Costco Stock (COST) Hits 52-Week High, Analysts Remain Bullish

Costco Wholesale (COST) stock gained 2.7% on Monday and hit a new 52-week high of $1,009.61 per share. The upside came in as the company avoided a strike by reaching a tentative agreement with the Teamsters union. COST stock has surged 10% year-to-date. Looking ahead, analysts remain bullish on the stock and expect 5% upside potential.

COST is a global retailer known for its membership warehouses that offer a wide range of products at discounted prices.

Factors Aiding Costco’s Performance

Costco has long been a favorite among investors for its unique business model, solid financial results, and loyal customer base. The company generates a major portion of its income from membership fees, which provide a steady revenue stream. Further, by selling products in bulk and keeping low profit margins, Costco attracts value-conscious consumers, which helps drive high sales volumes.

In addition, Costco stock is gaining from its robust financial performance. In the first quarter of Fiscal 2025, Costco reported a total revenue of $60.99 billion, marking a 7.5% increase year-over-year. This growth was driven by strong comparable sales and ongoing expansion of its store network. Also, Costco boasts a membership renewal rate of over 90% in the U.S. and Canada, reflecting high customer satisfaction.

Further, Costco has been expanding its footprint in international markets, including China, where it has seen strong demand for its membership model. This global expansion provides a significant growth opportunity.

Is COST Stock a Buy or Sell?

On TipRanks, Costco stock has a Moderate Buy consensus rating based on 16 Buys and eight Holds assigned in the last three months. At $1,054.42, the average Costco price target implies about 5% upside potential.

See more COST analyst ratings

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