Tag Archives: COST

Amazon.com, Inc. Stock Deserves to Be in Your Portfolio

For traditional investors, whether growth or value, Amazon.com Inc. (NASDAQ:AMZN) has always presented a hair-raising problem: Amazon stock does not conform to traditional valuation metrics.

Although I might take a stab by valuing it on an operational cash flow basis and compare it to businesses that John Malone has run — for which that was the only way to properly value them — I’m not convinced that would yield any useful results.

Amazon Is Unique

I never want to say, “It’s different this time,” but with Amazon stock I think it is. AMZN hasn’t been able to be valued traditionally for more than twenty years, so, at this point, I don’t think there’s much point in trying.

What we know is that if Jeff Bezos wanted Amazon stock to offer consistency in delivering net profits, he could make it happen. All he’d have to do is slow down growth in places like international sales, which is a money loser, and even cut back on operating expenses for global sales, and deliver a profit.

For the first nine months of 2017, Amazon had North American net sales of $68.8 billion and $67.6 billion in expenses, generating a $1.14 billion profit. Internationally, $36.26 billion in sales was offset by $38.4 billion in expenses for a net loss of $2.14 billion. AWS saw $12.3 billion in sales, offset by $9.37 billion in expenses, for a profit of $2.98 billion. The bottom line for net income came in at $1.18 billion.

But Bezos continually reinvests everything into the company. So, with Amazon stock, it comes down to effectively investing on a leap of faith — faith that the market will always find some form of value in Amazon. However, because it cannot be valued in any relative sense, it means one must either trade Amazon or buy and hold it for the very long term.

So, does that make sense? Yes and no, and it depends on the type of investor you are.

How and Why You Should Invest in Amazon Stock

Here’s the affirmative side of the answer. What we know is that Amazon is muscling its way into all kinds of territories. Yet, it is of particular significance that Amazon stock is ascending not merely because of momentum, but because investors sense that the future of retail rests with Amazon. Not all retail, but much of it.

I know that I purchase 80-90% of my non-food items at Amazon. I will price compare now and again, but Amazon wins that battle 95% of the time — or wins in a tie because I’m a Prime member. Convenience and reliability mean a lot to the retail shopper, not to mention the time savings.

I can imagine a time where small businesses are going to have to be niche-oriented, or deliver something special in order to even have a chance against Amazon. Only bulk retail providers like Costco Inc. (NASDAQ:COST) will stand a chance, because shopping at Costco is an experience and prices are comparable. Or home improvement companies like Home Depot, Inc. (NYSE:HD), which don’t appear to have suffered.

Bottom Line on AMZN Stock

So I think, as an investor, you have to own Amazon stock at some point.

I am not convinced that now is the time, because the market is some 30% overvalued and the second-most expensive in history.

I think the play is to buy Amazon stock in increments, beginning at a 10% correction point, and adding every time it ticks down by 5% or more.

Lawrence Meyers is the CEO of PDL Capital, a specialty lender focusing on consumer finance and is the Manager of The Liberty Portfolio at www.thelibertyportfolio.com. He does not own any stock mentioned. He has 23 years’ experience in the stock market, and has written more than 1,800 articles on investing. Lawrence Meyers can be reached at TheLibertyPortfolio@gmail.com.

 

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Hot Undervalued Stocks To Watch For 2018

The Economist has a nice piece which highlights the fundamental conflict at the heart of Bitcoin. Miners want the price of bitcoin to keep on rising, because this gives them an incentive to keep mining despite the ever-rising energy cost of doing so. Users, however, want liquidity. They want transactions settled quickly and efficiently, at low cost.

Why is this a conflict, you ask? Simple. It is in the miners’ interests to restrict liquidity in the system, because doing so raises their returns. Liquidity is undervalued in the Bitcoin system – hence the hard cap on issuance and designed-in capacity limitations. So there is a clear incentive to hoard. Keeping bitcoins out of circulation pushes up the price at the expense of liquidity, which pleases the miners at the expense of the users.

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Hot Undervalued Stocks To Watch For 2018: DragonWave Inc(DRWI)

Advisors’ Opinion:

  • [By Lisa Levin]

    DragonWave, Inc.(USA) (NASDAQ: DRWI) shares dropped 19 percent to $2.35. DragonWave reported a Q3 loss of $0.72 per share on revenue of $10.2 million.

  • [By Peter Graham]

    A long term performance chart shows Ubiquiti Networks largely headingupwards while small cap peersCeragon Networks Ltd (NASDAQ: CRNT) andDragonWave, Inc (NASDAQ: DRWI) have largely headed the other direction:

  • [By Peter Graham]

    A long term performance chart shows Ubiquiti Networks still having been a strong performer when compared topotential small cap peersCeragon Networks Ltd (NASDAQ: CRNT) andDragonWave, Inc (NASDAQ: DRWI) which have performed pretty poorly:

Hot Undervalued Stocks To Watch For 2018: Protective Life Corporation(PL)

Advisors’ Opinion:

  • [By David Sterman]

    My favorite insurers: AIG (NYSE: AIG) (which I discussed a few months ago), Protective Life (NYSE: PL) and Reinsurance Group of America (NYSE: RGA).

Hot Undervalued Stocks To Watch For 2018: Texas Instruments Incorporated(TXN)

Advisors’ Opinion:

  • [By Keith Speights]

    That’s a pretty good definition of leadership, but it’s not an easy one to accomplish. However, the CEOs of Celgene (NASDAQ:CELG), Cognizant Technology Solutions (NASDAQ:CTSH), General Electric (NYSE:GE), MasterCard (NYSE:MA), and Texas Instruments (NASDAQ:TXN) have been able to achieve this translation very well.

  • [By WWW.MONEYSHOW.COM]

    We reprise five of last year’s components: Boeing (BA), CVS Health (CVS), International Business Machines (IBM), Omnicom Group (OMC) and Texas Instruments (TXN), which means they obviously are buys.

  • [By Jim Cramer]

    Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, TEXAS INSTRUMENTS INC’s return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.

     

  • [By WWW.THESTREET.COM]

    Chips from Texas Instruments (TXN) are built into a lot of devices that matter, Cramer said, and if investors want autonomous vehicles, they should be looking at Analog Devices (ADI) .

  • [By Jim Cramer]

    TEXAS INSTRUMENTS INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TEXAS INSTRUMENTS INC increased its bottom line by earning $2.58 versus $1.92 in the prior year. This year, the market expects an improvement in earnings ($2.72 versus $2.58).

     

  • [By WWW.THESTREET.COM]

    Xilinx makes programmable logic chips that are used in a multitude of applications, from autos and defense to the data center. Cramer said with all of the takeover activity in the semiconductor space, he could see Xilinx becoming a target for the likes of Texas Instruments (TXN) or Micron Technologies (MU) , which may be looking to diversify away from cell phone chips.

Hot Undervalued Stocks To Watch For 2018: Graco Inc.(GGG)

Advisors’ Opinion:

  • [By Lisa Levin]

    In trading on Thursday, industrials shares fell by 0.83 percent. Meanwhile, top losers in the sector included Graco Inc. (NYSE: GGG), down 9 percent, and Southwest Airlines Co (NYSE: LUV), down 11 percent.

  • [By Joel Elconin]

    At this time, the only relevant news to the Gold market and Gold stocks was the halt of Graco Inc. (NYSE: GGG), which was down $0.80 at $84.64 and just reopened at $82.20.

Hot Undervalued Stocks To Watch For 2018: Costco Wholesale Corporation(COST)

Advisors’ Opinion:

  • [By Daniel B. Kline]

    Costco (NASDAQ:COST) continues to squander an opportunity by operating as if the internet has not become a major factor in retail.

    The company has proven resilient in the face of digital competitors led by Amazon (NASDAQ:AMZN). While other retailers are shuttering stores, losing sales, and generally fighting for survival, the warehouse chain has not had that problem.

  • [By Peter Graham]

    Membership warehouse stock Costco Wholesale Corporation (NASDAQ: COST) reported Q4 and fiscal 2017 earnings after the Thursday market close with quarterly profitsabove estimates thanks to a hike in membership fees, but a fall in gross margins has fueled concerns of an intensifying grocer price war with shares falling in after hours/pre-market trading. Q4 net sales rose 15.8% to $41.36 billion and net income was $919 million versus $779 million while full year net sales grew 8.7% to $126.17 billion and net income was $2.68 billion versus$2.35 billion. Comparable sales for the 17-week fourth quarter, the 53-week fiscal year, and the 5-week September retail sales month were as follows:

  • [By Chris Lange]

    Costco Wholesale Corp. (NASDAQ: COST) will report its most recent quarterly results on Thursday as well. The consensus estimates are $1.34 in EPS and $31.38 billion in revenue. Shares closed at $188.07 on Friday, in a 52-week range of $150.00 to $191.22. The consensus price target is $181.81.

  • [By Shanthi Rexaline]

    Kroger Co (NYSE: KR) and Costco Wholesale Corporation (NASDAQ: COST) are among the other retailers that significantly benefit from SNAP.

    Although estimates are not available, beverage giants such as PepsiCo, Inc. (NYSE: PEP), Dr Pepper Snapple Group Inc. (NYSE: DPS) and The Coca-Cola Co (NYSE: KO) also benefit from SNAP. When there was a move in 2011 to bring about restrictions on SNAP purchases, Pepsi reportedly spent $750,000 in the third quarter of 2011 on lobbying alone.

Hot Safest Stocks To Buy For 2018

Closed-end funds have become popular in recent years as bond yields have dropped precipitously. As a result, income investors have gone further out on the yield curve to find the kind of yields with CEFs they used to enjoy in the days when bonds were offering higher interest payments.

Source: Shutterstock

One of the things my stock advisory newsletter, The Liberty Portfolio, does is find securities that deliver better risk-adjusted returns than you’ll find in the market. This is not an easy task because most investors don’t realize just how much risk they are taking on so-called “safe investments,” even with CEFs.

Hot Safest Stocks To Buy For 2018: Costco Wholesale Corporation(COST)

Advisors’ Opinion:

  • [By Shanthi Rexaline]

    Kroger Co (NYSE: KR) and Costco Wholesale Corporation (NASDAQ: COST) are among the other retailers that significantly benefit from SNAP.

    Although estimates are not available, beverage giants such as PepsiCo, Inc. (NYSE: PEP), Dr Pepper Snapple Group Inc. (NYSE: DPS) and The Coca-Cola Co (NYSE: KO) also benefit from SNAP. When there was a move in 2011 to bring about restrictions on SNAP purchases, Pepsi reportedly spent $750,000 in the third quarter of 2011 on lobbying alone.

  • [By Ben Levisohn]

    Costco Wholesale (COST) has risen 9% during the past 12 months of trading, less than half the S&P 500′s 21% gain during the same period. But that underperformance didn’t stop Barron’s Teresa Rivas from urging investors to “put Costco in your shopping cart” in December, or Oppenheimer from calling Costco one of the most intriguing names in large-cap retail last week. Now Goldman Sachs analyst Matthew Fassler and team have added Costco to the firm’s Conviction List, while reiterating their Buy rating. They explain why:

    Getty Images

    We believe the company is on the cusp of the earnings acceleration we cited when we upgraded the stock to Buy last spring, aided by its recent credit card deal both the incremental traffic associated with more attractive cashback incentives and expense cushion associated with new terms. We also like the firms attractive positioning as a low-cost/low-priced operator in the challenging retail environment. Our estimates stand above consensus. The stock is trading below long-run relative P/E averages despite the anticipated earnings recovery. Our $187, 12-month price target implies 14% upside.

    Shares of Costco Wholesale aren’t getting a boost from the upgrade this morning, however. Its shares have dipped 0.2% to $163.98 at 10:17 a.m. today.

  • [By Dan Caplinger]

    Retail giant Costco Wholesale (NASDAQ:COST) has been an innovator in the big-box retail industry, pioneering and refining the warehouse-shopping concept and honing it into a hugely successful business. Yet even Costco has run into some challenges lately, and coming into Wednesday’s fiscal second-quarter financial report, Costco investors wanted reassurances that the warehouse retailer would be able to sustain its growth. On that front, the retailer disappointed its investors, posting a substantial decline in net income that spurred the company to take action to shore up its main profit center going forward.

  • [By Daniel B. Kline]

    Costco (NASDAQ:COST) continues to squander an opportunity by operating as if the internet has not become a major factor in retail.

    The company has proven resilient in the face of digital competitors led by Amazon (NASDAQ:AMZN). While other retailers are shuttering stores, losing sales, and generally fighting for survival, the warehouse chain has not had that problem.

  • [By WWW.THESTREET.COM]

    This one could be the easiest of advances, both because credit losses are down big and because its credit-card brethren — Capital One Financial, Discover, Visa (V) and MasterCard (MA) — have all had significant rallies. I actually regard this stock as inexpensive and think it can be bought here now that it has fully absorbed the loss of the Costco (COST) business to Visa and Citigroup (C) .

Hot Safest Stocks To Buy For 2018: Move Inc.(MOVE)

Advisors’ Opinion:

  • [By Renu Singh]

    Aruba Networks (ARUN) is a leading provider of next-generation network access solutions for mobile enterprise. The company’s Mobile Virtual Enterprise (MOVE) architecture unifies wired and wireless network infrastructures into one seamless access solution for corporate headquarters, mobile business professionals, remote workers and guests. This unified approach to access networks enables IT organizations and users to securely address the Bring Your Own Device (BYOD) phenomenon, dramatically improving productivity and lowering capital and operational costs.

Hot Safest Stocks To Buy For 2018: Square, Inc.(SQ)

Advisors’ Opinion:

  • [By Leo Sun]

    Dorsey subsequently co-founded online payments company Square (NYSE:SQ) in 2009, and he was promoted from passive member to executive chairman of Twitter’s board in 2010, after Dick Costolo replaced Evan Williams.

  • [By Chris Lange]

    Square, Inc. (NYSE: SQ) reported second-quarter financial results after markets closed Wednesday. The company said that it had a $0.07 in earnings per share (EPS) and $552 million in revenue, compared with consensus estimates from Thomson Reuters that called for a net loss of $0.05 per share and $536.27 million in revenue. The same period from last year had a net loss of $0.08 per share and $438.53 million in revenue.

  • [By Elizabeth Balboa]

    Western Digital Corp (NASDAQ: WDC) lost 16 percent over the last eight trading sessions, and Square Inc (NYSE: SQ), after a 264-percent run, conceded 24 percent.

Hot Safest Stocks To Buy For 2018: Intercept Pharmaceuticals, Inc.(ICPT)

Advisors’ Opinion:

  • [By Paul Ausick]

    Intercept Pharmaceuticals Inc. (NASDAQ: ICPT) dropped more than 17% Friday to post a new 52-week low of $60.97 after closing Thursday at $73.70. The 52-week high is $172.75. Volume of more than 10 million shares traded was about 12 times the daily average. The FDA on Thursday issued a warning letter on the company’s liver disease treatment.

  • [By Peter Graham]

    Small cap liver biopharmaceutical stock Intercept Pharmaceuticals Inc (NASDAQ: ICPT) reportedQ2 2017 earnings before the market opened on Monday with both the top and bottom lines beating expectations plus the Companyreported that amid-stage clinical trial met its primary endpoint; but sharesended the day down13.26%. Intercept Pharmaceuticals recognized $30.4 million of net sales of Ocaliva for Q2 2017 versus $75k and a net loss of $86.6 million versus a net loss of $77.3 million. Ocaliva was approved by the U.S.FDA in May 2016 for the treatment of primary biliary cholangitis (PBC) in combination with ursodeoxycholic acid (UDCA) in adults with an inadequate response to UDCA or as monotherapy in adults unable to tolerate UDCA. As of June 30, 2017,the Companyhad cash, cash equivalents and investment securities available for sale of approximately $550.3 million versus$689.4 million as of December 31, 2016. The CEO commented:

Hot Safest Stocks To Buy For 2018: American Superconductor Corporation(AMSC)

Advisors’ Opinion:

  • [By Lisa Levin] Gainers
    Marathon Patent Group Inc (NASDAQ: MARA) shares surged 30.2 percent to $5.01 after dropping 40.86 percent on Tuesday. Marathon Patent Group filed for sale of 1.85 million shares of common stock by selling stockholders.
    Capricor Therapeutics Inc (NASDAQ: CAPR) shares jumped 17.2 percent to $2.25 after the company reported the FDA clearance of Investigational New Drug application for CAP-1002.
    Rite Aid Corporation (NYSE: RAD) gained 13.2 percent to $2.15 following 16.5 percent rally on Tuesday.
    Photronics, Inc. (NASDAQ: PLAB) shares climbed 11.8 percent to $10.45 after the company reported stronger-than-expected earnings for its fourth quarter.
    China Distance Education Hldgs Ltd (ADR) (NYSE: DL) shares surged 11.3 percent to $8.67. China Distance Education reported Q4 profit of $5.9 million on revenue of $41.7 million.
    Cytokinetics, Inc. (NASDAQ: CYTK) shares gained 11 percent to $8.05 after falling 7.05 percent on Tuesday.
    Ooma Inc (NYSE: OOMA) shares surged 8.5 percent to $10.85 as the company posted strong Q3 results.
    Nuance Communications Inc. (NASDAQ: NUAN) climbed 8 percent to $17.12 after the company reported stronger-than-expected results for its fourth quarter on Tuesday.
    American Superconductor Corporation (NASDAQ: AMSC) surged 7.8 percent to $3.59 after the company reported $8 million in D-VAR system orders.
    Thermon Group Holdings Inc (NYSE: THR) rose 6.3 percent to $24.17. William Blair upgraded Thermon Group from Market Perform to Outperform.
    Domino's Pizza, Inc. (NYSE: DPZ) surged 6.1 percent to $182.88. Nomura upgraded Domino's from Neutral to Buy.
    Xencor Inc (NASDAQ: XNCR) rose 5.9 percent to $21.17. Cantor Fitzgerald initiated coverage on Xencor with an Overweight rating.
    Idera Pharmaceuticals Inc (NASDAQ: IDRA) gained 5.1 percent to $2.28 after the company disclosed that it has been granted FDA Fast Track designation for IMO-2125.
    Regal Entertainment Group (NYSE: RGC) gained 5.1 percent to
  • [By William Romov]

    According to S&P Capital IQ, shares of TTOO have an average price target of $5.75, representing 40.24% upside from current levels.

    Penny Stocks to Buy for December 2017, No. 4: American Superconductor Corp. (Nasdaq: AMSC)

    Massachusetts-based American Superconductor Corp. (Nasdaq: AMSC) makes two-megawatt wind turbines under the Windtec Solutions brand. The company also sells products and services to connect electricity-generating equipment with the power grid.

Hot Safest Stocks To Buy For 2018: L Brands, Inc.(LB)

Advisors’ Opinion:

  • [By Benzinga News Desk]

    On Thursday's edition of PreMarket Prep, we're discussing earnings from Wal-Mart Stores Inc (NYSE: WMT), Cisco Systems Inc. (NASDAQ: CSCO) and L Brands Inc (NYSE: LB). Plus Nelson Peltz's battle with Proctor & Gamble Co (NYSE: PG) and the biggest ratings changes of the day. 

  • [By Paul Ausick]

    L Brands Inc. (NYSE: LB) posted a new 52-week low of $43.09 on Wednesday, down about 1.6% compared with Tuesday’s closing price of $43.77. The stock’s 52-week high is $87.16. Volume was about 20% above the daily average of around 4.2 million shares. The company received a downgrade at Citigroup on Tuesday and is being included among those retailers that have too many stores.

  • [By Chris Lange]

    With Christmas just around the corner and Black Friday already in the bag, holiday shopping is picking up. And this is especially true at L Brands Inc. (NYSE: LB), which recently reported its November sales.

Top Heal Care Stocks To Buy Right Now

Great American Parent Explains Annuity Unit to Wall Street

5 Things for Agents to Know About the Senate Health Bill

The EEO-1 Reporting Requirements Are Changing

(Bloomberg) — At least three Republican senators said they would vote to block the Better Care Reconciliation Act bill, the current version of their party’s health care bill, from advancing, endangering Majority Leader Mitch McConnell’s plan to change the Affordable Care Act.

Republican Susan Collins of Maine late Monday said she would vote against a key procedural step, joining Rand Paul of Kentucky and Dean Heller of Nevada.

(Photo: Thinkstock)

Copyright 2017 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Better Care draft Section 206 might, or might not, let states change Affordable Care Act rules.

Top Heal Care Stocks To Buy Right Now: Catalyst Pharmaceuticals, Inc.(CPRX)

Advisors’ Opinion:

  • [By William Romov]

    Before we show you our pick, here are the top 10 penny stocks to watch this week

    Penny Stock Current Share Price Nov. 27-Dec. 1 Gain (as of Dec. 1)
    Pyxis Tankers Inc. (Nasdaq: PXS) $4.10 122.83%
    Ohr Pharmaceuticals Inc. (Nasdaq: OHRP) $1.28 68.42%
    Cerecor Inc. (Nasdaq: CERC) $1.74 47.46%
    Proteostasis Therapeutics Inc. (Nasdaq: PTI) $2.52 37.71%
    UT Starcom Holdings Corp. (Nasdaq: UTSI) $5.20 37.20%
    WMIH Corp. (Nasdaq: WMIH) $0.96 33.46%
    PhaseRx Inc. (Nasdaq: PZRX) $0.90 30.29%
    Bellerophon Therapeutics Inc. (Nasdaq: BLPH) $2.04 29.94%
    EV Energy Partners LP (Nasdaq: EVEP) $0.86 27.76%
    Catalyst Pharmaceuticals Inc. (Nasdaq: CPRX) $4.40 25.71%

    FREE PROFIT ALERTS: Get real-time recommendations on the best penny stock opportunities the moment we release them. Just sign up here, its completely free

  • [By Lisa Levin]

    Shares of Catalyst Pharmaceuticals Inc (NASDAQ: CPRX) got a boost, shooting up 32 percent to $1.54 after the company reported positive data from investigator-sponsored trial of Firdapse.

Top Heal Care Stocks To Buy Right Now: Clarke(t)

Advisors’ Opinion:

  • [By Laurie Kulikowski]

    After a year of stock price fluctuations, the net result is that T’s price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don’t lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. The stock’s price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

     

  • [By Paul Ausick]

    AT&T Inc. (NYSE: T) dropped about 1.4% Tuesday to post a new 52-week low of $35.87 after closing Monday at $36.39. The 52-week high is $43.50. Volume was around 5.8 million shares traded, nearly 10 times the daily average of around 600,000. The company had no specific news.

  • [By Elizabeth Balboa]

    It’s happened to AT&T Inc. (NYSE: T). It’s happened to Citigroup Inc (NYSE: C). It’s happened to Chevron Corporation (NYSE: CVX), General Motors Company (NYSE: GM) and Sears Holdings Corp (NASDAQ: SHLD)'s predecessor Sears, Roebuck & Co.

  • [By Adam Levy]

    Americans are changing the way they watch television. More and more customers are showing interest in over-the-top streaming TV services. Over 200,000 people joined AT&T’s (NYSE:T) DirecTVNow in about one month. DISH Network’s (NASDAQ:DISH) Sling TV has over 1 million subscribers. Sony’s (NYSE:SNE) PlayStation Vue is also very popular.

Top Heal Care Stocks To Buy Right Now: Apache Corporation(APA)

Advisors’ Opinion:

  • [By WWW.THESTREET.COM]

    Cramer and the AAP team say Apache’s (APA) mixed results are a buying opportunity. Find out what they’re telling their investment club members with a free trial subscription to Action Alerts PLUS.

  • [By WWW.THESTREET.COM]

    Cramer and the AAP team say news and caution are weighing on energy and health-care sectors. Find out what they’re telling their investment club members about Apache (APA) , Cimarex (XEC) , Arconic (ARNC) and Allergan (AGN) with a free trial subscription to Action Alerts PLUS.

  • [By Lee Jackson]

    These companies also reported insider buying last week: Apache Corp. (NYSE: APA), Halliburton Co. (NYSE: HAL), Revlon Inc. (NYSE: REV), Valeant Pharmaceuticals International Inc. (NYSE: VRX) and U.S. Steel Corp. (NYSE: X).

Top Heal Care Stocks To Buy Right Now: Costco Wholesale Corporation(COST)

Advisors’ Opinion:

  • [By Teresa Rivas]

    Costco (COST) is lower after hours, following its mixed first-quarter earnings report.

    Costco said that it earned $1.24 a share, a nickel ahead of analysts expectations.

    Its revenue of $28.1 billion was slightly below the $28.3 billion analysts were expecting. However, it was above the $27.5 billion it said that it expected to earn in its Nov. 30 pre-announcement.

    Costco is down 1% to $152.36 after hours, after closing up 1.9% during regular trading. The shares are down 4.7% year to date.

  • [By Dan Caplinger]

    Costco Wholesale (NASDAQ:COST) has produced long-term success that most of its retail peers can only wish they had. Yet even though the company’s warehouse retail business model has proven tougher than expected to emulate, Costco still has had to deal with the negative impact from online competition and a change in the way people like to shop. Costco will release its fiscal second-quarter financial report on Thursday, March 2, and investors want to see continued gains in sales and earnings that will prove that the warehouse retailer’s business is still healthy.

  • [By Dan Caplinger]

    The retail industry has gone through major disruptions lately, and even warehouse giant Costco Wholesale (NASDAQ:COST) hasn’t been immune to the difficult conditions. Yet last quarter, Costco said that it would implement membership-fee increases as of the beginning of June in an attempt to bolster a key source of revenue, and it hoped that improving conditions in the consumer economy would lead to better shopping results.

  • [By Chris Lange]

    Costco Wholesale Corp. (NASDAQ: COST) is seen in many consumers eyes as one of the best values out there, whereas Whole Foods has had trouble shaking its Whole Paycheck moniker. But this could change after the acquisition. The question is how Whole Foods value proposition changes relative to Costco once Amazon is in control. In other words, how much will Whole Foods lower prices?

  • [By Elizabeth Balboa]

    As tech falls, the once-forsaken shares of Gap Inc (NYSE: GPS), Macy’s Inc (NYSE: M), L Brands Inc (NYSE: LB), Costco Wholesale Corporation (NASDAQ: COST) and AT&T Inc. (NYSE: T) are surging.

  • [By Ben Levisohn]

    Costco Wholesale (COST) has risen 9% during the past 12 months of trading, less than half the S&P 500′s 21% gain during the same period. But that underperformance didn’t stop Barron’s Teresa Rivas from urging investors to “put Costco in your shopping cart” in December, or Oppenheimer from calling Costco one of the most intriguing names in large-cap retail last week. Now Goldman Sachs analyst Matthew Fassler and team have added Costco to the firm’s Conviction List, while reiterating their Buy rating. They explain why:

    Getty Images

    We believe the company is on the cusp of the earnings acceleration we cited when we upgraded the stock to Buy last spring, aided by its recent credit card deal both the incremental traffic associated with more attractive cashback incentives and expense cushion associated with new terms. We also like the firms attractive positioning as a low-cost/low-priced operator in the challenging retail environment. Our estimates stand above consensus. The stock is trading below long-run relative P/E averages despite the anticipated earnings recovery. Our $187, 12-month price target implies 14% upside.

    Shares of Costco Wholesale aren’t getting a boost from the upgrade this morning, however. Its shares have dipped 0.2% to $163.98 at 10:17 a.m. today.

9 Best Dividend Stocks to Buy for Every Investor

As we close out 2017, it’s good to remind ourselves of what worked, and what didn’t. This past year, though, makes this introspective exercise rather tricky. Although Wall Street early on forecasted a rough 2017, the end result was quite the opposite. Benchmark indices hit all-time records, while most sectors witnessed tremendous optimism. Who needs dividend stocks at a time like this?

This also means that inferior investment strategies were masked by secular bullishness. The new year may not be as forgiving, which is why I’m recommending investors to get selective. Fortunately, with dividend stocks, you don’t have to feel pressured into always picking winners.

At its core, choosing the right dividend stocks to buy is about options. Although picking high-flying growth companies is the sexiest endeavor, it isn’t always the smartest. With passive-income yielding firms, you get the potential for making capital gains, and also residual payouts to bolster your position. During a down period, dividends can also help you ride out the storm.

But don’t mistake these yields as “boring” strategies. Like any investment class, you can dial up the risk for the chance of greater rewards. This is why picking the most appropriate dividends stocks to buy is so important: no one knows your investment style better than you!

The following ideas are broken down into three sections: stable, mid-level and high-yield (speculative). Each section has something to offer, depending on how much risk you’re willing to take.

Best Dividend Stocks to Buy: Johnson & Johnson (JNJ) investorplace.com/wp-content/uploads/2017/10/jnjmsn1-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/10/jnjmsn1-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/10/jnjmsn1-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/10/jnjmsn1-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/10/jnjmsn1-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/10/jnjmsn1-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/10/jnjmsn1-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/10/jnjmsn1-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/10/jnjmsn1-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/10/jnjmsn1-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

If you love stable dividend stocks, you love Johnson & Johnson (NYSE:JNJ). It is the powerhouse brands of powerhouse brands. Better yet, JNJ is levered toward the ultimate in secular industries: healthcare. Separated among consumer-level products, pharmaceuticals, and medical devices, JNJ is one of the most respected companies in the world.

Currently, Johnson & Johnson’s dividend yield is 2.4%. Given the strength of its global business, that dividend is rock solid. But what people may not immediately appreciate is that JNJ can also surprise people in the capital markets. For instance, year-to-date, shares are up over 21%. To put that into perspective, the benchmark SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is just under 18%.

Critically for the conservative investor, JNJ rarely loses. Between 1970 to the end of 2016, annual returns average almost 15%. Moreover, JNJ only hit red ink 13 times, meaning that 72% of the time, you can expect shares to win.

In our business, that’s as close to a sure thing as you’re gonna get!

Best Dividend Stocks to Buy: Wells Fargo & Co (WFC) Wells Fargo & Company (WFC)investorplace.com/wp-content/uploads/2017/01/wfcmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/01/wfcmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/01/wfcmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/01/wfcmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/01/wfcmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/01/wfcmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/01/wfcmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/01/wfcmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/01/wfcmsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/01/wfcmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

I’ll admit that I wasn’t thrilled about putting Wells Fargo & Co (NYSE:WFC) into my dividend stocks to buy list. You’ll recall that WFC was embroiled in a major controversy that shocked the entire financial and business community. Essentially, the banking giant admitted to creating more than two million fake accounts to meet ambitious sales targets.

It made me sick and I’m not the only one. But eventually, people get over this stuff, perhaps resigned to the fact that the major conglomerates always win. I’ve even made the argument that Equifax Inc (NYSE:EFX) — yes, that Equifax — will be forgiven. As cynical as it may sound, what good will being angry do for any of us?

It stinks that the ultra-rich get away with bloody murder. From a financial perspective, though, WFC is an opportunity. Despite giving long-term holders seasickness, WFC stayed the course. If the current positive momentum remains, shares will end the year in the black. Wells Fargo isn’t going anywhere.

Most importantly, WFC spits out the biggest dividend yield among the “big four” at nearly 2.7%. That may be the price of forgiveness!

Best Dividend Stocks to Buy: Exxon Mobil Corporation (XOM) xom stock exxon stockinvestorplace.com/wp-content/uploads/2017/02/xommsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/02/xommsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/02/xommsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/02/xommsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/02/xommsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/02/xommsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/02/xommsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/02/xommsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/02/xommsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/02/xommsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

Again, on the surface level, Exxon Mobil Corporation (NYSE:XOM) is a strange name to put on a best dividend stocks list. Energy is hardly the most consistent sector. More to the point, XOM has been on the wrong end of a market shake-up. Since the oil collapse of 2014, XOM has at best been treading water against prior highs.

But the flipside to this bearish argument is that in practical ways, energy is the most consistent sector possible. When people hit the switch, they expect the lights to turn on. Similarly, when they go to the gasoline station, they expect to fill their tanks. Without XOM and its ilk, none of these things would occur. A societal breakdown could commence.

In all seriousness, investors should be encouraged by Exxon Mobil’s response to the oil market downturn. They and the remaining survivors have revamped their operations and rid themselves of unproductive assets. Today, XOM and the oil community are leaner, meaner, and better prepared for whatever lies ahead.

In other words, XOM has proven its resilience. As a conservative investor, you can buy that 3.7% yield with confidence.

Best Dividend Stocks to Buy: Duke Energy Corp (DUK) Duke Energy Corp (NYSE:DUK)investorplace.com/wp-content/uploads/2017/05/dukmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/05/dukmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/05/dukmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/05/dukmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/05/dukmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/05/dukmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/05/dukmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/05/dukmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/05/dukmsn-78×43.jpg 78w,https://investorplace.com/wp-content/uploads/2017/05/dukmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

If you’re a real numbers guy, you’ll want to pay attention to Duke Energy Corp (NYSE:DUK). Based on a quantitative model that our own Louis Navellier developed, DUK is one of the best dividend stocks to buy right now. Mixing in commonly-used metrics (ie. earnings momentum) as well propriety methods, DUK appears primed for a stellar new year.

I, on the other hand, prefer to keep it simple if there’s no real need to complicate things. Here’s what I’m looking at: since the tech bubble and the 2008 financial crisis, DUK has steadily rewarded investors with few hiccups. This year, DUK is set to return more than 13% should its technical momentum hold.

All indications suggest that Duke Energy can keep the good times flowing into next year. As it stands, the company is the seventh-largest electric utility company in the U.S. Furthermore, management has retired many of its coal power plants, instead focusing on natural gas and cleaner energy sources.

Currently, DUK stock yields slightly more than 4%. Although slightly riskier than your conservative dividend play, Duke Energy has the right balance between stability and income.

Best Dividend Stocks to Buy: AT&T Inc. (T) AT&T T stockinvestorplace.com/wp-content/uploads/2016/04/tmsn2-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/04/tmsn2-73×40.jpg 73w, investorplace.com/wp-content/uploads/2016/04/tmsn2-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/04/tmsn2-250×137.jpg 250w, investorplace.com/wp-content/uploads/2016/04/tmsn2-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/04/tmsn2-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/04/tmsn2-160×88.jpg 160w, investorplace.com/wp-content/uploads/2016/04/tmsn2-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/04/tmsn2-100×55.jpg 100w, investorplace.com/wp-content/uploads/2016/04/tmsn2-91×50.jpg 91w,https://investorplace.com/wp-content/uploads/2016/04/tmsn2-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/04/tmsn2-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Mike Mozart via Flickr

I have to say that AT&T Inc. (NYSE:T) disappointed me this year in the capital markets. Typically, AT&T is like clockwork — more often than not, you know what you’re getting. This year was the anomaly. On a YTD basis, T stock dropped like a rock, currently down 14%.

Although you have to have a short memory in the investment markets, I took the AT&T’s implosion personally. Investment-performance aggregator TipRanks honored me with “top blogger” status, and used my bullishness toward T stock in their feature article. Unfortunately, Wall Street had other plans and took my blue-chip baby down.

No matter. Keep in mind that between 1984 through 2016, AT&T’s annual returns average more than 13%. More importantly, during this time, T stock has only lost eight times out of 33. When this year is over, the statistic will likely be nine times out of 34. Even in that case, AT&T is a winner 73.5% of the time.

Like the aforementioned JNJ, at this rate, T stock is practically a sure thing. The only difference is the reward. AT&T offers a whopping 5.36% dividend yield!

Best Dividend Stocks to Buy: Welltower Inc (HCN) investorplace.com/wp-content/uploads/2016/08/hcnmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/08/hcnmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/08/hcnmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/08/hcnmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/08/hcnmsn-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/08/hcnmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2016/08/hcnmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/08/hcnmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/08/hcnmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: sima dimitric via Flickr

I cannot wait for the current batch of young millennials to turn 40. Each generation has its fair share of youthful idiocy; however, I think millennials, particularly those in their mid-twenties, take the cake. The way that so many of them conduct themselves, you’d think that they honestly believe they will never age.

The news flash that everyone else knows instinctively is that time stops for no one. With that harsh reality in mind, I bring to you Welltower Inc (NYSE:HCN). HCN is a real estate investment trust specializing in senior care and facilities. Even if you’re one of the young Millennials that sees no use for Welltower, you still might put your parents into one of their centers.

Joking aside, I can think of no other business where revenues are virtually guaranteed, save for a funeral home. Although Welltower’s market performance has been a little choppy, in the long haul, HCN has been a steady investment. In the trailing ten years, shares have gained nearly 48%.

Of course, we can’t forget the dividend yields, which for HCN stands at 5.26%.

Best Dividend Stocks to Buy: Blackstone Group LP (BX) Blackstone (BX)investorplace.com/wp-content/uploads/2017/05/bxmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/05/bxmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/05/bxmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/05/bxmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/05/bxmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/05/bxmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/05/bxmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/05/bxmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/05/bxmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2017/05/bxmsn-170×93.jpg170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

Moving on to the speculative side of dividend stocks, we have Blackstone Group LP (NYSE:BX). If you were to simply assess BX based on this year’s performance alone, Blackstone wouldn’t seem at all risky. On a YTD basis, BX gained nearly 19%, making it one of the top performers on this list.

Typically, strong capital returns and high yields don’t go together. With a dividend yield of 7.2%, Blackstone’s passive income is right around the same as an average mutual fund. So what gives?

Let’s just say that BX will probably never make the list of best “feel good” stocks. The financial firm has been involved in a number of controversies, ranging from scandalous real-estate practices to shadow banking. For conservative-leaning voters, Blackstone has troubling ties to key Democrats.

Additionally, BX is a “make money at any cost” type of organization. Their profiteering activities in SeaWorld Entertainment Inc (NYSE:SEAS) amid its “Blackfish” controversy is a perfect example.

But hey, who said Wall Street was a friendly place?

Best Dividend Stocks to Buy: Kimco Realty Corp (KIM) investorplace.com/wp-content/uploads/2017/02/kimmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2017/02/kimmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2017/02/kimmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2017/02/kimmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2017/02/kimmsn-400×220.jpg 400w, investorplace.com/wp-content/uploads/2017/02/kimmsn-116×64.jpg 116w, investorplace.com/wp-content/uploads/2017/02/kimmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2017/02/kimmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2017/02/kimmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2017/02/kimmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Shutterstock

I will tell you straight up that anything involving brick-and-mortar retail is a risky game. Earlier this year, I cautioned my readers about investing in retail REITs. With overall declining foot-traffic, the physical retail space doesn’t have the appeal it once did. Of course, the most important factor is e-commerce. Why sit in traffic and wait in lines when you can shop conveniently at Amazon.com, Inc. (NASDAQ:AMZN)?

The flipside to this argument is that some retail sectors that Amazon has trouble impacting exist. For instance, most people find it more convenient to size their clothing at a physical apparel shop than guessing online. In addition, some store brands offer better pricing or a better experience than Amazon. Think Wal-Mart Stores Inc (NYSE:WMT), Costco Wholesale Corporation (NASDAQ:COST) and Best Buy Co Inc (NYSE:BBY).

A retail REIT that focuses on strong brands just might have a chance, hence Kimco Realty Corp (NYSE:KIM). KIM features multiple properties running highly-demanded store brands. Moreover, a good chunk of their properties are located in lucrative markets.

Will it be enough to overcome the risk to the entire sector? I’m not so sure, which helps explain Kimco’s 6% dividend yield. Nevertheless, if you’re a believer, KIM gives you a solid opportunity.

Best Dividend Stocks to Buy: Sotherly Hotels Inc (SOHO) investorplace.com/wp-content/uploads/2016/09/officereitmsn-300×165.jpg 300w, investorplace.com/wp-content/uploads/2016/09/officereitmsn-55×30.jpg 55w, investorplace.com/wp-content/uploads/2016/09/officereitmsn-200×110.jpg 200w, investorplace.com/wp-content/uploads/2016/09/officereitmsn-162×88.jpg 162w, investorplace.com/wp-content/uploads/2016/09/officereitmsn-65×36.jpg 65w, investorplace.com/wp-content/uploads/2016/09/officereitmsn-100×55.jpg 100w, investorplace.com/wp-content/uploads/2016/09/officereitmsn-91×50.jpg 91w, investorplace.com/wp-content/uploads/2016/09/officereitmsn-78×43.jpg 78w, investorplace.com/wp-content/uploads/2016/09/officereitmsn-170×93.jpg 170w” sizes=”(max-width: 728px) 100vw, 728px” />Source: Anders Jildén via Unsplash

Thanks to the abundance of consumer-level technologies, traditional industries face obsolescence. A decade ago, if you needed to go to the airport, you essentially had to call a cab. Now, with ride-sharing apps like Uber or Lyft, you can request a similar service conveniently through your smartphone.

A similar upheaval may occur in the hotel industry, thanks to apps like Airbnb. To survive in this rough-and-tumble sector, you need a fresh approach. Sotherly Hotels Inc (NASDAQ:SOHO) just might have the magic formula. Centered largely in the southern region of the U.S., SOHO provides an authentic, unique experience for its guests.

Apparently, most Millennials want brands to be more authentic, and that fits SOHO to a T. Visit any of their locations, and you feel like a welcomed member of a community, not some room number. Plus, former NFL star Herschel Walker sits on the board of directors: that’s just downright awesome!

But will any of this matter for investors? Again, it’s a tough call given so many changes in the hospitality and services sector. Still, with a 6.5% dividend yield, SOHO is worth a second look.

As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.

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