![]() ![]() In addition, some commentators online have pointed to the company’s historical strong growth during inflationary periods. ![]() ![]() May 2021 same-store sales data showed a big increase (22.8%) from the prior year’s month. Surprisingly, based on recent data, the retailer has continued to experience strong growth during the recovery. It was expected that the company would see the growth of its underlying business cool down, as things “returned to normal.” Initially, Costco seemed to be a one-and-done pandemic play: a company that “crushed it” during the unique circumstances of the outbreak. What’s Ahead for COST Stock Post-Pandemic With the proposition looking less appealing, investors will likely have less reason to bid up the stock from here. If it doesn’t? The stock may be in for a double-digit pullback down the road. Given that it is “priced to perfection,” the company needs its growth to hit the high end of projections, just to sustain its current valuation. However, one major risk still looms: the potential for multiple contraction. Sales have remained strong, and the recent increase in inflation could help its underlying business as well. Yet, as it appears that things are topping out yet again, the odds that investors will remain enthused about Costco seem slim. In a turnaround, the stock has made a big recovery since the spring, rebounding from under $315 per share, back up to around $398 per share today. Shares in the discount club chain also experienced a major dip in late February and early March. A winner during last year’s Covid-19 pandemic, Costco ( COST) stock’s “hotness” started to wane as the recovery kicked off. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |