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Motley Fool Hidden Gems Investing

Toys, Candy, Alcohol, and CES 2020

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 10 January 2020

⏱️ 39 minutes

🧾️ Download transcript

Summary

Costco reports some holiday cheer thanks to the strong trifecta of toys, candy, and alcohol. Bed Bath & Beyond sinks. Lennar raises the roof. And Grubhub delivers a denial. Motley Fool analysts Andy Cross, Emily Flippen, and Ron Gross discuss those stories and weigh in on the latest from Constellation Brands, Luckin Coffee, Pier 1 Imports, Macy’s, Kohl’s, and Taco Bell. Our analysts share three stocks on their radar: Accenture, Livongo, and Meituan Dianping. Plus, The Motley Fool’s Rex Moore shares some insights from CES 2020 and talks 5G, driverless cars, and 3D printing. To get 50% off our Stock Advisor service, go to http://RadarStocks.fool.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Everybody needs money. That's why they call it money.

0:07.0

From full global headquarters, this is Motley Fool Money.

0:16.0

It's the Motley Fool Money Radio Show. I'm Chris L. Joining me in studio this week,

0:22.0

seeing their analysts Andy Cross, Emily Flippin, and Ron Gross. Good to see you as always.

0:26.0

Hey Chris. We've got the latest headlines from Wall Street.

0:29.0

We will head to Las Vegas for a report on this year's CES.

0:33.0

And as always, we'll give you an inside look at the stocks on our radar.

0:35.0

But we begin with retail, a whole lot of retail, Ron.

0:39.0

But we'll start with Costco. Same store sales for December, up 9% that is 2%

0:44.0

percentage points higher than Wall Street was expecting.

0:47.0

I was telling you before we started, I don't think of Costco as a retailer

0:52.0

that needs to or necessarily actually crushes holiday quarters or months in this case.

0:59.0

But holy cow, they really nailed it.

1:02.0

Never underestimate, never underestimate the power of toys, candy, and alcohol.

1:08.0

Because that was getting the job done in December.

1:12.0

And it's a really strong period for them. But I agree, the company doesn't rely on it.

1:17.0

It's not a kind of a black Friday kind of situation where they have to wait for the holiday season to become profitable.

1:24.0

They're profitable consistently. Thanks largely to their subscription based model,

1:28.0

not the fact that they're a retailer and rely on the sale of goods to become profitable.

1:34.0

But this was really strong. Love to see their internet sales really be robust, up 43% in December.

1:41.0

That's important for a company like Costco, which has to compete in the world of Amazon.

1:45.0

Well, especially because they had a little e-commerce blip during the Thanksgiving period as we talked about before.

...

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