 U.S. stocks slid Monday after Treasury yields hit their highest levels since the summer and oil prices continued to climb.The S&P 500 dropped 1%, though it’s still close to its all-time high set a week earlier. The Dow Jones Industrial Average fell 398 points, or 0.9%, coming off its own record,.... |
Good MorningThe equity market started the week on a bad footing, with the S&P 500 falling more than 1% at the session's low. The move was driven by increased fears of an escalating Middle Eastern conflict, which was also seen in a sharp rise in the VIX and the oil price.
The price of WTI surged nearly 4% on Monday, extending the rally that began two weeks ago. Now, WTI is back above critical resistance targets at $75, including short—and medium-term moving averages, and may continue to accelerate without additional catalysts. In that scenario, the high oil price will cut into corporate profits, sustain consumer-level inflation at a higher-than-wanted pace, and significantly alter the outlook for interest rate cuts.
The outlook for interest rate cuts is already changing because of the strong NFP report on Friday. The NFP shows labor market strength, alleviating the fear of a recession it caused earlier this year. While interest rates will likely continue to fall this year and next, the floor for rates may be higher than the market is currently pricing. As it is, the market expects another 150 basis points of cuts by the end of 2025. Featured: Last chance to watch (Porter & Company) 
| Stocks | | | U.S. stocks slid Monday after Treasury yields hit their highest levels since the summer and oil prices continued to climb.The S&P 500 dropped 1%, though it’s still close to its all-time high set a week earlier. The Dow Jones Industrial Average fell 398 points, or 0.9%, coming off its own record,... Read the Full Story |
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| Tuesday's Early Bird Stock Of The Day Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories. It offers merchandise, such as sundries, dry groceries, candies, coolers, freezers, deli, liquor, and tobacco; appliances, electronics, health and beauty aids, hardware, garden and patio products, sporting goods, tires, toys and seasonal products, office supplies, automotive care products, postages, tickets, apparel, small appliances, furniture, domestics, housewares, special order kiosks, and jewelry; and meat, produce, service deli, and bakery products. The company also operates gasoline, pharmacies, optical, food courts, hearing-aid centers, and tire installation centers; and offers business delivery, travel, grocery, and various other services online. It also operates e-commerce websites. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington. | Should I Buy Costco Wholesale Stock? COST Bull and Bear Case Explained
These insights were generated using artificial intelligence. They are based on proprietary MarketBeat data, news articles, and custom LLM A.I. algorithms. This analysis of Costco Wholesale was last updated on Saturday, January 25, 2025 at 7:08 PM.
Costco Wholesale Bull Case -
Costco has a strong market capitalization of $417.12 billion, indicating its significant presence and stability in the retail sector, which can be attractive for long-term investors.
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The company recently announced a quarterly dividend of $1.16 per share, reflecting its commitment to returning value to shareholders. This translates to an annualized dividend yield of 0.49%, which can provide a steady income stream for investors.
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Costco's stock price is currently at $939.68, which is near its 52-week high of $1,008.25, suggesting strong market performance and investor confidence in the company's growth potential.
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Recent analyst ratings have been positive, with multiple firms issuing "buy" ratings and raising price targets, indicating a favorable outlook for Costco's stock performance in the near future.
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Institutional ownership stands at 68.48%, which often signifies confidence from large investors in the company's long-term prospects, potentially leading to more stability in stock performance.
Costco Wholesale Bear Case -
Costco's price-to-earnings (P/E) ratio is 55.18, which is relatively high compared to industry averages. This could indicate that the stock is overvalued, making it a riskier investment if earnings do not grow as expected.
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The company's quick ratio is 0.43, suggesting that it may have difficulty meeting short-term liabilities with its most liquid assets, which could raise concerns about its financial health in times of economic downturn.
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Costco's stock has experienced fluctuations, with a recent trading volume of 1,561,250 shares, which is lower than its average volume. This could indicate reduced investor interest or liquidity issues.
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Recent reductions in stock positions by some institutional investors, such as Galvin Gaustad & Stein LLC, which cut its stake by 56.9%, may signal a lack of confidence in the stock's near-term performance.
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The company's debt-to-equity ratio is 0.23, which, while relatively low, indicates that Costco is using some debt to finance its operations. Investors may be cautious about potential increases in interest rates affecting profitability.
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