With the second-quarter earnings parade only about a month away, many Wall Street firms that we cover are updating the list of stocks that are shown as top selections to institutional and high net worth clients. A new report, the analysts at Credit Suisse have added some new stocks to the firm’s Top Picks list.
The Credit Suisse Top Pick list is made up of 141 stocks out of the vast coverage universe at the firm of over 900 companies. We focused on the new stocks that have been added to the list as a new top pick in the sectors they reside in.
This company has become the ultimate destination for the American consumer regardless of the economy. Costco Wholesale Corp. (NASDAQ: COST) has a unique business model: It operates membership warehouses where the company buys the majority of its merchandise directly from manufacturers, essentially cutting out the middleman. Costco sells in bulk but also at a lower price, thus fueling its rapid growth. With consumers having more free cash to spend due to lower gasoline prices, this major retailer may continue to see large revenue gains.
The Credit Suisse team notes that Costco remains one of the few conventional retailers where metrics like store traffic, market share gains and a validated model that could bode well in international growth and expansion are thriving. They also point out that the company is largely unharmed by e-commerce.
Costco investors are paid a small 1.12% dividend. The Credit Suisse price target for the stock is $160, and the Thomson/First Call consensus target is $155. Shares closed Thursday at $140.65.
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