Costco Wholesale Corporation (COST) experienced positive growth in the third quarter of 2023. The company's stock closed at $551.84 per share on October 24, 2023, with a one-month return of -3.05% and a 9.39% gain over the last 52 weeks [d6c6863b]. The positive growth can be attributed to solid sales and traffic trends, as well as waning inflation. Costco Wholesale Corporation has a market capitalization of $241.892 billion. Hedge fund portfolios holding Costco Wholesale Corporation increased from 63 in the previous quarter to 67 at the end of the second quarter [d6c6863b].
However, while Costco has been a steady performer, a recent article from The Motley Fool suggests that Amazon could be a contrarian retail stock pick for 2024 and beyond [21b3abac]. The article highlights that Costco stock has outperformed competitors like Amazon in recent years, delivering returns of 260% to shareholders over the last five years. Nonetheless, the article advises against chasing Costco's returns and instead recommends considering Amazon as a potential investment. Amazon's focus on the customer experience and its various revenue outlets, such as advertising and third-party merchant services, could contribute to its success. The article emphasizes Amazon's potential for profit growth and strong returns for investors [21b3abac].
According to a recent article from Business News, Costco Wholesale has experienced significant growth in sales and net income, outperforming its largest peers over the last five years. However, the author suggests that instead of investing in Costco, investors should consider Amazon as a contrarian stock pick. Amazon's e-commerce segment is showing signs of recovery, and it has the potential for strong returns in the future. The author highlights Amazon's focus on customer experience and its ability to leverage profits from e-commerce and cloud computing. They argue that if American households experience an increase in purchasing power, Costco's focus on wholesale prices and limited merchandise selection may not make it the best company to benefit from the economic rally. The article recommends investing in Amazon for 2024 and beyond. The article includes data on Costco's stock performance and valuations, as well as comparisons to other retailers like Target and Walmart. The Motley Fool has positions in Amazon, Costco Wholesale, Target, and Walmart [629f6818].
In a more recent article from The Motley Fool, titled 'Buy, Sell, Hold: Amazon, Costco, and Walmart Stock Edition,' the author provides an analysis of the three retail giants. The article states that Amazon is the dominant e-commerce retailer with a 37.6% market share and still has long-term investment potential. Walmart, America's largest retailer, has a premium valuation but is likely to thrive in a recession. On the other hand, Costco Wholesale is considered an excellent business, but its stock is expensive, trading at a high forward P/E ratio. The article suggests that it may be worth considering selling some shares of Costco. The Motley Fool's board of directors includes John Mackey, former CEO of Whole Foods Market [75d4acfc].
In more recent news, Wall Street should stop worrying about Costco's momentum, according to an article from the International Business Times. Recent financial reports indicate that Costco is not losing momentum. In the fourth quarter of fiscal year 2023, Costco reported net sales of $77.43 billion, representing an annual growth of 9.4%. Net income for the same quarter increased to $2.2 billion, up from $1.87 billion the previous year. In the second quarter of fiscal year 2024, Costco's net sales rose 5.7% to $57.33 billion, with net income of $1,743 million. Costco's quarterly e-commerce sales increased at an annual rate of 18.4%. Costco's continued momentum is confirmed by consumer satisfaction surveys. Costco's Economic Valued Added (EVA) has risen from $1.07 billion in 2018 to $1.72 billion by 2023. Costco's economic fundamentals remain strong. The stock price has grown over 50% in the past year. Costco continues to see strong membership growth and high renewal rates. Costco is planning a membership fee increase, which will impact profitability. Costco's momentum is further confirmed by its top positions in consumer satisfaction surveys and its effective capital allocation. Costco's strategy of expanding its offerings by selling gold and silver has paid off, with quarterly e-commerce sales increasing and customers spending $100 million on gold bars. Costco's momentum is also confirmed by its positive performance in the retail industry and ability to generate profits [7dd3c9a6].
In more recent news, Amazon (AMZN) closed at $178.22 in the latest trading session, marking a +0.83% move from the prior day. Shares of the online retailer had gained 10.97% over the past month, outpacing the Retail-Wholesale sector's gain of 2.63% and the S&P 500's gain of 5.2% in that time. Amazon is projected to report earnings of $0.81 per share, which would represent year-over-year growth of 161.29%. The latest consensus estimate predicts the revenue to be $142.39 billion, indicating an 11.8% increase compared to the same quarter of the previous year. The Zacks Consensus Estimates suggest analysts are expecting earnings of $4.06 per share and revenue of $641.11 billion for the full year, marking changes of +40% and +11.54%, respectively, from last year. Amazon is currently a Zacks Rank #1 (Strong Buy) [c83969a4].
Wayfair Inc. (NYSE:) Chief Operating Officer Thomas Netzer sold a total of 3,339 shares of Class A Common Stock at prices ranging from $62.23 to $63.69, with a weighted average price of $63.02 to $63.69 per share. The total value of the shares sold amounted to over $210,461. The sale was required to cover tax withholding obligations associated with the vesting of restricted stock units (RSUs). Prior to the sale, Netzer acquired 28,595 shares of Class A Common Stock through the vesting of RSUs at no cost. Investors monitor insider transactions for insights into executive sentiment about the company's future performance. Wayfair Inc. has not made any official comment on the transactions reported in the SEC filing [25b60e38].
Zuora Inc's Chief Financial Officer, Todd McElhatton, sold 31,006 shares of Class A Common Stock at a weighted average price of $8.6084, totaling approximately $266,912. The sale was part of a planned sale to cover tax liabilities associated with the vesting of restricted stock units. McElhatton still owns 277,803 shares of Zuora Inc. The sale is closely watched by investors for insights into executive sentiment regarding the company's future prospects [48053d0d].