We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Costco Gains More Than 50% YTD: Solid Comps Run a Key Driver
Read MoreHide Full Article
Costco Wholesale Corporation (COST - Free Report) has been a preferred stock for investors for quite some time now. Notably, this Zacks Rank #2 (Buy) stock has surged as much as 51% so far this year, outpacing the industry’s growth of 43.4%. The splendid run can be largely attributable to Costco’s impressive comparable sales (comps) run, which continued in October.
Costco is benefiting from its robust efforts to keep pace with the changing retail scenario. To this end, the company’s better price management, solid membership trends and increasing penetration of the e-commerce business are yielding results. To top it, a strong labor market and favorable consumer sentiments are broader factors working in favor of Costco.
October Retains Solid Comps Trend
Courtesy of such upsides, Costco kept its robust comps trend alive in October. Comps for the month rose 5.7%, following an increase of 4.2% in September, 5.5% in August, 5.6% in July, 5.4% in June and 4.2% in May. Comps for October reflect a rise of 6.5% in the United States, 4.9% in Canada and 2.1% in Other International locations.
Excluding the impact of foreign currency fluctuations and changes in gasoline prices, comps for the month rose 6.3%, with 6.8%, 6.5% and 3% increase in the United States, Canada and Other International locations, respectively.
Meanwhile, net sales improved 6.8% to $11.92 billion in the month under review, following a rise of 5.6%, 6.9%, 7.9%, 7.5% and 5.9% in September, August, July, June and May, respectively.
Costco is also steadily expanding e-commerce capabilities in the United States, Canada, the U.K., Mexico, Korea and Taiwan. E-commerce comps grew 16.5% in October, following an increase of 17.8%, 23.9%, 21.3%, 15.7% and 20.2%, in September, August, July, June and May, respectively.
Wrapping Up
Costco remains one of the dominant warehouse retailers based on the breadth and quality of merchandise offered. In fact, its strategy of selling products at heavily discounted prices has helped it remain on growth trajectory. Additionally, a differentiated product range enables the company to provide an upscale shopping experience for members. Such efforts are likely to continue driving traffic across online and brick-and-mortar platforms.
Target (TGT - Free Report) , with a Zacks Rank #2, has a long-term earnings per share growth rate of 7.1%.
Burlington Stores (BURL - Free Report) , with a Zacks Rank #2, has a long-term earnings per share growth rate of 15.9%.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our just-released Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain. Download Free Report Now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Costco Gains More Than 50% YTD: Solid Comps Run a Key Driver
Costco Wholesale Corporation (COST - Free Report) has been a preferred stock for investors for quite some time now. Notably, this Zacks Rank #2 (Buy) stock has surged as much as 51% so far this year, outpacing the industry’s growth of 43.4%. The splendid run can be largely attributable to Costco’s impressive comparable sales (comps) run, which continued in October.
Costco is benefiting from its robust efforts to keep pace with the changing retail scenario. To this end, the company’s better price management, solid membership trends and increasing penetration of the e-commerce business are yielding results. To top it, a strong labor market and favorable consumer sentiments are broader factors working in favor of Costco.
October Retains Solid Comps Trend
Courtesy of such upsides, Costco kept its robust comps trend alive in October. Comps for the month rose 5.7%, following an increase of 4.2% in September, 5.5% in August, 5.6% in July, 5.4% in June and 4.2% in May. Comps for October reflect a rise of 6.5% in the United States, 4.9% in Canada and 2.1% in Other International locations.
Excluding the impact of foreign currency fluctuations and changes in gasoline prices, comps for the month rose 6.3%, with 6.8%, 6.5% and 3% increase in the United States, Canada and Other International locations, respectively.
Meanwhile, net sales improved 6.8% to $11.92 billion in the month under review, following a rise of 5.6%, 6.9%, 7.9%, 7.5% and 5.9% in September, August, July, June and May, respectively.
Costco is also steadily expanding e-commerce capabilities in the United States, Canada, the U.K., Mexico, Korea and Taiwan. E-commerce comps grew 16.5% in October, following an increase of 17.8%, 23.9%, 21.3%, 15.7% and 20.2%, in September, August, July, June and May, respectively.
Wrapping Up
Costco remains one of the dominant warehouse retailers based on the breadth and quality of merchandise offered. In fact, its strategy of selling products at heavily discounted prices has helped it remain on growth trajectory. Additionally, a differentiated product range enables the company to provide an upscale shopping experience for members. Such efforts are likely to continue driving traffic across online and brick-and-mortar platforms.
Other Retail Stocks You Can’t Miss
Walmart (WMT - Free Report) , with a Zacks Rank #2, also reflects a solid comps run. Further, the company has a robust earnings surprise trend. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Target (TGT - Free Report) , with a Zacks Rank #2, has a long-term earnings per share growth rate of 7.1%.
Burlington Stores (BURL - Free Report) , with a Zacks Rank #2, has a long-term earnings per share growth rate of 15.9%.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our just-released Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
Download Free Report Now >>