Costco’s (NASDAQ:COST) inaugural outlet in Southern China received an overwhelming response from shoppers, with customers standing in queues for hours, according to Bloomberg. Reportedly, thousands of shoppers lined up before the store’s opening in Shenzhen, a key business hub. The company already has five outlets in China. A combination of a stock market rout, a weak property market, and elevated youth unemployment levels has meant consumers in the country are increasingly looking for better deals, which Costco can offer.
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Last week, Costco reported nearly 10% higher sales for December 2023. Comparable sales rose by 7.3% in the U.S. and by 10.5% in the retailer’s Other International segment. In sync, its eCommerce comparable sales shot up by 17.7% for the month. Notably, the company’s New Zealand store experienced revenue growth of 1,600%, as reported by the New Zealand Herald.
Is COST Stock a Buy, Sell, or Hold?
These robust sales gains have translated into a nearly 42% rally in the company’s share price over the past year. Overall, the Street has a Strong Buy consensus rating on Costco, and the average COST price target of $680.22 implies the stock may be fairly priced at current levels.
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