Last week, Costco (COST), a retailer, posted quarterly results. The stock bounced off a $900 support zone to close at $922.77.
In the fiscal year, Costco earned $20.76 a share. Revenue grew by 10.1% Y/Y to $303.15. It operates warehouses that are geographically distributed. For example, it has 647 warehouses in the U.S. and Puerto Rico, 115 in Canada, and 43 in Mexico. It also has locations in Japan, Australia, the United Kingdom, South Korea, Taiwan, and China.
Costco is a solid company. The stock trades at a premium but is more attractive than cyclical firms like Micron (MU) and Nvidia (NVDA).
Nike (NKE), a sports apparel company, posts its quarterly results this week. Shareholders are highly concerned about its sales performance. The stock fell consistently throughout this year. BofA downgraded NKE stock on September 25. Analysts cited longer turnaround times in the business. Larger lifestyle categories are dragging down results, overshadowing its product innovation.
NKE stock is approaching a dividend that yields 5.0%. Avoid the stock until reviewing the firm’s results this week.
McDonald’s (MCD) peaked in March at $341.75. The stock fell steadily since then. Despite temporary pauses in the decline, MCD stock selling accelerated on Sept. 23. That day, the firm said that it would spend up to $8.5 billion to win back its customers. Investments include innovating its menu, modernizing physical restaurant locations, creating a more welcoming environment, and building an efficient workforce.
McDonald's staff are constantly busy, handling high volumes of customers. Yet profit margins are struggling.
Avoid investing in restaurant firms like McDonald’s
