248.50 -0.40 (-0.16%)
After hours: 4:41PM EDT
|Bid||248.97 x 800|
|Ask||249.00 x 900|
|Day's Range||247.15 - 249.93|
|52 Week Range||189.51 - 250.05|
|Beta (3Y Monthly)||1.04|
|PE Ratio (TTM)||31.96|
|Earnings Date||May 30, 2019|
|Forward Dividend & Yield||2.60 (1.06%)|
|1y Target Est||250.17|
Oppenheimer's Ari Wald offers 3 hot retail stocks. With CNBC's Melissa Lee and the Fast Money traders, Pete Najarian, Tim Seymour, Dan Nathan and Guy Adami.
Carter Worth, Cornerstone Macro, on how to weather the sell-off. With CNBC's Melissa Lee and the Fast Money traders, Tim Seymour, Karen Finerman, Steve Grasso and Guy Adami.
Supply-chain initiatives, enhancement of digital capabilities and the Best Buy 2020 plan bode well for Best Buy's (BBY) Q1 results.
Deckers (DECK) has been grappling with falling sales from the Sanuk Brand. Management has guided that sales from the brand will be down in mid-single digit in fiscal 2019.
Target (TGT) is chalking out strategies to adapt to the fast-changing retail landscape. These are likely to favorably impact first-quarter results.
Dismal Turkey market and rising input costs are likely to weigh on Hormel Foods (HRL) in Q2. However, robust food service performance may provide some support to the stock.
As should be no surprise, Costco (NASDAQ:COST) has logged a nice gain for the year, up about 20%. Part of this has been due to the strength of the consumer as well as the overall bullishness of the markets. But then again, Costco stock tends to do well regardless of the environment.Source: Shutterstock The fact is that the company is highly disciplined and focused. For the past decade, the average annual return on Costco is an impressive 19.51%. To put this into perspective, the gain for Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) is about 15.59% during the same period!Now it's true that the valuation of Costco stock is pricey, with the forward price-to-earnings multiple at a steep 28.5X. Yes, for a retailer, this is really a stretch. However, Costco is no ordinary retailer. The company has several major competitive advantages that should help keep up the performance. If anything, Costco stock is likely to remain fairly resilient if the recent market volatility continues.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Chinese Stocks That Could Pop On a Trade Deal So then, what are the key drivers for the company? Well, let's take a look at three: Costco Stock: Business ModelThe business model for Costco is very simple - but quite powerful. By requiring an annual fee, the company is able to essentially guarantee its profits. This is why Costco is often called the Amazon (NASDAQ:AMZN) Prime for the brick-and-mortar world.With recurring revenues as a cushion, the company can then focus its efforts on finding ways to provide low prices and quality merchandise for customers. The result is that Costco has built significant loyalty. For example, the renewal rate in the U.S. is an impressive 90%. In fact, the total number of cardholders is 96.3 million.For the most part, the Costco business model would prove extremely difficult to disrupt. Consider that there are 772 warehouses and an extensive supply chain for thousands of products. Costco has also been able to provide many benefits for its members, such as with cruises, hotels and even car purchases. Costco Stock: GrowthEven with its massive scale (it's the No. 2 retailer in the US) Costco is still able to gin up growth. During the latest quarter, total revenues increased by 7.2% and the comparable sales were 6.7%.Furthermore, the company continues to generate substantial cash flows (they were about $2.7 billion for the past year). This allows Costco to have a strong buyback program - which is at $4 billion - and to periodically pay special dividends.The company has also been investing heavily in its ecommerce platform and same-day delivery system. In the quarter, the sales from this unit jumped by 25.5% (the company does not disclose the totals).There have also been other investments in technology. For example, Costco has introduced self-checkout registers and kiosks. There is even a plan to develop a key fob to pay for gas with a single swipe. Costco Stock: Private-Label StrategyThe Kirkland Signature brand is Costco's private-label products. They generally have lower prices as well as higher margins.The Kirkland Signature has certainly become a big part of the business. Last year, the revenues from this segment came to $39 billion, up from $35 billion in 2017.Keep in mind that Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) considers that the Kirkland Signature business is the most important competitive advantage for Costco.In a CNBC interview, he noted that the packaged-goods products are taking share away from major operators like Kraft Heinz (NASDAQ:KHC). In other words, The Kirkland Signature brand is probably only in the early phases of the market opportunity.Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy that Lost 10% Last Week * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Service Stocks That Can Win the Trade War -- According to Goldman Sachs Compare Brokers The post 3 Reasons Costco Stock Is Definitely Worth the Price appeared first on InvestorPlace.
Is Target a 'Buy' ahead of Q1 Earnings?(Continued from Prior Part)Recent performance The profit margins of mass merchandisers including Target (TGT), Costco (COST), and Walmart (WMT) are under stress and have declined in the past several quarters.
Let's see if investors should consider buying Walmart (WMT) stock as it ramps up its fight against Amazon (AMZN).
Walmart (NYSE:WMT) reported earnings last night and so far WMT stock is holding a rally on the headline.Source: Shutterstock WMT beat earnings even though they were lower than last year's this time. Revenues were higher than last year's but the company missed its forecast. Management cited currency headways that may have interfered with this report card. WMT had some good news on comparable sales, especially in the U.S. which beat estimates.In summary, Walmart delivered more good news than bad so the bulls have the upper hand … for now. So that brings us to the big question: is Walmart stock a buy here?InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe answer, for the most part, is yes. I would suggest holding onto your longs, but don't chase it unless the investment time frame is long term. This is not a knock against the company's prospects as I am a fan of it. But it's a concern with the price action at these levels.So let me justify my answer: The stock market is still suffering from a massive trade war between the U.S. and China so they do have a host headwinds. This is a big unknown. WMT will probably pass the costs along to the consumers, but since margins are already thin there they will probably need to negotiate better sourcing terms if possible. * 10 Stocks to Sell Before They Tank Your Portfolio So it is not the time to get aggressive chasing Walmart stock up 3%.Walmart's management team is a proven winner. They are making many correct moves to adapt to the changing retail environment. They are pursuing e-commerce aggressively; for example, they just announced next-day shipping and beat Amazon (NASDAQ:AMZN) to the punch. Their advertising segment is also growing. These are hot topics for AMZN and Facebook (NASDAQ:FB) to name two.Some of these changes until they mature will be a drag on profitability. This includes e-commerce as it becomes a larger portion of the total business. It's not cheap to enter and grow a business that is so competitive already.I am not bearish on the stock. In fact, if you own it, I would suggest keeping it. It's a good defensive position in a jittery stock market. But its valuation is close to full as it sells at a price-to-earnings ratio of 42X. This is 25% more expensive than Costco (NASDAQ:COST). I don't see the panic to build a new big position now.Short-term traders could try and scalp momentum moves. Above $104, it could catch a second leg higher as it would invite momentum buyers. But for that purpose there are better vehicles.This morning, management delivered a report that confirms that they are executing well on their plan. But there are still risks that loom. This week Macy's (NYSE:M) sold off hard on its earnings results. I believe that most brick-and-mortar retailers are still struggling to survive the AMZN effect. Some of them will not make it, but Walmart will is not one to struggle. WMT will thrive in spite of Amazon. Bottom Line on WMT StockWalmart has become more aggressive in its fight against AMZN. Just this week it announced free overnight delivery for orders? AMZN had announced a similar benefit, but WMT beat them to the market. Clearly, they know that it's a fight that they need to win.Not many retailers can do this to AMZN. WMT built its empire by growing with very thin margins. It has been the low price leader for decades. So when Amazon came to the scene, WMT was best ready for the fight. The only other major retailer with a similar advantage is Costco. So it's no coincidence that these three stocks are thriving. * 7 Stocks to Buy that Lost 10% Last Week So the bottom line is that the fundamental opportunity for Walmart has never been better. They have the new technology to streamline their business even further and the money to make it happen. So, long term it's a stock to own as it will be higher … I just don't see the reason to chase it until it breaks out from $104.These are turbulent times for as long as the U.S. and China are in a full-blown economic war and they are fighting it in the social sphere. Stocks will whipsaw by tweets and state media blurbs. This is likely to linger for at least late June when the two presidents can meet during the G20 meetings.But the resolution is most likely not possible for months to come. So I should be cautious when taking on new bullish positions. I should start with partials so I'd have room to add in case gthe price goes against the thesis.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Sell Before They Tank Your Portfolio * Top 7 Dow Jones Stocks of 2019 -- So Far * 5 Low-Priced, High-Potential Tech Stocks to Buy Compare Brokers The post Walmart Stock Is a Buy … If It Meets These Requirements appeared first on InvestorPlace.
Increased focus on discounted retailing and rising number of active customers may provide cushion to Vishop's (VIPS) Q1 results. Also, it is on track to improve margins via cost containment efforts.
Ross Stores' (ROST) store-expansion efforts are likely to drive its top line in first-quarter fiscal 2019. However, higher freight costs remain a persistent concern.
Costco is scheduled to reports its fiscal third-quarter earnings after the close on May 30. Analysts are already starting to weigh in.
It's time to take a look at why Target stock might be worth buying as the company heads into its first quarter 2019 earnings results on Wednesday, May 22.
If regular dividends are the bread and butter of income investors, then special dividends are the icing on the cake, making the investment that much sweeter. These "one-time" payouts are used for several reasons ... and occasionally, they are paid out more than just one time.Companies sometimes pay special dividends to share windfall profits, either from exceptional earnings or a gain on an asset sale, with investors. However, other stocks will use special dividends consistently as a way of supplementing a modest regular dividend with income based on their operational results. These distributions can swell in boom times and recede during tighter years.Special dividends frequently fly under investors' radar because financial databases don't track them well. They're not included in calculating dividend yield, because they're not regular programs. But these payouts are cash all the same and can add significantly to shareholder wealth - in some cases they increase the annual yield several times over.Here are 14 stocks with special dividends to watch. Not all of them are buys at the moment. But given past precedent and current financial standing, the potential for more special dividends is in the cards, making them all stocks to put on your radar. In many cases, these stocks pay regular distributions as well. SEE ALSO: 33 Ways to Get Higher Yields (Up to 12%!)
Strong demand for certain product categories along with rise in processed meat production are likely to aid Sanderson Farms' (SAFM) fiscal Q2 results.
Pricing actions, cost management, replacement demand for agricultural equipment and strong demand in construction will be key catalysts for Deere's (DE) second quarter fiscal 2019 results.
Costco is one of America's favorite places to shop: The chain recently earned second place among national grocery stores in the annual Retailer Preference Index from consumer data firm Dunnhumby . Here are seven mistakes to avoid next time you're shopping at Costco to maximize your savings. 1. You don't have to be a Costco member to take advantage of some of the warehouse club's incredible bargains.
TJX Companies' (TJX) Q1 performance likely to gain from strong comps and inventory position. However, rising costs are likely to hurt the bottom line.
Costco Wholesale Corp. had told El Dorado County officials it would decide by the end of April whether to proceed with developing a new location.
British Columbia-based Tilray (NASDAQ:TLRY) announced plans May 8 to increase the production and manufacturing footprint at three of its Canadian facilities. The additional 203,000 square feet increases its total footprint by nearly 20% to 1.3 million.Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhat should have done wonders to Tilray stock did absolutely nothing for the cannabis stock, as it lost 2.5% on May 8. As I write this mid-afternoon on May 13, it's down more than 9.1%. Of course, it didn't help that it announced at the same time the U.S.-China trade war was heating up. Tilray delivers its quarterly earnings tomorrow (May 14). While there won't be any effect in the near-term from its additional production space, the long-term benefits could be significant. Here's why. Bigger Might Be BetterAdding 20% production space to a manufacturing company's footprint is generally a big deal. The more square footage that is devoted to producing products, the greater potential there is for higher revenues. If profitable, more money flows to the bottom line, delivering a return on its capital. * 7 Dividend Stocks to Buy as the Trade War Reignites In the cannabis business, it's not quite as simple. Because so few cannabis companies are profitable, any addition to top-line revenue doesn't immediately result in a return on capital. In the near term, the increase in square footage at Tilray plants in Leamington and London, Ontario, as well as Nanaimo, B.C., will be a $32.6 million drain on its capital with a negligible return on investment. It's not the same as Tilray's acquisition of Manitoba Harvest in February for $316 million, a deal that will see the company selling its hemp-based food products in more than 13,000 points of sale in the U.S. including Costco (NASDAQ:COST), Walmart (NYSE:WMT), and most of the other big food retailers. "Retailers are seeing hemp mania, it's one of the fastest-growing products right now," said Bill Chiasson, chief executive officer of the Winnipeg-based company. "All of them are looking at bringing on products that contain CBD into their portfolio and every one of them has come to us and said they see us as a natural partner."In 2018, Manitoba Harvest had annual sales of C$94 million. Let's assume that 5% of those sales flow to the bottom line. Tilray paid C$277.5 million in cash and stock up front, another C$92.5 million at the end of August and potentially another C$49 million in Tilray shares at the end of 2019 should Manitoba Harvest hit specified financial targets. Tilray's return on capital for the Manitoba Harvest acquisition started on day one after the deal closed and will continue to reap dividends as it makes further inroads into the North American retail market.Furthermore, it helps beautify Tilray's income statement. Long-Term Plans Good for Tilray StockIn 2018, Tilray had sales of $43.1 million and a net loss of $67.8 million. By adding Manitoba Harvest, it increases the company's top-line revenue by 162% while reducing the net loss slightly. More importantly, it helps diversify the company's revenue streamsIn January, before the Manitoba Harvest deal, I said CEO Brendan Kennedy's acquisitions had done little to move Tilray stock. That hasn't changed. TLRY is down 34.7% year to date through May 8. I've said on several occasions in 2019 that my three favorite cannabis stocks are Canopy Growth (NYSE:CGC), Cronos Group (NASDAQ:CRON), and Hexo (NYSEAmerican:HEXO). I've yet to add Tilray to the list, but announcements like the one it just made show that Kennedy is sticking to a game plan that includes medicinal and recreational pot, hemp and hemp-based foods -- and anything else that can provide a strong foundation on which to grow internationally. * Tilray Stock Is Heading Higher With a $70 Price Target It's not flashy, but the long-term results could be worth the wait. Just don't expect a bump from the 203,000 additional square feet until sometime in late 2019 or early 2020. We'll know more on May 14. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy as the Trade War Reignites * 10 Stocks That Could Squeeze Short Sellers, Including CGC * 5 Tech Stocks Getting Crushed Compare Brokers The post Tilrayas Added Capacity Should Help Future Earnings appeared first on InvestorPlace.