#1 - Costco (NASDAQ:COST)
Costco (NASDAQ:COST) is trading at the top of its 52-week range. However, there are times when that shouldn’t concern investors too much. We believe this is one of those times. There are a couple of reasons for that.
In the first place, Costco has not been subject to “leakage” as the company increased its subscription price. That’s an important “pass-through” cost because it allows analysts to get a better sense of the company’s revenue and earnings. After all, once consumers commit to the membership for a warehouse club, they are going to use it. That offers the company a predictable revenue stream.
Another reason investors should pay close attention to COST stock is the company’s recent price target and analyst upgrades. Costco has a solid balance sheet that shows revenue and earnings that are steadily growing as well as solid free cash flow. And, the company’s earnings are growing faster than its dividend which the company has increased in each of its last 18 years.
About Costco Wholesale
Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories.
Read More - Current Price
- $721.86
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 18 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $694.48 (3.8% Downside)
