Our $368 per share valuation of wide-moat Costco should rise by a low- to mid-single-digit percentage, reflecting the combined impact of the time value of money, expected ongoing near-term sales strength as the delta variant of the coronavirus runs its course, and a strong end to fiscal 2021 (ended Aug. 29).
We attribute the outperformance to pandemic-related volatility.
Institutions and students bear the brunt, but opportunities are considerable.
The outperformance was likely a result of greater-than-expected demand for discretionary items and recovering warehouse traffic.
We're likely to increase the company's fair value estimate.
We suggest investors await a more attractive entry point.
We suggest investors await a greater margin of safety, as Costco faces an uncertain normalization of spending habits once the pandemic ebbs.
We plan to increase our fair value estimate for the no-moat company.
We suggest investors await a more attractive entry point.
Small tickets and low-income customers are safeguards.
The acquisition should deliver a modest premium to IHS Markit shareholders.
We plan to raise our fair value estimate for the no-moat company after a strong third quarter.
Its refocused international portfolio is a long-term benefit to the wide-moat company.
We suggest investors await a more attractive entry point despite our favorable view of the firm and its competitive advantages.
Their formidable defenses against downturns and short-term pullbacks in miles driven are intact.
Target’s balanced online and in-store growth in the quarter (with the latter seeing 11% comparable expansion despite the pandemic and rising e-commerce penetration) reinforces our faith in its use of stores as omnichannel fulfillment centers, but the shares’ trading price leaves no room for error despite accelerating retail digitization that creates cost and price pressure. So, we suggest long-term investors await a more attractive entry point.
We expect to raise our $111 per share valuation for wide-moat Walmart by a mid-single-digit percentage.
We still believe the pandemic's long-term consequences will be limited for Target, as it should be held captive by an intensely competitive long-term pricing environment.
Our long-term view of the wide-moat retailer remains in place, and we suggest investors await a more attractive entry point.
Chains' recovery will eventually come; in the meantime, check out the full-price sale.
We are not making a large change to our fair value estimate and expect the firm to recover in the long term.
Shares of the wide-moat firm seem rich for long-term investors.
We suggest prospective investors await a more attractive entry point to the wide-moat retailer.
We believe home improvement and auto-part retailers are among the best protected.
A late Thanksgiving creates the need for speed for shoppers.
The no-moat retailer posted exceptional third-quarter results, and shares are overvalued.
Some retailers are better equipped to fight the Amazon threat.
We suggest investors await a more attractive entry point before buying shares of the narrow-moat firm.
We think narrow-moat Kroger is well positioned to compete.
We think the grocer is likely to reward patient investors.
Strong domestic performance drove full-year results, showing that the wide-moat retailer enjoys enduring competitive advantages that should allow it to deliver returns even as retail changes.
The activist investor's push for a Family Dollar divestiture could refocus resources on the better-positioned Dollar Tree banner.
The wide-moat retailer has considerable advantages at its disposal, but shares are rich.
We expect the firm's long-term performance will be characterized by low-single-digit revenue growth and operating margins over the next decade.
With fuel prices moderating and stronger new vehicle sales cohorts entering the company's sweet spot, we continue to see opportunities for AutoZone to grow while holding profitability near recent levels.
Third-quarter profitability was lackluster, and we think investors should wait for a more attractive entry point.
We're trimming our fair value estimate for the no-moat firm but still suggest investors await a more attractive entry point.
Investors should watch Dollar General, which remains worthy of a narrow economic moat rating.
Strength in its domestic physical and digital operations has propelled results, and we expect the retailer to continue to successfully adapt to a changing retail landscape.
Scaled parts retailers like Advance are relatively well insulated from digital threats.
We're encouraged by the wide-moat retailer's ongoing robust growth, but we suggest investors await a more attractive entry point.
We'll trim our fair value estimate a tad, but our long-term forecast is intact.
Though the narrow-moat retailer's Family Dollar unit is struggling, we expect the firm's competitive strength to emerge as the unit recovers.
We are wary of the long-term competitive dynamic the no-moat retailer faces, given its lack of differentiation in a sector with virtually no switching costs.
Buying Keystone Foods gives no-moat Tyson international growth potential, but it won't significantly change the firm's ability to generate economic returns.
The wide-moat retailer's considerable competitive advantages should continue to translate well into digital retail.
We have long believed the narrow-moat firm's work to boost availability, improve efficiency, and optimize its supply chain and distribution network would boost performance.
We still expect short-term challenges in the firm's chicken and pork units to yield to our long-term targets for the firm.
Shares are somewhat attractive, with sentiment underestimating the narrow-moat firm's remaining (if diminished) clout in-aisle.
We think the company can leverage its domestic product lineup as it grows internationally and builds its instant oil change presence.