Latest news with #ZhihanMa
CNBC
2 days ago
- Business
- CNBC
Amazon's expansion of grocery delivery isn't the death knell for these stocks. Here's why
Even as Amazon expands further into same-day grocery delivery, analysts still see room for DoorDash and Instacart to compete. Amazon announced Wednesday that it will expand its same-day delivery of perishable items like meat and dairy to more than 1,000 cities, with plans to reach at least 2,300 locations by year-end. The news put pressure on DoorDash and Instacart, which saw their stocks tumble 4% and 14%, respectively, over the past week. Shares of Walmart, which also provides same-day grocery delivery, lost more than 3% over the same period. But Bernstein analyst Zhihan Ma said the sell-off for Instacart and DoorDash may have been overdone as there's enough room in the segment for the competitors to maintain market share. "We believe the sell-off in CART and DASH (on the back of the AMZN news) was overdone, with room for the online penetration rates to expand and retailers to increasingly lean into the platforms," Ma wrote in a Thursday note. For example, Instacart could boost its market share by reducing free delivery thresholds to bring in new customers, Ma said. The analyst sees third-party delivery services having the advantage of greater selection, quick and convenient delivery and the growing benefits tied to the subscription bundles. "CART continues to have a selection advantage to the degree consumers value ordering from Costco , Kroger etc. and these retailers now need to lean further into the on-demand platforms to compete with AMZN (we saw this post-Whole Foods acquisition); and CART has one of the best products with competitive free delivery thresholds, a wide variety of merchant selection, quick delivery windows (40% of orders are priority), and cost efficiency (optimized network, gig worker model)," the analyst said. She echoed a similar sentiment for DoorDash, which she recommended picking up post-sell-off. Even with the pullback, DoorDash shares have advanced nearly 48% so far in 2025. But Ma has a $310 price target for the stock, which suggests shares could rise 25% from where the stock closed on Friday. "Our core thesis on earnings power remains unchanged," she said. "We will continue to monitor for evidence on AMZN's encroachment, but for now remain optimistic on the path forward — powered by core Restaurant delivery but also expansion areas and normalized margin opportunity," she added. Ma's opinion on DoorDash shares is slightly more optimistic than the average analyst as the consensus view is a potential 17% advance for the stock over the next 12 months. For Instacart, analysts predict shares could rise about 34%, on average. Ma's $63 price target suggests 43% upside from here. Instacart shares are up 6% year to date. Deutsche Bank analyst Lee Horowitz also expects that Instacart and DoorDash can remain competitive as the pair benefit from a perception of quality and supply because customers can stick with their favorite grocery stores when using these services. "While much remains to be seen as to how this new product changes the grocery delivery landscape, we believe it most likely that it expands the grocery delivery pie more than cannibalizes current e-commerce volume over the short term," Horowitz said.
Business Insider
3 days ago
- Business
- Business Insider
Home Depot (HD) Gets a Hold from RBC Capital
RBC Capital analyst Steven Shemesh maintained a Hold rating on Home Depot on August 13 and set a price target of $399.00. The company's shares closed yesterday at $399.38. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Shemesh covers the Consumer Cyclical sector, focusing on stocks such as O'Reilly Auto, Valvoline, and CarMax. According to TipRanks, Shemesh has an average return of 2.9% and a 57.63% success rate on recommended stocks. In addition to RBC Capital, Home Depot also received a Hold from Bernstein's Zhihan Ma in a report issued on July 29. However, on August 13, Piper Sandler maintained a Buy rating on Home Depot (NYSE: HD). The company has a one-year high of $439.37 and a one-year low of $326.31. Currently, Home Depot has an average volume of 3.48M. Based on the recent corporate insider activity of 84 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HD in relation to earlier this year. Most recently, in June 2025, John A. Deaton, the EVP – Supply Chain & Prod. Dev of HD sold 8,892.00 shares for a total of $3,289,951.08.
Business Insider
12-07-2025
- Business
- Business Insider
Lowe's (LOW) Receives a Buy from Bernstein
Bernstein analyst Zhihan Ma maintained a Buy rating on Lowe's on July 8 and set a price target of $266.00. The company's shares closed yesterday at $224.13. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Ma covers the Consumer Cyclical sector, focusing on stocks such as Costco, Dollar General, and Lowe's. According to TipRanks, Ma has an average return of 6.4% and a 55.26% success rate on recommended stocks. Currently, the analyst consensus on Lowe's is a Moderate Buy with an average price target of $263.13. The company has a one-year high of $287.01 and a one-year low of $206.39. Currently, Lowe's has an average volume of 2.63M. Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LOW in relation to earlier this year. Last month, JULIETTE WILLIAMS PRYOR, the EVP, CLO & Corp. Sec of LOW sold 1,130.00 shares for a total of $257,075.00.
Yahoo
17-06-2025
- Business
- Yahoo
Bernstein Remains Bullish on Dollar General (DG)
Dollar General Corporation (NYSE:DG) is one of the . In a report released on June 10, Zhihan Ma from Bernstein maintained a Buy rating on Dollar General Corporation (NYSE:DG) with a price target of $126.00. The rating followed the company's fiscal Q1 2025 earnings release on June 3, reporting a 5.3% growth in net sales to $10.4 billion. Dollar General Corporation (NYSE:DG) also reported a 2.4% rise in same-store sales compared to fiscal Q1 2024, while operating profit grew 5.5% to $576.1 million in the quarter. The increase in net sales was attributed to growth in same-store sales and positive sales contributions from new stores. Diluted EPS for fiscal Q1 2025 rose to $1.78, reflecting a 7.9% growth. A busy shopping aisle filled with discounted items in a retail store. The company also raised its financial guidance for fiscal 2025. Dollar General Corporation (NYSE:DG) now expects net sales growth of around 3.7% to 4.7%, compared to prior expectations of around 3.4% to 4.4%. It reiterated plans to execute approximately 4,885 real estate projects in fiscal year 2025, which includes up to 15 new stores in Mexico and around 575 new stores in the US. Dollar General (NYSE:DG) is a retailer that offers a diverse array of merchandise in its stores, including consumables, beverages, seasonal items, and more. While we acknowledge the potential of DG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
CNBC
31-05-2025
- Business
- CNBC
Analysts stay upbeat on Costco after solid quarter, but say it's richly valued
Costco's solid third-quarter results on Thursday left Wall Street analysts confident that the membership club wholesaler can retain its dominance. The firm, whose sales in its current fiscal year are estimated to reach $275 billion, surpassed analyst estimates on the top and bottom line in the quarter that ended May 11. Analysts pointed to strong foot traffic, customer loyalty and said Costco is well-positioned to handle tariff headwinds as U.S. trade policy continues to evolve. Shares have advanced 14% so far in 2025, outpacing the S & P 500, which is little changed. But after Costco stock more than doubled in the two years from the start of 2023 to the end of 2024, consensus analyst forecasts for the next 12 months imply just 3.4% upside. Bernstein analysts, for example, caution that future gains could be slim because the stock is "priced for perfection." COST YTD mountain Costco stock in 2025. Shares rose 3.1% Friday in reaction to the latest quarter's results released post-market Thursday. Here are the main takeaways from analysts on Wall Street after Costco's fiscal third-quarter print. Bernstein, outperform rating, $1,153 per share price target Analyst Zhihan Ma's forecast implies 11% upside from Friday's close of $1040.18. "Overall, we are encouraged by COST's strong traction with consumers, evidenced by its meaningfully above-peer comp sales growth. Further, we expect COST to continue to expand its store footprint in the U.S. and globally at a measured pace," Ma said. "At the current rate of expansion, we see a long growth runway for COST for decades from here." Morgan Stanley, overweight, $1,225 Analyst Simeon Gutman's price target, which he raised from $1,150, implies about 18% upside. "It is rare to find a business with COST's solid comp/membership growth, while relative e-commerce insulation differentiates its value proposition from other retailers," Gutman said. "We are Overweight even as the stock trades at an elevated valuation given COST's scarcity value, safety, and scale." UBS, buy, $1,205 Analyst Michael Lasser said the third quarter proved that Costco can successfully mitigate potential challenges posed by tariffs, and lauded the company's "superior consistency and execution." "This quarter was a good illustration of why we think COST is well set up to outperform. Once again, COST generated consistent and robust comp performance month in, month out," Lasser said. "It managed its profitability well amid plenty of uncertainties, including [last in, first out] charges and continued labor investments. It also provided compelling evidence why it should be able to mitigate tariffs while maintaining its moat around value." Deutsche Bank, buy, $1,106 Analyst Krisztina Katai's forecast calls for about 6% upside. "All in, we anticipate COST should continue to extend its top-line strength and share gains, and we see meaningful opportunity from its retail media business, the evolution of its business model and supply chain efficiencies to drive further margin expansion," Katai said. Wells Fargo, equal weight, $1,000 Wells Fargo analyst Edward Kelly remains optimistic on Costco over the long-term, but noted some concern due to its valuation. "One of the highest quality companies in consumer with attractive defensive positioning, but risk/reward isn't appealing to us," Kelly said. "A clear share gainer and [membership fee income] a tailwind, but not immune to the weak pricing backdrop, visibility on sustained margin upside is low and the stock looks expensive given the long-term algo."
