Costco Wholesale Corp (NASDAQ: COST) shares reached a record high, surging over 4% in intraday trading on December 15. The boost followed the release of fiscal first-quarter results that exceeded analysts’ expectations, with consumers drawn to Costco for its competitive prices on groceries and other products.
The retailer posted a notable 16.6% rise in earnings to $3.58 per share, accompanied by a 6.2% growth in revenue to $57.8 billion. Analysts had anticipated an 11% increase in earnings to $3.41 per share, aligning with revenue projections of $57.79 billion.
Costco’s board of directors also announced a special cash dividend of $15 per share for COST stock investors as of December 28, 2023. The dividend, totaling approximately $6.7 billion, will be paid on January 12.
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On its most recent close on December 18, COST traded at $681.24 per share after gaining 3.40% in the 24-hour period, adding to an 8.57% increase in value over the past five days.
This recent surge in price is reiterated through a pattern on daily and weekly charts that tells a story of respective breakouts, as per stock analyst Javier’s post on X on December 19.
Analysts are reiterating their optimism on Costco stock by applauding its versatility and great range of offers.
This kind of consumer-first approach is awarded with great customer loyalty and retention, which is highlighted by the fact that nearly $5 billion in annual revenue comes from customer membership fees.
Wall Street’s forecast for Costco
Notably, Wall Street analysts’ average 12-month price objective for COST currently stands at $656.85, implying a downside of around -3.58% compared to the current share price.
The stock has an average analyst rating of ‘Moderate Buy,’ based on 20 ‘Buy’ recommendations, while 7 advised ‘Hold’ and none suggested a ‘Sell.’ Analyst forecasts indicate growing optimism, with some predictions reaching as high as $725.
Recent strong performances of COST stock and strong financials have reignited analyst and investor optimism, which can be seen from its price chart and specific price predictions for 2024. Whether it will achieve them, surpass them, or come short remains to be seen.
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