Hello, Thanks for signing up for MarketBeat Daily Ratings—we’re excited to have you on board. Every weekday, you’ll get a curated summary of new “Buy” and “Sell” ratings from Wall Street’s top-rated analysts, the latest stock news, and bonus investing content—all delivered straight to your inbox. You’re just two quick steps away from completing your sign-up: 1. Make sure our emails go to your inboxGmail users:
Mobile: Tap the three dots (…) in the top right and select Move to Inbox or Move to Primary
Desktop: Click the folder icon at the top and select Move to Inbox or Primary Apple Mail users:
Tap our email address at the top (next to From: on mobile), then select Add to VIP Other providers:
Reply to this message and add newsletters@analystratings.net to your contacts 2. Confirm your subscriptionClick this link to confirm your subscription. This verifies your account and ensures you receive your newsletters without interruption instead of getting stuck in your spam filter. Confirm your subscription here. After you confirm, feel free to download our popular free report, "7 Stocks to Buy and Hold Forever" with this link. Thanks again for subscribing—we look forward to being part of your investing journey. 
Matthew Paulson
Founder and CEO, MarketBeat. P.S. If you didn’t mean to subscribe, no problem—you can unsubscribe here.
Today's Bonus Story
Why PriceSmart’s Discount May Not Last Much LongerBy Thomas Hughes. Posted: 4/10/2026. 
Key Points
- PriceSmart is positioned to grow, drive cash flow, and pay dividends in 2026, outperforming estimates for fiscal Q2.
- Marketshare gains, new stores, and comp-store growth underpin an outlook for double-digit earnings growth over the coming years.
- PriceSmart’s valuation remains below that of its larger membership-club peers, though emerging-market exposure and currency volatility remain key risks.
- Special Report: The Biggest IPO Ever: Claim Your Stake Today
PriceSmart (NASDAQ: PSMT) carries elevated risk as an emerging-market stock, but it is well-positioned and trading at an attractive valuation relative to peers such as Walmart’s (NASDAQ: WMT) Sam’s Club and Costco (NASDAQ: COST). Those two leading membership-club retailers trade at much higher valuations, implying PriceSmart has considerable upside. Trading at roughly 29x earnings versus Costco’s roughly 50x, PriceSmart appears significantly undervalued — a view supported by its ability to grow. PriceSmart self-funds its growth and has led peers on percentage gains. Fiscal Q2 2026 results showed a 9.7% growth rate, compared with Costco's 9.1% and Walmart's 5.6% for the comparable period.
For a moment…
Forget about Trump’s ties to Israel.
Forget about reports of Iran’s nuclear program.
Because my research has led me to believe we’re risking World War 3 with Iran for a completely different reason. Click here to find out what it is.
Looking ahead, PriceSmart expects to sustain a double-digit pace, driven by market-share gains, comp-store growth and new store openings. As of FQ2 2026, the company’s store count was up 3.7% year-over-year and is expected to rise by nearly 9% by the end of FY2027. PriceSmart Outperformance Triggers Continuation SignalPriceSmart delivered a solid fiscal Q2, with revenue up 9.7% to $1.5 billion, outperforming the consensus estimate by 135 basis points. The gain was driven by a 9.9% increase in merchandise sales, with net sales up 7.8% and a 2.1% favorable currency impact. Comp-store sales rose 7.6% (5.5% adjusted for currency translation), and membership fees grew 17%, suggesting comp-store strength should persist in coming quarters. Margin news was positive as well. Improved revenue leverage, stronger‑than‑expected traffic and solid operational execution accelerated earnings growth. EBITDA, a measure of core profitability, grew 14.5%, leaving GAAP EPS at $1.62 — roughly $0.06 ahead of consensus. Margins are expected to remain firm next quarter, which helped prompt a strong market reaction. PriceSmart’s stock price surged more than 2% after the release, pushing the shares to a new all-time high. The move confirms an uptrend and a bullish flag pattern, signaling trend continuation. Targets based on the flag’s pole — about $22 — put the stock near $175 by midyear. Longer-term upside appears likely given the company’s growth, cash flow generation and capacity to return capital.  PriceSmart’s Dividend and Distribution Growth Make It a Buy-and-Hold InvestmentPriceSmart isn’t a high-yield stock, but it is a reliable dividend payer with a track record of sizable increases. In early 2026 the yield was under 1%, but that low yield is offset by a modest payout ratio and steady distribution growth. The payout ratio is low — about 20% — leaving room for distribution increases even without sustained double-digit earnings growth. The distribution compound annual growth rate (CAGR) has been in the low teens and is likely sustainable given the payout ratio and continued earnings growth. Institutional activity supports the stock’s dividend-paying capacity and growth outlook, but it can also affect near-term price action. Institutions own more than 80% of the shares and were net buyers over the trailing 12 months — though they were net sellers in Q1 2026. That dynamic could make it harder for the stock to sustain rallies. The fiscal Q2 results, however, reinforce PriceSmart’s growth outlook and may encourage institutions to resume accumulation, as similar outcomes have done for other retail companies. There were no obvious balance-sheet red flags in the quarter. Despite a modest decline in cash at the end of fiscal Q2, PriceSmart remains well-capitalized — increases in current and total assets help offset the cash decline. Liabilities rose but were manageable, leaving equity higher and leverage at low levels. Long-term debt is less than 0.25x equity, leaving the company nimble and able to raise capital if needed. The main risks this year are rising costs, margin pressure and foreign-exchange volatility. So far, the company has managed cost and margin pressures, but FX volatility is likely to remain an ongoing headwind. |
