The stock of Costco Wholesale (COST) has fallen to a 52-week low a day before it is scheduled to report its latest financial results.
Claim 30% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
COST stock fell as low as $871.09 on Dec. 10, a new 52-week bottom for the shares. Costco’s stock is now down 10% over the past year. The ongoing decline comes with Costco’s financial results for its fiscal first quarter on deck.
Analysts attribute the weakness in COST stock to investor worries about the retail sector and consumer spending. In recent weeks, several retailers have issued disappointing financial results and offered weak guidance, citing soft consumer demand and supply chain issues as the reasons. There are also tariff concerns with Costco as the company sources products from around the world.
Costco’s Strong Monthly Sales
Worries about Costco might be overblown. The company reports monthly as well as quarterly sales data, and the results have been impressive. For November of this year, Costco reported that its sales rose 8% from a year earlier heading into the year-end holiday shopping period.
E-commerce sales at Costco continue to be particularly strong, having risen 20.5% year-over-year in November. Foot traffic at the company’s warehouse clubs increased 3.8% worldwide in November, while the average transaction fee rose 3%. Costco said top-performing sales categories last month included candy, meats, bakery, jewelry, and beauty products.
Is COST Stock a Buy?
Costco Wholesale’s stock has a consensus Moderate Buy rating among 24 Wall Street analysts. That rating is based on 16 Buy and eight Hold recommendations issued in the last three months. The average COST price target of $1,091.79 implies 24.87% upside from current levels.
