Costco Wholesale Corporation
) recorded a new 52-week high of $108.35 yesterday, before
closing at $107.83, rising approximately 35.2% in a year's span.
Based on the current price, Costco is 1.6% above the Zacks
Consensus average analyst price target of $106.11.
Moreover, it currently trades at a forward P/E of 23.7x, a
41.9% premium to the peer group average of 16.7x. Additionally,
the company's long-term estimated EPS growth rate is 13.2%,
higher than the peer group average of 12.7%.
We believe Costco's differentiated product range enables it to
provide an upscale shopping experience to its members, resulting
in market share gains and higher sales per square foot. Moreover,
it maintains a healthy membership renewal rate.
Costco remains committed to opening new clubs in domestic and
international markets. The company's diversification strategy is
a natural hedge against risks that may arise in specific
This is evident from Costco's healthy comparable-store sales
results, when most of the retailers were struggling against the
challenging macroeconomic factors including higher taxes and a
soft employment scenario along with unfavorable weather
conditions that restrained consumers from spending.
Costco delivered comps growth of 4% in March, reflecting
comparable sales growth of 5% at its U.S. locations and 2% at
The Cato Corporation
The TJX Companies, Inc
) witnessed comps decline of 11%, 1% and 2%, respectively during
Currently, shares of Costco carry a favorable Zacks Rank #2
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