Costco Wholesale Corporation (NASDAQ:COST) has introduced a weight loss program exclusively for its members in the U.S. This new offering was revealed by Sesame, a healthcare marketplace, to a news broadcasting company, USA TODAY. The program, which costs $179 for three months, was launched on April 2.
Costco initially partnered with Sesame in September 2023 to offer high-quality and affordable healthcare services to its members. Under the agreement, Costco members gained access to a variety of health services through Sesame at reduced rates, including virtual primary care for $29, health check-ups, and virtual mental health therapy. Additionally, members received a 10% discount on all other Sesame services, including in-person appointments.
This initiative by Costco to offer accessible healthcare services is expected to bolster its membership renewal rates and expand its paid member base. At the end of the second quarter (ended February 18, 2024), Costco’s U.S. and Canada renewal rate stood at 92.9%. Its worldwide renewable rate came in at 90.5%. It had 73.4 million paid household members, up 7.8% year-over-year, and 132 million cardholders, up 7.3% year-over- year.
What Is the Outlook for Costco Stock?
Costco stock has gained over 47% in one year, reflecting its ability to consistently grow its comparable sales and earnings. Further, its high membership renewable rate and expanding base of paid members are positives. While COST stock has gained significantly, Wall Street maintains a bullish outlook.
Costco stock sports a Strong Buy consensus rating based on 20 Buys and six Hold recommendations. Analysts’ average COST stock price target of $777.08 implies 9.25% upside potential.
