COST - Costco Wholesale Corporation

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
247.30
-1.23 (-0.49%)
At close: 4:00PM EDT

247.59 +0.29 (0.12%)
After hours: 7:41PM EDT

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Trade prices are not sourced from all markets
Previous Close248.53
Open249.11
Bid247.00 x 1800
Ask247.27 x 1200
Day's Range246.77 - 249.56
52 Week Range189.51 - 251.01
Volume1,340,428
Avg. Volume1,862,901
Market Cap108.782B
Beta (3Y Monthly)1.04
PE Ratio (TTM)31.75
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & Yield2.60 (1.06%)
Ex-Dividend Date2019-05-09
1y Target EstN/A
  • Buy Costco Stock on Any Pullback
    InvestorPlace7 hours ago

    Buy Costco Stock on Any Pullback

    Costco (NASDAQ:COST) stock continues its march higher. With stockholders having recovered all of their losses from last fall's sell-off, many might wonder where Costco stock goes from here. Amid the company's successes, valuations remain higher than that of most peers.Source: Shutterstock Moreover, with the stock price returning to the highs of last September, investors may want some assurance that COST stock will not see a double top. However, given the company's past growth and prospects for future expansion, I see COST stock as a buy on any pullback. Costco Stock Is Expensive, but Worth ItThose wanting Costco bargains should look inside their warehouse instead of at Costco stock. COST currently trades at a forward price-to-earnings (PE) ratio of around 29.4. Although one can argue that that comes in lower than Amazon (NASDAQ:AMZN), Amazon derives most of its profit outside of retail. Either way, Costco trades at a valuation premium above that of Walmart (NYSE:WMT), Target (NYSE:TGT), and its peer on the eastern seaboard, BJ's Wholesale (NYSE:BJ).InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 12 Reasons Facebook Stock Will Likely Sink 25%-35% Over the last five years, Costco's PE has averaged around 29.4. Hence, Costco stock has not moved far ahead of its average. Moreover, it benefits from a high degree of customer loyalty. This shows in a renewal rate of around 90% and its profit growth. Yes, customers pay a membership fee that amounts to pure profit for Costco. But in exchange, they pay little more than the cost of goods sold plus overhead for items. That may help explain why analysts have forecasted that earnings will increase 12.3% this year and 6.9% in fiscal 2020. Costco Can Keep Expanding for DecadesI also like the prospects for expansion. Yes, they currently operate in 44 states, and they cover most of America's large metros. However, tremendous potential exists in somewhat smaller markets. For example, in Texas, Costco operates only three warehouses located outside of the San Antonio, Austin, Houston, and Dallas-Fort Worth metro areas. Moreover, the company only operates two warehouses in Georgia outside of metro Atlanta. Hence, domestic saturation remains years away.Moreover, Costco has succeeded with international expansions. It has avoided the high-profile failures such as Target Canada or the pullouts like Walmart experienced in Germany and Brazil. In addition to Canada and Mexico, the company continues to add warehouses in Europe, East Asia and Australia. When to Buy Costco StockThe question for investors revolves around when to buy? Those holding out for a forward PE like the current 11.5 on Target will likely end up disappointed. However, Costco stock goes on sale periodically. During last fall's stock sell-off, COST fell as much as 22% before it began to recover. COST also saw corrections during the middle of the decade, as investors feared an "Amazon takeover" of retail. Anytime Costco has offered a 10-20% discount from its 29 forward PE, investors have profited by buying. I do not expect that to change soon. The Bottom Line on Costco StockInvestors should consider Costco stock a buy on any significant pullback. At just under 30 times forward earnings, some buyers may balk at paying such a multiple for a retailer. Moreover, with the stock trading at levels from which it previously fell, some might want to buy COST stock at this level.However, Costco stock has traded at PE in the high 20s or low 30s for several years. Moreover, for most of that time, profits have maintained a double-digit growth rate on average. Further, outside of North America, Costco has succeeded where Walmart and Target have failed. This ensures that the company can continue to add new warehouses for decades. * 6 Stocks to Buy for This Decade's Massive Megatrend The stock trades marginally above its average historical multiples. For this reason, I see it as a buy only for long-term investors. However, industry or macroeconomic conditions often lead to corrections in COST. If Costco stock falls to a PE ratio in the mid-20s or lower, investors should buy in bulk.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Safe Stocks to Buy This Summer * The 5 Best Telecom Stocks to Buy Now * 6 Innovative Stocks With Big Long-Term Growth Potential Compare Brokers The post Buy Costco Stock on Any Pullback appeared first on InvestorPlace.

  • Barrons.com11 hours ago

    Costco Stock May Be Expensive, But It’s Worth It, Analyst Says

    Costco is set to report fiscal third-quarter earnings on Thursday, and Baird expects the discounter to post another solid quarter.

  • Factors Likely to Shape Dollar Tree's (DLTR) Earnings in Q1
    Zacks12 hours ago

    Factors Likely to Shape Dollar Tree's (DLTR) Earnings in Q1

    Dollar Tree's (DLTR) margin in first-quarter fiscal 2019 might be hurt by higher cost pressures. However, its store optimization program is commendable.

  • BIG vs. COST: Which Stock Is the Better Value Option?
    Zacks13 hours ago

    BIG vs. COST: Which Stock Is the Better Value Option?

    BIG vs. COST: Which Stock Is the Better Value Option?

  • Will Loyalty Program Drive Ulta Beauty (ULTA) in Q1 Earnings?
    Zacks15 hours ago

    Will Loyalty Program Drive Ulta Beauty (ULTA) in Q1 Earnings?

    Ulta Beauty (ULTA) is expected to gain on strong omnichannel efforts and solid loyalty program in Q1. However, high SG&A costs are a worry.

  • Buy Dollar General (DG) Stock Before Q1 Earnings After Target Soars?
    Zacksyesterday

    Buy Dollar General (DG) Stock Before Q1 Earnings After Target Soars?

    It's time to see if investors should consider buying Dollar General (DG) stock heading into Q1 earnings?

  • Target and Its Peers Continue to Boost Sales
    Market Realistyesterday

    Target and Its Peers Continue to Boost Sales

    Key Takeaways from Target’s Q1 Results(Continued from Prior Part)Traffic continues to boost salesTarget (TGT) posted better-than-expected sales for the first quarter of fiscal 2019. Improved sales across core merchandise categories and higher

  • The Untapped Pricing Power of Costco
    GuruFocus.comyesterday

    The Untapped Pricing Power of Costco

    The company has structural and long-lasting cost advantages against other price clubs, Walmart and Amazon

  • After Earnings, Walmart Still Isn’t a Real Threat to Amazon
    InvestorPlaceyesterday

    After Earnings, Walmart Still Isn’t a Real Threat to Amazon

    Walmart (NYSE:WMT) is still the world's largest retailer, by a wide margin, but it wants investors to see it as finally beating Amazon (NASDAQ:AMZN). Walmart stock earnings were last week, and while the numbers were good, the narrative was definitely constructed so that WMT investors came away with the impression management wanted.Source: Shutterstock Walmart reported net income of $3.8 billion, $1.33 per fully diluted share, on revenue of $123 billion for the quarter ending in April. But the number it wanted investors to see was 37%. That's how much its "eCommerce" efforts were ahead of last year.Instead of looking at the 11 cent per share beat on earnings investors might want to look instead at 3.4%. That's how much same store sales rose over the previous year. Bears might look at 1.1%. That's how much Walmart's total sales grew, as international sales declined and those at Sam's Club barely moved. Revenue was short of analyst estimates.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Stocks to Buy for This Decade's Massive Megatrend The point Walmart wants to make is that its effort to overtake Amazon is succeeding.But is it? Define eCommerceWhen you drive to Walmart and a clerk brings your online order to the car, Walmart counts that as eCommerce. Fewer than half its stores today are doing grocery delivery.What Walmart is trying to do is generate headlines like this, claiming it's beating Amazon. Amazon stock is three times more valuable than Walmart stock despite having half Walmart's sales.The fact is Walmart is moving its own sales from in stores to electronic orders. It is not grabbing market share from Amazon. Walmart is grabbing market share from Walmart. You can't have a 37% increase in eCommerce and only 3.4% comps unless most of your eCommerce sales were your own sales to begin with.While Walmart focuses on Amazon, it's still getting killed by Costco Wholesale (NASDAQ:COST), which keeps grabbing share from Sam's Club. Walmart is also losing urban market share to Aldi, the no-frills German chain that rents shopping carts, has wafer-thin margins and only stocks store brands. Still Not AmazonCEO Doug McMillon is painting Walmart's image as a family-friendly Amazon alternative, with a new headquarters campus, Fire-like tablets, growing ad sales and innovative supply deals.But Walmart remains a chain of big box retail stores. In many areas it's the replacement for downtown, and that means downtown problems, like using up public resources. Walmart also employs 1.5 million Americans, who continue to agitate publicly for better treatment.That decline in international business, by the way, includes India, where Walmart put $16 billion into Indian e-tailer Flipkart and has yet to see a return.While over half of Amazon's online sales are on behalf of third parties, meaning it takes no inventory risk, Walmart is still buying its merchandise directly, making it far more vulnerable to rising prices from China tariffs than Amazon is. The Bottom Line for Walmart StockWalmart stock has been fighting to hold $100 per share since April and had a market cap of $290 billion as of this writing. While WMT shares are up 8.7% so far in 2019, shares of Amazon are up 23.5%.When Walmart raises prices, as it will need to due to the trade war, its revenues will increase because Walmart shoppers will be paying tariffs. But that doesn't mean Walmart earnings will increase.The most important takeaway is that Walmart is not Amazon. Half its sales are from groceries. The rivals it should be focused on are Aldi, Costco and Kroger (NYSE:KR), whose stock was recently upgraded.Since becoming CEO in February 2014, Doug McMillon has delivered a 35% gain in the stock while increasing the dividend just 4 cents per share. That's behind the 53% average gain in the S&P 500. * The 7 Best Stocks to Buy From the IPO ETF Yes, Walmart is moving its sales online, but that doesn't mean it's taking down Amazon.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear, available now at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AMZN. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post After Earnings, Walmart Still Isn't a Real Threat to Amazon appeared first on InvestorPlace.

  • CNBCyesterday

    These six stocks keep hitting highs as markets fall

    Wall Street is under pressure, but a handful of stocks are breaking out to new highs. McDonald's MCD , Waste Management WM , Hershey HSY , Visa V and Costco COST have notched records this month, while ConEd ED has surged to 52-week highs. Bill Baruch , president of Blue Line Futures, said these remain solid long-term investments, but under-the-surface indicators suggest they could be in for a near-term breather.

  • Factors Likely to Decide Gap's (GPS) Fate in Q1 Earnings
    Zacksyesterday

    Factors Likely to Decide Gap's (GPS) Fate in Q1 Earnings

    Persistent softness at Gap's (GPS) namesake brand may hurt first-quarter fiscal 2019 comps performance. Nevertheless, growth initiatives such as the expansion of omni-channel capabilities are encouraging.

  • CNBC2 days ago

    How Costco uses $5 rotisserie chickens and free samples to turn customers into fanatics

    Around the world, there are 94 million people who have a Costco membership card. Celebrities have them: Chrissy Metz of NBC's "This Is Us" is an executive member "because we buy a lot of toilet paper," she says. There are Instagram accounts devoted to Costco, such as @costcodeals, and websites, such as CostcoInsider.com.

  • MoneyShow2 days ago

    Costco and Darden- Breakouts

    Leo Fasciocco is a technical expert that specializes in stocks that have broken out of recent trading ranges. Here, the editor of Ticker Tape Digest looks at two recent breakout buys -- Darden Restaurants (DRI) and Costco Wholesale (COST).

  • Buy Costco (COST) Stock Before Q3 Earnings After Walmart & Target Impress?
    Zacks2 days ago

    Buy Costco (COST) Stock Before Q3 Earnings After Walmart & Target Impress?

    Let's see if investors should buy Costco (COST) stock ahead of its quarterly earnings release on Thursday, May 30 after Walmart and Target impressed?

  • Costco Earnings Preview: Keep an Eye on Membership Trends
    Motley Fool2 days ago

    Costco Earnings Preview: Keep an Eye on Membership Trends

    The warehouse retailing titan reports earnings on Thursday, May 30.

  • GuruFocus.com2 days ago

    Charlie Munger Loves Costco; Should You?

    Investors in wholesale retailer Costco (COST) have been richly rewarded over the last year. Shares of Costco are currently trading at all-time highs. Warning! GuruFocus has detected 7 Warning Sign with COST.

  • Moody's2 days ago

    Sage Borrowco, LLC -- Moody's assigns B2 rating to Smart Foodservice

    Moody's Investors Service ("Moody's") today assigned a B2 Corporate Family Rating and B2-PD probability of default rating to Sage Borrowco, LLC ("Smart Foodservice"). In addition Moody's also assigned a B2 rating to the company's senior secured revolving credit facility and senior secured term loan. "Smart Foodservice has a good business model servicing an attractive market niche of underserved smaller food service operators at competitive prices", Moody's Vice President Mickey Chadha stated.

  • Costco Stock Looks Dicey Now, but Solid Over the Long Term
    InvestorPlace3 days ago

    Costco Stock Looks Dicey Now, but Solid Over the Long Term

    Costco Wholesale (NASDAQ:COST) is back where it was in more ways than one. The Costco stock price has reached new all-time highs of late, eclipsing levels reached last September. And once again, COST stock, as impressive as it has been, looks like it might be getting too expensive.Source: Shutterstock It's a replay of where COST sat last September. As I wrote at the time, just a few sessions after those all-time highs, analysts had turned cautious on Costco stock. The earnings multiples driving the Costco price were at decade-long peaks just two weeks ahead of earnings.Those earnings would be solid, but COST stock sold off anyway. By mid-December, amid a market rout, it had lost a quarter of its value.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt seems unlikely that history will repeat to that extent, barring another market-wide sell-off. But COST does seem to be in a precarious position with earnings on the way next week. The reaction to the report seems likely to focus on one key metric, and the Costco stock price already is assuming quite a bit of success. * 7 Stocks to Buy for Over 20% Upside Potential Here We Go AgainThere's little question that Costco's business is one of the best in all of American industry. It's one of the few companies seemingly immune to Amazon.com (NASDAQ:AMZN), as I wrote last year. Sales growth continues to be impressive: Costco already has reported comparable sales, which included 5.4% growth in April and 6.6% through 35 weeks YTD.The question comes down to valuation. Certainly, investors so far have been rewarded for paying up for COST stock, which has tripled over the past seven years or so. But even by past standards, Costco stock is expensive, trading at 29x next year's EPS. Even historically bullish analysts haven't been able to keep up: the average target price of $250 is just a dollar above Monday's close.Again, this is pretty much exactly where COST stock sat eight months ago. And it didn't turn out well. Will this time be different? Margins and COST StockWhat will determine the answer to that question likely will be one metric: margins. Again, Costco already has disclosed same-store sales growth, so there will be little in the way of surprises on the top line. As such, it's the earnings number on which investors will focus.And margins have been a bit volatile of late. Costco beat EPS expectations by a whopping 31 cents with its Q2 report, which led COST stock higher the next day and for several weeks after. But the stock tumbled after a modest Q1 miss with analysts focusing intently on margins on the post-earnings conference call.In the current environment, that focus may only heighten. Rival Walmart (NYSE:WMT) is raising prices because of tariffs. Will Costco have to do the same? Will it be able to do the same? Or does its hyper-efficient model mean that tariff troubles at Walmart, pricing pressure at Kroger (NYSE:KR), and spending concerns at Target (NYSE:TGT) all will work to the company's advantage? Watching Costco Stock After EarningsTo be sure, it's exceedingly unlikely that the report is going to lead to a major move in Costco. Options markets at the moment price in just a 4% move between now and next Friday. Again, this is a wonderful business, and the argument will come down to valuation.But in this market, at least from a short-term standpoint, Costco does look a bit dicey. There's going to be some disruption to the company from tariffs. Walmart posted a blowout quarter and yet trades modestly below pre-earnings levels. And at nearly 30x next year's earnings, valuation may be at or near a ceiling.Longer-term, admittedly, investors still can't go wrong with Costco stock. But for even the best stocks, valuation matters. COST itself proved that back in September. And while history may not repeat, investors should remember that even a very strong quarter looks priced in.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Over 20% Upside Potential * 5 Large-Cap Stocks Holding Steady Amid Trade War Concerns * 7 ETFs for Healthy Healthcare REITs Compare Brokers The post Costco Stock Looks Dicey Now, but Solid Over the Long Term appeared first on InvestorPlace.

  • What Do Analysts Think About Costco Wholesale Corporation's (NASDAQ:COST) Growth?
    Simply Wall St.3 days ago

    What Do Analysts Think About Costco Wholesale Corporation's (NASDAQ:COST) Growth?

    After Costco Wholesale Corporation's (NASDAQ:COST) earnings announcement in February 2019, analysts seem cautiously...

  • Foot Locker's (FL) Q1 Earnings Likely to Increase: Here's Why
    Zacks4 days ago

    Foot Locker's (FL) Q1 Earnings Likely to Increase: Here's Why

    Foot Locker (FL) is trying to improve performance through operational and financial initiatives. This is likely to favorably impact first-quarter results.

  • Better Buy: Costco vs. Walmart
    Motley Fool4 days ago

    Better Buy: Costco vs. Walmart

    Both of these retail titans are winning the business of price-conscious shoppers, but one is evolving faster.

  • How To Get the Car of Your Dreams From Costco
    GOBankingRates2 hours ago

    How To Get the Car of Your Dreams From Costco

    Being a Costco member provides customers with incredible savings. Did you know you can buy a car through Costco's Auto Program? Learn more about how you can snag a new vehicle at a great price.

  • Buy Costco ahead of earnings, says BD8's Barbara Doran
    CNBC Videos6 hours ago

    Buy Costco ahead of earnings, says BD8's Barbara Doran

    Barbara Doran of BD8 Capital Partners joins CNBC's "Closing Bell" to give her top picks ahead of market close.

  • Final Trades: Amgen, Costco, The Communications Sector & Defense stocks
    CNBC Videos9 hours ago

    Final Trades: Amgen, Costco, The Communications Sector & Defense stocks

    The "Halftime Report" traders give their top stocks to watch for the second half.

  • How Costco's $1.50 hot dogs and free samples helped rake in billions
    CNBC Videos2 days ago

    How Costco's $1.50 hot dogs and free samples helped rake in billions

    If you live in America, chances are you know someone who's hooked on Costco. Buying in bulk isn't for everyone, but Costco members love the wholesale club because it makes you feel like you're getting a good deal.