Costco Wholesale Corp COST has been on a stellar run, gaining 71.22% over the past year and 31.81% year-to-date. Trading around $870 per share Thursday morning, the stock reached a new high of $873.96 during intraday trading on June 18.
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Investors are waiting for Costco to implement a membership-price hike, which occurs every few years. Higher membership revenue should boost the company's earnings.
Shares in Costco have soared over 200% since 2019. The company has rallied investors with consistent growth and soaring earnings.
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Costco is a longtime Wall Street darling trading near all-time highs. This isn't a great time to buy the stock, but there never seems to be a good time.
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Costco's valuation is extremely rich, with the stock trading at more than 50 times earnings. The company's growth rate, while solid at 9%, might not be strong enough to justify that kind of a price tag.
Costco surpasses revenue and earnings expectations, with net sales of $58.52 billion and a 9.1% YoY growth. Comparable store sales jumped 6%, with international markets showing stronger growth than the US. Initiating coverage with a cautious Buy based on Costco healthy financials, strong management team, and corporate strategy. However, near-term volatility is possible due to the stock at all-time highs.
Shares of Costco Wholesale Corp. (COST, Financial) have proven to be an exceptional investment historically. Over the past decade, the stock has delivered a total return of roughly 760%.
General Motors is turning to Costco's Auto Program to help it sell more EVs. The wholesaler partners with automakers and dealers to offer discounted vehicle prices for members.