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
Why did Costco stock fall despite comps growth?
While Costco sustained the momentum in November, its growth rate wasn’t impressive. The comps growth slowed sequentially. Management blamed the timing of Thanksgiving, Black Friday, and Cyber Monday for the growth moderation.
Should you Buy Costco stock ahead of earnings?
Costco appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Will Costco split soon?
With its business thriving, and its stock price approaching $450 per share, warehouse retailer Costco Wholesale (NASDAQ:COST) could be the next well-known name to declare a split. Image source ...
Why are Costco prices so low?
Costco intentionally keeps these prices so low since food items are ‘loss leaders’ – they bring in losses but have the indirect effect of keeping customers inside Costco warehouses for longer. This way, customers end up buying more high-margin products that nullify the loss brought in by the low-priced food items. 10.
Why did Costco share price drop?
Costco Stock Is Slipping Because Investors Wanted More Than Strong Earnings. Costco Wholesale stock is edging lower Friday even as the discount retailer reported fiscal second-quarter earnings that came in ahead of expectations.
What is the prediction for Costco stock?
Stock Price Forecast The 26 analysts offering 12-month price forecasts for Costco Wholesale Corp have a median target of 555.00, with a high estimate of 650.00 and a low estimate of 440.00. The median estimate represents a +19.79% increase from the last price of 463.31.
Is Costco a Buy Sell or Hold?
Costco Wholesale has received a consensus rating of Buy. The company's average rating score is 2.80, and is based on 20 buy ratings, 5 hold ratings, and no sell ratings.
Is Costco doing well financially?
Costco is a best-of-breed retailer. the S&P 500's 8% increase over the same time period. The company's stock has been no slouch over the long run, either -- Costco shares have rewarded investors with a 291% gain over the past five years, equating to an average annualized return of 58%.
What will Costco stock be in 2025?
As for its baseline Costco stock forecast 2025, Wallet Investor predicted that the price could rise further to $820.937.
What is the 52 week high for Costco stock?
Performance OutlookPrevious Close472.05Day's Range457.76 - 468.1952 Week Range377.12 - 612.27Volume2,551,932Avg. Volume2,943,4173 more rows
Is Cosco a buy?
Costco currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.
Who owns Costco now?
Costco Wholesale Corporation currently owns Costco. It is the result of a merger of two companies: Price Club and Costco. W. Craig Jelinek is the current CEO of Costco Wholesale Corporation, and Hamilton E. James is the chairman of the board.
Where is Costco stock 5 years?
Based on our forecasts, a long-term increase is expected, the "COST" stock price prognosis for 2027-06-04 is 944.501 USD. With a 5-year investment, the revenue is expected to be around +100.07%. Your current $100 investment may be up to $200.07 in 2027.
Is Costco a good stock to buy 2022?
Costco Wholesale (COST) stock has been in positive territory for 2022 for the past two weeks. In a year when tech stocks and other growth stocks have suffered, Costco shares have made gains and hit all-time highs. With economic factors continuing to favor Costco, now is the time to buy COST stock.
Is Costco a stable stock?
Costco stock trades at a high valuation compared to the broader market. The retailer's stock has soundly outperformed the broader market over time. Since you can't time the market, the stock might be worth the price even at this valuation.
What are Costco's weaknesses?
Weaknesses of Costco The consumer can only purchase the goods in bulk, individual choices are limited. The availability of Costo warehouses is less as compared to different other retail shops. Due to the low-price strategy, the profit margin is low.
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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NASDAQ: COST
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Costco stock has soared to record heights thanks to the company's strong sales momentum, but investors may be expecting too much
Earlier this year, I bought shares of Costco Wholesale ( COST -0.45% ) during a pullback, expecting to hold them for a long time. With its massive purchasing power, rock-bottom prices, and customer loyalty, Costco has one of the deepest moats in the retail industry.
Proving the doubters wrong
Costco Wholesale was one of the retail industry's pandemic-era winners, as consumers looked to cut down on shopping trips by buying in bulk.
How much growth is sustainable?
Analysts expect Costco to record about $214 billion of revenue in fiscal 2022: up 40% from the $153 billion it generated in fiscal 2019. That said, investors shouldn't expect Costco's revenue to continue rising at a double-digit compound annual growth rate as it has over the past three years.
The valuation looks stretched
Following its recent rally, Costco stock trades for 41 times its projected fiscal 2022 earnings: its highest earnings multiple in more than two decades. Clearly, investors have very high expectations today.
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