Dollar General Corp (NYSE: DG) has not been particularly exciting for investors since the start of this year, much of which is related to the broader concerns that it’s losing share to the likes of Walmart Inc (NYSE: WMT).

Walmart has been laser focused on catering to the lower and middle-income household over the past few quarters, with recent reports indicating that its strategy has started to pay off as well.

But there’s something that Dollar General could do to essentially shield itself from WMT stealing its share, according to famed investor Jim Cramer.  

The answer lies in being smart at picking real estate, he argued in a recent CNBC appearance.  

How can Dollar General protect its market share?

Dollar General continues to be a renowned chain of discount stores in the US.

It’s still a priority store for people in search of a bargain.

While the focus more broadly has been on it losing share to Walmart, what’s going unnoticed is that it does better in locations where there’s no Walmart nearby, according to the Mad Money host.

DG already has plans of continuing with its accelerated pace of opening new stores in 2025.

All it has to do is choose the real estate well, viz-à-viz open a store that’s not particularly close to a Walmart, he added on “Mad Dash”.

DG reported solid sales for its fourth quarter

Jim Cramer remains bullish on Dollar General stock also because the discount retailer reported strong sales for its Q4 and issued upbeat long-term guidance this week.

DG expects its per-share earnings to grow by more than 10% starting in 2026.

Street had called for a lower 8.75% increase instead.

Additionally, the retail firm plans on remodeling thousands of its stores and closing nearly 100 of its underperforming namesake locations to prepare for a potential recession ahead.  

A 2.95% dividend yield makes Dollar General stock all the more exciting to own at current levels.

What a consumer slowdown may mean for Dollar General

On its recent earnings call, the discount retailer talked of consumer struggles, adding “some of our customers report they’ve had to sacrifice even on necessities.”

Still, famed investor Jim Cramer attributed much of the consumer slowdown to geopolitical fears and said “I’m not totally convinced everything is falling apart.”

Plus, there’s reason to believe that DG will show resilience even if the US economy does indeed slide into a recession in the back half of 2025.

Why? Because it’s a retail chain known for bargains – it offers great value to consumers and helps them navigate challenging times that tend to hurt their financial capabilities.

Nonetheless, Dollar General stock has been in a sharp downtrend since late 2022.

DG shares are currently trading about 70% below their high at the time.

The post How Dollar General can fight back against Walmart’s market dominance appeared first on Invezz

Natura, the Brazilian cosmetics giant, revealed its quarterly earnings report on Thursday showing disappointing data and causing concerns in the financial sector.

Key data, particularly those related to core operations, came in considerably below analysts’ expectations.

Natura reported a 16.1% increase in net revenue to R$7.7 billion, with an 11.4% increase excluding Argentina and a 63.1% increase in reais.

The company attributed this growth to 21.1% growth in Brazil, double-digit growth in Hispanic markets (excluding Argentina), Avon CFT’s stable performance in Brazil, and continued decline in Avon’s Hispanic markets (excluding Argentina) and the Home & Style category.

Although faced with tough times presently, with perseverance Natura hopes that future periods will yield a return to form and the prosperity of years past.

Disappointing operational performance

Natura reported adjusted EBITDA (profits before interest, taxes, depreciation, and amortization) that was up to 35% lower than market expectations.

According to local media outlet InfoMoney, this sharp difference caught investors off guard, as they had expected more robust growth from one of Brazil’s largest beauty and personal care companies.

The gap in operational performance is mostly due to a significant increase in expenses.

Despite these difficulties, Natura remains hopeful about its net sales expectations.

The company has confirmed its revenue growth trajectory, but an increase in operational costs has dampened this optimism, resulting in overall dismal results.

Analysts note that even after accounting for earlier Information Technology expenditures and capitalized systems, rising expenses were a substantial contributor to the poor performance.

Market Reaction and Share Price Drop

When the financial results were made public, the stock market responded strongly.

At 11:23 a.m., Natura&Co shares fell 27.51% to R$9.83.

The shares fell considerably lower, reaching R$9.66, the lowest price since January 2023.

This reduction resulted in a startling loss of about R$5.4 billion in market value.

If this precipitous decline continues until the market closes, it will be the greatest one-day percentage drop in Natura’s operational history.

In contrast, the broader market was going positively; the Ibovespa index increased by 1.52% on the same day, demonstrating a significant discrepancy between Natura’s performance and market mood.

Earnings per share and tax gains

The report provides adjusted earnings per share (EPS) of R$0.17, which is a modest improvement from the previous year’s losses of -R$0.37.

While this increase implies some improvement, it still falls short of the consensus forecast of R$0.24 per share.

JPMorgan noted to InfoMoney that, while the EPS exceeded their previous forecast of R$0.11, the financial measures nevertheless fell short of market expectations.

The company also benefited from tax advantages and positive hedging operations on financial charges, which helped to offset the impact of increased operational costs.

However, greater foreign exchange charges due to financial expenses highlight Natura’s concerns in an increasingly complex economic landscape.

Strategic reassessment ahead

With the dismal fourth-quarter returns coming as a huge surprise, trade analysts might urge Natura to re-examine their functional approach.

In view of ascendant expenditures, one option for the company may be to delve into cost-cutting tactics or imaginative avenues to optimize outlay without detriment to development.

Natura’s competence in navigating this intricate terrain will be integral for restoring investor belief and confirming sustainable development in the approaching quarters.

Alternatively, the company may consider focusing resources on their most profitable products or explore partnerships with complementary businesses to expand its portfolio and revenue streams.

A careful re-evaluation of their strategic priorities coupled with financial austerity measures could help Natura weather ongoing challenges.

A crossroads for Natura

In summary, Natura’s fourth quarter results delivered unwelcome surprises for shareholders but also signalled a potential inflexion point.

Soaring costs and missed targets could spur strategic shifts.

Moving ahead, how Natura tackles these challenges will determine the restoration of growth and sustaining leadership status in cosmetics.

The post Brazil’s Natura profit slumps 35%; stock crashes 27.5% after weak Q4 appeared first on Invezz

The Trade Desk (TTD) stock price has nosedived this year, erasing all gains made in 2024. It has slipped in the last five consecutive weeks and is hovering at its lowest level since March 2023. It is down by over 60% from its highest level this year, leading to a $47 billion wipeout as the valuation plunged from $70 billion to $23.8 billion.

Why The Trade Desk stock has crashed

There are a few reasons why the Trade Desk share price has imploded this year, becoming the worst-performing name in the Nasdaq 100 index.

The first reason is that The Trade Desk stock price surged in 2024 and was one of the top performers in Wall Street. It rose from about $60 in January last year and peaked at $141 in December.

In most cases, a stock that surges that hard during the year suffers a harsh reversal in the following year. All it needs is to report a weak quarterly result or have some negative news for this retreat to happen.

Some of the most popular companies that have gone through this are Super Micro Computer (SMCI), Celsius Holdings (CELH), and AppLovin.

In The Trade Desk’s case, the main trigger for this sell-off was its weak financial results released earlier this year. The results showed that its revenue rose by 22% in the fourth quarter to $741 million, bringing the annual figure to $2.44 billion.

Read more: Inside Trade Desk’s 2025 strategy: can it regain investor confidence?

TTD’s net income rose by 25% to $182 million as the net income margin jumped to 25% during the quarter. The company’s guidance was weaker than expected as it expects its quarterly revenue to be $575 million, lower than the average estimate of $580 million.

The Trade Desk share price has also crashed because of its valuation concerns. At its peak in 2024, the company had a market cap of over $70 billion. That is a big number for a company whose 2026 revenue is expected to be $3.47 billion.

In other words, the company had a forward 2026 price-to-sales multiple of 20, which is big. As such, the ongoing crash is because the company is going through a valuation reset, which is a popular situation, especially when recession odds are high.

The Trade Desk stock price technicals

The TTD share price has likely moved into the markdown phase of the Wyckoff Theory. According to the Wyckoff Theory, an asset goes through four key stages: accumulation, markup, distribution, and markdown phase.

The Trade Desk stock entered the markup phase of the Wyckoff Theory in 2024, which explains why it jumped to a record high.

It then moved into the distribution phase between December and early February. The corporate earnings triggered the markdown phase.

Looking ahead, the stock has crashed below the 50-week and 100-week Exponential Moving Averages (EMA), a sign that bears are in control. Also, the MACD and the Relative Strength Index (RSI) have continued falling. It has moved into the oversold level.

Therefore, the path of the least resistance for the Trade Desk stock price is bearish, with the next point to watch being at $38.8, the lowest swing in 2022. A move below that level will point to more downside, with the next level to watch being at $25.

A strong rebound cannot be ruled out once the ongoing panic selling ends. According to Yahoo Finance, the average Trade Desk stock price target among analysts is $111, up from the current $53.8.

The post The Trade Desk stock price had a $47 billion wipeout: buy the dip? appeared first on Invezz

Costco stock price has dived in the past few days as concerns about the US recession and tariffs continued. COST has crashed in the past six consecutive days, moving to its lowest level since November 6 of last year. It has dropped by over 17% from its highest level this year.

Two reasons why Costco stock has crashed

There are three main reasons why the Costco share price has crashed in the past few days. First, it has dropped because of the ongoing recession risks that have triggered a tariff tantrum among investors.

Tariffs will make it more expensive for a company like Costco to import its products from neighboring countries like Canada and Mexico. This, in turn, could hurt its margins since the company will likely not increase its membership costs.

Additionally, higher tariffs may turn off consumers now that inflation is a big concern in the US. The most recent data showed that the headline and core consumer inflation data dropped to 2.8% and 3.1%, respectively.

Still, fundamentally, Costco may become one of the top beneficiaries of the ongoing trade war since it does well in all market conditions.

Read more: Deep dive: Why Costco’s Q2 pleased investors despite an earnings miss

Costco valuation concerns

Second, and most importantly, Costco is one of the most overvalued players in the retail industry because of its strong market share.

At its peak this year, Costco had a market cap of over $478 billion, which has dropped to $395 billion, meaning that it has gone through an $83 billion wipeout.

A $478 billion or even $395 billion valuation is quite expensive for Costco because of its profits and revenue growth.

The most recent annual results showed that Costco generated over $254 billion in revenue and a net profit of $7.3 billion. This means that at its peak, the company had a price-to-earnings (PE) multiple of 65. Even today, the company has a P/E ratio of 54 and a forward ratio of 50.

Costco deserves a premium valuation because it is the biggest wholesale group in the United States and globally. However, it is still hard to justify this valuation since the company is not growing as it did in the past.

Costco Wholesale has a revenue growth of about 6% and a forward EBITDA growth of 11.52%. Its net profit margin is 2.90%.

In contrast, NVIDIA has a forward price-to-earnings ratio of 26, a revenue growth metric 60% and an EBITDA growth of 68. That is a sign that investors believe that Costco has a better growth potential than NVIDIA.

Similarly, Microsoft has a forward PE ratio of 28, revenue growth metric of 15, and an EBITDA growth of 54.

Therefore, there is a likelihood that the company is going through a valuation reset as recession risks rise.

Read more: Costco stock price forms risky patterns: is the bubble about to pop?

Costco stock price analysis

The daily chart shows that the COST share price has been in a strong downtrend after peaking at $1,080 earlier this year. This crash is in line with our recent COST stock forecast.

 It has now dropped below the crucial support level at $900, the lowest swing in January this year.

The stock has dropped below the 50 and 100-day weighted moving averages, a sign that bears are in control.

More data shows that Costco’s MACD and the Relative Strength Index (RSI) have continued falling this year. They have now moved to the oversold level.

Therefore, the stock will likely drop for a while and possibly retest the support at $850 and then resume the uptrend as the tariff tantrum fades. If this happens, the Costco stock price will rise from the current $890 to $1,200 as Wall Street analysts estimate.

The post 2 reasons why the Costco stock price has collapsed this year appeared first on Invezz

Despite a volatile stock market and growing concerns about an economic slowdown in the United States, DocuSign (DOCU) is painting a picture of resilience.

CEO Allan Thygesen has expressed confidence in the company’s continued momentum, citing strong demand trends and positive indicators within the business.

On Yahoo Finance’s Morning Brief on Friday, Thygesen dismissed any concerns about a potential economic downturn impacting DocuSign’s performance, citing ongoing strength in key business metrics.

“As I looked at our February numbers, for example, our transaction volumes were pretty much on target with what we had expected — not seeing any major impact there,” Thygesen said.

“So at this point, we haven’t seen any impact of the recent volatility.”

AI-powered growth

DocuSign’s positive outlook is supported by strong fourth-quarter earnings, reported on Thursday evening.

The company exceeded expectations as more customers embraced its innovative AI agreement technology.

This adoption signals there may be positive things to come from this integration, and that there is consumer intrigue around the topic of AI.

This positive momentum appears to have staying power, as the company’s billings guidance also surprised Wall Street estimates to the upside.

The positive earnings report sent DocuSign shares soaring, with the stock rising more than 16% in Friday morning trading and becoming the No. 1 trending ticker on Yahoo Finance.

Wall Street analysts have largely responded positively to DocuSign’s recent performance.

“We maintain our positive view as we see potential for continued international expansion, IAM [intelligent agreements] optionality in FY26, and operating leverage in future years,” Citi analyst Tyler Radke wrote, highlighting the company’s promising growth prospects.

Radke reiterated a Buy rating on DocuSign’s stock, further solidifying the positive sentiment.

Adding to the bullish signals, DocuSign’s recent activity in the stock market speaks volumes about its financial confidence.

The company reported a strong $1.1 billion in cash and revealed that it had repurchased $683.5 million in stock during the quarter, a substantial increase compared to the $145.5 million repurchased in the same period last year.

These buybacks have signaled to the market that the company is stable and willing to invest.

This combination of strong earnings, positive guidance, and a strategic share repurchase program suggests that DocuSign is well-positioned to navigate the current economic landscape and continue its growth trajectory.

The post DocuSign CEO Allan Thygesen dismisses recession fears, says business is brisk appeared first on Invezz