|Bid||0.00 x 1300|
|Ask||0.00 x 1800|
|Day's Range||188.51 - 191.71|
|52 Week Range||158.09 - 215.43|
|Beta (3Y Monthly)||1.22|
|PE Ratio (TTM)||19.49|
|Earnings Date||May 21, 2019|
|Forward Dividend & Yield||5.44 (2.86%)|
|1y Target Est||203.36|
Honolulu-based Alexander & Baldwin (NYSE: ALEX) closed on the acquisition of the leased-fee interest in the nine-acre parcel on Monday.
According to the GuruFocus All-in-One Screener, the following stocks are trading at a discount and have positive three- to five-year future earnings estimates. Warning! GuruFocus has detected 1 Warning Sign with MORN. The discounted cash flow calculator gives the stock a fair value of $277 per share, suggesting it has a 32% margin of safety.
Boeing (BA) shares had been on a bit of a decline before the deadly Ethiopian Airlines crash involving the aerospace power's 737 MAX aircraft. Despite the deadly incident and the current investigation into the cause of the Ethiopian crash, Boeing stock remains a strong buy and its shares popped over 1.2% Monday on the back of some seemingly positive news.
After significant hype from the mainstream media, Special Counsel Robert Mueller seemingly appeared on the verge of delivering an indictment on President Donald Trump. Instead, Mueller's report found no evidence tying Trump with Russian conspirators. That news disappointed many on the left, while simultaneously lifting prospects for Dow Jones Industrial Average and its component stocks.Although the Russia investigation, which has long dogged the Trump administration, has no direct impact on the markets, the latest news frees them from unnecessary shackles. With the president now able to concentrate on important matters, he can theoretically resume making America great again.This has positive implications for thorny issues like the U.S.-China trade war. If the White House achieves a breakthrough, we could see several Dow Jones stocks on the rise move even higher. With China harnessing the world's second-biggest economy, Wall Street will appreciate any hint of progress.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn addition, Mueller tacitly signed off on two more years of Trump. Again, the majority of Americans probably felt like they got punched in the gut. Still, we do have one bit of universal good news: we know exactly what to expect until November 2020.From a political standpoint, this is huge. Barring unusual circumstances, Trump's contentious policies such as tax or healthcare reform won't be immediately reversed. This continuity is great for the markets as it represents one less variable. * 7 Consumer Discretionary Stocks to Buy Now So with that in mind, here are five Dow Jones stocks to track on your radar: JPMorgan Chase (JPM)Source: Shutterstock Earlier this year, banking giant JPMorgan Chase (NYSE:JPM) was one of the Dow Jones stocks on the rise. However, that quickly changed this month. Since mid-March, JPM stock has dropped more than 6%. Geopolitical concerns such as icy U.S.-China relations, as well as possible trading-revenue declines have hurt prospects.But despite the troubles, JPM stock has a genuine chance of a Mueller-fueled rally. For one thing, JPMorgan is an economic bellwether: what's good for the nation is usually good for its share price. Moreover, as a banking firm, JPM receives the most benefit from a stable platform.As I alluded to earlier, it's probably not the kind of stability most people sought. Nevertheless, we generally know what to expect: strange tweets, conservative policies, and the constant push to build the wall. This predictability will at least make it easier for management to chart a path forward. Intel (INTC)Source: Shutterstock Most technology firms took a beating in the final quarter of last year, but not Intel (NASDAQ:INTC).No, INTC stock absorbed most of its pain earlier in 2018. Although usually a safe bet, Intel faced many questions regarding production delays over its next-generation chips. Amid fierce competition, many stakeholders simply gave up.Further compounding the issue, the U.S.-China trade war acted as a massive headwind. As our own Dana Blankenhorn noted last year, Intel invested substantially in Chinese infrastructure. Any hit to that region will eventually translate to volatility in INTC stock. * 5 Stocks To Buy for the Happiest Employees But this year, Intel is one of the top Dow Jones stocks on the move. Shares are already up 17% since the January opener. And with Trump no longer dealing with the Mueller investigation, he has time to wheel and deal. Although not a guarantee, INTC suddenly looks like a much-healthier prospect. Merck (MRK)Source: Shutterstock If you're looking for stocks on the rise in the Dow, you really can't go wrong with Merck (NYSE:MRK). Although the company's future is heavily tied to its cancer-fighting drug Keytruda, that hasn't stopped speculators. Indeed, if you bought MRK stock during last year's doldrums, you're living large right now.Better yet, Merck continues to ride its wave of momentum. On a year-to-date basis, MRK stock crossed into double-digit territory. For bullish traders, they don't find this status surprising. Merck maintains an enviable drug pipeline, which includes Januvia and Gardasil. Last year, they rang up $3.7 billion and $3.2 billion in sales, respectively.Plus, President Trump's rants against former President Barack Obama's healthcare policies have previously shaken the Street. Now that the Mueller investigation is out of the way, Trump has less distractions. Hopefully, he'll use this unshackling to promote positive changes for all Americans.And if not, at least we know what we're getting. Home Depot (HD)Source: Mike Mozart via Flickr (Modified)Out of all the Dow Jones stocks on the rise, my current favorite is Home Depot (NYSE:HD). Admittedly, HD stock is a bit of a cop-out. As a largely secular company -- a leaking pipe doesn't stop based on economic conditions -- HD is an "everyman" investment. No matter what, you can count on it.But that doesn't mean that Home Depot is immune to good news. Again, while most Americans may have been disappointed with the build-up to the Mueller non-announcement, it's a positive for HD. Primarily, shares do well with a robust housing market. If Trump were indicted, that would create all kinds of havoc on our economy. * 7 Reasons Why Apple Streaming Won't Move the Needle for Apple Stock At the same time, I like the fact that HD stock is a boring investment. Ultimately, it's very difficult to tell how the Street will respond to the Mueller investigation results. Therefore, sitting on HD and collecting its 2.9% dividend yield isn't a bad approach! Boeing (BA)Source: Shutterstock If you want some spice out of your Dow Jones stocks, Boeing (NYSE:BA) is it. Already under pressure from the Lion Air Flight 610 crash that killed all onboard, Boeing suffered another devastating blow: Ethiopian Airlines Flight 302 also went down under similar circumstances. Logically, BA stock tumbled badly in response.Moreover, the pain is far from over. By the looks of it, Boeing will incur significant legal costs. In both crashes, the same airplane -- the 737 Max 8 -- was involved. Additionally, the company's anti-stalling system called MCAS apparently malfunctioned on the doomed flights. If you're heavily vested in BA stock, you may want to protect yourself.But with a newly-energized President, Boeing could get its wings back. That's because Trump is still Trump, and that means more saber-rattling. Such circumstances would lift the company's military and defense divisions, an obvious welcome change.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 * 7 Dual-Class Stocks That Will Outperform * 7 Reasons Why Apple Streaming Won't Move the Needle for Apple Stock * 7 A-Rated Stocks to Buy in the Second Quarter Compare Brokers The post 5 Dow Jones Stocks for the End of Mueller's Investigation appeared first on InvestorPlace.
- Q4 share repurchases increased 62.8% year-over-year to a record $223.0 billion - This is the fourth consecutive quarterly record -- longest streak in the 20 years SPDJI has tracked - Total 2018 buybacks ...
A quick glance at the stats from Home Depot's most recent decade attest to the firm's impressive growth. The starting point of 2008, though, was in the midst of The Great Recession. The next 10 years are not likely to be even close to as good as Home Depot's last ten.
It might signal nothing but the fact that the Fed should never have done the December rate hike. You are not going to be able to find much buying support because algorithmic trading, per se, has no limits. (Home Depot, Amazon and JP Morgan are holdings in Jim Cramer's Action Alerts PLUS member club.
GameStop Corp.'s board on Thursday named George Sherman as chief executive, after nearly 10 months of looking. Sherman will start his gig on April 15, replacing interim chief executive Shane Kim.
Williams-Sonoma Beats Analysts’ Fourth-Quarter Estimates(Continued from Prior Part)Fourth-quarter performance In the fourth quarter, Williams-Sonoma’s (WSM) comparable-brand revenue grew 2.4%, just missing analysts’ expectation of 2.5%. The
According to the GuruFocus All-in-One Screener, the following stocks are trading at a discount and have positive three- to five-year future earnings estimates. Warning! GuruFocus has detected 4 Warning Signs with CAG. The discounted cash flow calculator gives the stock a fair value of $5,549.61, suggesting it has a 50% margin of safety at current prices.
Retail stocks were hammered in late 2018 amid concerns that the global economy was slowing and that the global consumer was consequently losing confidence. The SPDR S&P Retail ETF (NYSEARCA:XRT) dropped 30% from early September 2018, to late December.Then, the post-Christmas rally happened. Retail stocks, and the market in general, staged a huge turnaround the day after Christmas. They have stayed on a solid uptrend ever since because global economic fundamentals have started to stabilize and improve, while the global consumer has regained confidence in 2019.All in all, the S&P Retail ETF is up 15% since Christmas Eve.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor the most part, this rebound in retail stocks should continue because the fundamentals continue to improve. Trade and FX headwinds are becoming less severe. The rate hiking headwind has turned into a accommodating monetary policy tailwind. Consumer confidence metrics across the globe, and in particular the U.S., are bouncing back. Job markets globally remain healthy. Wages globally are heading higher.Overall, the economic fundamentals today continue to support a strong retail environment for the foreseeable future. Consequently, the early 2019 rebound in retail stocks should continue over the next several months. * 10 Stocks on the Rise Heading Into the Second Quarter Which retail stocks will lead this continued rebound? Let's take a deeper look. Nike (NKE)Source: rodrigofranca via Flickr Category: Athletic Apparel % Gain Since Dec. 24: 28%Shares of global athletic apparel giant Nike (NYSE:NKE) have been on a tear in 2019. Since bottoming out in late 2018, Nike stock is up nearly 30%, and now trades at fresh all-time highs.Why the big rally? Nike has continued to expand its dominance in the athletic-apparel category using faster-than-peer product innovation -- an enhanced direct retail strategy -- and unique marketing campaigns that have energized the core customer base. As Nike has done this, North America sales growth has come back into solidly positive territory. International growth has remained hot. Margins have recovered. And the whole company is back to firing on all cylinders.This rally in Nike stock will continue because this dominance is nothing new. Nike has dominated the athletic-apparel scene for over twenty years now. Time and time again, competitors arise and threaten Nike's dominance. Time and time again, Nike responds effectively, crushes the competition and only expands its dominance. This will continue to happen for the foreseeable future, and it will keep Nike stock on a long-term upward path. Home Depot (HD)Source: Shutterstock Category: Home Improvement % Gain Since Dec. 24: 17%Shares of Home Depot (NYSE:HD) dropped big in late 2018 amid concerns that the U.S. housing market was finally cooling after years of red-hot growth. But as financial markets have rebounded in 2019, so has Home Depot stock. It's up nearly 20% since late 2018.Why the big turnaround? U.S. housing market fundamentals have stabilized and improved in 2019. Specifically, the Fed went from hawkish to dovish, and stopped hiking rates. That caused mortgage rates, which had been on a sharp run up in late 2018, to fall big in early 2019. Also, consumer confidence has bounced back, wages have continued to rise, the unemployment rate remains low, housing starts have come roaring back and home-improvement-related retail sales rose over 8% year-over-year in January 2019. * 5 Stocks To Buy for the Happiest Employees All these improvements will continue so long as U.S. economic fundamentals remain solid, which they should. Americans will keep buying and remodeling homes. And Home Depot's sales and profits will continue to rise. As such, so long as the U.S. economy remains on solid footing, the rebound in Home Depot stock should persist. Lowe's (LOW)Source: Mike Mozart via Flickr (modified) Category: Home Improvement % Gain Since Dec. 24: 20%The story at Lowe's (NYSE:LOW) parallels the story at Home Depot. The stock was killed in late 2018 on slowing U.S. housing market concerns. It's rebounded in a big way in 2019 as housing market fundamentals have stabilized and improved.Importantly, though, Lowe's appears to finally be gaining share against Home Depot for the first time in a long time. For the past several years, Home Depot has consistently out-comped Lowe's in a sign that Home Depot was gaining market share and Lowe's was losing market share. But to end 2018, the gap between Lowe's and Home Depot's comparable sales growth was the narrowest it's been in two years. In January 2019, Lowe's actually out-comped Home Depot.The implication? For the first time in a long time, Lowe's is leveling the playing field with Home Depot and actually gaining share in the home improvement market. Lowe's stock is still materially cheaper than Home Depot stock. As such, as home improvement stocks continue to rebound, Lowe's stock could be the big winner. Target (TGT)Source: Mike Mozart via Flickr (Modified) Category: General Merchandise % Gain Since Dec. 24: 26%In late 2018, shares of Target (NYSE:TGT) fell off a cliff as investors were spooked by slowing comparable sales growth and compressing margins against the backdrop of a slowing U.S. economy. Target stock dropped big. But it's also rebounded big since then, staging a 26% rally since Christmas Eve.The turnaround in Target stock was powered by a few things. First, the U.S. economy stopped slowing and started stabilizing. Second, the U.S. consumer regained confidence in early 2019 and general merchandise retail sales rose 2.2% in January 2019. Third, Target reported solid holiday-quarter numbers that underscored that Target remains a healthy growth company with a red-hot digital business and stable margins. * 3 Out-of-Favor Consumer Stocks to Buy This turnaround in Target stock will continue because the fundamentals remain favorable and the stock remains cheap. Given stable U.S. economic fundamentals and Target's newly developed omni-channel retail presence, this company projects as a stable low single-digit revenue grower and high single-digit profit grower over the next several years. Yet, Target stock trades at just 13x forward earnings. That's too cheap for that level of growth, meaning this rally in Target stock will persist. Ulta (ULTA)Source: Mike Mozart via Flickr Category: Health & Personal Care % Gain Since Dec. 24: 46%Shares of Ulta (NASDAQ:ULTA) have been on a roller coaster ride over the past several months. In late 2018, Ulta stock dropped nearly 30% in just over a month. In 2019, however, Ulta stock has rebounded by nearly 50% in just over two months.The big selloff in late 2018 was the result of a below-consensus holiday-quarter guide converging on a rich valuation. The big rebound has been the result of the company blowing the lid off that below-consensus guide and reporting very strong holiday-quarter numbers. It also helps that comparable sales growth accelerated, margins expanded and the forward guide was strong -- all against the backdrop of a resurgent U.S. consumer. Now, Ulta stock is now making new highs.Ulta stock will continue to make new highs for the foreseeable future because this company is getting its groove back. New product launches in late 2018 helped reinvigorate comparable sales growth back to the near 10% range. These new product launches will continue to drive healthy customer enthusiasm and traffic gains through 2019. As they do, Ulta's revenues and profits will continue to impress, and Ulta stock will stay on an uptrend. Foot Locker (FL)Source: Shutterstock Category: Athletic Apparel % Gain Since Dec. 24: 22%Foot Locker (NYSE:FL) stock dropped big in late 2018 amid slowing U.S. economy concerns. But as the U.S. economy has stabilized, Foot Locker stock has rebounded.The rebound in Foot Locker stock has been especially large (over 20% since Christmas Eve) because of a strong holiday-quarter earnings report that underscored healthy operating fundamentals for the company. Comps rose 10%. Margins expanded in a big way. Inventories fell. The guide was healthy. Investors cheered. Foot Locker stock popped. * 3 Bank Stocks Whacked Down by the Fed In the big picture, Foot Locker's numbers have been getting better for a long time now. Now, they are finally good again, and this tells me that the worst is in the rearview mirror for FL. Going forward, Foot Locker will remain an important and stable player in the athletic-apparel retail landscape. FL's growth profile, coupled with the current 11x forward earnings multiple, should be enough to keep Foot Locker stock on a winning path. Best Buy (BBY)Source: Best Buy Category: Electronics % Gain Since Dec. 24: 43%In late 2018, there was a rumor flying around that the consumer electronics space was rapidly slowing. Consequently, shares of Best Buy (NYSE:BBY) dropped nearly 50% in a matter of three months.That rumor was a bunch of hot air. In early 2019, Best Buy reported strong holiday-quarter numbers that included positive comparable sales growth, big digital sales growth, margin expansion and an above-consensus full-year guide. Those numbers were proof that Best Buy remains the leader in the still-growing consumer electronics space. Consequently, Best Buy stock rallied.Still, Best Buy stock is pretty cheap at just 12x forward earnings. That's too cheap for Best Buy, a company which should report positive comps and healthy margins for the foreseeable future thanks to secular tailwinds (the widespread emergence of IoT and AI technologies). As such, a cheap valuation and favorable growth fundamentals should keep BBY stock on an upward trend for the foreseeable future.As of this writing, Luke Lango was long NKE, HD, TGT, FL, and BBY. 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 7 Retail Stocks That Will Continue to Rebound in 2019 appeared first on InvestorPlace.
Home Depot's (HD) integrated retail strategy, omni-channel expansion and momentum in the Pro business are key drivers. However, a recent softness in sales and comps is a concern.
The Zacks Analyst Blog Highlights: Home Depot, Oracle, Union Pacific, Dollar General and Host Hotels
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 few retailers are demonstrating that a vast, expensive network of selling space isn't necessarily a liability.
U.S. equities are pushing higher on Tuesday as traders await the start of another two-day Federal Reserve policy meeting. A dovish outcome is expected, with the "dot plot" expected to come down to reflect only a single rate hike in 2019 and another single hike in 2020.The bulls are feeling confident, once again pushing the Dow Jones Industrial Average up and over the 26,000 level for the fourth time since prices peaked back in October 2018. Will this rally in Dow Jones stocks have staying power?It looks that way, with global central banks doing all they can to paper over the volatility suffered late last year. With inflation at bay, they don't have much reason to play the tough cop act the market hates so much.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Best Stocks to Buy for the Bull Market's Anniversary With that in mind, here are five Dow Jones stocks that have lagged the market's rise -- and will be critical in helping push the Dow definitively past the 26,000 threshold. Boeing (BA) Click to EnlargeBoeing (NYSE:BA) shares have stabilized after hitting major turbulence in connection to the two fatal crashes of 787 MAX aircraft because of what looks like a design flaw connected to an anti-stall system. Boeing, under competitive pressure, reportedly buried details of the system's operation to avoid airlines retraining pilots. Shares were recently downgraded from buy to hold by analysts at Argus. But the worst looks to be over for the company, which will have to pay to make it right before getting back to its massive list of backorders.The company will next report results on May 1 before the bell. Analysts are looking for earnings of $4.25 per share on revenues of $25 billion. When the company last reported on Jan. 30, earnings of $5.48 beat estimates by 93 cents on a 14.4% rise in revenues. Caterpillar (CAT) Click to EnlargeCaterpillar (NYSE:CAT) shares are on the move, pushing off of uptrend channel support going back to late October. The bulls are shaking off a double downgrade day from late February when analysts at UBS cut all the way from buy to sell on worries about revenue and margin pressure in 2020. Instead, nascent hope of a manufacturing and construction turnaround are bolstering prices. * 5 of the Best Stocks to Buy Under $10 The company will next report results on April 29 before the bell. Analysts are looking for earnings of $2.86 per share on revenues of $13.5 billion. When the company last reported on Jan. 28, earnings of $2.55 missed estimates by 44 cents on a 11.2% rise in revenues. DowDuPont (DWDP) Click to EnlargeDowDuPont (NYSE:DWDP) shares are coiling up within the confines of a consolidation range going back to October, rising off of its 50-day and 20-day moving averages in what looks like the beginning of an upside breakout. The company announced this week that a broker-dealer has been selected to implement a $3 billion share buyback following the separation of its Dow subsidiary from DowDuPont.The company will next report results on May 2 before the bell. Analysts are looking for earnings of 93 cents per share on revenues of $20 billion. When the company last reported on Jan. 31, earnings of 88 cents per share beat estimates by a penny on a 0.2% rise in revenues. Goldman Sachs (GS) Click to EnlargeShares of Goldman Sachs (NYSE:GS) are emerging from a three-month consolidation range, pushing towards its 200-day moving average in what looks like a possible end to a downtrend that traces back to early 2018. Investors are getting excited about reports the company is looking to launch a new credit card product in collaboration with Apple (NASDAQ:AAPL) as well as general stabilization in the capital markets, which is resulting in a reopening of the IPO window with Lyft. * 7 Invincible Stocks Leading The Bull Market Higher The company will next report results on April 17 before the bell. Analysts are looking for earnings of $5.7 per share on revenues of $9.3 billion. When the company last reported on Jan. 16, earnings of $6.04 beat estimates by $1.26 on a 0.5% drop in revenues. Home Depot (HD) Click to EnlargeWith the peak home-buying season about to arrive, hopes of a turnaround in home prices (which have been sagging nationally lately) are raising, and thus, home improvement demand is expected to increase. Home Depot (NYSE:HD) shares have been consolidating since October but look ready for another breakout attempt above its 200-day moving average. A couple of analyst downgrades in recent weeks, including from Telsey Advisory Group, hasn't dampened investors' spirits.The company will next report results on May 28 before the bell. Analysts are looking for earnings of $2.20 per share on revenues of $26.5 billion. When the company last reported on Feb. 26, earnings of $2.25 per share beat estimates by 9 cents on a 10.9% rise in revenues.As of this writing, William Roth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Financial Stocks to Invest In Today * 7 Single-Digit P/E Stocks With Massive Upside * 5 Chip Stocks on the Rise Compare Brokers The post 5 Dow Jones Stocks Coming to Life appeared first on InvestorPlace.
Morgan Stanley’s Simeon Gutman is ‘gaining confidence’ in Lowe’s, noting its stores are changing for the better and its pro division has room to grow.
Home improvement retailer Lowe's Companies Inc. (LOW) may not be as big as Home Depot (HD), but its stock should be at least priced on par with the larger rival. Lowe's generated $3.7 billion in net income on $71.1 billion in sales from 2,133 stores versus Home Depot's $105.5 billion in sales and $8.6 billion in profit from nearly 2,300 stores. Home Depot's forward earnings multiple is 18, while Lowe's is 16.6.
Home Depot (NYSE:HD), like so many other stocks that rely on a healthy real estate market, has had a tough go of it over the past year.Source: Mike Mozart via Flickr (Modified)While it has still managed to score a nearly 3% gain in the past 12 months (and another nearly 3% in its dividend), it hasn't been the wild ride that tech stocks have had. Granted, it is still off its September 2108 highs, but it has been more a controlled slide than a precipitous drop.And ironically, the thing that looks like HD's great hope moving forward is a slowing economy, not one that is heating up.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Looking Forward in HD StockAs we saw last year, when there were signs that the U.S. economy was starting to roar back to life, the Federal Reserve was ready with its counter measures to hold runaway inflation at bay -- interest rate hikes.Also, selling off the massive mortgage-backed securities (MBS) portfolio it has purchased over the past decade is something that analysts say also can act like a de facto interest rate rise. * 15 Stocks That May Be Hurt by This Year's Big IPOs This rate rise saw mortgages go up and potential homeowners, as well as refinancing and home equity loan activity, stall. And that meant HD stock was out of luck. That's especially true on the homebuilding side, because a lion's share of its revenue comes from contractors rather than individual consumers.Once the market started to absorb the implications, it started to lower its expectations of HD stock. Fortunately Home Depot wasn't ever overbought like some of the homebuilders, so while it was painted with the same brush, it didn't get as many coats.But once the market adjusted to a slower economy in 2019 and the massive adjustment in the broad market took place in December, we're back in a good space moving forward.HD stock is up 6% year to date. The Federal Reserve has backed off on its inflation-phobic policies and is planning on giving the economy space to grow. And it's slowing down the sale of is MBS portfolio.All this is very good news for Home Depot stock moving forward.What's more, the Mortgage Bankers Association announced Wednesday that mortgage applications were up last week by 2.3%. That's a sign lower mortgage rates are starting to have an effect in the marketplace.It's always a challenge to be a market leader. While you have the size and money to weather economic storms, you're also the first company hit when the sector is challenged. You're usually expected to grow faster in good times but suffer less in bad times. Yet your stock is usually hit first when things start headed south.In a market as big as the housing market, these moves take a while to work themselves out. Looking at these trends on a quarterly basis doesn't really do the whole sector justice.For example, according to a recent study released by the Joint Center for Housing Studies of Harvard University, for just the home renovation business alone is worth $450 billion annually in the U.S.That's a big ship to turn.My Portfolio Grader gives HD stock a C rating right now, but it's cheap and reliable, so if you want to step and take its dividend on a down payment for future growth, it may well be worth it.Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough Stocks, Accelerated Profits and Platinum Growth. His most popular service, Growth Investor, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy Today * 7 ETFs to Buy to Ride the Longevity Economy * 7 Winning High-Yield Dividend Stocks With Payouts Over 5% Compare Brokers The post Should You Buy Home Depot Stock for Its Dividend? appeared first on InvestorPlace.
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, if you buy shares in a highRead More...
Shares of Costco Wholesale (NASDAQ:COST) jumped 5% trading following the warehouse retailer's positive earnings news on March 7. But broader market pressure put a damper on COST stock despite strong results. But it's because of those good results that this action caught our eye. After the big move, Costco stock continued to climb, leaving many investors to wonder what to do now.Is there still time to get long?Costco stock is setting up as a solid long for several reasons. Let's discuss three of them.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Costco Stock EarningsFor the fiscal second quarter, Costco stock reported earning per share of $2.01, 31 cents ahead of expectations. That 18% earnings surprise pushed the performance up more than 40% year-over-year (YoY). However, revenue of $35.65 billion came up short by more than $250 million, despite growing more than 7.2% YoY. A bottom-line beat and top-line miss can spell trouble for a stock, particularly on a bad market day like the one we had on Friday. * 15 Stocks Sitting on Huge Piles of Cash But that wasn't the case for COST stock and I think it's due to the strength in the business once we dig past the headline results. Forex and gas deflation weighed on revenue, as did the weather in some cases. Given the winter we've had, it's hard to deny that as a factor. If these issues caused the miss, investors were apparently fine with overlooking the sales shortfall. Further, U.S. comp-store sales jumped 7.2% YoY, but online sales were even more impressive. E-commerce comps jumped 25.5% YoY, showing just how well Costco is adjusting its business model for its customers.To be sure, the results could have been stronger, but it was still a pretty good showing for one of the market's premier retailers. Coupled with some of the catalysts below, the report is enough to help, not hinder COST stock. Trading Costco Stock Click to EnlargeAfter a solid rally on Friday, March 8, COST stock followed up with an explosive move higher on the following Monday and Tuesday. All told, shares are now up around 8% since reporting earnings. However, according to the relative strength index, the stock price was overbought in the short-term. As shown in the chart above, over the past 12 months this type of condition has tended to put pressure on Costco stock in the short term.If we get that here, I would love to see a few days of sideways action and/or a slight pullback. It would be a very healthy way for Costco stock to digest the big rally. On a pullback, it would be bullish to see the $230 level hold as support and give its 20-day moving average a chance to catch up to the move.If COST stock starts to move higher again, $240 could be a reasonable upside target, with former highs near $245 as the second target. On the downside, I'm watching $230. If it doesn't hold, I want to see the 20-day or uptrend support hold. Below $225 and Costco stock will be concerning from the long side over the short-term.Overall though, it's hard to be too bearish after a rally like this. Analysts Are Boosting EstimatesWe're halfway through Costco's fiscal year and full-year estimates are impressive. Analysts now expect the company to earn $7.92 per share, up 11.7% from last year, with 7.7% sales growth. For next year, consensus expectations call for a deceleration in growth as analysts expect earnings and revenue to grow 7.4% and 6.9%, respectively.It's worth pointing out that current-year estimates of $7.92 per share are up from $7.76 just a week ago. Still, Costco stock trades at a premium, at 29 times this year's earnings. That's in-line with its five-year average, while its forward price-to-earnings ratio of ~27 is roughly in-line as well. However, COST stock is trading at a premium to some of its other metrics. * 15 Stocks That May Be Hurt by This Year's Big IPOs Is that premium deserved? Like Home Depot (NYSE:HD) and other premier companies, Costco knows it won't dominate Amazon (NASDAQ:AMZN). Because it collects an annual fee from its 52 million members and retains a high percentage of those members (with a retention rate above 90% last quarter), Costco has flexibility. Its online and same-day delivery show strong growth and Costco will be one of the companies that not only survives but thrives from e-commerce growth.When it comes to dividend yield, Costco is no Kohl's (NYSE:KSS), as it pays out just 1%. However, last April the company bumped this payout by 14%, which is roughly in-line with its five-year average of 14.5% annual dividend growth. That's a solid raise to receive each year, particularly considering how well COST stock has done in that span as well, up 105%.Costco stock isn't cheap, but it deserves its premium valuation as a blue-chip retailer.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy Today * 7 ETFs to Buy to Ride the Longevity Economy * 7 Winning High-Yield Dividend Stocks With Payouts Over 5% Compare Brokers The post 3 Reasons to Buy Costco Stock After Strong Earnings Show Business Strength appeared first on InvestorPlace.