Costco Wholesale Corporation (COST): Is This FMCG Stock a Strong Buy Right Now?

Insider Monkey07-27

We recently compiled a list of the 14 Best FMCG Stocks To Buy Now. In this article, we are going to take a look at where Costco Wholesale Corporation (NASDAQ:COST) stands against the other FMCG stocks...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2454576530?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/X4GivJp8vGzcnfQGQHWMUA--~B/aD04MTY7dz0xNDU2O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/insidermonkey.com/15d66088a9078bd7c19006addbb417ab","is_english":true,"pubTime":"2024-07-27 18:06","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2454576530","market":"us","top_or_hot":-1,"title":"Costco Wholesale Corporation (COST): Is This FMCG Stock a Strong Buy Right Now?","media":"Insider Monkey","content":"<div>\n<p>We recently compiled a list of the 14 Best FMCG Stocks To Buy Now. In this article, we are going to take a look at where Costco Wholesale Corporation (NASDAQ:COST) stands against the other FMCG stocks...</p>\n\n<a href=\"https://finance.yahoo.com/news/costco-wholesale-corporation-cost-fmcg-100624065.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Costco Wholesale Corporation (COST): Is This FMCG Stock a Strong Buy Right Now?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCostco Wholesale Corporation (COST): Is This FMCG Stock a Strong Buy Right Now?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-07-27 18:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/costco-wholesale-corporation-cost-fmcg-100624065.html><strong>Insider Monkey</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>We recently compiled a list of the 14 Best FMCG Stocks To Buy Now. In this article, we are going to take a look at where Costco Wholesale Corporation (NASDAQ:COST) stands against the other FMCG stocks...</p>\n\n<a href=\"https://finance.yahoo.com/news/costco-wholesale-corporation-cost-fmcg-100624065.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1066051498.USD","symbol_name":"HSBC GIF GLOBAL EQUITY VOLATILITY FOCUSED \"AM2\" (USD) INC","start_time":0,"source_url":"https://finance.yahoo.com/news/costco-wholesale-corporation-cost-fmcg-100624065.html","article_id":"2454576530","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/X4GivJp8vGzcnfQGQHWMUA--~B/aD04MTY7dz0xNDU2O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/insidermonkey.com/15d66088a9078bd7c19006addbb417ab"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2454576530","pubTimestamp":1722074784,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"We recently compiled a list of the 14 Best FMCG Stocks To Buy Now. In this article, we are going to take a look at where Costco Wholesale Corporation  stands against the other FMCG stocks.If you walk into a modern pantry, you're almost guaranteed to find it well-stocked with everyday essentials like toilet paper, soap and toothpaste, beverages, and food. This reflects a simple reality: most consumers prefer to keep these items in ample supply. While consumers will always demand these products, they are not entirely indifferent to price increases during inflation. Instead, they might look to save money by buying in bulk or shopping at big-box stores. Regardless, they will continue to prioritize purchasing these necessities.As of late May, several major retailers have reported their Q1 2024 earnings, offering valuable insights into the current state of the U.S. consumer's sentiments. With consumer spending accounting for approximately 70% of the U.S. economy, shifts in spending patterns ","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1066051498.USD":"HSBC GIF GLOBAL EQUITY VOLATILITY FOCUSED \"AM2\" (USD) INC","LU1066053197.SGD":"HSBC GIF GLOBAL EQUITY VOLATILITY FOCUSED \"AM3\" (SGDHDG) INC","QID":"纳指两倍做空ETF","BK4533":"AQR资本管理(全球第二大对冲基金)","TQQQ":"纳指三倍做多ETF","LU1551013425.SGD":"Allianz Income and Growth Cl AMg2 DIS H2-SGD","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","BK4550":"红杉资本持仓","BK4588":"碎股","LU1035775433.USD":"AB SICAV I - AMERICAN GROWTH PORTFOLIO \"AD\" (USD) INC","LU1496350171.SGD":"FRANKLIN DIVERSIFIED BALANCED \"A\" (SGDHDG) ACC","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","LU1496350502.SGD":"FRANKLIN DIVERSIFIED DYNAMIC \"A\" (SGDHDG) ACC","LU1571399168.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"IP\" (USD) ACC","CAGR":"California Grapes International, Inc.","PSQ":"纳指反向ETF","LU0943347566.SGD":"安联收益及增长平衡基金AM H2-SGD","IE0008368304.USD":"STEWART INVESTORS WORLDWIDE LEADERS SUSTAINABILITY FUND \"I\" (USD) ACC","QLD":"纳指两倍做多ETF","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","BK4155":"大卖场与超市","LU2360106947.USD":"BGF NUTRITION \"A4\" (USD) INC","LU0079474960.USD":"联博美国增长基金A",".IXIC":"NASDAQ Composite","BK4504":"桥水持仓","LU0385154629.USD":"贝莱德营养科学基金A2","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","LU2360032135.SGD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (SGDHDG) INC","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","BK4563":"昨日强势股","LU2125154778.USD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (USD) INC","COST":"好市多","LU0471298777.SGD":"Blackrock Nutrition A2 SGD-H","SQQQ":"纳指三倍做空ETF","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","LU0234572021.USD":"高盛美国核心股票组合Acc","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","BK4213":"石油与天然气的勘探与生产","LU2125154935.USD":"ALLSPRING (LUX) WF GLOBAL EQUITY ENHANCED INCOME \"I\" (USD) INC","LU1323610961.USD":"UBS (LUX) EQUITY SICAV - LONG TERM THEMES (USD) \"P\" (USD) ACC","LU2237438978.USD":"Amundi Funds US Pioneer A2 (C) USD","LU1069344957.HKD":"AB SICAV I - AMERICAN GROWTH PORTFOLIO \"AD\" (HKD) INC","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","LU0471298694.HKD":"BGF NUTRITION \"A2\" (HKD) ACC","BK4585":"ETF&股票定投概念"},"translate_title":"Costco Wholesale Corporation(COST)：这只快速消费品股票现在值得强力买入吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CAGR":1,"COST":1,"CPG":1,".IXIC":0.9,"PSQ":0.6,"QID":0.6,"QLD":0.6,"SQQQ":0.6,"TQQQ":0.6,"MNQmain":0.6,"NQmain":0.6},"content_text":"We recently compiled a list of the 14 Best FMCG Stocks To Buy Now. In this article, we are going to take a look at where Costco Wholesale Corporation (NASDAQ:COST) stands against the other FMCG stocks.\nIf you walk into a modern pantry, you're almost guaranteed to find it well-stocked with everyday essentials like toilet paper, soap and toothpaste, beverages, and food. This reflects a simple reality: most consumers prefer to keep these items in ample supply. While consumers will always demand these products, they are not entirely indifferent to price increases during inflation. Instead, they might look to save money by buying in bulk or shopping at big-box stores. Regardless, they will continue to prioritize purchasing these necessities.\nKnown as fast-moving consumer goods (FMCG) or consumer packaged goods (CPG), these high-demand products are valued for their affordability and rapid turnover. They are considered \"fast-moving\" because they quickly sell off store shelves due to their regular use by consumers. Although investors typically look towards bonds and cash to manage risk, FMCG stocks offer a defensive alternative that can provide both growth and income. While these stocks may not generate spectacular growth opportunities and can lose value as interest rates rise, they generally decline less than other sectors during recessions. In fact, certain industries, such as food, tobacco, and alcohol, may even experience increased demand during economic downturns. As one of the world's largest industries, the global FMCG sector has seen steady growth over the past decade, driven by the trend of experiential retailing, where shopping is viewed as a social activity. The global FMCG market is projected to reach $18,939.4 billion by 2031, with a compound annual growth rate (CAGR) of 5.1% from 2022 to 2031.\nFollowing low deal volume and value in 2020, the consumer goods landscape saw a significant shift in M&A activity. In 2021, as sizable assets in the sector became scarce and prohibitively expensive, companies strategically moved toward a higher-volume, lower-deal-value approach. According to McKinsey, this trend peaked in 2021 with around 470 consumer goods deals globally. The distribution of M&A activity varied across subsectors regarding volume and value. Food remained the largest category by deal volume, accounting for about 40%, while beverages and durables together made up an additional 30%. On the other hand, in terms of deal value, personal care led the pack with 38%, primarily driven by large spin-offs of pharmaceutical companies' consumer businesses. A notable example includes Johnson & Johnson's $42 billion spin-off of Kenvue last year.\nAs of late May, several major retailers have reported their Q1 2024 earnings, offering valuable insights into the current state of the U.S. consumer's sentiments. With consumer spending accounting for approximately 70% of the U.S. economy, shifts in spending patterns significantly impact growth and employment. Walmart, for example, observed changes in customer behavior, with CFO John Rainey noting in the company's Q1 earnings call:\n\n\"Many consumer pocketbooks are still stretched, and we see the effect of that in our business mix as they're spending more of their paychecks on non-discretionary categories and less on general merchandise. This merchandise mix remains a headwind to margins, but it’s consistent with our expectations.\"\n\nThis indicates that consumers are prioritizing essential groceries over discretionary items like televisions. Walmart's earnings suggest that while overall consumer spending remains steady, those with less disposable income are struggling and continue to seek value in their purchases. In any case, despite inflation and challenging market conditions, people still need to eat and buy essentials, making FMCG stocks more resilient compared to other sectors in the stock market.\nOur Methodology\nAfter a comprehensive analysis of FMCG stocks listed on NYSE and NASDAQ using ETFs and internet rankings, we have curated a selection of the 14 top FMCG stocks to buy now according to hedge fuds.Why are we interested in the stocks that hedge funds pile into? The reason is simple, our research has shown that we can outperform the market by imitating the top stock picks of best hedge funds. Our quarterly newsletter’s strategy picks 14 small and large-caps every quarter and it has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).\n A customer in a warehouse aisles, browsing the wide range of branded and private-label products. \nCostco Wholesale Corporation (NASDAQ:COST)\nNumber of Hedge Fund Holders: 67\nCostco Wholesale Corporation (NASDAQ:COST) operates a global network of membership warehouses primarily under the “Costco Wholesale” brand, offering high-quality, brand-name products at significantly reduced prices compared to conventional wholesale or retail sources.\nOn June 7, Deutsche Bank reiterated its positive outlook on Costco Wholesale Corporation (NASDAQ:COST), maintaining a Buy rating and a price target of $925.00. The retail giant is praised for its resilience in a volatile consumer market, showing steady adjusted U.S. core comparable sales growth of 5.7%. This performance aligns with the previous month's results and is bolstered by an increase in both U.S. and global customer traffic.\nCostco Wholesale Corporation (NASDAQ:COST)'s discretionary segment performed robustly, with same-store sales (SSS) growing in the mid-single to high-single digits in June, marking a slight improvement from the previous month. Additionally, e-commerce was a strong performer for the retailer, with a 15.4% increase compared to 14.8% in April.\nAccording to Insider Monkey’s first-quarter database, 67 hedge funds expressed bullish sentiments towards Costco Wholesale Corporation (NASDAQ:COST), up from 57 in the previous quarter. Fisher Asset Management, led by Ken Fisher, holds the largest position in the company, with 2.86 million shares valued at $2.09 billion.\nMadison Sustainable Equity Fund stated the following regarding Costco Wholesale Corporation (NASDAQ:COST) in its fourth quarter 2023 investor letter:\n\n“Costco Wholesale Corporation (NASDAQ:COST) reported solid holiday results and announced a special dividend of $15 per share. Earnings were better than expected driven by better gross margin. Same store sales were 3.9% with solid traffic. Costco also noted better discretionary trends and solid seasonal sales.”\n\nOverall COST ranks 3rd on our list of the best FMCG stocks to buy. You can visit 14 Best FMCG Stocks To Buy Now to see the other FMCG stocks that are on hedge funds’ radar. While we acknowledge the potential of COST as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than COST but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.   \nREAD NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These 10 Stocks in June.   \nDisclosure: None. This article is originally published at Insider Monkey.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2454576530"}