Sorry, Jessica, WE DID VOTE FOR THIS
Supreme Court Hands Trump White House a Major Win, and Slaps Down Justice...
Stephanopoulos Is Under Water With Flood Accusations, and 25 years Is Too Little...
Stealth Bombers and Bunker Busters for Israel?
Philly Drowns in Trash As Union, Mayor Face Off
Karoline Leavitt Delivers Perfect Response to Reporter’s Stupid Question on Texas Flood Al...
Former Mamdani Intern Berates Muslim NYPD Officer at Pro-Palestinian Protest in Resurfaced...
JD Vance Goes Scorched Earth on NYC Muslim Socialist Candidate
FBI Launches Criminal Probe Into Brennan, Comey Over Trump-Russia Misconduct
IRS Announces Churches Can Endorse Political Candidates
TSA Announces Major Airport Change
SCOTUS Greenlights Trump’s 'Wrecking Ball' Federal Job Cuts to Move Forward Amid Ongoing...
Any Palestinian State Is a Way to Destroy Israel, Says Netanyahu
Colombia’s Leftist President Shrinks to Trump with Private Apology After Bizarre Coup Accu...
There’s Been a Disturbing Update Surrounding Laken Riley’s Murderer
OPINION

Stocks in the News: Costco Leads Discounters

The opinions expressed by columnists are their own and do not necessarily represent the views of Townhall.com.

Stock number one is: 

Costco Wholesale Corporation, (SYMBOL: COST) and the headline says: Costco July Comparable Sales Up 4% -- Fox Business

Membership warehouse retailer Costco reported July same-store-store sales up 4%, and total sales up 7%.  Results were aided by higher prices at its gas stations, and harmed by foreign exchange rates.

Advertisement

Earnings projections have increased since we last reported on Costco in March, to 15, 11 and 11 percent in the next three years.  Citi Research says, “Costco is the best-positioned company in the warehouse club industry to gain market share.”  S&P adds, “We think the company is well-positioned to generate long-term earnings growth.”

The stock price is up 14% since our buy recommendation in March, and still climbing, although the PE is quite high at 26.  We would hold our shares and accumulate more during market corrections.

Our Ransom Note trendline says:  ACCUMULATE COSTCO.

COST Chart

COST data by YCharts

Stock number two is: 

Mondelez International Inc., (SYMBOL: MDLZ) and the headline says: Mondelez dramatically raises share buyback authorization -- Reuters

Snack food company Mondelez Int’l, which was spun off from Kraft Foods Group last October, announced a new $6 billion share repurchase program, a dividend increase, and that it will build a Cadbury manufacturing plant in India.  The company also reported second quarter earnings of 37 cents per share, beating the consensus estimate of 34 cents.

Earnings are projected to grow 10-12% per year for the next three years.  The PE is 21, and the new dividend yield is 1.7%.

Mondelez stock has been rising this year; trading between $28 and $32 since March, and appears ready to break out.  Again, like CostCo, the stock has good earnings growth and a bullish chart, but a high PE.

Our Ransom Note trendline says..... ACCUMULATE MONDELEZ.

Advertisement
MDLZ Chart

MDLZ data by YCharts

Stock number three is:

Groupon Inc., (SYMBOL:  GRPN) and the headline says: More Progress – Morgan Stanley Research

Groupon Inc. named co-founder Eric Lefkofsky as the new CEO, as the company gains momentum with its new e-commerce strategy and overseas focus.  Groupon reported good second quarter revenue growth, and announced a $300 million share repurchase program, but more importantly, Wall Street is showing confidence that the company and the stock price are done floundering.

EPS are projected to grow 31, and 71 percent over the next two years.  The PE is 65.  The stock fell dramatically after its 2011 IPO, and began a distinct recovery in May.  While the chart is bullish, we caution investors to use stop-loss orders on this aggressive-growth stock.

Our Ransom Note trendline says....  ACCUMULATE GROUPON UNDER $10.

GRPN Chart

GRPN data by YCharts

Stocks in the News is produced by Ransom Notes Radio and Goodfellow, LLC. Crista Huff manages Goodfellow LLC, a website that recommends outperforming stocks using fundamental and technical analysis. 


Join the conversation as a VIP Member

Recommended

Trending on Townhall Videos

Advertisement
Advertisement
Advertisement