Costco Wholesale Corp. saw sales increase 17.9% to $13.64 billion in the four weeks ended Jan. 31 compared to the year-ago period, as shoppers continued to order online during the coronavirus pandemic.
Costco’s (COST) comparable sales jumped 15.9%. Analysts expected Costco to report 11.7% growth in comparable sales.
By regions, the retailer’s comparable sales rose by 15.4% in the US and by 15.2% in Canada. In other international locations comparable sales grew 19%. Costco’s comparable e-commerce sales shot up 106.7% in the first month of the year.
For the twenty-two weeks ended Jan. 31, 2021, the company reported net sales of $79.11 billion, an increase of 15.4% compared to the prior-year period. Comparable sales rose 13.8% year-over-year, while e-commerce sales surged 79.5%. (See Costco stock analysis on TipRanks)
Following the January sales results release, Robert W. Baird analyst Peter Benedict maintained a Buy rating and a price target of $410 (15.4% upside potential) on the stock.
In a note to investors, Benedict cited Costco’s “loyal membership base, new convenience-oriented capabilities, and expanding structural cost advantages” for his bullish outlook on the stock.
The rest of the Street is in line with Benedict’s outlook with a Strong Buy consensus rating, which is based on 14 Buys and 4 Holds. The average analyst price target of $402.63 implies upside potential of about 13.4% to current levels. Shares have gained about 20.6% over the past year.
Furthermore, TipRanks data shows that financial blogger opinions are 92% Bullish, compared to a sector average of 71%
Related News:
Costco Beats 1Q Profit As Online Sales Jump 86%; Street Firmly Bullish
Chipotle’s 4Q Profit Disappoints Due To COVID-19 Costs; Shares Slip
Match Group Sinks 6% Pre-Market On 4Q Profit Miss
