The wide-moat firm's value proposition to its customers will improve as inflation returns across its product spectrum, as cost increases should underscore Costco's price gaps against alternative outlets.
Despite a somewhat slow start to the year, we continue to expect 5% top-line growth and a 21% operating margin on average through fiscal 2026.
Despite the company's soft earnings and management change, we don't plan to make a significant change to our fair value estimate.
We plan to upgrade the narrow-moat firm's uncertainty rating to medium.
The narrow-moat specialty retailer offers investors the best opportunity to capitalize on attractive industry dynamics.
The wide-moat retailer should be able to deliver strong long-term returns as it builds its international platform and expands its membership base.
Despite somewhat soft domestic sales growth, the narrow-moat auto-parts retailer continued to boost profitability, and should be able to increase margins through operating leverage as it scales.
Although the deflationary environment is suboptimal, we are encouraged that the narrow-moat grocer posted stronger-than-expected margin performance.
Pilgrim's Pride should benefit from growing consumption of chicken domestically and abroad.
The narrow-moat food maker's U.S. pet foods unit nicked results last quarter.