Costco Is In Prime Stock Split Territory: Will It Follow Walmart's Lead?

Core Viewpoint - Costco Wholesale Corp's share price has significantly increased, trading above $800, making it a candidate for a stock split [1][2] Group 1: Stock Performance - Costco's stock price has climbed nearly 30% year-to-date and almost tripled over the past five years, indicating strong performance [2] - The company's stock price is near record highs, suggesting it could follow Walmart's recent stock split example [2] Group 2: Financial Growth - Costco reported a 6.9% increase in net sales for the first 44 weeks of the year and a 5.3% rise in June's comparable sales, showcasing robust revenue growth [3] - E-commerce sales are growing at a double-digit rate, further enhancing the company's financial outlook [3] - The decision to raise the annual membership fee by $5 reflects confidence in continued growth [3] Group 3: Stock Split Considerations - Costco has not split its stock since 2000, when shares were valued below $100, raising questions about the timing of a potential split [4] - A stock split could make shares more accessible to a broader range of investors and potentially increase interest and investment [4] - Some argue that a high share price alone is not a sufficient reason for a split, as evidenced by companies like NVR Inc, which have high stock prices without splitting [4]