*Stock Advisor returns as of July 10, 2023 and Costco Wholesale wasn't one of them! That's right - they think these 10 stocks are even better buys. They just revealed what they believe are the ten best stocks for investors to buy right now. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* When our analyst team has a stock tip, it can pay to listen. Neither stock looks especially expensive right now, though, meaning you are likely to see solid returns from putting either - or both - in your portfolio.ġ0 stocks we like better than Costco Wholesale Costco, meanwhile, will appeal to investors who value stable sales and profit growth. If growth is your focus, and you don't mind volatile earnings results, then Amazon shares will be the better fit for your portfolio. Amazon's stock valuation is down as well, but it has risen a lot in 2023, from 1.7 times sales in January to 2.6 times sales right now. You can own the stock for about 1 times annual sales, down from the pandemic high of around 1.25. Price and valueĬostco shares have become cheaper lately, mainly thanks to those modest expectations around growth. If you're looking for stability in earnings, then Costco is one of the best stocks around. The company's management team prioritizes cash flow over short-term profits, after all. That success allows Costco to generate consistently positive earnings even when sales trends are slowing as they are today.ĬOST Operating Margin (TTM) data by YChartsĪmazon, on the other hand, isn't as consistent with its earnings growth. Over 91% of subscribers choose to renew their subscriptions each year, a record for the business. Operating profit margin has held steady at over 3% of sales in recent quarters, which is a testament to its membership-driven earnings. The profitability winnerĪmazon traditionally is more profitable, but Costco is winning in this area today. Customer traffic remains solid at the warehouse retailer, but spending levels are being pressured by a shift away from the e-commerce channel that's tilted toward big-ticket home furnishing and consumer electronics purchases. "There's a lot to like about how our teams are delivering for customers," CEO Andy Jassy said in a recent press release.Ĭostco, in contrast, has seen comparable-store sales gains slow to just 3% in June from over 6% a few months ago. Sales improved to $70 billion in Q1 from $60 billion a year ago. The company's services segment, anchored by the AWS platform, is enjoying fantastic growth. But that result was mainly due to flat product sales compared to soaring gains a year ago. Sure, revenue rose by just 9% in the most recent quarter. The latest trendsĪmazon's growth looks more impressive so far in 2023. With that big picture in mind, let's take a closer look at these two businesses to see which could be the better fit in your portfolio. Amazon, meanwhile, is targeting faster earnings growth ahead thanks to a slimmer cost profile and the expansion of niches like cloud services. Costco is going through a slowdown on this score as consumers tilt spending away from many of the consumer discretionary purchases they favored over the last few years. That gap can be partly explained by shifting expectations around short-term growth trends. The e-commerce giant's shares are beating the market by a wide margin through mid-July, while the warehouse retailer is barely matching the 17% gain in the S&P 500. Investors have vastly different ideas about Costco Wholesale (NASDAQ: COST) and Amazon (NASDAQ: AMZN) stocks right now.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |