Today we are watching…
1. Costco Wholesale (#costco)
Costco is one of the few companies that investors can buy which may have gained from the coronavirus outbreak. While the rest of the commercial world is gripped by a dual supply-demand shock, analysts suspect Costco has seen boosted foot fall from worried customers looking to bulk order certain goods. The big-box retailer isn’t too exposed to Chinese manufacturing, so it can meet demand from folks wanting to stock up for the zombie apocalypse. Analyst Rupesh Parikh of Oppenheimer blessed Costco with “good management, long-term prospects, growth, and consistent shareholder returns.” He has a price target of $335, and profit per share estimates for today’s figures stand at $2.06 on $38 billion in revenue.
2. Toyota (#toyota)
Titan of the automotive industry Toyota has recalled over three million vehicles on suspicions of faulty gas pumps that could cause engine stalls and crashes. Its stock didn’t farewell. Repair work and compensation wipe out profit margins on those cars, three million being 30% of all production in a given year. This also bad for reputation, and car companies live and die on their reputations. Customers won’t consider repeat purchases if bad memories haunt them about reliability. You’ve bought a car, and then it’s been taken away! Toyota recalled 2.9 million cars in January relating to airbag flaws. Is there a major problem under the bonnet of this Japanese company?