Costco Stock Price Today NASDAQ: COST
Rotisserie chickens are a long-standing tradition at Costco which pioneered their use. The chickens are sold for less than cost and used to attract business into the store. Costco has returned to impressive growth in its e-commerce business, too. That division, which sells a high proportion of consumer discretionary products like home furnishings, improved to a 6% increase from a 1% decline in the prior quarter.
- The company also had a 3-for-2 stock split in March 1992 and a 2-for-1 stock split in May 1991.
- And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
- And that’s pretty impressive for such an already-massive business.
- Costco previously paid out dividends in 2012, 2015, 2017 and 2020.
Online sales of food-items, gift cards, pet products and snacks were up in the mid-teens year-over-year while e-commerce appliance sales were up in the mid-20s. Costco Wholesale same store sales climbed 10% in the month of January. Costco Wholesale stock climbed by 0% in the first day of trading following the news. The company operates through a network of subsidiaries that own warehouses in 11 countries, including the US and Puerto Rico. The company retails branded and private-label merchandise across verticals and categories and at “discounted” or bulk-rate prices.
Costco Wholesale (COST) Stock Price, News & Analysis
COST, +4.45% price target to $700 from $680, citing growth in the company’s Kirkland Signature brand. Shares of Costco Wholesale Corp. (COST) advanced after the biggest U.S. warehouse retailer reported a strong holiday shopping season. Walmart Inc. is offering annual stock grants as a new incentive for store managers, bringing potential pay for the most successful ones to more than $400,000.
Investors should look at the dividend as a vote of confidence about business trends, too. Costco announced in mid-December that comparable-store sales growth was solidly positive in recent months. Comps were up 3% in the core U.S. market and rose 4% globally.
Sure, Costco will have to deal with issues along the way, such as unauthorized membership card sharing. Yet, there are ways to address Costco’s challenges and the bull case for investors remains intact in 2024. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. The supermarket and grocery industry hit a value of $11 trillion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 3% through 2030. While its growth might not be as significant as some tech industries, it’s a good sector to invest in and hold over several decades. Meanwhile, Costco’s history of reliable gains and ability to regularly outperform its competitors makes it an attractive option.
These returns cover a period from January 1, 1988 through January 1, 2024. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks local businesses hiring near me Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return.
Costco Stock Climbs After Earnings Beat, $15 Dividend Payout; Analysts Raise Price Targets
Once consumers become members, they tend to stick around (management reports a global renewal rate of 90.5%). And the company’s growth strategy involves opening new locations in the United States and fast-growing international markets like China, where it plans to open its sixth location in 2024. With a new CEO tenure starting, the economy remaining resilient, and the stock market booming, investors should consider a position in this leading grocery retailer. Every member of Costco’s executive management team has been with the company for over 20 years, which helps explain the consistency of its products and services, as well as its flawless execution.
But, other than the price, there is next to no real difference in owning the shares. Arguably the best news about the business is Costco’s renewal rates, which continue to push into record-high territory. A full 92.8% of members in the core U.S. market chose to maintain their subscriptions this past quarter, suggesting that shoppers are very pleased with the value they’re getting from their memberships. Over the coming years, Costco has proven a safe bet because of its stickiness and large addressable market.
The big attraction for customers — and one of the most important components of Costco’s moat — is its price structure. As the third-largest retailer in the world, Costco is able to negotiate low prices for the products it sells. The more members it gains, the more negotiating power it has. Costco is expected to post earnings https://traderoom.info/ of $3.56 per share for the current quarter, representing a year-over-year change of +7.9%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.1%. In the earnings call, executives noted cheaper prices for bigger items like furniture and TVs due to lower freight costs while food prices have yet to come down.
Costco Wholesale Corporation Reports December Sales Results
Shares could continue beating the market over the next five years. 24 Wall Street analysts have issued “buy,” “hold,” and “sell” ratings for Costco Wholesale in the last twelve months. There are currently 7 hold ratings and 17 buy ratings for the stock. The consensus among Wall Street analysts is that investors should “moderate buy” COST shares. Costco’s reluctance to split its shares back then suggests to me that it’s not going to do one anytime soon.
A high stock price doesn’t mean a split is inevitable
Income investors might still prefer to look elsewhere for their next stock investment. Dividend growth from Costco isn’t nearly as predictable as it is from Walmart and Target, which have each steadily boosted their dividends for decades. In contrast, Costco’s special payouts occur roughly every few years. The warehouse giant also commits to a smaller regular payout that yields just 0.6% today compared to Walmart’s 1.5% yield and Target’s 3%-plus yield. First-quarter net income jumped 16% year over year to $1.59 billion, and Costco’s profits have been on a steady uptrend for the last 10 years.
The Future with Hannah Fry
Perhaps most impressive is how Costco’s earnings have increased over time. Customers have ample motivation to shop at Costco to get the best return on investment for their annual fees. In this article, we’ll explain how to buy Costco stock, the pros and cons of investing in the stock, and other key things you need to know about the giant retailer. It isn’t surprising in the least that many individuals would be interested in how to invest in Costco Wholesale Corporation (COST 1.53%). After all, the company ranks among the biggest wholesale retailers in the world.
In other words, history indicates that it pays to be a Costco shareholder. The company operates 870 stores across 14 countries and is rapidly expanding. Its popular business model has traversed cultures and continents, with customers embracing the company far and wide.
The company spent $6.7 billion paying the most recent special dividend, which continues the company’s pattern of returning excess cash to its shareholders. Costco’s management team hasn’t publicly stated that a stock split is being considered. However, it wouldn’t be surprising if the company did split its stock in the not-too-distant future. The company beat consensus EPS estimates in each of the trailing four quarters.