Is Walmart or Costco a better stock?
While Costco appears to have the best growth prospects, that isn't enough to make it the best investment. Walmart trades at a lower valuation, and its higher dividend yield means you will receive more in dividend payments than you would on the same amount of money invested in Costco. That makes Walmart the winner.
Is it a good idea to invest in Costco?
Key Points. Costco shares have more than tripled in the past five years. Because of that strong performance, the stock trades at a steep P/E ratio of 49. This is no doubt a superb business, but it's not a smart buy right now.
Is Walmart a good stock to buy long term?
WMT has a Growth Style Score of A, forecasting year-over-year earnings growth of 6.3% for the current fiscal year. Nine analysts revised their earnings estimate higher in the last 60 days for fiscal 2025, while the Zacks Consensus Estimate has increased $0.03 to $2.36 per share.
Is Walmart richer than Costco?
Both of the companies are operating on a similar profit margin level (2,4% vs 2,6%). However, the approach of the companies is very different. Walmart is significantly bigger in revenue (almost three times) and puts a higher operating margin on the products it sells (24,8% vs 12,9%).
Is Walmart a good dividend stock?
Walmart is in growth mode
After a successful 3-for-1 stock split, Walmart raised its dividend by 9%, marking the largest raise in over a decade and the 51st consecutive dividend raise. Still, Walmart only pays an $0.83-per-share quarterly dividend, which is a mere 1.3% yield.
Is Costco a good long-term stock?
On a historic basis, Costco has generated cash flow growth of 14.1%, and is expected to report cash flow expansion of 10.4% this year. Investors should take the time to consider COST for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores.
How safe is Costco stock?
With Costco stock trading at a 50% premium to its long-term average valuation, I believe that it is easily overvalued today for those looking to start a position. Therefore, I'd say that there's no margin of safety with Costco stock.
Is it smart to buy Walmart stock?
Walmart has 8.32% upside potential, based on the analysts' average price target. Is WMT a Buy, Sell or Hold? Walmart has a conensus rating of Strong Buy which is based on 25 buy ratings, 3 hold ratings and 0 sell ratings.
How much is $1000 invested in Walmart in 1980?
An investment of $1,000 at the start of 1980 would be worth over $1.9 million today. Watch Walmart stock trade in real time here.
What stock to buy for $1,000?
If you have $1,000 sitting around and don't need it for more important things like paying off high-interest debt, here's why Amazon (NASDAQ: AMZN), Lululemon Athletica (NASDAQ: LULU), and Hyatt Hotels (NYSE: H) are great stocks to buy.
Who owns most of Walmart stock?
There are about 10,500 Walmart locations across 20 different countries. Jim Walton, Alice Walton, and Rob Walton are the top three individual shareholders of Walmart. Walmart's largest institutional investors include the John T. Walton Estate Trust, Vanguard Group, and BlackRock.
Why is Costco more successful than Walmart?
Costco has one thing that almost no other large retailer has: unassailable trust. Costco's buyers — the people behind the scenes who source products and negotiate with suppliers — are amazing. They do a fantastic job seeking out the highest-quality products and offering them at the lowest-possible prices.
Who has the biggest share in Walmart?
Jim Walton owns the most shares of Walmart (WMT). The ownership structure can impact the company's decision making, as large institutional investors may exert influence on the company's management and can also affect the company's stock price with their buying and selling patterns.
Is Walmart stock splitting in 2024?
30, 2024 — Walmart Inc. (NYSE: WMT) announced that it will conduct a split of its outstanding shares of common stock at a ratio of 3:1. The stock split is part of Walmart's ongoing review of optimal trading and spread levels and its desire for its associates to feel that purchasing shares is easily within reach.
Should I buy Walmart stock right now?
- Hold. Zacks' proprietary data indicates that Walmart Inc. is currently rated as a Zacks Rank 3 and we are expecting an inline return from the WMT shares relative to the market in the next few months.
What are the three best dividend stocks?
| Stock | Dividend yield |
|---|---|
| Coca-Cola Co. (KO) | 3.3% |
| Johnson & Johnson (JNJ) | 3.4% |
| Prologis Inc. (PLD) | 3.7% |
| Realty Income Corp. (O) | 5.9% |
Does Costco have a future?
Of course, Costco is going to have a much larger number of stores in the future. In the last 10 years, the store count expanded at a compound annual rate of 3%. Management opened 23 net new locations in fiscal 2023, with plans to open 31 in the current fiscal year.
Why is Costco a strong buy?
Costco now has 73.4 million paid household members and 132 million cardholders. It's an encouraging sign that even amid inflation and as budgets tighten up, consumers are seeing enough value in Costco's membership to sign up. That bodes well for the company's growth prospects this year and beyond.
Is Costco a good stock to buy in 2024?
Costco Wholesale (NASDAQ: COST) stock has been reaching new highs in 2024, but it could have more room to run.
Why is Costco stock crashing?
Costco Wholesale topped earnings expectations, but the stock fell following the company's rare revenue miss. The company's fiscal second-quarter revenue of $58.4 billion missed analyst projections for $59.1 billion.
Who owns the most shares of Costco?
Largest shareholders include Vanguard Group Inc, BlackRock Inc., State Street Corp, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, VFINX - Vanguard 500 Index Fund Investor Shares, Fmr Llc, Morgan Stanley, Geode Capital Management, Llc, Invesco Qqq Trust, Series 1, and Bank Of America Corp /de/ .
What are the downsides of investing in Costco?
The downside is that Costco's profit margin tends to remain low, at about 3% of sales, even during boom times. Investors also might be disappointed with the chain's cash returns in the coming years.
Is Walmart a safe stock to invest in?
From fiscal 2024 to fiscal 2026, analysts expect Walmart's revenue to rise at a CAGR of 4% as its EPS grows at a CAGR of 35%. Its stock still looks reasonably valued at 26 times forward earnings, its dividend offers a decent forward yield of 1.4%, and management has raised the payout annually for 51 consecutive years.
Is Walmart or Target a better stock?
The Winner: Target
With a valuation less than half as rich as Walmart, and a more attractive dividend yield, investors should be willing to bear a little more risk for Target. Things can always change, so remember to review your stock holdings on a regular basis.
Is Walmart a good or bad investment?
With Walmart, it is pretty well-known what an investor is going to get from an operational perspective. Walmart remains a stable company that should be viewed as a long-term blue-chip investment. Roughly 75% of Walmart's store management began their careers as hourly employees with the company.
