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Costco Wholesale COST Stock Price, News & Analysis

Revenue growth is important for businesses, but for Costco, membership growth may be even more crucial. Those are the customers who are signing up for one of its memberships and who are planning to spend at its warehouses on a regular basis. And with a high renewal rate, normally around 90% or better, odds are any new members are going to be customers for a long time. Costco’s business has proven resilient, yet again, as the company’s gross margin was well protected. Last quarter, the company reported that its gross profit margin was up by 8 basis points compared to a year earlier.

It was among the very first warehouse membership clubs and targeted small merchants and businesses. The Price family turned down an offer to merge with Walmart’s Sam’s Club in favor of a more suitable match-up with Costco. Coincidentally, Costco founder Jim Sinegal got his start in the retail business working for Sol Price at his original membership club, FedMart. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Costco Wholesale announced a quarterly dividend on Thursday, January 18th.

That bodes well for the company’s growth prospects this year and beyond. Costco Wholesale (COST -1.04%) is trading at close to 50 times its trailing earnings. Although not near its 52-week high anymore, the stock still looks expensive given its level how can i invest in a foreign exchange market of profitability. During the past 12 months, Costco shares surged 50%, soaring past the S&P 500 and its 32% gains over that time frame. The strong demand in China is an exciting indicator of the long-term potential Costco has in that market.

It offers branded and private-label products in a range of merchandise categories. It also operates e-commerce websites in the United States, Canada, the United Kingdom, Mexico, South Korea, Taiwan, Japan, and Australia. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999.

  1. Costco Wholesale stock rose by 0% in the first day of trading following the report.
  2. Costco still has plenty of growth opportunities in the long run, which is what makes it an incredibly attractive long-term buy.
  3. As its member count increases and the company isn’t having to sacrifice gross margin for the sake of growth, Costco’s bottom line should continue to increase, which means that a high price-to-earnings multiple could come down in the future.
  4. Costco Wholesale (COST -1.04%) is trading at close to 50 times its trailing earnings.
  5. The company operates through a network of subsidiaries that own warehouses in 11 countries, including the US and Puerto Rico.

And even when factoring out gas deflation, gross margin was still higher by 4 basis points. It owned 206 stores and was called PriceCostco for a time. The Price family eventually exit the business in favor of new operations resulting in the rebranding to Costco Wholesale https://www.topforexnews.org/books/best-forex-books-for-advanced-traders/ Corporation. The Price family’s new business is called PriceSmart and operates a chain of membership clubs in the Caribbean and Central America. Price Club’s first store, opened in an old Howard Hughes airplane hangar, is still in operation and known as Costco #401.

Shareholders of record on Friday, February 2nd will be paid a dividend of $1.02 per share on Friday, February 16th. This represents a $4.08 annualized dividend and a dividend yield of 0.56%. Costco Wholesale Corporation is central to the global warehouse membership club story. The company was founded in 1983 by Jim Sinegal and Jeffrey Brotman https://www.day-trading.info/decoded-the-5-stages-of-team-development-explained/ but its history dates back to 1976 because of the merger with Price Club. Costco, originally known as Costco Companies, quickly grew in its first two years and became the 1st company to go from $0 to $3 billion in revenue within the 1st 3 years. In the current fiscal year, Costco expects to open 30 new stores, with two being relocations.

But what really stood out was e-commerce, where comparable sales were up 18.4% year over year. E-commerce is another area where Costco is just scratching the surface in terms of potential, as is evident with that much faster growth rate. The company also says it recently rolled out Apple Pay as a payment option online to all of its members, which can facilitate the buying process and appeal to a wider range of customers. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.

Costco Wholesale Dividend Calendar

Costco Wholesale stock rose by 0% in the first day of trading following the report. Costco Wholesale saw a increase in short interest in the month of February. As of February 29th, there was short interest totaling 6,730,000 shares, an increase of 6.5% from the February 14th total of 6,320,000 shares. Based on an average daily volume of 2,390,000 shares, the short-interest ratio is presently 2.8 days. Currently, 1.5% of the shares of the stock are sold short.

The company is scheduled to release its next quarterly earnings announcement on Thursday, May 23rd 2024. Sign-up to receive the latest news and ratings for Costco Wholesale and its competitors with MarketBeat’s FREE daily newsletter.

What’s happening today with Costco Wholesale

Other services include delivery, travel and curbside pickup. As of the year-end calendar 2022, the company operated more than 840 stores and was on track to open new stores in the coming years. Total revenue in 2022 topped $226 billion, the company employs more than 304,000 individuals and it is a member of the S&P 500, the S&P 100 and the NASDAQ 100. While those aren’t huge improvements in the grand scheme of things (10.8% versus 10.72%), for retailers with thin margins and where cost control is crucial, this too is an encouraging sign that the company should be able to grow its profits. As its member count increases and the company isn’t having to sacrifice gross margin for the sake of growth, Costco’s bottom line should continue to increase, which means that a high price-to-earnings multiple could come down in the future.

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. Product categories include grocery and frozen foods, apparel, sporting goods, electronics, auto care, appliances, housewares and even furniture.

Nearly 70% of the stores are located in the US with another 13% in Canada and the remainder scattered around the globe. Today, Costco is based in Issaquah, Washington and it is among the largest businesses in the world. The company operates as a member-only big-box retailer claiming more than 118 million members, it is ranked #10 on the Forbes Fortune 500 list and is the 5th largest retailer internationally. In terms of scale, it is the largest retailer of choice and prime beef, organic foods and rotisserie chickens. 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 Wholesale (COST) Stock Price, News & Analysis

Upgrade to MarketBeat All Access to add more stocks to your watchlist. New Rank-Based ScoringMarketRank™ is calculated by averaging available category scores (with extra weight given to analysis and valuation), then ranking the company’s weighted average against that of other companies. David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Costco Wholesale.

On the company’s most recent earnings call, which was for the fiscal second quarter (ended Feb. 18), management said the number of paid household memberships rose by 7.8% year over year. Costco now has 73.4 million paid household members and 132 million cardholders. It’s an encouraging sign that even amid inflation and as budgets tighten up, consumers are seeing enough value in Costco’s membership to sign up.

Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington. 23 Wall Street research analysts have issued “buy,” “hold,” and “sell” ratings for Costco Wholesale in the last twelve months. There are currently 6 hold ratings and 17 buy ratings for the stock. The consensus among Wall Street research analysts is that investors should “moderate buy” COST shares. In addition to retail, the company also provides many services including pharmacy, eye care, food & beverage and auto care centers. The company also operates more than 665 gas stations across its footprint and a robust eCommerce channel.

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