We’ve all got a tendency to gravitate toward the big-name stocks, the tech giants like Amazon or Apple or Facebook or Google, that are raking in the cash and bringing big returns to investors. But what about the bread-and-butter companies, those shares in companies that provide us with the everyday things that we just need? They don’t get the headlines, but they do have solid foundations in the marketplace and some are good performers in the stock markets.
Costco
The world’s second-largest retailer (only Walmart is bigger), Costco (COST – Research Report) is a leader in big box warehouse membership stores. Costco stores sell everything from quality beef and chicken to top shelf wine to automotive parts, eyeglasses, and home furnishings. Members can benefit from discount prices on bulk purchases, while the company is known for its generous employee benefit packages.
Costco’s stock reflects the strength of its business model. The stock price stands at $224.17 today, and the analyst consensus is a ‘Strong Buy’ with a 10% average upside and a target price of $247. RBC Capital’s Scot Ciccarelli (Track Record & Rating) notes that Costco is feeling pressure from higher gasoline prices, but is still posting “some of the best traffic growth in retail.” Oppenheimer’s Rupesh Parikh (Track Record & Rating) agrees, seeing prospects for continued healthy momentum. He sees an opportunity to buy, as the stock price has pulled back slightly from its recent high point.
See COST Price Target and Analyst Ratings Detail.
Nike
Who doesn’t need comfortable shoes? Nike (NKE – Research Report) is best known for its footwear, but the company produces and markets a wide range of athletic apparel. It’s also well known for its highly successful marketing – the Nike ‘swoosh’ is instantly recognizable around the world and is one of the few corporate logos that doesn’t need text.
