Costco’s earnings came in a penny per share above expected. Does that mean you should buy it in bulk?
People are spending more at Costco this quarter they did last year – 8% more. The company reported revenues of almost $23.55 billion in the company’s first quarter of 2013. The bulk discount retailer made a profit of $459 million during that time.
Exciting growth in the financials but it’s the stock’s growth that’s getting the bulk of attention from investors. Shares are up 11% so far in 2013 and up nearly 32% in the past twelve months. Compare that to the SPDR S&P Retail ETF (XRT) which is up 23% for the year, though the XRT returns are the same for the last twelve months as Costco’s.
Is Costco good, long-term play on retail? We asked Talking Numbers contributors Enis Taner, Global Macro Editor of RiskReversal.com, and Richard Ross, Global Technical Strategist at Auerbach Grayson, if this is one stock you should buy in large quantities.
To see what Taner and Ross have to say about where Costco is headed next, watch the video above.