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The Zacks Analyst Blog Highlights Walmart, The Home Depot and Costco Wholesale
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For Immediate Release
Chicago, IL – September 15, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Walmart Inc. (WMT - Free Report) , The Home Depot, Inc. (HD - Free Report) and Costco Wholesale Corp. (COST - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
3 Blue-Chip Retail Stocks Paving Your Investment Roadmap
When it comes to the stock market, investors often walk on a tightrope between risk and reward. While the allure of rapid gains can be tempting, it's equally important to have a solid foundation of stable, long-term investments in your portfolio. Achieving this delicate equilibrium is the cornerstone of successful investing.
Rather than chasing high-risk, high-reward stocks that frequently grab headlines, investors should engage in a meticulous assessment of market dynamics and the formulation of a well-conceived investment strategy. Their focus should be on well-established companies with a track record of success and a demonstrated ability to weather economic downturns.
Hence, when it comes to long-term stability and consistent growth, market pundits place their bets on highly reputed companies with humongous market capitalization. These industry titans are commonly referred to as blue-chip companies. Blue-chip stocks exhibit financial resilience and boast an impressive history of delivering solid returns to their shareholders.
Blue-chip companies tend to be less vulnerable to sudden fluctuations in stock prices, rendering them a dependable choice for both seasoned and novice investors. Furthermore, for income-oriented investors, blue-chip companies reward shareholders with regular dividend payouts, further enhancing stability.
These blue-chip companies possess a winning combination of established market positions, strong brand recognition, loyal customer bases and extensive market penetration. Such traits provide these companies with a distinct competitive edge and help unlock new opportunities, thus making them investor favorite.
By investing in blue-chip stocks, investors can build a well-diversified portfolio. Here we have identified three stocks from the Retail - Wholesale sector — Walmart Inc., The Home Depot, Inc. and Costco Wholesale Corp. Thanks to successful business operations, these bellwethers have withstood multiple market gyrations and delivered returns to investors. These blue-chip stocks have balance sheet strength to tackle any untoward market volatility.
3 Prominent Picks
Walmart: Walmart, the omnichannel retail giant, has been diligently working to further strengthen its already formidable presence in the market. The company has embarked on a series of strategic e-commerce initiatives, encompassing acquisitions, partnerships and significant improvements in its delivery and payment systems.
Simultaneously, Walmart is committed to elevating its merchandise offerings, ensuring a diverse and appealing product assortment. Innovation extends to its supply chain, where the company is enhancing capacity and introducing cutting-edge solutions. Additionally, Walmart has ventured into new business realms with initiatives like Walmart GoLocal, Walmart Connect, Walmart Luminate, Walmart+, and Walmart Fulfillment Services, showcasing its dedication to remaining at the forefront of retail innovation.
With a market cap of $442.9 billion as of Sep 13, 2023, Walmart has a long-term earnings growth expectation of 6.6%. This Zacks Rank #2 (Buy) stock has a trailing four-quarter earnings surprise of 11.6%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Walmart’s current financial-year sales and earnings suggests growth of 9.2% and 2.2%, respectively, from the year-ago reported numbers. The company pays out a quarterly dividend of 57 cents ($2.28 annualized) per share, giving a 1.4% yield at the current stock price. WMT’s payout ratio is 35, with a five-year dividend growth rate of 1.9%. (Check WMT’s dividend history here)
Home Depot: Headquartered in Atlanta, GA, this company stands as another distinguished blue-chip stock, dominating the home improvement retail sector. With a steadfast commitment to its 'One Home Depot' plan, the company has consistently reaped the rewards of its strategic investments. The sustained growth in both the Professional and Do-It-Yourself categories, coupled with impressive digital momentum, has emerged as the driving force behind its success. The company's interconnected retail strategy and robust technological infrastructure have amplified web traffic, leading to growth in digital sales.
With a market cap of more than $325.9 billion, Home Depot has a long-term earnings growth expectation of 9.5%. This Zacks Rank #3 (Hold) stock has a trailing four-quarter earnings surprise of 2.2%, on average. The company pays out a quarterly dividend of $2.09 ($8.36 annualized) per share, giving a 2.6% yield at the current stock price. HD’s payout ratio is 52, with a five-year dividend growth rate of 14.5%.
Costco: A consumer defensive stock, Costco has been surviving the market turmoil pretty well. Strategic investments, a customer-centric approach, merchandise initiatives and an emphasis on memberships have been the discount retailer’s primary strengths. Costco's distinctive membership business model and pricing power set it apart from traditional players. Through a calculated approach that involves identifying untapped markets and tailoring offerings to meet customer preferences, Costco has managed to deepen its roots.
With a market cap of $248.1 billion, Costco has a long-term earnings growth expectation of 8.8%. This Zacks Rank #3 stock has a trailing four-quarter earnings surprise of 1.8%, on average.
The Zacks Consensus Estimate for Costco’s current financial-year sales and EPS suggests growth of 6.7% and 9.5%, respectively, from the year-ago period. The company pays out a quarterly dividend of $1.02 ($4.08 annualized) per share, giving a 0.7% yield at the current stock price. COST’s payout ratio is 29, with a five-year dividend growth rate of 12%.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Walmart, The Home Depot and Costco Wholesale
For Immediate Release
Chicago, IL – September 15, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Walmart Inc. (WMT - Free Report) , The Home Depot, Inc. (HD - Free Report) and Costco Wholesale Corp. (COST - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
3 Blue-Chip Retail Stocks Paving Your Investment Roadmap
When it comes to the stock market, investors often walk on a tightrope between risk and reward. While the allure of rapid gains can be tempting, it's equally important to have a solid foundation of stable, long-term investments in your portfolio. Achieving this delicate equilibrium is the cornerstone of successful investing.
Rather than chasing high-risk, high-reward stocks that frequently grab headlines, investors should engage in a meticulous assessment of market dynamics and the formulation of a well-conceived investment strategy. Their focus should be on well-established companies with a track record of success and a demonstrated ability to weather economic downturns.
Hence, when it comes to long-term stability and consistent growth, market pundits place their bets on highly reputed companies with humongous market capitalization. These industry titans are commonly referred to as blue-chip companies. Blue-chip stocks exhibit financial resilience and boast an impressive history of delivering solid returns to their shareholders.
Blue-chip companies tend to be less vulnerable to sudden fluctuations in stock prices, rendering them a dependable choice for both seasoned and novice investors. Furthermore, for income-oriented investors, blue-chip companies reward shareholders with regular dividend payouts, further enhancing stability.
These blue-chip companies possess a winning combination of established market positions, strong brand recognition, loyal customer bases and extensive market penetration. Such traits provide these companies with a distinct competitive edge and help unlock new opportunities, thus making them investor favorite.
By investing in blue-chip stocks, investors can build a well-diversified portfolio. Here we have identified three stocks from the Retail - Wholesale sector — Walmart Inc., The Home Depot, Inc. and Costco Wholesale Corp. Thanks to successful business operations, these bellwethers have withstood multiple market gyrations and delivered returns to investors. These blue-chip stocks have balance sheet strength to tackle any untoward market volatility.
3 Prominent Picks
Walmart: Walmart, the omnichannel retail giant, has been diligently working to further strengthen its already formidable presence in the market. The company has embarked on a series of strategic e-commerce initiatives, encompassing acquisitions, partnerships and significant improvements in its delivery and payment systems.
Simultaneously, Walmart is committed to elevating its merchandise offerings, ensuring a diverse and appealing product assortment. Innovation extends to its supply chain, where the company is enhancing capacity and introducing cutting-edge solutions. Additionally, Walmart has ventured into new business realms with initiatives like Walmart GoLocal, Walmart Connect, Walmart Luminate, Walmart+, and Walmart Fulfillment Services, showcasing its dedication to remaining at the forefront of retail innovation.
With a market cap of $442.9 billion as of Sep 13, 2023, Walmart has a long-term earnings growth expectation of 6.6%. This Zacks Rank #2 (Buy) stock has a trailing four-quarter earnings surprise of 11.6%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Walmart’s current financial-year sales and earnings suggests growth of 9.2% and 2.2%, respectively, from the year-ago reported numbers. The company pays out a quarterly dividend of 57 cents ($2.28 annualized) per share, giving a 1.4% yield at the current stock price. WMT’s payout ratio is 35, with a five-year dividend growth rate of 1.9%. (Check WMT’s dividend history here)
Home Depot: Headquartered in Atlanta, GA, this company stands as another distinguished blue-chip stock, dominating the home improvement retail sector. With a steadfast commitment to its 'One Home Depot' plan, the company has consistently reaped the rewards of its strategic investments. The sustained growth in both the Professional and Do-It-Yourself categories, coupled with impressive digital momentum, has emerged as the driving force behind its success. The company's interconnected retail strategy and robust technological infrastructure have amplified web traffic, leading to growth in digital sales.
With a market cap of more than $325.9 billion, Home Depot has a long-term earnings growth expectation of 9.5%. This Zacks Rank #3 (Hold) stock has a trailing four-quarter earnings surprise of 2.2%, on average. The company pays out a quarterly dividend of $2.09 ($8.36 annualized) per share, giving a 2.6% yield at the current stock price. HD’s payout ratio is 52, with a five-year dividend growth rate of 14.5%.
Costco: A consumer defensive stock, Costco has been surviving the market turmoil pretty well. Strategic investments, a customer-centric approach, merchandise initiatives and an emphasis on memberships have been the discount retailer’s primary strengths. Costco's distinctive membership business model and pricing power set it apart from traditional players. Through a calculated approach that involves identifying untapped markets and tailoring offerings to meet customer preferences, Costco has managed to deepen its roots.
With a market cap of $248.1 billion, Costco has a long-term earnings growth expectation of 8.8%. This Zacks Rank #3 stock has a trailing four-quarter earnings surprise of 1.8%, on average.
The Zacks Consensus Estimate for Costco’s current financial-year sales and EPS suggests growth of 6.7% and 9.5%, respectively, from the year-ago period. The company pays out a quarterly dividend of $1.02 ($4.08 annualized) per share, giving a 0.7% yield at the current stock price. COST’s payout ratio is 29, with a five-year dividend growth rate of 12%.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.