5 Companies That Are Immune to Amazon's Endless Expansion
For long-time investors in technology, it surely has been remarkable to watch one company’s massive growth and expansion. Amazon.com Inc. (NASDAQ: AMZN) emerging as a worldwide leader in everything from retail to cloud computing, and now what may be high-end grocery shopping and even delivery with the purchase of Whole Foods, has truly been stunning. Early on the Amazon story was discounted as skeptics never believed that the internet would rule everything. How wrong they were.
Needless to say, the Amazon push into everything is leaving some companies vulnerable. Certain brick-and mortar-retailers, not the least of which are in the grocery arena, top brand name products and other companies could all feel the pressure from the Amazon behemoth.
In a recent Jefferies report, the analysts present a list of Amazon-resistant stocks, and here we feature five from the list that make good sense for investors regardless of what the future plans are from Amazon.
Baby boomers love to cruise, and this is one of the sector leaders. Carnival Corp. (NYSE: CCL) operates as a leisure travel and cruise company in North America, Europe, Australia and Asia. It offers cruises under the Carnival Cruise Line, Princess Cruises, Holland America Line and Seabourn brands in North America, as well as the Costa, AIDA, P&O Cruises (UK), Cunard and P&O Cruises (Australia) brands in Europe, Australia and Asia.
The company operates 99 cruise ships. It also owns Holland America Princess Alaska Tours, a tour company in Alaska and the Canadian Yukon, which owns and operates 11 hotels or lodges, approximately 300 motor coaches and 20 glass-domed rail cars. In addition, the company is involved in the leasing of cruise ships. It sells its cruises primarily through travel agents and tour operators.
Carnival shareholders are paid a solid 2.45% dividend. The Wall Street consensus price target is $67.02, and the shares closed Thursday at $65.15 apiece.
It’s time to make the donuts, and it’s likely Amazon won’t be doing it. Dunkin’ Brands Group Inc. (NASDAQ: DNKN), whose brands include Dunkin’ Donuts and Baskin-Robbins, is nearly 100% franchised. Core markets in the United States include New England and New York, while international core markets are South Korea and Japan. Dunkin’, currently operating in over 50 countries, has significant unit growth potential both domestically and internationally, with over 20,000 global units.
The company reported adjusted earnings per share that were above consensus estimates, thanks to a tax benefit. The company’s U.S. comps were flat. Its streamlined menu will be rolled out to 800 more units this year after a positive reception by franchisees and crew. The company maintained fiscal 2017 Dunkin’ U.S. comparable guidance of low single digits and raised earnings guidance by six cents per share.
Shareholders are paid a tasty 2.36% dividend. The posted consensus price target for the shares is $55.95. The stock closed Thursday at $55.26 per share.