3 Post-Earning Outlooks for Top Movers: Costco Wholesale Corporation (COST), iRobot Corporation (IRBT), BioScrip Inc. (BIOS)

Page 1 of 2

Costco Wholesale Corporation (COST)Earnings can dictate the direction of a stock for the following three months. Investors pay close attention to earnings and often make emotional decisions based on the performance of a stock post-earnings. However, the performance of a stock following earnings should never be the first line of research, rather the last. With that being said, I am looking at three companies that reported earnings on Monday and providing my outlook, regardless of stock performance.

Not a Spectacular Quarter, But Still the Best in the Space

Shares of retailer Costco Wholesale Corporation (NASDAQ:COST) came close to touching new highs on Monday, increasing 1.29% following an earnings report that met expectations. The company saw top-line growth of 8% year-over-year (yoy), which was fueled by a 15% rise in membership fees. More importantly, this rise was due to volume, not a price hike. Looking ahead, the company continues to see strong performance in same-store sales, and so far, has fared well against Amazon.com, Inc. (NASDAQ:AMZN)’s Prime membership.

Personally, I wasn’t too impressed with Costco’s quarter, but I think what impressed the Street is that the company did not see the same struggles experienced by Target Corporation (NYSE:TGT) or Wal-Mart Stores, Inc. (NYSE:WMT) in the quarter. With that being said, I was very impressed with its 39% rise in net profit, despite a $62 million tax benefit. This is a company with a lot of room to grow, trading with operating margins of just 2.82%. Therefore, with it being cheaper on a price/sales basis than either Target or Wal-Mart, and seeing greater growth, I think COST is a “buy” and is the best of the three.

Strong Growth Under-Performing Stock that is a ‘Buy’

BioScrip Inc. (NASDAQ:BIOS) saw a 12.57% rise on Monday, touching new highs, after an earnings report that beat expectations. First, the company saw top line growth of 14.2% and posted sales of $180.7 million, $6.83 million better than the consensus. Then, it posted an EPS of $0.04, which was $0.03 better than analysts expected. Furthermore, the company’s full-year revenue guidance between $830 million and $865 million trumped the consensus of $770 million.

BioScrip Inc. (NASDAQ:BIOS) has seen a 76% rise over the last year, however after this quarter, the stock is being added to my Motley Fool “CAPS” list the minute I am done with this paragraph. It is a stock with double-digit growth that continues to trade with a price/sales far below 1.0. It is a small under-the-radar company that often gets forgotten in the discussion of best small cap stocks. But in my opinion, this is a good investment for the next year to come; it’s simply too cheap compared to growth and that distinction will create value for shareholders.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!