239.50 -0.04 (-0.02%)
After hours: 5:51PM EDT
|Bid||239.42 x 1800|
|Ask||239.76 x 2200|
|Day's Range||236.55 - 239.84|
|52 Week Range||180.83 - 245.16|
|Beta (3Y Monthly)||1.03|
|PE Ratio (TTM)||30.75|
|Earnings Date||May 30, 2019|
|Forward Dividend & Yield||2.28 (0.96%)|
|1y Target Est||240.78|
Costco (NASDAQ:COST) continues to appeal to those who like extraordinarily large food items with massive lobster claws, with a single one weighing as much as a newborn baby.costco stock costSocial media has been buzzing with the new products from the Wash.-based retailer, which now carries Kirkland-branded giant lobster claws. FoodBeast notes that the claws come in a few sizes and weigh somewhere between 2 to 7 pounds. Most of the shoppers sharing pictures of these claws are located in California.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"I've seen a few big claws at Costco before, but this one's crazy!" an Instagram user from Newport Beach, California said. "We just had to get it. It might be 1/2 it's weight in shell, but worth it already. The family's had their fun photo ops, now it's going on the grill … I hope we have enough butter."The lobster claws are not cheap either as another Instagram user shared a photo last month, noting that they were buying a package for $46.95 that weighed 4.7 pounds, or $9.99 per pound. Costco said on its website that a six-count of live Maine lobsters that weighed about 1.25 pounds apiece would set you back $129.99.This isn't the first supersized product that Costco has sold recently as back in January, it sold out of its Chef's Banquet Macaroni and Cheese Storage Bucket, which has 180 servings of the food, coming in at 27 pounds.COST stock is up about 0.8% on Thursday. More From InvestorPlace * 5 Cloud Stocks to Help Your Portfolio Fly * 10 Stocks on the Rise Heading Into the Second Quarter * Top 7 Service Sector Stocks That Will Pay You to Own Them Compare Brokers The post The Gigantic Lobster Claws at Costco Are Making Headlines appeared first on InvestorPlace.
Between Dec. 24 and Mar. 20, Target (NYSE:TGT) stock staged an impressive rally and went from a low of $60.15 to a recent high of $78.77. The Minneapolis-based retailer with 1,845 stores across the U.S. has shown strong growth in recent quarters and I expect the positivity to continue for Target stock.Source: Mike Mozart via Flickr (Modified)Therefore, I suggest that long-term investors consider adding Target stock into a diversified portfolio. Here is why. Target Has Strong FundamentalsOn Mar. 5, TGT released its fourth-quarter financial results and posted its best sales numbers since 2005. Revenues came at $22.98 billion. The Street cheered both the better-than-expected Q4 earnings report and the 2019 earnings-per-share guidance of $5.90, which beat the consensus of $5.70.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks on the Rise Heading Into the Second Quarter These results follow an already strong November and December trading update that the group released in January when it reported that its holiday period comparable sales had increased by 5.7%.One of the factors behind the impressive numbers has been the strength of the U.S. economy and the resiliency of the consumer despite the continuing U.S.-China trade war rhetoric. In addition, Target has been taking steps to win the confidence and patronage of consumers. For example, over the past year, the retailer has improved its supply chain and logistics operations, leading to cost and time savings in delivery and fulfillment practices.About 90% of retail sales still take place in stores nationwide. And Target has been investing in its stores by remodeling them as well as opening smaller-format stores in residential areas and on college campuses to bring in the foot traffic. According to the company, "Three-quarters of the U.S. population lives within 10 miles of a Target store." As part of its plan is to emphasize ease and convenience, Target has also introduced same-day delivery as well as curbside pickup at many locations.Its efforts to become a respected player in today's digital market are also paying off. After the data-breach incident of 2013, where information on over 40 million Target consumers was compromised, the retailer started investing heavily in the digital space and its e-commerce channel. For example, it has recently announced an upcoming partnership with Pinterest to integrate Lens, the visual search offered by Pinterest, to its online store. The 31% increase in digital sales that was announced in the quarterly results is now cementing Target's claim to have become an omni-channel retailer.TGT currently trades at a trailing price-to-earnings ratio of 14.3 and many investors may find value in that number. If the company continues to offer robust top-line growth and improving margins, Target's stock price could justify a higher valuation, too. For example, Walmart (NYSE:WMT) has a trailing P/E of 44.3 and Costco (NASDAQ:COST) 31.3. Therefore I am quite comfortable with the stock's valuation despite the run-up in TGT stock's price. Technical Charts for TGT StockOver the past few weeks, both long-term and short-term technical indicators for Target stock have broken their 2018 downtrends, moving steadily higher. As such, many of the widely watched technical indicators now suggest a bullish momentum heading into the stock.However, most retail stocks may be volatile in the coming weeks as we get updates on the state of U.S.-China trade negotiations. Also, there could be some short-term profit-taking following the strong gains in 2019.I would not advocate bottom-picking in case of near-term price weakness. Yet, I find Target stock to be a compelling buy candidate and I'd regard any potential dip in the price as an opportunity to grab the shares for the long term. Within a year, I 'd expect the shares to trade at $90. * 7 5G Stocks to Buy as the Race for Spectrum Tightens Therefore, if you already own Target shares, you might want to hold your position. That said, if you are worried about short-term profit taking, then within the parameters of your portfolio allocation and risk/return profile, you may consider placing a stop loss at about 3-5% below the current price point, to protect your profits to date.If you are an experienced investor in the options market, you may want to protect your portfolio with a covered call or possibly a put option spread with a three-month time horizon. If you do not yet hold TGT, you may want to wait several weeks to buy into the stock at the next dip. The Bottom Line on Target StockI believe that the rest of this decade could see new highs for the TGT stock price thanks to the growth tailwind in the business and execution by management. And anyone who buys can also enjoy dividend income, which now stands at a yield of 3.2%.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post Target Stock Is Worth a Buy on Every Dip appeared first on InvestorPlace.
Investors have many different tools with which to judge companies. Most of these tend to focus on financial metrics, such as revenues or earnings. Sometimes, we analyze non-numerical things, such as a company's competitive moat, or the quality of its management team.However, investors rarely consider how content a company's employees are. And, arguably, that's a big mistake. At the end of the day, a company's workforce is one of its most vital assets. Particularly for businesses that interact heavily with the general public, having an upbeat and welcoming group of employees can be a hugely underrated asset. Happy employees are great for your brand. They also tend to cut down on more hidden costs, such as severance, employee training, compensation for safety accidents and other such expenses that pile up when workers are dissatisfied and frequently leaving your firm. * 5 Cloud Stocks to Help Your Portfolio Fly With that in mind, here are five stocks to buy for happy employees. Our first stock gives a good example of the benefits of a content labor force.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Costco (COST)Source: Mike Mozart via Flickr (Modified) Have you ever wondered why people rave about shopping at Costco (NASDAQ:COST)? It's a little strange that folks get so excited to buy large quantities of basic goods in rather drab industrial-looking buildings. What is Costco doing differently than less favored big-box retailers such as Wal-Mart's (NYSE:WMT) Sam's Club? I'd argue that Costco's employees make the difference. Whereas employees in other big chain stores tend to seem aloof and unmotivated, Costco makes you feel more welcome. Presumably, employees have that extra drive thanks to generous renumeration from the company. Costco offers employees a $14-an-hour, company-wide minimum wage and pays more than $22 per hour on average. That's a huge figure for a retailing company.Indeed's recent survey of workplace satisfaction also showed employees appreciated other aspects besides the base pay. Costco is known for having great benefits including generous vacation pay, and it promotes heavily from within. You can make a good argument that Costco's superior team of employees has been a defining reason why its stock has crushed most other retailers over the past 25 years. Berkshire Hathaway (BRK.B)Source: Shutterstock The Indeed survey specifically mentioned Berkshire Hathaway (NYSE:BRK.A,NYSE:BRK.B) subsidiary Aflac as one of its best places to work. While Aflac is known for its humorous advertising, apparently it has also set itself apart from the competition by treating its employees well. That's a trait that runs broadly across the Berkshire Hathaway set of companies. Warren Buffett has built a reputation as a hands-off manager who likes to acquire private and family-run companies, and let them keep operating largely independently. Buffett values company culture, and unlike many buyers, Buffett doesn't gut companies to save money after purchasing them. * 10 Stocks on the Rise Heading Into the Second Quarter This respect for employees has paid Berkshire Hathaway many dividends over the years. Buffett is often able to buy companies for less money than other suitors would have to pay, as potential sellers know they'll get a strong and trustworthy partner by selling to Buffett. It's a classic example of paying more in the short run to elevate your reputation to a far higher level over the long haul. The results for BRK.B stock over the decades speak for themselves. Capital One (COF)Source: Shutterstock Like Aflac, Capital One (NYSE:COF) is another large financial corporation that interacts with thousands of customers every day across its multitude of branches. In fact, Capital One is now one of the nation's 10 largest banks. In the competitive world of big banking, any edge can help in terms of attracting and retaining customers. Capital One has chosen to give its employees generous benefits as part of its effort to distinguish itself from rival banks. And the approach appears to be working. COF stock has reached new all-time highs after the financial crisis; that's an achievement that many other banks still haven't managed.What sets Capital One apart? According to Indeed, the company offers particularly generous health and wellness benefits. These include 18 weeks of maternity leave and assistance with adoption services, for example. One employee that Indeed quoted said that the most difficult part was, "taking advantage of all the benefits." That's not a bad problem to have. With the stock trading at just 7x earnings, Capital One is clearly doing well enough to reward both its shareholders and employees generously. FedEx (FDX)Source: Mike Mozart via Flickr Trucking and transportation isn't the first area you'd probably think of when trying to find companies with particularly happy employees. But give FedEx (NYSE:FDX) credit for topping expectations. The popular conception of a truck driver is a lonely, difficult, and stressful life. Listen to someone like Democratic presidential candidate Andrew Yang talk about truckers, and you'd think it were one of the worst jobs in the world. Yet, FedEx is able to keep its employees happy. It has done so, in large part by offering generous benefits to its employees. Importantly, it offers these benefits even to its part-time staff. That's a huge motivation for workers in an age when so many companies intentionally refuse to give employees 40 hour weeks precisely to avoid paying benefits. * 4 Unexpected Trade War Stocks That Will Benefit From an End to Tariffs As a potential shareholder, you might think this sort of largess would weigh too heavily on the bottom line. But it hasn't. Over the past 10 years, FedEx has managed 8% annualized revenue growth, and incredible 21% EPS growth. It turns out that treating your employees well can in fact be a win-win for both them and stock owners. Apple (AAPL)Source: Shutterstock This last one probably doesn't come as a surprise if you've shopped at their stores. But yes, Apple (NASDAQ:AAPL) also made Indeed's list of the 10 companies with the happiest employees. This is a natural achievement for Apple, as it fits so very well with their status as a luxury brand. Apple is able, in large part, to charge higher prices for its products because of the brand. An Apple product is an aspirational one. People keep buying Apple phones habitually, regardless of the cost and comparisons to competitors' products, in large part due to this effect.And a big part of that comes from keeping Apple's reputation spotless. Apple helps achieve this by making sure its employees are delighted to work there. Like others on this list, Apple offers extremely generous benefits, the most appealing of which may be its policy of giving nearly a month of vacation days every year. American companies are notably stingy with vacation days, as opposed to European and Japanese firms. This difference gives Apple a key competitive edge in finding and retaining the best employees against stiff competition across the tech industry.At the time of this writing, Ian Bezek owned BRK.B and FDX stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Invincible Stocks Leading The Bull Market Higher * 5 Dow Jones Stocks Coming to Life * 7 of the Best High-Yield Funds for 2019 and Beyond Compare Brokers The post 5 Stocks To Buy for the Happiest Employees appeared first on InvestorPlace.
What Analysts’ Recent Activity Indicates about Costco Stock(Continued from Prior Part)Solid performance Shares of Costco (COST) are up 16.4% YTD (year-to-date) as of March 19. The strong uptrend in Costco stock is supported by the company’s
E-commerce data analytics firm Marketplace Pulse recently conducted in-depth research on private label brands on Amazon (NASDAQ:AMZN). The conclusion seemed unfavorable for Amazon stock. According to the firm, Amazon's private-label brand portfolio actually has more duds than studs.Source: Shutterstock The research suggests that Amazon's private-label business isn't growing. That could be the reason why Amazon's e-commerce growth machine has cooled rapidly. Indeed, over the past several quarters, Amazon's e-commerce business has gone from a 20%-plus grower which dominated the digital retail world to growing just above 10% and ceding market share to other digital retailers. * 5 Cloud Stocks to Help Your Portfolio Fly But there's another big takeaway from Marketplace Pulse's report, one that is bullish for Amazon stock. Namely, the report included a quote from an Amazon spokesperson who said that Amazon's private-label products represent less than 1% of the company's total sales.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat's tiny. At other large retailers, the private-label business represents 30% or more of total sales. Thus, the bullish takeaway from the report is that Amazon's private-label business, with the right execution, could grow by leaps and bounds over the next several years.That would be big for Amazon stock. Most importantly, it would wake up the Amazon e-commerce- growth machine, reinvigorate investors' enthusiasm about Amazon stock, and spur more investors to buy AMZN stock. Furthermore, it would boost the company's margins, add firepower to what is already turning into a robust profit-growth outlook, and help AMZN grow into its valuation.Overall, a private-label surge could turn into a big deal for Amazon stock. Here's a deeper look. Amazon's Private-Label Business Is TinyAmazon is a big company. With over $230 billion of sales last year, Amazon is the second-largest retailer in the world, behind only Walmart (NYSE:WMT).But, for such a big retailer, Amazon's private-label business is really small. Amazon's private-label business represents less than 1% of its total sales. That means that Amazon's private-label business generates less than $2.3 billion of annual revenue.That's small. Over at Costco (NASDAQ:COST), the Kirkland brand alone represents nearly one-third of its total sales, or about $40 billion. Similarly, one-third of Target's (NYSE:TGT) total sales in 2018, or about $25 billion, were from owned and exclusive brands,. At Kroger (NYSE:KR), private-label -brand-unit share hit 30.5% in the fourth-quarter, which, at an annualized rate, represents about a $34 billion business.At many other big retailers, the private -label business runs anywhere from 15%-30%-plus of total sales, equating to $15 billion-$40 billion-plus of annual revenue.Next to those figures, Amazon's sub-1% private label penetration rate and roughly $2 billion private-label business are tiny. Amazon's Private-Label Business Could Be Really Big One DayAmazon's private label business could be really big one day.The math is pretty simple. An average private-label penetration rate of 25% on all of Amazon's 2018 revenue, excluding the sales of its cloud business, implies a private-label business of nearly $52 billion, versus its private-label business of about $2 billion today. That represents a 25-fold increase in private label sales. That's huge. Furthermore, it equates to an additional $50 billion revenue opportunity, for a company that reported $232 billion of sales in 2018. That means that AMZN could grow its top line 20%-plus by expanding its private-label business.Private-label products are made and sold by the company itself, reducing the role of middle men. Thus, private label sales increase margins. That means that, if AMZN increases its private-label business to 20% of its revenue, its bottom line would get a favorable bump of much more than 20%.In other words, this isn't small peanuts. It's a big deal.Now, the big question is: can AMZN do it? Can it turn a relatively small private- label business into a $50 billion-plus behemoth? The short answer is: yes. AMZN has done it before with other businesses, and it will do it again.The company has the data, reach, reputation, and brand equity necessary to sell Amazon-branded products on a large scale. The Marketplace Pulse research report partly corroborates this thesis. Although many of Amazon's private-label brands are duds, the ones with the name "Amazon" attached to them are doing very well, the report stated. That speaks volumes about this company's brand equity and reputation.Meanwhile, AMZN hasn't yet figured out a way to consistently utilize its wealth of consumer preference and shopping data to help it sell private-label products. But it's only a matter of time before the company does so. When it does, the company's private-label business will boom, especially considering that AMZN can put those products in front of millions of shoppers.So it does seem like only a matter of time before Amazon executes on its tremendous opportunity to create a huge private-label business. The Bottom Line on Amazon StockAmazon stock is a long-term winner, mostly because of this company's multiple, large growth levers. One underappreciated big growth lever is Amazon's opportunity in the private-label business. AMZN currently has one of the smallest private label businesses of any major retailer. With the right execution, that relatively small private-label business could become very large and raise the company's top line by 20%-plus and add far more to the bottom line.All in all, investors should stick with Amazon stock for many reasons, including its $50 billion private-label opportunity.As of this writing, Luke Lango was long AMZN, COST, TGT, and KR. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Invincible Stocks Leading The Bull Market Higher * 5 Dow Jones Stocks Coming to Life * 7 of the Best High-Yield Funds for 2019 and Beyond Compare Brokers The post Will Private Labels Wake Up Amazon Stock? appeared first on InvestorPlace.
What Analysts’ Recent Activity Indicates about Costco StockA couple of analysts initiate coverage on Costco On March 20, Nomura Instinet initiated coverage on Costco (COST) stock with a “neutral” rating and a target price of $230. Evercore ISI
In the evolving retail ecosystem, Costco (COST) has been able to create a niche for itself on the back of growth strategies, better price management and strong membership trends.
The stock has long outpaced the market, rising 16.2% since the start of 2019 and 27.4% in the past 12 months. Can it go any higher?
D.A. Davidson initiating Lyft as buyGoldman Sachs downgrading Monster Beverage to neutral from buyJefferies downgrading Sony to hold from buyEvercore ISI initiating Costco as outperformEvercore ISI initiating Home Depot as outperformEvercore ISI initiating Bed, Bath & Beyond as underperformMizuho downgrading Wendy's to neutral from buyMizuho downgrading YUM Brands to underperform from neutralSunTrust initiating Allergan as buySunTrust initiating Jazz Pharmaceuticals as buyJ.
A Look at Amazon's Latest Moves to Refresh Its Strategy(Continued from Prior Part)Amazon is vying for an $800 billion opportunity Amazon (AMZN) is planning to set up a new grocery chain distinct from Whole Foods, according to a report from the Wall
"We are pleased with the guest response so far and are continuing to evaluate the concept," a spokesperson said.
Corrections & Amplifications Hotel brand Westin was misspelled as Weston in a Business & Finance article Tuesday about Marriott International Inc. Costco Wholesale Corp. raised its minimum hourly wage to 15 Canadian dollars (US$11.
Warren Buffett has a clear investing mantra: He likes value, and he likes holding on for the long term. The tactic has worked out well. Since Buffett took the reins of Berkshire Hathaway (BRK.B) in 1964, through the end of 2018, his stock has delivered an annual return of 20.5% that more than doubled the Standard & Poor's 500-stock index.Indeed, as the Oracle of Omaha famously told investors, his favorite investing period is "forever." This message reappeared in the hedge fund guru's most recent annual letter. In describing the fund's current portfolio of stocks, Buffett wrote, "In all likelihood, we will hold most of these stocks for a long time."The 88-year old continued, "My expectation of more stock purchases is not a market call. Charlie and I have no idea as to how stocks will behave next week or next year. Predictions of that sort have never been a part of our activities. Our thinking, rather, is focused on calculating whether a portion of an attractive business is worth more than its market price."That said, times change, and so do investing theses. Buffett has exited positions before, and will continue doing so when it makes sense - sometimes very quickly. For instance, Berkshire recently announced that it had exited its position in Oracle (ORCL) during the fourth quarter - a position it had initiated just one quarter earlier! That's an exception to the norm, but the point is some Buffett stocks are destined to be around longer than others.With this in mind, we delved into Berkshire's portfolio and found five Warren Buffett stocks that seem likely to stick around for the long term. SEE ALSO: The 25 Best Blue-Chip Stocks to Buy Now (According to Hedge Funds)
Ross Stores (ROST) is favored for its off-price model, price management, merchandise initiatives, and cost containment and store expansion plans. But a soft outlook for fiscal 2019 keeps us on the sidelines.
Costco Wholesale Corp NASDAQ/NGS:COSTView full report here! Summary * Perception of the company's creditworthiness is neutral * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is extremely low for COST with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting COST. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding COST are favorable, with net inflows of $14.27 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Services sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swap | NeutralThe current level displays a neutral indicator. COST credit default swap spreads are near their highest levels of the last 3 years, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
A Look at Amazon's Latest Moves to Refresh Its Strategy(Continued from Prior Part)Kiosks to pave the way for larger storesAmazon (AMZN) will shut down all of its 87 pop-up kiosks across the United States by the end of April. The pop-up kiosks that
The rating approach for securities backed by a single loan compares the credit risk inherent in the underlying collateral with the credit protection offered by the structure. The structure's credit enhancement is quantified by the maximum deterioration in property value that the securities are able to withstand under various stress scenarios without causing an increase in the expected loss for various rating levels.
These employers value their talent by offering a competitive hiring package that includes great pay and benefits like 401(k), stock options, educational assistance and more.
TJX Companies' (TJX) off-price model, strategic store locations and impressive brands boost the company's performance. However, high wage and freight costs as well as currency woes are deterrents.
Aside from Thursday's weekly jobless claims report and PMI numbers Friday, we don't see many potential needle-movers scheduled ahead of the bell.