Shares of Costco ( NASDAQ:COST) took a hit on Friday. The stock declined as much as 7.5% and finished the trading day down about 4.1%. The warehouse club stock's decline was likely primarily due to growing fears about the COVID-19 coronavirus' impact on the global economy.
Full Answer
Should you Buy Costco stock ahead of earnings?
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Will Costco split soon?
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When will Costco stock split?
5 hours ago · For Costco, the number is currently negative. That means its customers are paying for products off the shelf before it has paid its suppliers. …
Is Costco down right now?
With inflation heating up, Costco Wholesale (NASDAQ: COST) is one of the safest bets in the market. In March, inflation was up 8.5% year-over-year …
Is Costco stock a good buy?
Costco's business prospects are excellent in the near and long term. That said, Costco's premium price is no secret to the market. When measuring by price-to-earnings and price-to-free cash flow, Costco's stock is selling at near its highest price in the last five years.Apr 7, 2022
Is Costco stock undervalued?
Compared to the current share price of US$568, the company appears a touch undervalued at a 22% discount to where the stock price trades currently.Jan 2, 2022
How high will Costco stock rise?
Analysts forecast that Costco's sales will reach $220 billion for its fiscal year ending mid-Aug. 2022. That represents a potential 12.5% increase on a YoY basis from $195.93 billion last year.Apr 8, 2022
What are the predictions for Costco stock?
Stock Price Forecast The 27 analysts offering 12-month price forecasts for Costco Wholesale Corp have a median target of 600.00, with a high estimate of 670.00 and a low estimate of 525.00. The median estimate represents a +4.95% increase from the last price of 571.70.
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COST Stock and Its Recent Rebound
So, why has Costco started to bounce back in February, almost as quickly as it dropped in January? Two things. First, like I discussed above, the market recognized it was a relative bargain after its sudden drop. In hindsight, investors may have overreacted when they cashed out of this name.
Inflation May Not Destroy the Bull Case for Costco
To those more bearish on COST stock, it may appear as if it has big downside risk, given the inflation issue, plus its high price-to-earnings (P/E) multiple of 40.3x. The company has been able to maintain a premium valuation, due to its consistent sales and earnings growth.
The Verdict on COST Stock
After selling it too hastily last month, the market is getting back into Costco shares this month. Take into account that inflation may help the company more than it hurts it, and shares, which earn a “B” rating in my Portfolio Grader, could continue to bounce back.
What happened
Shares of Costco ( COST -0.45% ) took a hit on Friday. The stock declined as much as 7.5% and finished the trading day down about 4.1%.
So what
Highlighting the continued bearishness in the market on Friday, the S&P 500 index declined 0.8%, bringing the market's total decline this week to 11.5%. Shares of Costco tracked similarly throughout the week, falling about 12%.
NASDAQ: COST
Some investors may have felt that it was a good time to take profits on Costco. Shares have risen sharply over the past year. Even including this week's pullback, the stock is up 29% over the past 12 months. This compares to the S&P 500's 5.8% gain over this same time frame.
Now what
Investors have high expectations for Costco, as same-store sales have consistently risen at robust rates. January same-store sales were up 6.6%.
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