Costco Stock Edges Higher on Solid Same-Store Sales | COST Message Board Posts


Costco Wholesale Corporation

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Msg  74 of 82  at  7/9/2021 9:06:05 PM  by

jerrykrause


Costco Stock Edges Higher on Solid Same-Store Sales

 

Costco Stock Edges Higher on Solid Same-Store Sales

 
 

Costco Wholesale stock pushed higher Friday, after the discounter reported upbeat June same-store sales.

Costco (ticker: COST) said comparable sales climbed 14.1% last month, decelerating a bit from May 's 22.8% rise.

Core comps, excluding the impact of fluctuations in foreign exchange and gasoline, rose 7.9%. The metric, however, would have been an increase of more than 9% when adjusting for the timing of the Memorial Day holiday. On a two-year basis, core comps rose 27%, according to Jefferies.

Costco stock edged up 0.9% to $410.90 in recent trading. The shares have gained more than 8% year to date and are up 24.8% in the past year.

U.S. same-store sales rose 12.1%, with a core comp of 7.8%. E-commerce climbed 20.8%, or 18% excluding gas and currency.

Costco was a major pandemic winner, given its status as an essential business, but the company has managed to do well as it laps year-ago comparisons that include Covid-boosted sales. Same-store sales figures for March, April, and May all sent the stock higher.

In June, comparable sales were higher in all of Costco's major categories. Of course, food sales aren't as robust as they were during the Covid-19 crisis a year ago, but they still gained in the low-single digits in June—and in the double-digits on a two-year basis.

Bulls were largely happy with the report. "Big picture, with share gains accelerating, the Costco model is firmly intact," writes Baird's Peter Benedict, who has an Outperform rating and $430 price target on the shares.

Jefferies' Stephanie Wissink reiterated a Buy rating and $445 target. She writes that the June results point to upside to her estimates, and she sees Costco core U.S. comps "sustaining around 20% growth on a two-year basis through the fourth quarter."

Telsey Advisory Group's Joseph Feldman maintained an Outperform rating on the shares, but raised his price target to $440 a share from $415. "Overall, the robust result reflects Costco's continued focus on value, high member loyalty, and digital," he writes.

 


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