Costco Wholesale Corp (COST)

[MiamiGent]

Retail watch: Costco widens its one-year lead over Walmart and Target
Dec. 15, 2023 11:59 AM ET
By: Clark Schultz, SA News Editor

https://stockcharts.com/h-sc/ui?s=COST

Costco Wholesale Corporation (NASDAQ:COST) rallied in morning trading on Friday after a posting a well-received FQ1 earnings report and surprising with a $15 per share special dividend.

On Wall Street, Jefferies analyst Corey Tarlowe noted that Costco (COST) continues to open new club stores in U.S., and is seen having a meaningful runway for continued overseas growth, including in China.

UBS analyst Michael Lasser said that at a high level, Costco's (COST) Q1 provided further evidence that the stock fits well with what the market is looking for right now. "A high-quality business that will be more insulated from ongoing macro pressures than the rest of the pack, by and large," he highlighted.

Telsey Advisory Group also stayed in the bull camp. "Costco’s decision to announce a special dividend in this environment reflects robust results over the past few years and management and the board’s confidence in future business trends," updated analyst Joseph Feldman.

Meanwhile, Oppenheimer said the glory days are not over for Costco (COST) even with the stock printing a new 52-week high on Friday. "For longer-term players, with COST shares trading consistent with peakish valuations, we would take advantage of any dips," advised analyst Rupesh Parikh.

Shares of Costco (COST) were up 3.49% at 11:22 a.m. and are 35% higher over the last 52 weeks. Costco (COST) has outpaced Walmart (WMT) and Target (TGT) by a wide margin over that stretch.