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The Zacks Analyst Blog Highlights Walmart, Home Depot and Costco
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For Immediate Release
Chicago, IL – June 22, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Walmart Inc. (WMT - Free Report) , The Home Depot, Inc. (HD - Free Report) and Costco Wholesale Corp. (COST - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
3 Blue-Chip Retail Stocks Investors Should Keep an Eye On
We always try to hit the jackpot while picking stocks. However, striking the right chord each time is challenging unless blessed with a Midas touch. Investors should gauge the changing market dynamics and accordingly devise a sturdy investment strategy. They should look at stocks that demonstrate growth potential, stability and resilience during economic downturns.
So, when it comes to long-term stability and consistent growth, market pundits place their bets on highly reputed companies with humongous market capitalization. These industry giants are commonly referred to as blue-chip companies. Blue-chip stocks are financially resilient, with an impressive track record of solid returns to shareholders.
Established market positions, brand recognition, a solid customer base and high market penetration are some of the traits these blue-chip companies possess. Such strengths provide these companies with a distinct competitive edge and help unlock new opportunities, thus making them investor favorites.
Here we have identified three stocks from the Retail - Wholesale sector, namely Walmart Inc., The Home Depot, Inc. and Costco Wholesale Corp. Thanks to successful business operations, these bellwethers have withstood multiple market gyrations and delivered returns to investors. These blue-chip stocks have balance sheet strength to tackle any untoward market volatility.
3 Prominent Picks
Walmart: The omnichannel retailer has been doing every bit to solidify its already robust market position. Walmart has been taking several e-commerce initiatives, including buyouts, alliances, and improved delivery and payment systems as well as undertaking efforts to enhance merchandise assortments. The company is innovating in the supply chain and adding capacity as well as building businesses, such as Walmart GoLocal, Walmart Connect, Walmart Luminate, Walmart+, Spark Delivery, Marketplace, and Walmart Fulfillment Services.
With a market cap of $415.1 billion as of Jun 20, 2023, Walmart has a long-term earnings growth expectation of 5.5%. This Zacks Rank #2 (Buy) stock has a trailing four-quarter earnings surprise of 12%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Walmart’s current financial-year sales suggests growth of 4.2% from the year-ago period. The company pays out a quarterly dividend of 57 cents ($2.28 annualized) per share, giving a 1.5% yield at the current stock price. WMT’s payout ratio is 35, with a five-year dividend growth rate of 1.8%. (Check WMT’s dividend history here)
Home Depot: The Atlanta, GA-based company is the world’s largest home improvement specialty retailer. HD has been benefiting from ongoing investments in the One Home Depot plan. Continued strength in the Pro and DIY categories and digital momentum have been the key drivers. Its interconnected retail strategy and underlying technology infrastructure have helped boost web traffic for the past few quarters, aiding digital sales.
With a market cap of more than $303 billion, Home Depot has a long-term earnings growth expectation of 10.4%. This Zacks Rank #3 (Hold) stock has a trailing four-quarter earnings surprise of 1.7%, on average. The company pays out a quarterly dividend of $2.09 ($8.36 annualized) per share, giving a 2.8% yield at the current stock price. HD’s payout ratio is 51, with a five-year dividend growth rate of 14.6%.
Costco: Being a consumer defensive stock, Costco has been surviving the market turmoil pretty well. Strategic investments, a customer-centric approach, merchandise initiatives and an emphasis on memberships have been the discount retailer’s primary strengths. Costco's distinctive membership business model and pricing power set it apart from traditional players.
With a market cap of $230.3 billion, Costco has a long-term earnings growth expectation of 8.3%. This Zacks Rank #3 stock has a trailing four-quarter earnings surprise of 1.8%, on average.
The Zacks Consensus Estimate for Costco’s current financial-year sales and EPS suggests growth of 6.7% and 9.6%, respectively, from the year-ago period. The company pays out a quarterly dividend of $1.02 ($4.08 annualized) per share, giving a 0.8% yield at the current stock price. COST’s payout ratio is 29, with a five-year dividend growth rate of 11.3%.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Walmart, Home Depot and Costco
For Immediate Release
Chicago, IL – June 22, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Walmart Inc. (WMT - Free Report) , The Home Depot, Inc. (HD - Free Report) and Costco Wholesale Corp. (COST - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
3 Blue-Chip Retail Stocks Investors Should Keep an Eye On
We always try to hit the jackpot while picking stocks. However, striking the right chord each time is challenging unless blessed with a Midas touch. Investors should gauge the changing market dynamics and accordingly devise a sturdy investment strategy. They should look at stocks that demonstrate growth potential, stability and resilience during economic downturns.
So, when it comes to long-term stability and consistent growth, market pundits place their bets on highly reputed companies with humongous market capitalization. These industry giants are commonly referred to as blue-chip companies. Blue-chip stocks are financially resilient, with an impressive track record of solid returns to shareholders.
Established market positions, brand recognition, a solid customer base and high market penetration are some of the traits these blue-chip companies possess. Such strengths provide these companies with a distinct competitive edge and help unlock new opportunities, thus making them investor favorites.
Here we have identified three stocks from the Retail - Wholesale sector, namely Walmart Inc., The Home Depot, Inc. and Costco Wholesale Corp. Thanks to successful business operations, these bellwethers have withstood multiple market gyrations and delivered returns to investors. These blue-chip stocks have balance sheet strength to tackle any untoward market volatility.
3 Prominent Picks
Walmart: The omnichannel retailer has been doing every bit to solidify its already robust market position. Walmart has been taking several e-commerce initiatives, including buyouts, alliances, and improved delivery and payment systems as well as undertaking efforts to enhance merchandise assortments. The company is innovating in the supply chain and adding capacity as well as building businesses, such as Walmart GoLocal, Walmart Connect, Walmart Luminate, Walmart+, Spark Delivery, Marketplace, and Walmart Fulfillment Services.
With a market cap of $415.1 billion as of Jun 20, 2023, Walmart has a long-term earnings growth expectation of 5.5%. This Zacks Rank #2 (Buy) stock has a trailing four-quarter earnings surprise of 12%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Walmart’s current financial-year sales suggests growth of 4.2% from the year-ago period. The company pays out a quarterly dividend of 57 cents ($2.28 annualized) per share, giving a 1.5% yield at the current stock price. WMT’s payout ratio is 35, with a five-year dividend growth rate of 1.8%. (Check WMT’s dividend history here)
Home Depot: The Atlanta, GA-based company is the world’s largest home improvement specialty retailer. HD has been benefiting from ongoing investments in the One Home Depot plan. Continued strength in the Pro and DIY categories and digital momentum have been the key drivers. Its interconnected retail strategy and underlying technology infrastructure have helped boost web traffic for the past few quarters, aiding digital sales.
With a market cap of more than $303 billion, Home Depot has a long-term earnings growth expectation of 10.4%. This Zacks Rank #3 (Hold) stock has a trailing four-quarter earnings surprise of 1.7%, on average. The company pays out a quarterly dividend of $2.09 ($8.36 annualized) per share, giving a 2.8% yield at the current stock price. HD’s payout ratio is 51, with a five-year dividend growth rate of 14.6%.
Costco: Being a consumer defensive stock, Costco has been surviving the market turmoil pretty well. Strategic investments, a customer-centric approach, merchandise initiatives and an emphasis on memberships have been the discount retailer’s primary strengths. Costco's distinctive membership business model and pricing power set it apart from traditional players.
With a market cap of $230.3 billion, Costco has a long-term earnings growth expectation of 8.3%. This Zacks Rank #3 stock has a trailing four-quarter earnings surprise of 1.8%, on average.
The Zacks Consensus Estimate for Costco’s current financial-year sales and EPS suggests growth of 6.7% and 9.6%, respectively, from the year-ago period. The company pays out a quarterly dividend of $1.02 ($4.08 annualized) per share, giving a 0.8% yield at the current stock price. COST’s payout ratio is 29, with a five-year dividend growth rate of 11.3%.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.