• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Investing Is it worth owning Costco stock after its Q1 earnings report?
Investing

Is it worth owning Costco stock after its Q1 earnings report?

by December 10, 2022
by December 10, 2022 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Costco Wholesale Corporation (NASDAQ: COST) is not inexpensive to own at its current price-to-earnings multiple of over thirty times – but it’s worth paying a premium for this stock, says Cowen’s Oliver Chen.

Is Costco stock a ‘buy’ here?

The chain of retail stores reported weaker-than-expected results this week for its fiscal first quarter. Still, Chen continues to see about a 35% upside ($650 price target) in Costco. His post-earnings research note reiterates:

Costco is well-positioned in an inflationary environment and could also benefit from increased trade down traffic as higher income consumers shop for quality value.

The big box retailer is growing memberships at 5.0% with renewal rates at an impressive 92%. The Cowen analyst is bullish on Costco also for its private label brand – Kirkland Signature. In a recent interview with Yahoo Finance, he noted:

Costco screams value, treasure hunt; being a member enables you to buy goods at lower prices than anywhere else. It’s a fixed, low markup model, so you’re getting a great deal no matter what.

Costco stock down roughly 15% for the year is Chen’s top retail stock for 2023.

Notable figures in Costco Q1 earnings report

Earned $1.36 billion versus the year-ago $1.32 billionEPS climbed from $2.98 to $3.07 as per the press releaseRevenue jumped 8.0% year-on-year to $54.44 billionConsensus was $3.12 a share on $58.36 billion revenueComparable sales up 6.6% were a bit better than expectedDigital sales saw an annualised decline of 3.70%

Dividend and free cash flow are among other reasons why Cowen’s Oliver Chen is constructive on the Costco stock.

One of the big problems in retail has been negative traffic. Costco has distinguished itself with positive traffic and momentum. All these things make for a great story, in our opinion.

The post Is it worth owning Costco stock after its Q1 earnings report? appeared first on Invezz.

You Might Also Like
  • 3 reasons why the December NFP report matters for markets
  • HSBC share price retreats amid China woes: is it a buy?
  • Options Spreads: Put & Call Combination Strategies
  • The 10 Best Options Trading Books
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Do Our Roads Have to be Built by Government?
next post
Using the DXY to forecast US equities ahead of the December CPI report

You may also like

5 Best Dogecoin Betting Sites That You Can Trust

December 22, 2022

S&P 500 price forecast and why today is a special...

December 27, 2022

XRP price spikes 6% as crypto turns green – here’s...

December 27, 2022

Is Supply@Me a good penny stock for 2023?

December 27, 2022

Retirement Strategies for Senior Citizens to Grow and Protect Their...

June 2, 2023

Unemployment rate falls to 3-month low in Japan; Monthly retail...

December 27, 2022

Novavax shares opened 20% down on Thursday: this is why

December 15, 2022

Is corrupt Glencore a good buy after rising by 40%...

November 23, 2022

2022 Inflation statistics: how bad is it worldwide?

December 2, 2022

Should you buy Chinese tech stocks now that China is...

December 28, 2022

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Essence Fest leads a summer of events for Black entrepreneurs galvanized by economic uncertainty

      July 4, 2025
    • From Oversold to Opportunity: Small Caps on the Move

      July 3, 2025
    • Money’s Not Leaving the Market — It’s Rotating!

      July 3, 2025
    • Tariffs and weaker beer demand are weighing on Modelo owner Constellation Brands

      July 3, 2025
    • Microsoft laying off about 9,000 employees in latest round of cuts

      July 3, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,628 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,910 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,601 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,566 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,442 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,163)
    • Investing (538)
    • Stock (2,652)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Essence Fest leads a summer of events for Black entrepreneurs...

      July 4, 2025
    • From Oversold to Opportunity: Small Caps on the Move

      July 3, 2025
    • Money’s Not Leaving the Market — It’s Rotating!

      July 3, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,163)
    • Investing (538)
    • Stock (2,652)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    The Sell Put And Buy Call...

    April 16, 2023

    Walgreens stock price forecast: Cowen sees...

    November 22, 2022

    HSBC share price retreats amid China...

    November 28, 2022
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here