|Bid||247.25 x 1800|
|Ask||247.59 x 1200|
|Day's Range||246.77 - 249.56|
|52 Week Range||189.51 - 251.01|
|Beta (3Y Monthly)||1.04|
|PE Ratio (TTM)||31.75|
|Earnings Date||May 30, 2019|
|Forward Dividend & Yield||2.60 (1.06%)|
|1y Target Est||250.17|
Being a Costco member provides customers with incredible savings. Did you know you can buy a car through Costco's Auto Program? Learn more about how you can snag a new vehicle at a great price.
If you live in America, chances are you know someone who's hooked on Costco. Buying in bulk isn't for everyone, but Costco members love the wholesale club because it makes you feel like you're getting a good deal.
It will be a short week with markets close Monday, but trade-related news and several retail earnings will take the spotlight this week.
In a short week ahead for the markets investors will see earnings from Costco, Gap, and Dollar General. The Federal Housing Finance Agency will also release its House Price Index for March.
Here's what to look for from Bank of Nova Scotia, Dick's Sporting Goods, Costco and Dollar General. My one holdup has been some concern from analysts about the bank's exposure to the Canadian housing market. Paying nearly a 5% yield, Bank of Nova Scotia has created strong, net interest income growth over the last five years.
Investing.com - Trade tensions look set to continue to dominate market sentiment this week, but investors will also be closely watching European Union election results, the political leadership race in Britain, a raft of global economic data and more U.S. retail earnings.
Costco (NASDAQ:COST) stock continues its march higher. With stockholders having recovered all of their losses from last fall's sell-off, many might wonder where Costco stock goes from here. Amid the company's successes, valuations remain higher than that of most peers.Source: Shutterstock Moreover, with the stock price returning to the highs of last September, investors may want some assurance that COST stock will not see a double top. However, given the company's past growth and prospects for future expansion, I see COST stock as a buy on any pullback. Costco Stock Is Expensive, but Worth ItThose wanting Costco bargains should look inside their warehouse instead of at Costco stock. COST currently trades at a forward price-to-earnings (PE) ratio of around 29.4. Although one can argue that that comes in lower than Amazon (NASDAQ:AMZN), Amazon derives most of its profit outside of retail. Either way, Costco trades at a valuation premium above that of Walmart (NYSE:WMT), Target (NYSE:TGT), and its peer on the eastern seaboard, BJ's Wholesale (NYSE:BJ).InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 12 Reasons Facebook Stock Will Likely Sink 25%-35% Over the last five years, Costco's PE has averaged around 29.4. Hence, Costco stock has not moved far ahead of its average. Moreover, it benefits from a high degree of customer loyalty. This shows in a renewal rate of around 90% and its profit growth. Yes, customers pay a membership fee that amounts to pure profit for Costco. But in exchange, they pay little more than the cost of goods sold plus overhead for items. That may help explain why analysts have forecasted that earnings will increase 12.3% this year and 6.9% in fiscal 2020. Costco Can Keep Expanding for DecadesI also like the prospects for expansion. Yes, they currently operate in 44 states, and they cover most of America's large metros. However, tremendous potential exists in somewhat smaller markets. For example, in Texas, Costco operates only three warehouses located outside of the San Antonio, Austin, Houston, and Dallas-Fort Worth metro areas. Moreover, the company only operates two warehouses in Georgia outside of metro Atlanta. Hence, domestic saturation remains years away.Moreover, Costco has succeeded with international expansions. It has avoided the high-profile failures such as Target Canada or the pullouts like Walmart experienced in Germany and Brazil. In addition to Canada and Mexico, the company continues to add warehouses in Europe, East Asia and Australia. When to Buy Costco StockThe question for investors revolves around when to buy? Those holding out for a forward PE like the current 11.5 on Target will likely end up disappointed. However, Costco stock goes on sale periodically. During last fall's stock sell-off, COST fell as much as 22% before it began to recover. COST also saw corrections during the middle of the decade, as investors feared an "Amazon takeover" of retail. Anytime Costco has offered a 10-20% discount from its 29 forward PE, investors have profited by buying. I do not expect that to change soon. The Bottom Line on Costco StockInvestors should consider Costco stock a buy on any significant pullback. At just under 30 times forward earnings, some buyers may balk at paying such a multiple for a retailer. Moreover, with the stock trading at levels from which it previously fell, some might want to buy COST stock at this level.However, Costco stock has traded at PE in the high 20s or low 30s for several years. Moreover, for most of that time, profits have maintained a double-digit growth rate on average. Further, outside of North America, Costco has succeeded where Walmart and Target have failed. This ensures that the company can continue to add new warehouses for decades. * 6 Stocks to Buy for This Decade's Massive Megatrend The stock trades marginally above its average historical multiples. For this reason, I see it as a buy only for long-term investors. However, industry or macroeconomic conditions often lead to corrections in COST. If Costco stock falls to a PE ratio in the mid-20s or lower, investors should buy in bulk.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Safe Stocks to Buy This Summer * The 5 Best Telecom Stocks to Buy Now * 6 Innovative Stocks With Big Long-Term Growth Potential Compare Brokers The post Buy Costco Stock on Any Pullback appeared first on InvestorPlace.
Costco is set to report fiscal third-quarter earnings on Thursday, and Baird expects the discounter to post another solid quarter.
Dollar Tree's (DLTR) margin in first-quarter fiscal 2019 might be hurt by higher cost pressures. However, its store optimization program is commendable.
Ulta Beauty (ULTA) is expected to gain on strong omnichannel efforts and solid loyalty program in Q1. However, high SG&A costs are a worry.
Key Takeaways from Target’s Q1 Results(Continued from Prior Part)Traffic continues to boost salesTarget (TGT) posted better-than-expected sales for the first quarter of fiscal 2019. Improved sales across core merchandise categories and higher
Walmart (NYSE:WMT) is still the world's largest retailer, by a wide margin, but it wants investors to see it as finally beating Amazon (NASDAQ:AMZN). Walmart stock earnings were last week, and while the numbers were good, the narrative was definitely constructed so that WMT investors came away with the impression management wanted.Source: Shutterstock Walmart reported net income of $3.8 billion, $1.33 per fully diluted share, on revenue of $123 billion for the quarter ending in April. But the number it wanted investors to see was 37%. That's how much its "eCommerce" efforts were ahead of last year.Instead of looking at the 11 cent per share beat on earnings investors might want to look instead at 3.4%. That's how much same store sales rose over the previous year. Bears might look at 1.1%. That's how much Walmart's total sales grew, as international sales declined and those at Sam's Club barely moved. Revenue was short of analyst estimates.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Stocks to Buy for This Decade's Massive Megatrend The point Walmart wants to make is that its effort to overtake Amazon is succeeding.But is it? Define eCommerceWhen you drive to Walmart and a clerk brings your online order to the car, Walmart counts that as eCommerce. Fewer than half its stores today are doing grocery delivery.What Walmart is trying to do is generate headlines like this, claiming it's beating Amazon. Amazon stock is three times more valuable than Walmart stock despite having half Walmart's sales.The fact is Walmart is moving its own sales from in stores to electronic orders. It is not grabbing market share from Amazon. Walmart is grabbing market share from Walmart. You can't have a 37% increase in eCommerce and only 3.4% comps unless most of your eCommerce sales were your own sales to begin with.While Walmart focuses on Amazon, it's still getting killed by Costco Wholesale (NASDAQ:COST), which keeps grabbing share from Sam's Club. Walmart is also losing urban market share to Aldi, the no-frills German chain that rents shopping carts, has wafer-thin margins and only stocks store brands. Still Not AmazonCEO Doug McMillon is painting Walmart's image as a family-friendly Amazon alternative, with a new headquarters campus, Fire-like tablets, growing ad sales and innovative supply deals.But Walmart remains a chain of big box retail stores. In many areas it's the replacement for downtown, and that means downtown problems, like using up public resources. Walmart also employs 1.5 million Americans, who continue to agitate publicly for better treatment.That decline in international business, by the way, includes India, where Walmart put $16 billion into Indian e-tailer Flipkart and has yet to see a return.While over half of Amazon's online sales are on behalf of third parties, meaning it takes no inventory risk, Walmart is still buying its merchandise directly, making it far more vulnerable to rising prices from China tariffs than Amazon is. The Bottom Line for Walmart StockWalmart stock has been fighting to hold $100 per share since April and had a market cap of $290 billion as of this writing. While WMT shares are up 8.7% so far in 2019, shares of Amazon are up 23.5%.When Walmart raises prices, as it will need to due to the trade war, its revenues will increase because Walmart shoppers will be paying tariffs. But that doesn't mean Walmart earnings will increase.The most important takeaway is that Walmart is not Amazon. Half its sales are from groceries. The rivals it should be focused on are Aldi, Costco and Kroger (NYSE:KR), whose stock was recently upgraded.Since becoming CEO in February 2014, Doug McMillon has delivered a 35% gain in the stock while increasing the dividend just 4 cents per share. That's behind the 53% average gain in the S&P 500. * The 7 Best Stocks to Buy From the IPO ETF Yes, Walmart is moving its sales online, but that doesn't mean it's taking down Amazon.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. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post After Earnings, Walmart Still Isn't a Real Threat to Amazon appeared first on InvestorPlace.
Wall Street is under pressure, but a handful of stocks are breaking out to new highs. McDonald's MCD , Waste Management WM , Hershey HSY , Visa V and Costco COST have notched records this month, while ConEd ED has surged to 52-week highs. Bill Baruch , president of Blue Line Futures, said these remain solid long-term investments, but under-the-surface indicators suggest they could be in for a near-term breather.
Persistent softness at Gap's (GPS) namesake brand may hurt first-quarter fiscal 2019 comps performance. Nevertheless, growth initiatives such as the expansion of omni-channel capabilities are encouraging.
Around the world, there are 94 million people who have a Costco membership card. Celebrities have them: Chrissy Metz of NBC's "This Is Us" is an executive member "because we buy a lot of toilet paper," she says. There are Instagram accounts devoted to Costco, such as @costcodeals, and websites, such as CostcoInsider.com.
Leo Fasciocco is a technical expert that specializes in stocks that have broken out of recent trading ranges. Here, the editor of Ticker Tape Digest looks at two recent breakout buys -- Darden Restaurants (DRI) and Costco Wholesale (COST).
Let's see if investors should buy Costco (COST) stock ahead of its quarterly earnings release on Thursday, May 30 after Walmart and Target impressed?