk is reflected in its financial statements, where net income usually comes close to the amount it generates in membership fees. The stores are usually running at break-even.I have owned Costco shares, but sold them a few years ago, thinking they were overpriced. I worried that Costco was running out of places to grow, as young people moved into small city apartments the company doesn't serve.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI was wrong. So far in 2019 Costco shareholders have done better than those at Walmart (NYSE:WMT) or even Amazon. Communist? Or Conservative?Costco is unique among retailers not just in that it pays its line employees well, but in that it doesn't overpay managers. Employees are thus more satisfied with their pay and working conditions at Costco than employees at any other company -- even those at Apple (NASDAQ:AAPL).But Costco is also conservative, in the best possible way. It can cost as much as $100 million to outfit a new store, so it usually rolls out just one or two each month. Its stores are all located in upper-middle class suburbs, with ample parking, gas stations and tire centers. It is the last great suburban success story. Unlike Walmart, it doesn't suck up the whole retail market, it just skims the cream off its top. * 7 Retail Stocks to Buy on the Dip Costco has no secrets. Management admits its focus is on customers and employees, not just shareholders. Its stock is limited to a few items in each category, and its markups average just 15%, against 25-50% markups from other retailers. The company's Kirkland store brand often offers better quality than the national brands it competes with. Costco was late to online shopping, but its app is already considered better than that of Walmart's Sam's Club.During the era of President Donald Trump, which has benefitted upper-income suburbanites most, Costco's growth has accelerated. Sales for the first three quarters of 2019 are up 6.5% overall, and online sales are up almost 25%. During the current fiscal year, it has paid back over one-quarter of its long-term debt, nearly $1.7 billion, despite super-low interest rates. Can Costco Stock Continue?There are indications that finally, Costco is running out of growth. Neighborhoods and local governments are fighting new stores in some wealthy neighborhoods.Costco's profits accelerated after it switched from using an American Express (NYSE:AXP) to a Citicorp (NYSE:C) by Visa (NYSE:V) card, as did benefits to cardholders. But that's a trick that is hard to repeat.Costco is growing internationally and opened its first store in Shanghai this month. Currently 68% of its stores are in the U.S., but that will change as it rolls out executive memberships in South Korea, Japan and Taiwan.Costco's growth has been decelerating slowly in 2019, into the mid-single digits each month, as its fiscal 2018 revenue came to $141 billion. The Bottom Line on COST StockCostco stock is an investment, not a trade. Costco is managed conservatively for the long run. Even if the stores look cookie-cutter, they don't open until after years of careful planning. Risks are growing. A higher international profile means there are now currency risks, trade risks and social dislocation risks. Even Walmart has had its misadventures in growing globally.But, as I said at the outset, I was a fool to sell my shares. Hang on to yours.Dana Blankenhorn is a financial and technology journalist. He is the author of the environmental story, Bridget O'Flynn and the Bear , 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 shares in AMZN and AAPL. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy on the Dip * 7 Marijuana Stocks With Critical Levels to Watch * 7 Internet of Things Stocks to Buy Now The post Investors Can Only Hope to Contain Costco Wholesale Stock appeared first on InvestorPlace.
Bright prospects in chicken and export markets along with contributions from the Tyler plant are likely to aid Sanderson Farms' (SAFM) Q3 results. However, high costs are a concern.
Ulta Beauty's (ULTA) Q2 performance is expected to gain from comps growth, supported by strong merchandising, marketing and omnichannel efforts.
More than four years after Seattle implemented an ordinance that raised the minimum wage for many local businesses to at least $15 per hour, the city continues to lead the national conversation. Seattle’s minimum wage ordinance went into effect in April 2015, and this year that law raised the minimum wage for employees of businesses with more than 500 employees to $16 per hour, while boosting minimum pay for employees of smaller businesses to $12 an hour, or $15 an hour if those employees don’t receive medical benefits or tips. Now the minimum wage momentum driven forward by Seattle and some of its top corporations appears to be surging nationally.
The Target (NYSE:TGT) second-quarter earnings report was a real eye-opener.Net earnings of $939 million, $1.83 per share, on revenue of $18.4 billion were just part of it.Source: jejim / Shutterstock.com Same store sales rose 3.4%, and traffic to the stores was up 2.4%. Half of that came from Target's same-day fulfillment services, and operating profit was up nearly 17% from a year earlier.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Marijuana Stocks That Could See 100% Gains, If Not More The result was a fundamental reassessment of Target by analysts and investors. Shares rose a startling 20% and kept going higher as trade opened Aug. 22. A stock that had never traded over $90 per share was suddenly trading at $105. The Target stock price shot right up.But has Target really changed, or have analysts just caught up with the decade's most important retail trend? Americans Don't Shop in the Traditional SenseAnalysts looking at the Target numbers waxed lyrically over its "omni-channel" efforts, the idea that Target lets people buy online and either pick up their orders or have them delivered.But there's a more fundamental change at work. Americans no longer shop. Americans buy. We make lists. We expect low prices. We consider getting what we need a chore, and want it done quickly.When we go out, we also want to visit one store for all our needs. We don't go to a clothing store, a food store, then a drug store or stationery.This trend is behind the rise of Walmart (NYSE:WMT), Amazon (NASDAQ:AMZN) and Costco Wholesale (NASDAQ:COST). The question was where Target could fit into this new world, or whether it might wither away as department stores like Macy's (NYSE:M).The second quarter proved to analysts that Target has found its niche, and that it's a sustainable one.Target will deliver clean stores close to where people live, increasingly in densely-packed cities. CEO Brian Cornell says his turnaround for the company is still in its early stages.While many analysts think Cornell's Target is Walmart or Amazon, it's also Costco. Cornell recognized that convenience isn't just about e-tailing. It's also about being nearby, selling basics people need in quantities small enough to bring back to modern apartments.While Walmart has mostly abandoned small-format stores, Target has gone all-in, with 30 new sites each year placed close to college campuses and other urban employment centers. Store Brands Boost Earnings in TGT StockCornell's strategy for maintaining margins is to build store brands so that what he makes competes directly with what he buys.The company's new grocery brand is Good and Gather, which is being sold as a wellness brand in its grocery aisles. Target's grocery sections are usually smaller than those of rivals, with fewer fresh products.Good and Gather joins the successful Cat & Jack kids' line and dozens of other store brands including Smith & Hawken, bought in 2010.Store brands offer fatter margins than name-brand merchandise. Stores which, like Costco, deliver quality in their store brands, get a double earnings boost. Bottom Line on Target StockAnalysts were reluctant to give Target stock the kind of price multiple given Walmart because they didn't think it fit into Walmart's world.Walmart sells at 25 P/E, and even with its fat Aug. 21 gains Target stock is still selling for under 18 times earnings. Its dividend yield is 2.56%, against less than 2% for Walmart.Walmart's market cap is 62% of its 2018 revenue, while Target's recent gains mean it's selling for 72% of last year's sales. Target remains just 14% of Walmart's size, but analysts now think it can play in Walmart's league. That's a huge change in sentiment, and it means Target stock may keep rising.Dana Blankenhorn is a financial and technology journalist. He is the author of the environmental story, Bridget O'Flynn and the Bear, available 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. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post Target Stock Is Back in the Big Leagues appeared first on InvestorPlace.
Although Tilly's (TLYS) witnesses soft comps performance during the Memorial Day weekend due to bad weather, its efforts to improve customers' shopping experience will contribute to Q2 results.
Five Below's (FIVE) focus on increasing store base, emphasising on pre-teen customers, enhancing digital and e-commerce channels, and pricing strategy, are likely to drive second-quarter results.
Amid pessimism, retailers such as Target, Walmart, Costco, and Lowe’s are putting up stellar performances. Is Trump right to dismiss recession concerns?
What to do now that the heads of 181 major companies have decided that maximizing shareholder value is no longer the main purpose of the modern corporation.
Home Depot (NYSE:HD) earnings beat analyst estimates, sending the stock up in pre-market trade Aug. 20.Source: Ken Wolter / Shutterstock.com Investors even ignored warnings from management about trouble ahead.The home improvement retailer earned $3.479 billion, $3.17 per fully diluted share, on revenue of $30.839 billion, for the quarter ending in July.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis beat estimates of $3.12 per share of earnings but missed estimates of $31.1 billion in sales. The company also trimmed its outlook for the full year, based on worries about tariffs. Come for the DividendThis didn't stop the party. Even at its expected opening price of $213 per share on Aug. 20, Home Depot's dividend of $1.36 per share still yields 2.5%, and it's fully supported by earnings.With a government 30-year bond yielding 2.05%, that's a bargain for income investors. Especially since the dividend has nearly tripled over the last 5 years from 47 cents. * 10 Undervalued Stocks With Breakout Potential It means that if you got into Home Depot stock five years ago, when it was trading at $93 per share, you're getting a yield of nearly 6% on that investment, along with capital gains of about 22% each year. That's the very definition of a dividend aristocrat.Home Depot has been such a good stock, for so long, that it now represents 5.5% of the Dow Jones Industrial Average, which it joined in 1999, replacing Sears. Stay for the GrowthSince joining the Dow, Home Depot shares have resisted two sharp recessions. The company has even proven resistant to Amazon (NASDAQ:AMZN), making it a unique investment proposition.Growth has accelerated in recent years, from a $6 billion gain in sales to an $8 billion gain pace. The company is now the fifth largest U.S.-based retail company, behind Walmart (NYSE:WMT), Amazon, Costco Wholesale (NASDAQ:COST) and Kroger (NYSE:KR).The current interest rate environment could cause another jump in Home Depot's price. Fundamentals are strong, growth looks sustainable and the dividend is high relative to other income instruments.Home Depot bears were worried going into earnings over beating last year's sales, the state of the home remodeling market, and the fact that earnings per share are constantly buoyed by stock repurchases. But these voices are being drowned out, as are those of management, which lowered its guidance for the year at its conference call. Why the Pop?Home Depot stock rose after earnings because it was making up for ground lost to the trade war and global growth fears. HD stock shed more than $10 during August, even crossing a technical sell signal.While the company is known to skew male, it has recently been improving its home decor selection to appeal to women. The focus on textiles and furnishings can help in "staging" homes for re-sale, which also appeals to core customers.While young homebuyers are acquiring older, smaller houses, Home Depot executives say they're still interested in big projects as their home values rise. This should maintain the company's sales momentum. Home Depot Stock Is the Best Retail Buy Right NowHome Depot is the best retail stock to own now. While Costco shares have matched its march upward over the last five years, Costco's dividend yields less than 1%. Home Depot remains devoted to its dividend, it supports the stock with buybacks, and that dividend now yields more than a 30-year bond.That's why investors are ignoring warnings that the stock market is high, that Home Depot stock may be technically stretched, even management's own concerns about the future. They're buying with both hands because, in the current market, Home Depot is a genuine bargain.Dana Blankenhorn is a financial and technology journalist. He is the author of the environmental story, Bridget O'Flynn and the Bear, 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 shares in AMZN and KR stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Home Depot Earnings: Is Trouble Brewing for HD? appeared first on InvestorPlace.
Higher operating expenses and increased impacts of adverse foreign currency may hurt Abercrombie's (ANF) performance in second-quarter fiscal 2019.
Costco (COST) looks quite disciplined in its approach of tackling prevailing headwinds in the retail landscape. Stellar comps trend is shaping stock's bullish run on the bourses.
The three-day event started Aug. 17 with a VIP party at Mojai, then dinner at the ballpark with top-flight entertainment followed by an all-day golf tourney that spreads over nine local courses
What's Next for Walmart Stock and a Target earnings preview on the latest episode of the Full-Court Finance podcast from Zacks Investment Research.
With this New American Consumer, there's really no place to hide and you can't possibly have business as usual, because there is no business as usual anymore. The millennials and Gen-Xers don't just dislike brick and mortar, I think they don't understand it. Can you imagine Amazon missing in anything?
On Friday, China announced that it would impose retaliatory tariffs on $75 billion of U.S. goods. Meanwhile, Charles O'Shea, Moody's retail analyst, thinks major retailers like Walmart, Target, Amazon, Costco and Amazon are actually 'best positioned' to brace the impact of those tariffs. He joins Yahoo Finance's The First Trade to discuss.