At Costco Wholesale (COST), membership really does have its privileges.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter
The Seattle-based retailer has announced a number of new perks for its top-tier “Executive Members” who pay $130 a year to shop at the warehouse club. Going forward, Executive Members who pay the most for their membership will get early access to Costco store locations.
Stores will now be open for Executive Members staring at 9 a.m., giving them an extra hour before lower-tier Gold Star members are allowed into the warehouse outlets. Additionally, Costco’s most valued members will receive a $10 monthly credit that can be put toward same day delivery via Instacart (CART) on orders of $150 or more.
Showing Appreciation
The new perks come after Costco also recently announced extended hours for its gas stations across the U.S., a change that has been cheered by customers. Costco CEO Ron Vachris has said that the company is looking for ways to show appreciation for its customers and reward them for their loyalty.
Executive Members currently make up 73% of Costco’s sales. The cheaper Gold Star membership costs $65 a year, or half the price of the Executive Membership. Costco raised the price of its Executive and Gold Star memberships last year, a move that was praised on Wall Street.
Additional perks of the Executive Membership include a 2% cash back reward given on every dollar spent at Costco. There are also additional savings on Costco services such as bottled water delivery and pet insurance. If you buy your home or auto insurance through Costco, the Executive Membership provides exclusive benefits such as roadside assistance. COST stock has gained 9% this year.
Is COST Stock a Buy?
The stock of Costco has a consensus Moderate Buy rating among 23 Wall Street analysts. That rating is based on 16 Buy and seven Hold recommendations assigned in the last three months. The average COST price target of $1,107.68 implies 10.67% upside from current levels.
Read more analyst ratings on COST stock
Looking for a trading platform? Check out TipRanks' Best Online Brokers guide, and find the ideal broker for your trades.
Report an Issue