High-Growth Investments

The Allstate Corporation

The Allstate Corporation (ALL) is a leading insurance provider that’s kept its customers in “good hands” for more than 90 years. Today, Allstate has nearly 193 million policies, and through these policies, it provides a variety of insurance products and services, including auto, boat, motorcycle, homeowners, renters, life and business insurance.

Insurance may be a boring business, but it’s been a profitable one for Allstate. Second-quarter adjusted earnings surged to $429.0 million, or $1.61 per share, up from a loss of $1.16 million, or a $4.42 per share loss, in the second quarter of 2023. Analysts only expected earnings of $0.37 per share, so Allstate posted a whopping 335.1% earnings surprise.

Following the earnings beat, analysts have increased third-quarter earnings estimates over the past month. Third-quarter earnings are now forecast to soar 274.1% year-over-year to $3.03 per share, compared to $0.81 per share in the third quarter of 2023.

I should also add that Allstate is set to pay a quarterly dividend of $0.92 per share on October 1. All shareholders of record today, August 30, will receive the dividend. The stock has a 2.0% dividend yield. ALL is a Conservative buy below $201.

SOM Technicals:

8-3-24: Closed at 178.82. Trade pressures are up. Volumes are bullish. The next target up is 188.86.

8-11-24: Closed at 171.03. Trade pressures are rising to the neutral zone. Volumes are neutral. The next target down is 168.07.

8-16-24: Closed at 178.11. Trade pressures are up. Volumes are bearish. The next target down is 175.48.

8-26-24: Closed at 180.51. Trade pressures are up. Volumes are bullish. The next target up is 184.31.

8-30-24: Closed at 188.94. Trade pressures are bullish. Volumes are bullish. The next target up is 194.68.

9-7-24: Closed at 185.36. Trade pressures are down. Volumes are bearish. The next target down is 180.99.

9-14-24: Closed at 188.30. Trade pressures are up. Volumes are bullish. The next target up is 191.33, the previous high.

 

Coca-Cola Consolidated, Inc.

Coca-Cola Consolidated, Inc. (COKE) bottles and distributes a vast range of beverage products and flavors, including Coca-Cola branded products, as well as well-known energy drinks, sparkling and still beverages, carbonated and non-carbonated drinks.

Coca-Cola Consolidated may not have any analysts following the stock yet, but it remains one of our Top Stocks due to persistent institutional buying pressure. The stock earns an A Quantitative grade, which means investors continue to load up on shares.

The company also provided solid results for its second quarter. Sales rose 3.3% year-over-year to $1.8 billion, with sparkling bottle/can sales accounting for $1.05 billion. Operating earnings grew 11% year-over-year to $259.1 million, while adjusted earnings increased 11.7% year-over-year to $192.8 million.

I should add that Coca-Cola Consolidated recently increased its quarterly dividend by a whopping 400%. The company will now pay a quarterly dividend of $2.50 per share, up from its previous $0.50 per share dividend. The dividend will be paid on November 8 to all shareholders of record on October 25. The stock has a 0.75% dividend yield. COKE is a Conservative buy below $1,465.

SOM Technicals:

8-3-24: Closed at 1274.20. Trade pressures are up. Volumes are bullish. The next target up is 1345.00.

8-11-24: Closed at 1259.41. Trade pressures are up but declining. Volumes are bullish. The next target down is 1217.49.

8-16-24: Closed at 1270.17. Trade pressures are up. Volumes are bullish. The next target up is 1305.70.

8-26-24: Closed at 1339.75. Trade pressures are up but declining. Volumes are neutral. The next target down is 1319.69.

8-30-24: Closed at 1342.40. Trade pressures are down into the neutral zone. Volumes are bullish. The next target down is 1285.96.

9-7-24: Closed at 1329.90. Trade pressures are up but declining. Volumes are bearish. The next target down is 1285.96.

9-13-24: Closed at 1296.96. Trade pressures are down. Volumes are neutral. The next target down is 1233.97.

 

Costco Wholesale Corporation

Costco Wholesale Corporation (COST) operates in the warehouse club industry, and it has a global footprint: the company has 600 locations in 47 states and Puerto Rico, as well as 108 locations in Canada, 40 locations in Mexico, 33 locations in Japan and 29 locations in the U.K. The company also has locations in Australia, China, France, Iceland, Korea, New Zealand, Sweden and Taiwan.

During the first nine months of its fiscal year 2024, Costco achieved total sales of $174.76 billion, or a 7% year-over-year increase, and earnings of $5.01 billion, or $11.27 per share, or a 21.3% year-over-year rise. The company is scheduled to announce fourth-quarter and fiscal year results on September 26.

For the fourth quarter, earnings are forecast to grow 4.3% year-over-year to $5.07 per share and sales are expected to increase 1.6% year-over-year to $80.23 billion. Analysts have upped earnings estimates over the past three months, so a fifth-straight quarterly earnings surprise is likely.

Costco is also expected to report 15.4% annual earnings growth and 5.3% annual sales growth for its fiscal year 2024. COST is a Conservative buy below $952.

SOM Technicals:

8-30-24: Closed at 895.38. Trade pressures are down into the neutral zone. Volumes are neutral. The next target down is 867.10.

9-7-24: Closed at 876.68. Trade pressures are down. Volumes are bearish. The next target down is 854.86.

9-14-24: Closed at 916.00. Trade pressures are up. Volumes are bullish. The next target up is 939.04.

 

The Progressive Corporation

The Progressive Corporation (PGR) is a well-known insurance provider, offering everything from car, boat and motorcycle insurance to homeowners, renters and commercial insurance. The company also offers popular insurance bundles, in which folks can bundle their auto and property insurance for lower rates. And Progressive continues to benefit from high insurance rates.

In July, Progressive noted that net premiums written totaled $6.38 billion and net premiums earned totaled $6.07 billion. That was up from net premiums written of $5.75 billion and net premiums earnings of $5.78 billion in June. Earnings in July came in at $813.5 million, or $1.38 per share, which compared to earnings of $802.7 million, or $1.37 per share in June. Progressive will report August results on September 13.

Progressive plans to pay a quarterly dividend of $0.10 per share on October 11. All shareholders of record on October 3 will receive the dividend. The stock has a 0.2% dividend yield. PGR is a Conservative buy below $268.

SOM Technicals:

4/27/24: Closed at 205.03. Trade pressures are down. Volumes are bearish. The next target down is 199.79.

5-4-24: Closed at 208.72. Trade pressures are down. Volumes are bullish. The next target down is 206.06.

5-10-24: Closed at 210.17. Trade pressures are neutral. Volumes are bullish. The next target down is 211.49.

5-18-24: Closed at 209.22. Trade pressures are down but rising. Volumes are bearish. The next target down is 201.34.

5-25-24: Closed at 203.91. Trade pressures are down. Volumes are bearish. The next target down is 191.19.

6-2-24: Closed at 211.18. Trade pressures are up. Volumes are bullish. The next target up is 214.90.

6-8-24: Closed at 212.53. Trade pressures are up. Volumes are bullish. The next target up is 219.12.

6-15-24: Closed at 203.92. Trade pressures are down but rising. Volumes are bearish. The next target up is 218.20.  

6-23-24: Closed at 209.19. Trade pressures are down. Volumes are bullish. The next target down is 206.

6-30-24: Closed at 207.71. Trade pressures are up into the neutral zone. Volumes are bearish. The next target up is 218.69.

7-5-24: Closed at 210.18. Trade pressures are down. Volumes are neutral. The next target down is 205.22.

7-12-24: Closed at 213.30. Trade pressures are up. Volumes are bullish. The next target up is 218.69.

7-20-24: Closed at 219.35. Trade pressures are up but declining. Volumes are bearish. The next target down 212.57.

8-3-24: Closed at 216.94. Trade pressures are up. Volumes are bullish. The next  target up is 240.00.

8-11-24: Closed at 221.73. Trade pressures are up. Volumes are bullish. The next target up is 227.32.

8-16-24: Closed at 236.77. Trade pressures are up. Volumes are bullish. The next target up is 244.22.

8-26-24: Closed at 242.45. Trade pressures are up. Volumes are bullish. The next target up is 246.40.

8-30-24: Closed at 252.20. Trade pressures are up. Volumes are bullish. The next target up is 261.59.

9-7-24: Closed at 248.69. Trade pressures are up but declining. Volumes are neutral. The next target down is 244.68.

9-14-24: Closed at 255.46. Trade pressures are up. Volumes are bullish. The next target up is 267.5.

 

Wingstop, Inc.

Wingstop, Inc. (WING) was a new addition to the High-Growth Investments Buy List in the August Monthly Issue. If you recall, Wingstop is a restaurant chain that offers buffalo-style chicken wings, with classic wings, boneless wings and chicken tenders, all offered with a wide selection of sauce flavors.

Wingstop operates more than 2,200 restaurants in the U.S., as well as in Colombia, Indonesia, Malaysia, Mexico, Panama, Singapore, the U.K. and the United Arab Emirates.

During the second quarter, system-wide sales jumped 45.2% year-over-year to $1.2 billion, and Wingstop opened 73 new stores. Total second-quarter revenue increased 45.3% year-over-year to $155.7 million, topping estimates for $144.01 million. Second-quarter earnings soared nearly 70% year-over-year to $27.5 million, or $0.93 per share, also beating estimates for $0.82 per share.

Following the positive second-quarter results, analysts have increased third-quarter earnings estimates by 10.6% in the past month. Third-quarter earnings are now forecast to grow 36.2% year-over-year to $0.94 per share, and sales are expected to come in at $159.89 million. WING is a Moderately Aggressive buy below $426.

SOM Technicals:

8-30-24: Closed at 386.11. Trade pressures are down. Volumes are bearish. The next target down is 364.74.

9-7-24: Closed at 362.41. Trade pressures are down. Volumes are bearish. The next target down is 354.11.

9-14-24: Closed at 394.81. Trade pressures are up. Volumes are bullish. The next target up is 409.77, the prior high.