Investing

Earnings Previews: Broadcom, Costco, Gap, Marvell Technologies

Costco

Shares of Costco Wholesale Corp. (NASDAQ: COST) have added about 59% over the past 12 months, including a drop of about 16% in January. February was a different story, with the stock adding back about 9.5%. Costco has beat revenue estimates in each of the past eight quarters but has missed profit estimates twice in that time, including the most recent quarter. E-commerce sales have continued to grow and have provided a nice complement to the company’s traditional warehouse sales.

Analysts are positive on the stock, with 24 of 35 giving it a Buy or Strong Buy rating. Another 10 rate the stock at Hold. At a share price of around $523.00, the upside based on a median price target of $567.50 is 8.5%. At the high price target of $650, the upside potential is 24.3%.

Second-quarter revenue is forecast at $51.40 billion, up about 2.1% sequentially and 14.8% year over year. Adjusted EPS are forecast at $2.72, up 6.3% sequentially and 21.3% year over year. For full fiscal 2022 ending in August, current estimates call for EPS of $12.79, up 15.5%, on sales of $219.25 billion, up 11.9%.

Costco stock trades at 41.0 times expected 2022 EPS, 37.4 times estimated 2023 earnings of $14.01 and 33.2 times estimated 2024 earnings of $15.78 per share. The stock’s 52-week range is $307.00 to $571.49. Broadcom pays an annual dividend of $3.07 (yield of 0.6%). Total shareholder return for the past year was about 60.5%.

Gap

Apparel retailer Gap Inc. (NYSE: GPS) has seen its share price tumble by more than 40% over the past 12 months. Since reaching a peak in mid-May last year, the stock has plunged by around 60%. Last month, the company was booted from the S&P 500 index because its market cap has fallen below the minimum typically needed for inclusion. The company’s attempts to rebrand itself as a lifestyle brand have enjoyed some short-term buzz but no long-term success in retaining customers.

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.