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Get Your Money Out of These 3 Retail Stocks by October
COSTCostco(COST) Investor Place·2024-07-23 00:15

Group 1: Market Outlook - There is significant optimism for Q4 2024 among retail investors, driven by the prospect of US Federal Reserve interest rate cuts, potentially lowering rates to 4.75% by the end of 2024 [1] - Historically, the S&P 500 has shown strong performance in Q4, growing 77% of the time since 1945 and averaging a gain of 3.8% during this quarter, supported by increased consumer spending [1] Group 2: Macy's Inc (M) - Macy's has faced challenges in its post-pandemic recovery, currently over 75% below its 2015 highs, and announced the closure of 150 stores due to shifts in consumer behavior [3][4] - A potential 6.9billionbuyoutbyArkhouseManagementandBrigadeCapitalManagementfellthrough,leadingtoa156.9 billion buyout by Arkhouse Management and Brigade Capital Management fell through, leading to a 15% drop in Macy's stock, indicating high volatility and uncertainty for the retailer [3] Group 3: Lowe's Companies Inc (LOW) - Lowe's has historically provided consistent value for investors, but recent insider selling of 1.5 million worth of stock raises concerns about future performance [5] - Despite beating Q1 2024 earnings estimates, Lowe's net income fell over 20% year-over-year to 1.76billion,suggestingapotentialmarketcorrectionduetoaslowdowninDIYspending[6]Group4:CostcoWholesaleCorporation(COST)Costcohasexperiencedover501.76 billion, suggesting a potential market correction due to a slowdown in DIY spending [6] Group 4: Costco Wholesale Corporation (COST) - Costco has experienced over 50% growth in the first half of 2024 but faced a dip following a membership fee increase, the first since 2017, raising individual fees from 60 to 65andexecutivefeesfrom65 and executive fees from 120 to $130 [7] - The stock may enter a volatile phase as investors reassess their long-term holding strategies following the fee hike [8]