Opinions
Stan Wong
Costco Wholesale Corporation
COST-Q
PARTIAL SELL
Sep 12, 2024
Stock price when the opinion was issued
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Profitability is improving; expanding due to e-commerce growth, Kirkland signature, and ad revenue. Reputable brand. Opens 25-30 stores a year. Adding footprint in China. Likes the stability and steady growth. Performs well even in uncertain markets. Impressive membership renewal rate over 90%, and that recurring revenue is a major strength. Sales are still growing from both price and traffic increases. Yield is 0.51%.
(Analysts’ price target is $1067.36)Profitability is improving; expanding due to e-commerce growth, Kirkland signature, and ad revenue. Reputable brand. Opens 25-30 stores a year. Adding footprint in China. Likes the stability and steady growth. Performs well even in uncertain markets. Impressive membership renewal rate over 90%, and that recurring revenue is a major strength. Sales are still growing from both price and traffic increases. Yield is 0.51%.
Its stability can weather volatility long term. Expecting 9% EPS growth in both 2025 and 2026. Fundamental score is 9/10.
Managed to combine recurring revenue (membership fees) with traditional retail. Business model is still the best in the retail space. Big push toward lower-cost merchandisers. Second to none in its ability to not only survive, but thrive, in what could be a difficult economic environment. Yield is 0.48%.
(Analysts’ price target is $1063.88)
One of the favourite names in his portfolio, one of his favourite places to go. Fantastic technicals with higher highs and higher lows. Valuation of 53x forward PE is up there, premium for a premium name in its own space. He's trimmed. 10-12% earnings growth rate, which sounds expensive but it has no real competitors, not even WMT.