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Is Costco Wholesale (COST) Stock Outpacing Its Retail-Wholesale Peers This Year?
ZACKS· 2024-08-01 14:42
Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Has Costco (COST) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.Costco is a member of the Retail-Wholesale sector. This group includes 209 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank considers 16 differen ...
2 Dividend Growth Powerhouses for Long-Term Investors
The Motley Fool· 2024-08-01 10:15
Hershey and Costco have been growing their dividends at breakneck speed.Dividend growth investing is a strategy that can provide both steady income and potential capital appreciation. Companies that consistently raise their dividends often demonstrate financial strength, solid cash flows, and a positive outlook for their business. This approach can be particularly attractive for long-term investors looking to build wealth over time.Two companies that stand out in the realm of dividend growth are The Hershey ...
All You Need to Know About Costco (COST) Rating Upgrade to Buy
ZACKS· 2024-07-31 17:00
Costco (COST) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors often f ...
3 Recession-Resistant Consumer Staples Stocks to Buy and Hold
Investor Place· 2024-07-31 10:00
 Consumer staples firms produce the essential goods and services that typically benefit from consistent overall demand. It is that consistent performance that generally makes consumer staples stocks recession-resistant.In turn, that makes shares in the sector strong buy and hold choices because they tend to perform well over the long run. People need to eat, take care of personal hygiene and maintain their households regardless of the macroeconomic situation at any given point. The result is that consumer s ...
Costco Stock: Buy, Sell, or Hold?
The Motley Fool· 2024-07-29 22:00
Here's a look at Costco's stock after its recent membership hike announcement.Costco Wholesale (COST -0.25%) members in the U.S. and Canada will soon pay more for their memberships after the company recently announced a price hike. The news comes on the heels of an outstanding 2024 for the stock, which is up approximately 25% year to date. Given the rise in Costco stock, it's worth digging into its recent financials, the details of the price hike, and its valuation to determine whether it's a buy, sell, or ...
Costco Is Beyond Overvalued
GuruFocus· 2024-07-29 13:00
Costco Wholesale Corp. (COST, Financial) has been an investing darling for as long as I can remember. It has also been a darling for shoppers as they have some of the strongest brand loyalty in the market. I know firsthand as I am a card-carrying member of its club and happily pay the membership fee every year to shop in its warehouses. No one can beat its rotisserie chickens, toilet paper and giant box of spinach.This is not a shopping blog, so let's jump into the company and stock. Costco has been perform ...
Should Costco Have Raised Its Annual Membership Fee by More Than $5?
The Motley Fool· 2024-07-29 10:24
Costco's latest membership fee hike doesn't even come close to making up for inflation. Should they have done more?Costco (COST 0.34%) recently announced a $5 annual price increase to its base membership level. This is the first time the warehouse giant has increased its membership cost since 2017. Given the recent effects of inflation, there's a solid argument to be made that Costco should have done more, and here's what longtime Fool.com contributor and Costco shareholder Risk Munarriz has to say about it ...
Costco leaning into technology as ‘real opportunity' to improve customer experience
New York Post· 2024-07-28 16:43
Costco is looking toward technology to improve the customer experience at its brick-and-mortar and online stores without significantly changing the retail giant’s proven business strategy, the company’s chief financial officer said.Costco CFO Gary Millerchip was taking questions from analysts during Costco’s third quarter earnings call earlier this year when he was asked what the company thought about being “more aggressive” with the evolution of its retail business model by deploying more technology in its ...
Stock Split Spotlight: The Next 3 Names That Could Follow Nvidia's Lead
Investor Place· 2024-07-26 18:34
Stock Splits Overview - Stock splits remain a major theme in the market this year, with companies like Deckers Outdoor and Broadcom recently announcing splits [1] - Stock splits make shares more affordable for investors, particularly retail investors, without changing the valuation or fundamentals of the stock [1] - Recent examples include Walmart, Nvidia, and Chipotle Mexican Grill, which have split their stocks to attract more investors [1] Costco Wholesale (COST) - Costco's stock has risen 44% over the last 12 months, reaching $815 per share, with a high valuation of 46 times future earnings estimates [2] - The company has not split its stock in 24 years, and the current high share price may prompt management to consider a split [2] - Costco's stock has risen nearly 200% in the last five years, making it a long-term winner for investors [3] Super Micro Computer (SMCI) - Super Micro Computer's stock is trading at nearly $700, more than double its price at the start of the year, with a P/E ratio of 39 [4] - The stock has fallen 43% from its 52-week high of $1,229, but a stock split could make it more attractive to retail investors [5] - Year-to-date, Super Micro Computer's stock has risen 148%, driven by demand for its AI servers [5] ServiceNow (NOW) - ServiceNow's stock surged nearly 15% after strong Q2 financial results, driven by AI demand, and is now trading near a 52-week high of $850 [6] - The stock's valuation is sky-high at about 90 times future earnings estimates, and it has risen nearly 3,000% since its 2012 IPO [6] - With the share price approaching $1,000, a stock split may be considered, especially as the company continues to benefit from the AI trade [6]
Could Costco Help You Retire a Millionaire?
The Motley Fool· 2024-07-23 11:47
Core Viewpoint - Costco has demonstrated significant historical growth and has potential for future opportunities, but current stock prices may not justify an investment at this time [1][4]. Group 1: Company Performance - Costco has achieved a remarkable 1,700% increase in share price since the year 2000, leading to a total return of 2,600% when including dividends [1]. - Membership fee revenue reached $1.1 billion in the fiscal third quarter of 2024, contributing approximately 50% to the company's operating income [2]. - Sales have increased by 650% since 2000, while earnings have risen nearly 950%, indicating a strong business model [3]. Group 2: Valuation Concerns - Costco's stock is currently near all-time highs, with a price-to-earnings (P/E) ratio of nearly 52, which is significantly above its five-year average of about 40 [5]. - The elevated P/E ratio is reminiscent of the late 1990s, suggesting that investors may be pricing in excessive optimism regarding future earnings growth [6]. - It is advised to place Costco on a wish list rather than an immediate buy list, with a recommendation to consider purchasing if the P/E ratio drops to its five-year average or lower [7].