tiprankstipranks
Stock Analysis & Ideas

Costco Reports Q2 Earnings Today – What Trends to Expect

The Costco Wholesale Corporation (COST) will release its financial results for its fiscal second quarter of 2022 after the market closes today.

Costco is a membership-only warehouse club with locations all over the world. The company’s official website, costco.com, focuses on the selling of electronics, computers, furniture, outdoor living, appliances, jewelry, and other items. Product sales account for the majority of the company’s revenue.

For a wholesale store like Costco, total website visits are a good indicator of user involvement. Increasing engagement suggests strong demand for the company’s online offerings, implying higher revenues. Additionally, elevated monthly visits could also mean more membership fees earned by the company and vice-versa.

So, ahead of the Q2 print, we went into Costco’s monthly user statistics using TipRanks’ new online tool to get a better picture of the company’s current state.

Costco’s Monthly Users Showed a Declining Trend

Through the tool’s data, we discovered that overall projected visits to the company’s website fell in Q2. The total projected worldwide visits to costco.com decreased by 34.98% sequentially to 260.1 million from the first quarter’s 400 million.

The decrease in monthly visits to costco.com indicates a dip in demand for Costco’s items or membership services, implying weak top-line growth in the quarter yet to be reported.

In addition, looking at year-over-year traffic, internet visits to costco.com have decreased by 21.34% from January 2021 to January 2022.

Wall Street’s Take

The Wall Street analysts are largely optimistic on Costco, with a Strong Buy analyst rating consensus based on 17 Buy and four Hold ratings. The average Costco stock prediction of $578.15 implies 12-month upside potential of approximately 9.5% from current levels.

Conclusion

Despite the downward trend in website traffic, Costco should continue to do well in the near future as customers try to find out new methods to save and seek out the best online offers. In addition, the current bout of inflation might help Costco to add to its customer base and drive the top-line growth of the company.

Download the TipRanks mobile app now

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Read full Disclaimer & Disclosure

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More