#3 - Costco (NASDAQ:COST)
Because it’s a warehouse club, Costco Wholesale Corporation (NASDAQ: COST) may not be the first name you consider for back-to-school shopping. But the company has an entire section of its website devoted to back-to-school shopping tips. And it brings to mind that back-to-school shopping means more than notebooks and pencils. It means snacks and other items that may be particularly important for college students.
Still, at over $820 per share and trading at 51x forward earnings, some investors may believe COST stock lacks value. However, Costco recently announced an increase to its membership fee, which is bullish for two reasons.
First, Costco has a historical retention rate of over 90%. And second, the revenue from that membership fee will flow directly to the bottom line. Since earnings growth is the fuel for stock price growth, Costco is one to watch. It’s just another example of the many ways that Costco remains a shareholder-friendly company.
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
- $904.50
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 19 Buy Ratings, 8 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $844.52 (6.6% Downside)
