Has your portfolio slowly drifted away from the well-rounded collection of stocks you meant to own when you first started investing? If so, you’re not alone. The past two-and-a-half years have been a wild time for the market, and it’s been all too easy to shed solid, reliable holdings for something scintillating but speculative.
If that’s you, don’t sweat it — there’s hope for rebuilding your holdings into something that makes much more long-term sense. Here’s a rundown of three proven, unstoppable investments that would work well as part of nearly anyone’s portfolio.
By most accounts, Costco Wholesale (NASDAQ: COST) shouldn’t be thriving. It doesn’t offer anything rival retailers like Target, Kroger, and Walmart don’t, and none of those retailers charge customers a membership fee just to shop in their stores.
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The fact is, however, Costco has mastered the art and science of club-based retailing. As of May, the company boasts 64.4 million paying members, up by nearly 4 million on a year-over-year basis. Membership fee revenue improved from $901 million to $984 million during the same quarter, coinciding with 16% revenue growth over the course of the past 12 months. In fact, this company’s top line has grown on a year-over-year basis in every single quarter for over a decade now. Analysts expect similar sales gains this year and next, with profit growth projected to be even stronger.
There are still plenty of opportunities further down the road, too. There are over 122 million households in the United States, and thousands of businesses of all sizes, many of which are not yet members of this discount shopping club. There are also only 577 Costco stores in the U.S. and Canada — Costco’s core market — versus more than 4,700 Walmarts, almost 2,800 Krogers, and 1,937 Target stores all operating in markets that could arguably support one more store … like a Costco.
Attentive investors probably know Microsoft (NASDAQ: MSFT) fell short of last quarter’s earnings and revenue estimates. They also likely know the software giant recently requested employees curb their travel and training spending. The message is anything but encouraging to would-be shareholders.
Take a step back and look at the bigger picture, however. Microsoft is still looking for a better back half of calendar 2022 than analysts are, and analysts were already expecting quite a bit! Wall Street is modeling sales growth of 11.4% for the fiscal year that just got underway, with per-share profits projected to improve from $9.21 to $10.34. The company believes its intelligent cloud unit’s top line will hit $20.5 billion for the quarter now underway, up at least 20% even after factoring …….