|Bid||206.05 x 1200|
|Ask||223.17 x 800|
|Day's Range||206.96 - 208.59|
|52 Week Range||150.00 - 208.59|
|PE Ratio (TTM)||30.46|
|Earnings Date||May 23, 2018 - May 29, 2018|
|Forward Dividend & Yield||2.28 (1.10%)|
|1y Target Est||214.96|
A Costco membership opens doors, quite literally, to a vast selection of bulk-size groceries and household goods selling at discounted prices. But buying potato chips and toilet paper by the case is just the start. The warehouse club also stocks everything from tires and furniture to electronics and jewelry. With so many items to choose from, Trae Bodge, a consumer expert who specializes in smart shopping strategies, says it's critical to shop Costco with a list to avoid overspending. List or no list, shoppers seem to like the savings and selection. Costco has 50 million paid members around the world, with an 87% renewal rate worldwide (90% in the U.S. and Canada). The chain ranks first in customer satisfaction among department and discount stores, according to the American Customer Satisfaction Index, edging out rivals Sam's Club and BJ's Wholesale. Thinking of taking the Costco plunge? Here's what you should know before investing $60 in an annual membership. SEE ALSO: Kirkland Products You Should Always Buy at Costco
Shares of Citigroup Inc. ( C) were upgraded by Deutsche Bank, which anticipates events like the Federal Reserve’s upcoming stress test and an improving business environment will be among its main drivers. Deutsche Bank analysts Matt O’Connor upgraded Citi to buy from hold, saying he expects shares to rebound from their recent low levels. The bank’s stock is down 9.4% year to date. Citi stock is off 17% from its 52-week high in January, which underperformed Bank of America Corp. ( BAC) and JPMorgan Chase & Co. ( JPM) by 9%, O’Connor said.
A sharp sell-off in Chinese shares on Tuesday started a ripple through global markets that extended into Asia trade on Wednesday. It will be replaced by pharmacy chain Walgreens Boots Alliance. Nikki Haley, US ambassador to the UN, had long threatened to leave the rights body, citing a “chronic anti-Israel bias” and inclusion of several countries with a record of human rights violations.
BJ’s private-equity owners will retain control of a company with margins that lag rivalsBJ’s Wholesale is focused on the New England area and has room to grow, says the company. BJ’s Wholesale Club, operator of 215 warehouse clubs across 16 states largely along the U.S.’s eastern seaboard, is planning an initial public offering, returning to the public markets after a seven-year spell as a private company. The company(IPO:BJ)is offering 37.5 million shares priced at $15 to $17 each, which would raise about $600 million at the midpoint of the range.
Start-up Apeel, funded in part by Andreessen Horowitz and Bill Gates, just scored a deal with Costco. The start-up makes a coating that's used to preserve produce, such as avocados. As a PhD candidate in materials science at UC Santa Barbara, James Rogers used to think a lot about food waste.
Ironically for a company known for selling at a discount, I think BJ’s is trying to sell its stock to the public at too high a price premium. BJ’s SPO – it did an IPO in August 1997 before being taken private by CVC Capital Partners and Leonard Green for $2.8 billion in 2011 – values the bulk retailer at $2.15 billion. BJ’s was New England’s first wholesale club – starting in 1984 and has grown to 215 large-format, high volume warehouse clubs and 134 gas stations in 16 states, with $12.5 billion in revenue and $50 million in net income in 2017, according to BJ’s June 18 offering prospectus.
In this final part of the series, we’ll look at Wall Street’s recommendations and current valuations of Kroger (KR). Kroger is covered by 26 Wall Street analysts, who have jointly rated the stock a 2.2 on a scale of 1.0 (strong buy) to 5.0 (sell).
LoveSac chairs sit on display at a LoveSac store January 13, 2005 in Chicago, Illinois. After starting in 1995 selling iconic beanbag-style chairs for the budget-challenged college crowd, Lovesac has graduated along with its target customers. With founder Shawn Nelson still at the helm, who started the company while attending the University of Utah, priced between $13-$15.
Think again, as the SPDR S&P Retail (ETF) (NYSEARCA:XRT) is hitting new annual highs, being led by long-time stalwarts like Home Depot Inc (NYSE:HD) and Costco Wholesale Corporation (NASDAQ:COST). Up “only” 11.4% so far in 2018, COST stock doesn’t seem like it’s too rich to buy from that perspective. My case is pretty simple though: COST stock is a buy, but on a pullback.
Most of the analysts providing recommendations on Costco (COST) stock have maintained a “buy” rating. Several analysts raised their target prices on Costco following the company’s fiscal third-quarter earnings and strong monthly sales for May. UBS raised its target price to $225.00 per share on Costco stock from $215.00.
After falling ~20.0% in 2017, Kroger’s (KR) stock price has fallen 4.6% so far this year. The company is trading more than 20.0% below its 52-week high price. However, Kroger isn’t the only consumer staples stock that’s stuck in the red.
A startup backed by Bill Gates is tackling the problem of avocados that ripen too fast. Apeel Sciences uses food waste and other plant material to create a product that delays the aging of produce, potentially giving U.S. retailers an opportunity to cut down on the amount of fresh food they throw out. “There’s a visceral reaction to throwing away an avocado,” said James Rogers, the 33-year-old chief executive officer of Santa Barbara, California-based Apeel.
Costco (COST) stock was trading at a forward PE (price-to-earnings) multiple of 27.7x on June 15, which was significantly higher than its peers. If we look at the historical trend, Costco stock has always traded at a premium when compared with Walmart (WMT) and Target (TGT) stock, as can be seen in the graph below. In comparison, the S&P 500 Index (SPX) was trading at a forward PE multiple of 17.5x on June 15.
Groceries account for 56.0% of Walmart’s sales, and the retailing giant is leaving no stone unturned to capture further market share. According to a Raymond James survey, Walmart reduced its prices by 4.0% between February and April this year. Walmart’s nationally branded food products had lower prices than even Dollar General and Family Dollar.
Costco’s (COST) earnings per share have seen double-digit growth over the past five quarters. In comparison, Walmart (WMT) has also improved its EPS. Target’s (TGT) EPS returned to a growth trend during the recently reported fiscal first quarter.
Costco (COST) has posted impressive sales performance over the past several quarters and has outperformed both Walmart (WMT) and Target (TGT). During the recently concluded quarter, Costco’s comps (comparable store sales) in the US grew 7.7% (excluding the changes in fuel prices and currency movements). This is higher than Walmart’s 2.1% growth (excluding fuel) and Target’s 3.0% increase.
At a time when retail giants like Walmart (WMT), Target (TGT), and Amazon (AMZN) are fiercely competing for a greater share of consumer spending, Costco (COST) is enjoying smooth sailing. When Amazon disrupted the grocery space with its 2017 Whole Foods acquisition, Wall Street analysts were most concerned about the prospects for Costco stock.
Here’s what we currently know about the BJ’s Wholesale Club IPO. The company is expecting to price its shares between $15 and $17 for its IPO. It will be offering a total of 37.5 million shares in its IPO.
The rating on the IO class, Cl. X-A, was affirmed based on the credit quality of its referenced classes. Moody's rating action reflects a base expected loss of 4.0% of the current balance, compared to 4.3% at Moody's last review.
Matt Patsky’s interest in sustainable investing came early: At 11, he took his savings from cutting lawns and shoveling driveways to buy his first investment, Dreyfus Third Century, an early socially responsible mutual fund. Patsky, 54, was named Boston-based Trillium Asset Management’s CEO in 2009 after the death of its founder, Joan Bavaria, an art student and college dropout who became a pioneer of socially responsible investing. Trillium today has $2.6 billion under management, all managed under sustainable principles.
Amazon (AMZN) might have forever changed the grocery industry exactly one year ago when the e-commerce giant bought Whole Foods for roughly $14 billion on June 16, 2017. Today, grocery delivery is commonplace across the entire industry.
Costco is one of the world's most powerful, profitable retail brands managing to stay afloat even as Amazon encroaches on large retailer market share. So, how much is the retail juggernaut worth today?