Costco Wholesale Corporation (COST), headquartered in Issaquah, Washington, is globally recognized as a leading wholesale retailer. With a market cap of $370.02 billion, the company operates membership-based warehouse clubs that offer a wide range of high-quality products at competitive prices. In addition to its extensive network of physical stores, Costco provides various services, including pharmacy, optical, and tire services, enhancing its appeal to both individual and business members.
Companies worth $200 billion or more are generally described as "mega-cap stocks," and COST fits right into that category, reflecting its leadership in wholesale retail. Costco, known for its membership-based model, strong customer base, and efficient supply chain management, dominates the global retail market with its wide range of high-quality products.
Costco climbed to a new high of $849.09 in today’s trading session, with COST up 9.3% over the last 3 months. Over this same period, the Consumer Staples Select Sector SPDR Fund (XLP), has gained nearly 4%, so COST stands out as a serious outperformer.
Longer term, COST is up 28.1% on a YTD basis, and the shares are now holding onto a solid gain of 63.7% over the past 52 weeks. In comparison, the XLP is up 8.7% in 2024 and 7.3% over the past year.
To confirm the bullish price trend, COST has been trading above its 200-day moving average since late May 2023 and above its 50-day moving average since early-May.
Costco reported impressive Q3 earnings results on May 30, with revenue of $58.5 billion, up 9% year over year, and diluted earnings per share of $3.78, up 29%, both surpassing Wall Street's consensus estimates. Additionally, Costco's membership-based model has continued to drive customer loyalty and steady revenue growth. The stock gained almost 1.1% on the earnings release day.
Highlighting the contrast in performance, COST's competitor, Target Corporation (TGT), has significantly underperformed COST with a gain of 9.8% over the last 52 weeks.
Given its impressive price performance, analysts are optimistic about COST's prospects. The stock has a consensus rating of "Strong Buy" from 29 analysts in coverage. The mean price target of $819 indicates that the stock trades at a premium.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
