In the past 30 days, 40 analysts have raised their price targets for this big-box retailer.
Costco Wholesale Corporation (COST)
From Internet Wealth Builder
Costco Wholesale has been another major beneficiary of the pandemic—big box stores have thrived. The combination of low prices and enhanced on-line pick-up and delivery services combined with the shut-down of many small businesses have boosted sales and profits.
The company’s third-quarter 2020 results (to May 10) were solid. Sales were up 7.3% year-over-year, to $36.45 billion. Net income for the quarter was down slightly from the same period last year, due mainly to unanticipated costs related to the coronavirus.
The fourth-quarter results should be better, based on sales. Costco reported an 11.1% increase in June sales, a 14.1% jump in July, and a 15% improvement in August.
There is no reason to believe this pattern won’t continue throughout the pandemic and beyond, although on-line sales growth may slow somewhat.
Gordon Pape, Internet Wealth Builder, buildingwealth.ca, 1-888-287-8229, September 14, 2020