Costco is a clear beneficiary of value-based behavior changes, says Accuvest's Eric Clark
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CNBC
25 minutes ago
- CNBC
Amazon turns the grocery business on its head, again — but don't sell Costco on it
Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Wednesday's key moments. 1. The S & P 500 and Nasdaq hit intraday all-time highs for the second straight session, but have come off the boil a bit. Both indexes finished with record-high closes Tuesday after cooler-than-expected consumer inflation data put a near lock on a Federal Reserve interest rate cut next month, with increasing odds of additional cuts in October and December. "I am concerned that things are too exuberant," Jim Cramer said during the Morning Meeting, ahead of Thursday's Monthly Meeting for Club members at noon ET. Health-care, consumer discretionary, and financial stocks were leading Wednesday's market higher. Our newest stock, Cisco Systems , reports earnings after Wednesday's closing bell. 2. Nvidia shares fell nearly 2% — catching some selling pressure on the post-earnings decline of CoreWeave , which rents Nvidia chips for AI workloads. Piper Sandler, however, raised its price target on Club stock Nvidia to $225 per share from $180 and kept its overweight buy rating. The analysts see upside to the quarter and outlook due to recent positive commentary from U.S. hyperscalers and the inclusion of revenue from China. There have been reports about whether customers there are buying the China-specific chip that was allowed back on the market. "They are buying it like mad," Jim said, adding he has that news on good authority from someone close to the situation. 3. Amazon on Wednesday announced that it launched same-day delivery of meat, eggs, and produce in more than 1,000 cities and towns in the U.S. The service is expected to expand to at least 2,300 localities by the end of the year. "Once again, the bargain of Prime is so incredible," Jim said. Shares of grocery chains Kroger and Albertsons were down more than 4% and 2.5%, respectively. Club name Costco was down roughly 1%. But Jim said Costco shouldn't be down because it doesn't compete with Amazon on delivery. Costco is a "price business, a volume business," he explained. 4. Stocks covered in Wednesday's rapid fire at the end of the video were Cava , Brinker , and CoreWeave . (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Yahoo
8 hours ago
- Yahoo
Costco Stock: Is Wall Street Bullish or Bearish?
Issaquah, Washington-based Costco Wholesale Corporation (COST) operates a chain of membership-only big-box warehouse club retail stores. With a market cap of $438.5 billion, Costco operates through its outlets spread across North America, Asia, and Europe, and an e-commerce website. The discount retailer has lagged behind the broader market over the past year. COST stock has gained 14.8% over the past 52 weeks and 8.2% on a YTD basis, compared to the S&P 500 Index's ($SPX) 20.6% surge over the past year and 9.6% returns in 2025. More News from Barchart This High-Yield (7%) Dividend Stock Is Down Significantly in 2025. Should You Buy the Dip? Dear CoreWeave Stock Fans, Mark Your Calendars for August 14 Warren Buffett Warns Investing At 'Too-High Purchase Price' Even for 'an Excellent Company' Can Undo a Decade of Smart Investing Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! However, narrowing the focus, Costco has outpaced the sector-focused Consumer Staples Select Sector SPDR Fund's (XLP) 4.9% uptick over the past 52 weeks and 5.1% gains on a YTD basis. Costco Wholesale's stock prices gained 3.1% in the trading session following the release of its better-than-expected Q3 results on May 29. The company observed high single-digit growth in store sales across regions and a 14.8% growth in e-commerce revenues. Overall, its revenues for the quarter came in at $63.2 billion, up 8% year-over-year and surpassing the Street estimates by a thin margin. Further, its EPS for the quarter surged 13.2% year-over-year to $4.28, exceeding the consensus estimates by 71 bps. While Costco's financials have remained impressive in recent quarters, the company faces a serious threat of macro slowdown. The consumer spending in the US has substantially slowed down in recent months, and the job market has also remained weak, alongside the new tariffs can further dampen prospects for the discount retail industry. For the full fiscal 2025, ending in August, analysts expect Costco to deliver an EPS of $17.97, up 11.6% year-over-year. The company has a mixed earnings surprise history. While it surpassed the Street's bottom-line estimates thrice over the past four quarters, it missed the estimates on one other occasion. Costco has a consensus 'Moderate Buy' rating overall. Of the 32 analysts covering the stock, opinions include 14 'Strong Buys,' four 'Moderate Buys,' and 14 'Holds.' This configuration is notably less optimistic than three months ago, when 16 analysts gave 'Strong Buy' recommendations and five analysts suggested 'Moderate Buy' ratings. On Aug. 5, Erste Group's analyst downgraded COST stock from 'Buy' to 'Hold' due to concerns over the expected slowdown in sales growth in the upcoming fiscal year. As of writing, Costco's mean price target of $1,092.44 represents a 10.2% upside potential. Meanwhile, the street-high target of $1,225 suggests a notable 23.6% premium to current price levels. On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
15 hours ago
- Yahoo
The Kansas City area could get a new Costco. Here's where it's planned
A developer has filed plans to build a new Costco in Lee's Summit. Overland Park-based Drake Development filed plans with the city to build a new Costco near U.S. Highway and Missouri Route 291, according to documents provided by the city of Lee's Summit. A fueling station is included in those plans. The membership-based warehouse grocer would be part of a development called Oldham Village East — a $416 million project Drake proposed earlier this year. Costco would anchor the 120-acre mixed use development. Plans call for apartments, townhomes, and space for more restaurant and retail tenants that have yet to be determined. Drake's Costco plans are still in review and must first be approved by the city. Costco has five locations in the Kansas City area, including one in Independence at19040 E. Valley View Parkway. Solve the daily Crossword
