Costco has been performing well as a business despite its recent price drawdown. Target has been performing poorly as a business, and the stock has fallen into its own bear market.
Costco's sales and earnings increased in the fourth quarter, surpassing consensus estimates. The company has 80 million members worldwide, with a nearly 90% membership renewal rate.
Retailers like Costco (COST) and Walmart (WMT) are positioned as holiday winners due to their value-focused brand and pricing power. Luxury brands such as LVMH benefit from resilient high-end consumer spending, while direct-to-consumer brands face pricing pressure from increased price transparency.
Dividend investing isn't just about yield -- payout ratio and growth potential matter too. Several of these companies have increased dividends for decades without interruption.
Costco trades at almost 50 times trailing earnings, but it's cheaper than you think. The concept's popularity has delivered positive revenue growth in 33 of the last 34 fiscal years.
Now that Walmart Corp NYSE: WMT has reported a blowout quarter, investors' eyes are turning to Costco Wholesale Club Inc. NASDAQ: COST to see if it can break out of its year-long funk. Costco's earnings aren't scheduled until Dec.11, but the company does offer monthly sales reports that could hint at the stock's next move.
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