|Day's Range||10.75 - 10.85|
Oppenheimer lists Costco as a top pick for the firm, but has downgraded the stock from outperform to perform driven by the now even more premium valuation, potentially aggressive Street forecasts, and difficult comps. Yahoo Finance's The Final Round discusses.
Oppenheimer downgraded Costco shares from ‘outperform’ to ‘perform,’ as it sees less upside for the stock. Yahoo Finance’s Myles Udland and Jen Rogers discuss on The Final Round.
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?
(Bloomberg) -- After Lee Bird witnessed At Home Group Inc. lose half its market value in one day this June, the chief executive officer decided to reconsider everything.“This past 90 days has been a revisit of our whole business,” Bird said in an interview. “We obviously lost the faith of our investors.”In response, the home-goods retailer pulled back on its ambitious store-opening plans and revamped marketing to tout what it claims are the lowest prices in the industry. And after staying out of the e-commerce fray because the cost of implementation and shipping could hamper profit, the company now plans a full online offering by 2022.The efforts come none too soon, as a shakeout in retail has left legacy chains struggling to survive the arrival of digital-first competitors like Amazon.com Inc. and Wayfair Inc. Consumers at all income levels are also more discount-oriented, using the internet to seek out deals. At Home appeared immune to these woes until June 6 when weak sales and increased costs from President Trump’s tariffs on Chinese goods led to a cut in its earnings forecast that hammered the stock.“A long list of little things have gone against the company,” said Brad Thomas, an analyst at KeyBanc Capital Markets. “A few have been company specific, but it’s more about housing slowing down about a year ago.”At Home also had little room for error, with its valuation soaring after revenue gained an average 23% annually over the past three years. But investors bolted after the company’s same-store sales fell the past two quarters -- the first declines since going public three years ago. The company’s earnings have also missed analysts’ projections twice in the past three quarters.“It’s hard, but I get paid a lot of money so no one is going to tear up for me,” said Bird, who bought $500,000 worth of shares on Monday.The stock had declined 54% this year through Tuesday’s close. Just a year ago, the retailer sold additional stock to the public for $33.20 a share. The shares climbed as much as 7% to $9.16 on Wednesday, their fourth straight daily gain. The increase in value-driven shoppers should put At Home in a solid position. Much like Costco Wholesale Corp., the chain has a low-cost operating model -- it opens stores cheaply in locations vacated by the likes of Sears and about 70% of its inventory is private label or exclusive.Pricing ModelThat helps the retailer keep prices low, but not enough shoppers were getting the message because of “all the noise” on discounts and deals coming from competitors, Bird said. At Home uses a pricing model of everyday low prices -- a strategy popularized by Walmart Inc. that eschews promotions and instead tries to convince shoppers of constant value. Meanwhile, most retailers employ a model of high introductory prices and then discounts.“The average American is not aware that At Home is a low-price leader,” KeyBanc’s Thomas said.To help remedy this, At Home for the first time is running regular shopping events every two weeks, often tied to seasonal events. There’s currently a focus on fall decor on its website and in stores. A year ago, the chain would have been highlighting a few specific deals, but not a whole category. Early results are that it’s lifted sales, Bird said.Besides opening stores, revenue gains will also come from its first push online, he said. In the fourth quarter, the company will test letting customers buy items online and picking them up at stores. If all goes well, more locations will be added next year, with the goal of shipping purchases to customer’s homes from locations by 2022, he said.Despite the turmoil, the company still sees growing to 600 stores from 200 in the U.S. But it will get there at a slower pace, expanding 10% a year, down from a current rate of 17%. That means it would take more than a decade to reach that goal.“We know we have a huge white space in front of us,” Bird said. “I feel good about the adjustments we’ve made.”(Updates with share trading Wednesday in eighth paragraph. A previous version was corrected to show about 70% of inventory is private label or exclusive.)To contact the reporter on this story: Matt Townsend in New York at email@example.comTo contact the editors responsible for this story: Anne Riley Moffat at firstname.lastname@example.org, Lisa Wolfson, Jonathan RoederFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Costco is the best-positioned company in the world of consumer staples and food retailing, yet it is getting harder for the stock to make gains, according to Oppenheimer.
Dollar Tree's (DLTR) initiatives like restructuring, expansion and store-optimization efforts place it well for long-term growth. The Dollar Tree Plus! test should bolster its growth in the future.
Target (TGT) will launch a new loyalty program namely Target Circle on Oct 6. This move bodes well for the upcoming holiday season as customers can avail a more convenient and customized shopping experience.
Kroger (KR) is making investments to expand grocery offerings and e-commerce presence. However, incremental investments may keep margins under pressure during the second quarter.
Kroger is set to announce its second-quarter results on September 12. We expect its top and bottom lines to return to marginal year-over-year growth.
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). To keep it...
"Never bet against the American consumer." That adage is guiding S&P; 500 investors this year. And it could work out whether the economy slips into a recession or not.