While September may bring market volatility, blue-chip retail stocks such as WMT, COST and HD offer a blend of stability and growth.
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Costco (NASDAQ:COST) has been selling hundreds of millions of dollars worth of gold bars since it offered them in store.
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Costco's ability to offer products at lower prices than many of its competitors is a major draw for its customer base.
Costco generates higher sales and robust profitability under almost any conditions through its resilient model. One of its most attractive features is its consistency.
In the most recent trading session, Costco (COST) closed at $894.29, indicating a -0.25% shift from the previous trading day.
Costco's membership model, where customers pay an annual fee for access to its warehouse stores, ensures a steady revenue stream.
Costco's distinctive membership business model and pricing power set it apart from traditional players. Comparable sales for the retail month of August rise 5%.
Costco's dividend yield is nearly at a 15-year low following substantial gains for the stock. The retailer should continue raising its dividend every year, given its solid financial results.
Costco's strong brands, customer loyalty, and resilient financials have driven its share price up 62.45% in the past year, surpassing its 5-year average P/E of 38x earnings. Despite robust earnings and dividend growth, Costco's stock appears significantly overvalued with a forward P/E of 54.7x, suggesting potential for a price correction. The company's balance sheet is strong, with low debt and high cash reserves, supporting continued dividend growth for the foreseeable future.
Costco's memberships generate high-margin, predictable revenue. Home Depot operates with a favorable industry backdrop.