#5 - Costco (NASDAQ:COST)
Another one of the year’s best-performing stocks is also offering a buy-the-dip opportunity. Costco Wholesale Corporation (NASDAQ: COST) recently announced that it would raise its membership fees for the first time in about eight years. The new rates will take effect on September 1, 2024.
This looks like a case where investors bought the rumor and sold the news. COST stock surged to a 52-week high prior to the announcement, and now it is down about 4% in the last month. That’s not a huge dip to buy, and there won’t be a lot of news from the company until it reports earnings in late September.
At that time, investors will likely get their first hint at how well members tolerate the new rate. However, historically, the company has had a retention rate of over 90% when it has increased its rates. The revenue the company earns from these price increases goes straight to the bottom line, which should promote a second-half surge.
About Costco Wholesale
Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories.
Read More - Current Price
- $971.88
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 18 Buy Ratings, 9 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $908.81 (6.5% Downside)
