Albertsons Companies, Inc. (NYSE:ACI) is one of the stocks Jim Cramer recently talked about. A caller asked whether to hold the stock after the failed merger and Amazon’s launch of its grocery business. Cramer commented: “I don’t like Albertsons here because of exactly what you just said. I think that’s the worry. I do like Kroger. But you know what’s come down just so badly, and we’ve been buying is Costco. I mean, it’s almost as if Costco’s not a good company, and it’s a very good company. That’s the on ...

With a federal shutdown now underway, investments in profitable and dependable companies with everyday demand (and steady dividend payments) can help investors stay grounded.The federal government officially shut down on Oct. 1 after Congress failed to pass funding, triggering furloughs across agencies and curbing some regulatory activity. But even when Washington goes dark, Americans still buy groceries, pet feed, basic hardware, and pharmacy items. That makes stalwart retailers a sensible place to look fo ...

Group 1 - Albertsons Companies, Inc. announced the retirement of Jim Donald as Chair of the board, with Kim Fennebresque appointed as the new chair [1][2] - The management team has been strengthened with the addition of David Zinsner, former Executive Vice President and CFO of Intel Corporation, as an independent director [2] - Fennebresque highlighted that Zinsner's expertise in finance, technology, and AI will be valuable for the company's future strategy [3] Group 2 - Albertsons operates over 2,200 stores under various banners, including Albertsons, Safeway, and Vons, across 35 states and the District of Columbia [4] - The company provides groceries, pharmacy services, and fuel through an omnichannel model, supported by a network of distribution centers and manufacturing plants [4]

Group 1 - Target Corporation (NYSE:TGT) is recognized as one of the 13 best high dividend stocks to buy under $100 [1] - The company offers a unique mix of everyday essentials and exclusive merchandise, making it a popular shopping destination across various categories [2] - Despite a nearly 35% drop in stock price since the beginning of 2025, Target Corporation still possesses significant long-term growth potential through store expansions and online channels [3] Group 2 - Target Corporation has a reliable dividend history, having increased its payouts for 54 consecutive years [4] - The company declared a quarterly dividend of $1.14 per share, maintaining its previous dividend level, with a dividend yield of 5.10% as of September 18 [4]

Core Insights - Amazon has launched its first fulfilment centre in Abu Dhabi in collaboration with the Abu Dhabi Investment Office (ADIO) [1] - The new facility aims to enhance logistics, speed up delivery times, and expand product offerings across the UAE [2] - The centre can store up to eight million units and allocates nearly half of its space to sellers using Fulfilled by Amazon [2] Facility Features - The centre offers products in over 30 categories, including home, kitchen, groceries, beauty, and electronics [3] - It includes an Innovation Lab that has completed over 500 tests with a 93% success rate, reducing process lead times by 59% [3] - The lab is equipped with tools for package testing, 3D printing technology, and ergonomic assessment instruments to enhance operational efficiency [3] Strategic Importance - The launch is seen as a significant milestone in the strategic partnership between ADIO and Amazon, aimed at creating opportunities for SMEs and strengthening the logistics and digital commerce ecosystem in Abu Dhabi [4] - Amazon's commitment to Abu Dhabi and the UAE is emphasized, with a focus on combining technology with a customer-centric approach to set new standards for online retail [5] - The partnership aims to leverage Amazon's expertise to support the UAE's digital economy and empower local businesses [6]

Group 1: Company Performance - TimesSquare Capital Management reported a gross return of 11.28% and a net return of 11.02% for its "U.S. Small Cap Growth Strategy" in Q2 2025, compared to the Russell 2000 Growth Index return of 11.97% [1] - BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) had a one-month return of -5.27% but gained 20.67% over the last 52 weeks, closing at $97.44 per share with a market capitalization of $12.838 billion on September 10, 2025 [2] - BJ's Wholesale Club reported net sales of approximately $5.3 billion in Q2 2025, reflecting a growth of 3.4% year-over-year [4] Group 2: Investment Insights - The investment strategy for BJ's Wholesale Club focuses on value-oriented or specialty retailers, with strong momentum in consumables despite a slight decline in seasonal big-ticket categories [3] - Management's decision to maintain full-year guidance was viewed as conservative, and the company added to its position in BJ's following a -6% pullback [3] - Although BJ's is not among the 30 most popular stocks among hedge funds, it saw an increase in hedge fund portfolios holding its stock from 43 to 44 in the last quarter [4]

Core Viewpoint - Costco's stock has experienced a significant rise over the past few years, but its current valuation raises concerns about potential future performance and corrections in stock price [1][4][8]. Valuation Concerns - Costco's market capitalization stands at $430 billion, with a trailing price-to-earnings ratio of 55, significantly higher than the S&P 500 average of 25, indicating an inflated valuation [4]. - The stock has declined approximately 8% over the past six months, suggesting that investors are reassessing its valuation after it previously surpassed $1,000 [5][9]. Business Performance - Despite the high valuation, Costco's comparable sales growth was over 6% in July, which is commendable given the current economic climate affecting discretionary spending [6]. - The company's ability to maintain growth amidst economic challenges is crucial, but the current growth rate may not justify the premium valuation [6][10]. Economic Impact - Potential economic slowdowns due to tariffs could further impact Costco's growth, leading to increased pressure on its stock price [7][9]. - As consumers tighten budgets in response to rising costs, there is a risk that spending at Costco may decline, which could adversely affect the company's performance [9][10].

Core Viewpoint - Natural Grocers By Vitamin Cottage reported strong profitability and comparable store performance in Q3 FY2025, despite a temporary supply chain disruption impacting sales [1][5][13] Financial Performance - Diluted earnings per share (GAAP) for Q3 FY2025 were $0.50, exceeding analyst expectations of $0.49, and representing a 25% increase year-over-year [2][5] - Revenue (GAAP) was $328.7 million, which was below the consensus estimate of $335.0 million, but showed a 6.3% increase from $309.1 million in Q3 FY2024 [2][5] - Adjusted EBITDA rose to $24.4 million, a 10.1% increase from the previous year [7] - Operating margin improved to 4.7%, up from 4.2% in Q3 FY2024 [7] - Net income (GAAP) grew 26% to $11.6 million [7] Operational Insights - Comparable store sales increased by 7.4%, driven by a 4.8% rise in transaction count and a 2.4% increase in average transaction size [6] - The company faced a one-time cybersecurity incident that reduced sales by approximately $3.5 million to $4.0 million, impacting daily average comparable store sales by 1.0–1.5 percentage points [5][11] Strategic Focus - Natural Grocers operates 169 stores across 21 states, emphasizing natural and organic products with strict product standards [3][4] - The company is focused on expanding free nutrition education programs and promoting environmental practices [4] - The Npower loyalty program achieved 81% penetration in sales in Q2 FY2025, contributing to customer engagement [10] Future Outlook - Management raised fiscal 2025 guidance, projecting comparable store sales growth of 7.25–7.75% and diluted EPS (GAAP) of $1.90–$1.95 [13] - Planned capital expenditures for FY2025 were adjusted to $30–33 million, reflecting a reduction in new store openings [13] - Six to eight new store openings are anticipated for FY2026 [13]

Core Viewpoint - The consumer staples sector is viewed as a safe investment during economic uncertainty, as it includes companies that produce essential goods that people need daily [1][5]. Group 1: Definition and Characteristics of Consumer Staples - Consumer staples stocks consist of companies that produce or sell basic goods, such as groceries and personal-care items [6]. - The Global Industry Classification Standard (GICS) categorizes the Consumer Staples sector as including food and staples retail, food and beverage production, and household and personal product manufacturing [7]. - These stocks are considered defensive, generating stable revenues and producing significant free cash flow, often returned to shareholders as dividends [8]. Group 2: Investment Rationale - Investors are drawn to consumer staples stocks because they provide a steady demand for necessities, making them less sensitive to economic fluctuations [8]. - Historical performance shows that consumer staples outperformed the S&P 500 during major downturns, such as the Great Recession and the COVID-19 crash [10]. - Despite their defensive nature, consumer staples may have limited growth potential during economic expansions, as demand for basic goods does not significantly increase [11]. Group 3: Identifying Quality Consumer Staples Stocks - A quality screen for consumer staples stocks includes criteria such as being part of the S&P Composite 1500, having a long-term estimated earnings-per-share growth rate of at least 5%, and having at least five covering analysts [12][13][14]. - Stocks should also have a consensus Buy rating of 2.5 or less and a dividend yield of at least 1.5% to ensure they provide better income than the S&P 500 [15][16]. Group 4: Recommended Consumer Staples Stocks - The following companies are highlighted as strong consumer staples stocks based on the outlined criteria: - Dollar General (DG): Long-term EPS growth of 6.5%, consensus rating of 2.39, dividend yield of 2.1% [16] - Tyson Foods (TSN): Long-term EPS growth of 19.6%, consensus rating of 2.29, dividend yield of 3.5% [16] - Kroger (KR): Long-term EPS growth of 6.1%, consensus rating of 2.16, dividend yield of 1.8% [16] - Sysco (SYY): Long-term EPS growth of 6.1%, consensus rating of 2.10, dividend yield of 2.6% [16] - Keurig Dr Pepper (KDP): Long-term EPS growth of 7.2%, consensus rating of 1.91, dividend yield of 2.7% [16] - Philip Morris International (PM): Long-term EPS growth of 11.4%, consensus rating of 1.88, dividend yield of 3.0% [16] - Coca-Cola (KO): Long-term EPS growth of 6.1%, consensus rating of 1.62, dividend yield of 2.9% [16]

Company Overview - Walmart is the world's largest retailer by revenue, utilizing scale and operational efficiency to offer a wide range of products at competitive prices [4] - The company employs an omnichannel strategy that integrates physical stores with digital platforms to enhance customer reach and convenience [4] - Walmart's extensive global presence and diversified offerings solidify its strong market position in the consumer defensive sector [4] Financial Performance - As of July 8, 2025, Walmart's market capitalization is $774.9 billion, with a trailing twelve months (TTM) revenue of $685.1 billion and a net income of $18.82 billion [2] - The company's dividend yield stands at 0.96%, and it has a forward price/earnings ratio of 37.4 [2][10] - Walmart's stock price increased by 39.9% over the past year, outperforming the S&P 500 by 28 percentage points during the same period [6] E-commerce Growth - Walmart's total sales grew by 4% year over year in the first quarter, while global e-commerce sales surged by 22%, marking the first profitable quarter for its e-commerce business [8] - E-commerce is expected to be a key growth driver for Walmart, contributing to both sales and margins [8] - The company is also exploring new profit streams such as membership and digital advertising, which are anticipated to enhance its margins [8] Investment Insights - Walmart has demonstrated significant stock performance, with its shares more than doubling in value over the past three years [5] - Despite a high price-to-earnings (P/E) ratio of nearly 42, Walmart is considered a long-term winner for both growth and income investors, being recognized as a Dividend King with 52 consecutive years of dividend increases [10]