Costco Performs Well in JPMorgan Price Check

 

Costcopic
Costco
Image: cnbc.com

Based in New York, Chuck Grom serves Gordon Haskett Research Advisors as managing director, in which role he covers broadline retail and supermarket sectors. Undertaking in-depth research, Chuck Grom focuses on equity trends in major US grocery chains.

With Amazon having recently taken over Whole Foods and promising a dramatic decrease in prices, investors in companies such as members-only Costco were concerned that this could impact stock prices. As reported in CNBC, a recent JPMorgan price check of several leading grocery chains found that Costco’s sticker prices were on average 58 percent less expensive per unit than similar products on Whole Foods’ shelves. The survey also found that Whole Foods did not have much pricing leeway as long as it adhered to its value proposition of “foodie, organic, and natural.”

When taking into consideration baskets of products spanning dry goods, perishable groceries, and household items, Costco was consistently least expensive in terms of overall prices. The company handily beat out Target, Aldi, and Walmart in this sphere. One area in which Walmart was found to be cheaper was its private-label brand, but when it came to quality, Costco’s Kirkland Signature rose to the top among value-minded consumers. With Costco currently focused on expanding its online shopping offerings, the firm’s downside risk seems manageable despite decreasing margins and what Mr. Grom described as the “modest compression” of membership renewal declines.

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Amazon versus Walmart pic

Momentum Shifts between Retail Giants Amazon and Walmart

Amazon versus Walmart pic
Amazon versus Walmart
Image: forbes.com

A well-established Wall Street analyst, Chuck Grom provides coverage of consumer-facing sectors. In August 2017, Chuck Grom appeared on CNBC and predicted a muted reaction to Walmart’s solid second quarter, with the insight that the number needed to be a bit better in order to cause much investor sentiment shift.

A recent Forbes article highlighted an emerging retail matchup in Amazon versus Walmart. The two retail behemoths inhabit distinctly different niches, with Amazon’s profitability primarily driven through e-tail-centric Amazon Web Services (AWS). As AWS has become a consistent profit generator, its stocks have risen ever higher. However, increased competition from platforms including Microsoft Azure, Google Cloud, and Walmart OneOps means that Amazon’s margins are likely to diminish.

On the other hand, Walmart has remained consistently profitable as a brick-and-mortar retailer in the digital age and is now poised to expand its e-commerce division. With its products recession-proof, unlike Amazon’s forays into traditional retail such as Whole Foods, Walmart may present distinct value to savvy investors who sense momentum shifting its way again.

Corey Lemonier pic

New York Jets Release Linebacker Corey Lemonier

 

Corey Lemonier pic
Corey Lemonier
Image: newyorkjets.com

Drawing on more than 20 years of experience in the financial sector, Chuck Grom is a managing director at Gordon Haskett Research Advisors, where he focuses on supermarket and department store stocks. Beyond his professional endeavors, Chuck Grom is an avid fan of the New York Jets professional football team.

Despite an impressive preseason in which Corey Lemonier recorded five tackles, one sack, and one interception, he won’t be continuing his career with the Jets this season. The 25-year-old outside linebacker suffered a foot injury during the team’s final preseason game on August 31 against the Philadelphia Eagles and was subsequently placed on injured reserve. Rather than keeping him there the entire season, the team opted to release him and pay a lump sum to cover the remaining weeks in which he is unable to play due to injury. Once recovered, he is free to sign with any team in the National Football League.

A third-round pick of the San Francisco 49ers, Lemonier played sparingly in three seasons with the team and made only 37 tackles, one forced fumble, and one sack. He played eight games with the Cleveland Browns in 2016 and made nine tackles, as well as two sacks and one forced fumble, but was released before joining the Detroit Lions, where he failed to get into a single game. He played the final game of the season with the Jets and was re-signed to a one-year contract on March 9.

Kony Ealy pic

New York Jets Claim Pass Rusher Kony Ealy

Kony Ealy pic
Kony Ealy
Image: newyorkjets.com

An experienced financial analyst who held executive roles with J.P. Morgan and Deutsche Bank, Chuck Grom serves as managing director of Gordon Haskett Research Advisors. Outside of his professional responsibilities, Chuck Grom is a season-ticket holder for the New York Jets.

Despite the fact that training camps were nearing an end and the 2017 regular season was set to begin in a little over a week, the New York Jets welcomed the opportunity to add talented defensive end Kony Ealy after he was waived by the New England Patriots. Ealy, who was acquired by the Patriots from the Carolina Panthers in the off-season, was released by the team on August 26 after he was reportedly unable to fit in with their defensive scheme.

The Dallas Cowboys, New York Giants, and Arizona Cardinals, among other teams, put in a claim for Ealy, but he was awarded to the Jets due to waiver priority. A second-round selection in the 2014 NFL Draft, Ealy has accumulated 80 tackles and 14 quarterback sacks throughout his three-year career, and the Jets are hopeful he can thrive in their pressure-heavy defensive scheme. He is the cousin of current Jets defensive tackle Sheldon Richardson.