Tuesday was a slow and largely unmemorable news day for Costco Wholesale (NASDAQ: COST)Nevertheless, the large retailer’s stock ended comfortably in positive territory, rising by almost 2% on the day compared to S&P500 The index recorded a marginal increase of 0.2%. A glowing analyst commentary on the company’s current performance and upcoming future was a supporting factor for this increase.
More attractive products, more attractive company
Before market opening, OppenheimerRupesh Parikh has released a new study on Costco. In his latest analysis of the retailer, he expressed optimism about its future, paying particular attention to the comprehensive improvements in its product offering.
Parikh wrote that
(W)e continue to see qualitative improvements in Costco’s Treasure Hunt, from stronger brands in apparel/consumer durables to a larger assortment of discounted gift cards in the store. Against the backdrop of recent mixed discretionary performance, we believe this has contributed to a significant improvement in non-grocery category trends and the company’s outstanding performance.
The analyst added that he expects this momentum to carry Costco through the end of 2024.
In his note, Parikh reiterated his outperform rating (i.e., his buy rating) and his price target of $925 per share.
Is a stock split imminent?
Parikh also mentioned that Costco could potentially be the next large, publicly traded company to do a stock split. While the company has pulled the lever for a stock split several times, the last such action was in January 2000. Meanwhile, the company’s popularity among investors has pushed its stock price near four digits, as it recently closed at just under $909 per share. Companies often do stock splits when their equity becomes so expensive per share.
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Eric Volkman does not own any stocks mentioned. The Motley Fool owns and recommends Costco Wholesale. The Motley Fool has a disclosure policy.
Why Costco Stock Led the Market on Tuesday was originally published by The Motley Fool
