William Blair analyst Phillip Blee has maintained their bullish stance on COST stock, giving a Buy rating on August 26.
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Phillip Blee has given his Buy rating due to a combination of factors that indicate Costco’s strong performance and potential for continued growth. The company’s August comparable sales were consistent with July, marking an improvement from earlier months that had caused some investor concern. This consistency, alongside a slight acceleration in U.S. sales, suggests that Costco can maintain its market share despite its elevated valuation.
Moreover, while the international segment’s adjusted comp was lower, it aligned with the multiyear trend, mitigating concerns. Costco’s August sales reached $21.6 billion, an 8.7% increase year-over-year, supported by comparable sales growth and the addition of new warehouses. The fiscal fourth-quarter results also exceeded expectations, reinforcing the belief that investors are willing to pay a premium for Costco’s stability amid uncertain economic conditions.
According to TipRanks, Blee is a 4-star analyst with an average return of 19.7% and a 70.91% success rate. Blee covers the Consumer Cyclical sector, focusing on stocks such as Somnigroup International, Floor & Decor Holdings, and Yeti Holdings.