Buying oversold stocks is not a question of one man’s trash being another’s treasure. In many cases, it’s simply the ability to look at specific fundamental or technical indicators as a way to identify stocks that are buying opportunities. One of those metrics is the relative strength indicator (RSI). This is a momentum indicator that measures the speed and magnitude of a security’s recent price changes to predict overvalued (over 70) or undervalued (under 30) conditions in a stock’s price.  Undervalued sto ...

These leading tech companies offer superior growth prospects at lower price-to-earnings ratios.Shares of Costco (COST 0.48%) are up 54% over the last 12 months, but most of that return was driven by an increase in the price-to-earnings (P/E) multiple that Wall Street is willing to pay for the shares -- not actual growth in the company's earnings per share.Analysts expect Costco to report annualized earnings growth of 9% over the long term, yet the stock trades at a price-to-earnings ratio that is usually re ...

Core Insights - Costco Wholesale has shown impressive earnings growth, with revenue and net income increasing even during challenging times, such as the early pandemic, leading to a nearly 200% stock price increase over the past five years and over 30% in 2024 [1] Group 1: Valuation - Costco's high forward price-to-earnings (P/E) ratio of about 49 times is significantly higher than competitors like Walmart and Target, which may initially seem expensive [2] - The company's unique warehouse model allows it to generate most profits through membership fees, providing a steady income stream before any sales occur, and enabling it to offer low prices on essential goods [3] - Costco's membership renewal rates have consistently remained above 90%, indicating a reliable source of profit and justifying its premium valuation [3] Group 2: Stock Split Potential - The high share price, currently over $800, may limit access for smaller investors, potentially prompting Costco to consider a stock split to make shares more accessible [4] - A stock split would not change the company's fundamentals or market cap but could increase demand for shares, positively impacting their price [4] - Costco has not split its stock in 24 years, but the significant price increase from about $500 to over $800 in the past two years suggests that now may be an opportune time for such a move [5] Group 3: Dividend Profile - Costco's regular dividend yield is approximately 0.5%, lower than the S&P 500 average of 1.3%, but it remains an attractive option for long-term investors due to consistent annual dividend payments of $4.64 per share [6] - The company has a history of issuing special dividends, with past payouts ranging from $5 to $15 per share, including a recent total payment of $6.7 billion announced in December [6] - While future special dividends cannot be guaranteed, Costco's history suggests a likelihood of continued special payouts, alongside growing regular dividends [7]

Costco Wholesale Corporation (COST) , renowned for its membership-based warehouse model, recently released its sales results for September. This data offers fresh insights into the company's performance within a rapidly evolving retail landscape. As investors evaluate the performance, a crucial question arises: Should they buy, hold or sell Costco stock?The September sales figures arrive at a moment when inflation, ongoing geopolitical tensions, and a contentious presidential election are influencing consum ...

HICKSVILLE, N.Y., Oct. 17, 2024 /PRNewswire/ -- Flagstar Bank, N.A., (the "Bank") a subsidiary of New York Community Bancorp, Inc., (NYSE: NYCB) (the "Company"), today announced a workforce reduction as part of its strategic transformation plan, consistent with the business strategy outlined previously, and aimed at further integrating its three legacy banks that were united through acquisitions.Commenting on the reduction, Joseph Otting, Chairman, President and CEO stated, "We want to express our appreciat ...

ISSAQUAH, Wash., Oct. 16, 2024 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced that its Board of Directors has declared a quarterly cash dividend on Costco common stock of $1.16 per share. The quarterly dividend is payable November 15, 2024, to shareholders of record at the close of business on November 1, 2024. Costco currently operates 891 warehouses, including 614 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 35 in Japan, 29 ...

Sales Performance - Comparable sales in the United States grew 6.5%, Canada 5.7%, and Other International markets 8.5% for the five weeks ended Oct 6 [2] - Total company comparable sales rose 6.7% in September, following consecutive increases of 5% and 5.2% in August and July [2] - September's total and comparable retail sales saw a boost of about 2% in the United States and 1.5% globally, driven by solid consumer demand in the final week of the month [2] - Excluding gasoline prices and foreign exchange rates, comparable sales in the United States rose 9.3%, Canada 6.3%, and Other International markets 9.6% [3] - Total comparable sales, excluding external factors, increased 8.9% in September [3] - E-commerce comparable sales surged 22.9%, with the same rate excluding gasoline prices and foreign exchange impacts [3] - Net sales for September increased 9% to $24.62 billion, up from $22.59 billion in the same period last year [4] Membership Model - Costco's membership-based business model drives customer loyalty, with renewal rates above 90% [5] - Membership fees were raised effective Sept 1, with Gold Star, Business, and Business add-on memberships now costing $65 annually, a $5 increase [6] - Executive Memberships increased from $120 to $130, with the maximum annual 2% Reward boosted from $1,000 to $1,250 [6] Growth Prospects - Strategic investments in technology, logistics, and product offerings support Costco's growth prospects [7] - The company's emphasis on bulk sales and efficient inventory management allows it to keep prices low, making it a preferred shopping destination for budget-conscious consumers [7] - Shares of Costco have advanced 23.8% in the past six months, outperforming the Retail – Discount Stores industry's rise of 13.1% [7] Other Retail Picks - Ollie's Bargain (OLLI) carries a Zacks Rank 2, with a trailing four-quarter earnings surprise of 7.9% on average [8] - The Zacks Consensus Estimate for Ollie's Bargain's current financial-year sales and earnings implies growth of 8.8% and 12.7%, respectively [8] - The Kroger Co (KR) carries a Zacks Rank 2, with a trailing four-quarter earnings surprise of nearly 8.2% on average [8] - The Zacks Consensus Estimate for Kroger's current quarter's sales and earnings indicates growth of 1% and 3.2%, respectively [8] - Flowers Foods (FLO) carries a Zacks Rank 2, with an earnings surprise of 1.9% in the last reported quarter [9] - The Zacks Consensus Estimate for Flowers Foods' current financial year's sales and earnings implies growth of 1% and 5%, respectively [9]

Is Costco's stock due for a correction?Costco Wholesale (COST -0.52%) has been a top retail stock to own in recent years. The company has been able to generate fantastic results amid challenging economic conditions, proving to be a versatile and adaptable business. That has pushed the stock to new heights and it is valued so highly it now trades at more than 50 times its trailing earnings.But could the stock have finally hit a peak? The company's sales have been slowing down and one number in particular may ...

Costco Wholesale Corporation (COST) continues to impress investors and shoppers alike with its robust business model and strategic pricing. The company's membership-based approach and commitment to offering high-quality products at unbeatable prices have positioned it as a leader in the sector. Costco's Robust Membership Model Costco's success lies in its membership-based business model, which generates a reliable revenue stream and fosters strong customer loyalty. Members pay an annual fee to access Costco ...

Costco shoppers stocked up on supplies in anticipation of the US port strike and Hurricane Helene.Costco says the "abnormal" activity had a measurable impact on monthly sales.The quick resolution to the port strike will likely minimize the disruption to the flow of imports. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Go to newsletter preferences Thanks for signing up! Access your favorite topics in ...