|Day's Range||33.50 - 34.71|
Fletcher argued that Costco's stock is overvalued by nearly every financial metric, which gives the impression the company has no control "over its own destiny," Cramer said during his daily "Mad Money" show Thursday. Costco's debut in China was so successful that its Shanghai store had to close early because it couldn't handle the massive crowd, Cramer said, adding that the company decided within days to open a second location in the city.
(COST) Wholesale stock (COST) is ticking up Friday, helped by an upgrade from Gordon Haskett, which sees several catalysts for the discount retailer, including pending earnings that could surprise on the upside. Costco stock is up more than 41% year-to-date, while the S&P 500 has climbed around 20%. On Friday, Gordon Haskett analyst Chuck Grom boosted his rating on Costco to Accumulate from Hold, raising his price target to $330 from $255.
Bernstein downgraded Costco stock to “underperform” due to its high valuation and competitive pressure. Jim Cramer suggests a “buy” on the downgrade.
Once in a while, says Jim Cramer, there are meaningful pullbacks in high-quality stocks. And investors need to be ready to buy.
I could list dozens of opportunities to buy high-quality stocks that are expensive. In each case it's easy to say what the Bernstein analyst said about Costco.
Costco Wholesale Corporation (COST) stock has booked impressive gains since breaking out above 2018 resistance in June, but technical evidence suggests that now is the time to take profits and hit the sidelines. Ironically, a new Chinese Costco store is doing phenomenally well, but it will be difficult to sustain those numbers if the next round of trade talks fails in the fourth quarter.
Costco Wholesale Corporation (NASDAQ: COST ) awarded investors over the past few years, but is now overvalued by "pretty much every measure," according to Bernstein. The Analyst Bernstein's ...
Despite the Dow Jones Industrial Average enjoying a robust start to September, investors should remain leery. Aside from the ongoing U.S.-China trade war, we have the Brexit drama in the U.K. that could turn out ugly. Additionally, Germany is on the brink of a recession, if it's not there already. Logically, this doesn't bode well for certain market segments like consumer stocks to buy.If you've been paying attention to the global economy and not just our own indices, you'll appreciate that a cautious approach to investing is best. Early this year, South China Morning Post contributor David Brown suggested that international central banks must act quickly to quiet troubling economic conditions. Because that action apparently didn't happen, we're probably going to suffer some slowdown. Thus, consumer stocks levered to discretionary spending are suspect.However, I'm still interested in specific names of this far-reaching segment. While spending will likely slow over the next few months, it won't stop outright. Recession or not, people must make certain purchases, which means secular-industry consumer stocks to buy are very much in play.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFurthermore, I'm eyeing some companies that have a vice element. Although it's an incredibly cynical argument, let's face reality: vice tends to go up during economic hardships. For example, imbibing overall increased during the Great Recession, likely as a stress-coping mechanism. * 8 Dividend Stocks to Buy for a Recession Here are seven consumer stocks to buy that can outlast the coming recession. Coca-Cola (KO)Source: Soloviov Vadym / Shutterstock.com For several years, shares of Coca-Cola (NYSE:KO) languished in largely sideways trading. In retrospect, part of that probably had to do with the generally strong market and economic dynamics at the time. For example, in a robust bull market, a name like KO stock doesn't necessarily appeal to you. That's especially the case when you have high-flying technology companies competing for your attention.Now, the situation is different. Sure, KO stock is considered one of many consumer stocks, and in a downturn, consumers will reduce their spending. But as I mentioned earlier, they won't kill all consumptive behaviors, but rather, are more mindful of their expenditures. Here, Coca-Cola products are compelling because they offer a treat, a nice distraction away from stressful events or circumstances.And let's not forget that any form of cheap entertainment or distraction carries a premium in a recession. That was one of the main arguments supporting KO stock in the last major downturn. I believe a similar dynamic will support Coca-Cola in the next one. Campbell Soup (CPB)Source: HeinzTeh / Shutterstock.com While many investors have tuned into the Coca-Cola story this year, another name among consumer stocks to buy has made ripples, but perhaps without the same level of attention. Shares of Campbell Soup (NYSE:CPB) have soared this year, gaining over 45%. You'd have to go back quite a ways to when a bowl of soup was this interesting. Yet CPB stock might have room to fly.First, as strange as it is to say this, a recession would really help the case for CPB stock. If the economy slows, consumers will invariably whittle down their discretionary spending. Thus, the family budgeting for going out to eat should decline sharply. In addition, a particularly troublesome recession could see consumers cutting their personal budgets down to the bare essentials.Guess what? Campbell Soup is the bare essentials. * 7 U.S. Stocks to Buy With Limited Trade War Exposure Second, I like the fact that, like KO, CPB stock pays a dividend. And with a current yield of 3%, it gives concerned investors some buffer against potential volatility. Clorox (CLX)Source: Mike Mozart via Flickr (Modified)In the first two consumer stocks to buy, I featured consumables in the literal since. But with Clorox (NYSE:CLX), most of their products are not things you want to put in your mouth. That said, you might want to consider putting CLX stock in your portfolio. Let's take a look at some of the basics.For starters, most folks know the Clorox brand name as a household cleaning supply specialist. Here, the argument is simple: even in a recession, you've got to keep yourself and your environment clean. An ounce of prevention is worth a pound of cure or more, especially with current healthcare prices.And this logic for CLX stock extends beyond human use. One of Clorox's brands is Fresh Step, which is a popular cat litter brand. Americans love their pets, often changing their lifestyles to accommodate their furry friends.Finally, CLX stock isn't just about cleaning nowadays. Through the Hidden Valley brand, Clorox has some exposure to the food industry. Additionally, its Burt's Bees division offers lucrative personal care revenue opportunities. Costco Wholesale (COST)Source: Helen89 / Shutterstock.com I'll admit that I struggled with whether to include Costco Wholesale (NASDAQ:COST) in this list of consumer stocks to buy. In a bull market, COST stock makes sense. Although it charges a membership fee, customers are more than willing to pay it. Indeed, mainstream comedies like Employee of the Month confirm that Costco is both a cultural and retail phenomenon.But will shoppers be willing to dish out money for the membership dues -- and the 800 gallons of mayonnaise -- in a bear market? After all, people don't just shop at Costco for the necessities. They also go there to buy ultra-high definition TVs and the latest digital gadgets. Plus, not everything in Costco is a great deal. In a downturn, that doesn't support the case for COST stock. * 10 Companies Making Their CEOs Rich However, here's an important stat to remember: $100,000. That's how much money the typical Costco shopper earns in a year. In contrast, the typical Walmart (NYSE:WMT) shopper earns a much lower $56,482. Thus, in a downturn, Costco's revenue stream is more resilient than its competitors, driving the case for COST stock. Genuine Parts Company (GPC)Source: Shutterstock If we do incur a serious recessionary crisis, consumers will most likely abandon high-dollar, longer-term purchases. That's an incredibly longwinded way of saying most folks probably won't shell out money for new cars. In turn, economic hardship will incentivize people to hold onto their vehicles longer. Invariably, this benefits Genuine Parts Company (NYSE:GPC) and GPC stock.Now, Genuine Parts may not be a household name. However, you almost surely heard of their brands like NAPA Auto Parts. With large warehouses stacked with various automotive parts, drivers can save themselves significant money by doing basic work themselves. Thanks to various do-it-yourself videos on platforms like Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) YouTube, the investment proposition for GPC stock isn't as much of a stretch as you might think.Moreover, there's a chance that GPC stock could benefit from higher-than-average income earners who drive European -- specifically German -- cars. As an automotive enthusiast, I appreciate the many intangibles that German carmakers bring to the table. However, their cars are ridiculously expensive to maintain.To get around this dilemma, I can imagine cash-strained drivers buying third-party components for their vehicles. Therefore, I wouldn't ignore GPC in your search for best consumer stocks to buy. Anheuser Busch Inbev (BUD)Source: legacy1995 / Shutterstock.com Perhaps one of the more surprising picks for consumer stocks to buy, shares of Anheuser Busch Inbev (NYSE:BUD) are actually performing very well this year. Since January's opening price, BUD stock has gained 50%. However, I think the fundamentals justify the enormous rally.First, entertainment or escapism comes at a premium during economic hardships, as I mentioned earlier. Now, it's true that technically, we're not in a recession. But some clues exist that we're headed there. For example, while the unemployment rate is at multi-year lows, this stat has never indefinitely stayed deflated. Plus, the August jobs report was disappointing, give all of us pause.However, that suggests some extra drinking off the job will occur, driving the case for BUD stock. * 8 Dividend Stocks to Buy for a Recession Second, Anheuser Busch owns the Bud Light brand, among other popular beers. Bud Light is the most popular beer in America by a long shot. Plus, it's incredibly cheap, which may help to steer recession-burnt and cash-strapped millennials back to beer from other frivolities. Logically, this boosts the case for BUD stock. Altria Group (MO)Source: Kristi Blokhin / Shutterstock.com Clearly, Altria Group (NYSE:MO) is the laggard in this list of consumer stocks to buy. On a year-to-date basis, MO stock is down 10%. Even worse, since the first of April of this year, shares are down nearly 25%.While declining interest in smoking has obviously hurt MO stock and its ilk, big tobacco has another concern: the ongoing vaping crisis. In short, a rash of acute lung illnesses which federal agencies believe is associated with vaping has impacted several states. So far, authorities are investigating six deaths that they presume relate to vaping.On the surface, that hurts MO stock because Altria has a 35% stake in Juul. At the center of the firestorm, anti-smoking advocates and politicians have blasted Juul for their marketing practices and their easily concealable products. Worst of all, the President threatened to ban flavored vaping liquids, which may decimate the industry.However, that creates all kinds of ugly that I don't have the space to detail comprehensively here. The big takeaway, though, is that it may do nothing to stop underage vaping because the proposed ban won't affect all vaping liquids. Moreover, banning vaping altogether may violate legal adult users' constitutional rights, as well as destroying an economically viable industry.Granted, this is a risky play. But if we have a reasonable resolution, which I think we will, MO stock could fly far higher than many other consumer stocks.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post 7 Consumer Stocks to Buy in an Uncertain Market appeared first on InvestorPlace.
The major stock indexes were modestly higher early Thursday. Dow Jones stock Microsoft is breaking out above a new buy point.
"I like this stock very much," Jim Cramer said in response to a caller during the Lightning Round of the "Mad Money" program Wednesday night. "We look at valuation through several lenses: paying for earnings, ... paying for dividends, for free cash flow and for defensiveness. In all cases ... Costco is currently overvalued," said Brandon Fletcher, analyst at Bernstein Research.
`We look at valuation through several lenses,' analyst Brandon Fletcher wrote. `In all cases ... Costco is currently overvalued.'
Consumer staples stocks have largely fallen off the radar in recent months. Investors have been much more focused on growth as corporate earnings have pleasantly surprised, the U.S.-China trade spat showed signs of hope and the Federal Reserve decided to keep interest rates steady.Naturally, these more defensive companies haven't been especially red-hot of late. Consumer staples stocks have lagged the marketwide bounce that took shape beginning in late December. But with many other sectors starting to feel the weight of unwieldy gains, and with China trade talks yet again hitting turbulence, the sector might be ready to heat up again.Steve Azoury, founder of financial planning firm Azoury Financial, says, "Consumer staples, the products that people use every day, will always be a big part of America's economy." "The trick," he adds, is identifying the companies that "will stay innovative and update their products and services to excite their customers, and thus the stock prices for investors."Here are 17 of the best consumer staples stocks to invest in at the moment. While some of these are blue-chip stocks that should ring a bell, others are lesser-known companies that serve as the backbone of brands you may be more familiar with. Almost all of them provide varying levels of dividend income. SEE ALSO: 57 Dividend Stocks You Can Count On
Rite Aid (RAD) gains from increased immunizations and clinical pharmacy services, which are likely to continue. Decline in prescription reimbursement rates is a headwind.
Costco has turned on its head the notion that a store brand is a notch below a national brand. How? By using its coast-to-coast strength to strong-arm suppliers to put quality as well as value into its Kirkland Signature offerings. A quarter of Costco's annual sales now reportedly come from its Kirkland product lines, which first hit store shelves in 1995.It's no surprise. Costco has continually upped its array of Kirkland products, often produced by the same manufacturers who make the name brands. You'll find the red Kirkland Signature logo on everything from toilet paper to tennis shoes. We took a closer look at several Kirkland products getting accolades from customers and critics. You should check them out, too. SEE ALSO: 10 Worst Things to Buy at Walmart
NIKE's (NKE) Consumer Direct Offense as well as international and NIKE Direct businesses position it to beat estimates in first-quarter fiscal 2020. But higher costs and currency may be spoilsports.
Breaking bad actor Dean Norris has taken the fictional beer Schraderbräu, the mythological homebrew from Norris’ beloved character Hank Schrader, and made it a reality.
Costco is a popular brand with legions of devoted shoppers who love its low costs and high quality. Time for investors to climb on board Costco stock?
Walmart is a retail titan taking the fight to Amazon. But earnings growth is tepid. The stock is hitting new highs, but is it a good buy?