Tuesday was a slow and largely unmemorable news day for Costco Wholesale (NASDAQ: COST). Still, the massive retailer’s stock landed comfortably in positive territory, rising by nearly 2% on the day against the S&P 500 index’s marginal gain of 0.2%. A glowing analyst note with regard to the corporate’s current performance and looming future was a tailwind for that increase.
More attractive products, more attractive company
Before market open, Oppenheimer‘s Rupesh Parikh published a recent research note on Costco. In his latest evaluation of the retailer, he waxed optimistic on its future, devoting particular attention to across-the-board improvements in its product mix.
Parikh wrote that
[W]e proceed to see improvements in the usual of Costco’s treasure hunt from stronger brands in apparel/consumer durable offerings to a more powerful assortment of discounted gift cards in store. Against a mixed discretionary backdrop recently, we consider this has contributed to a meaningful improvement in non-foods category trends and the company’s standout performance.
The analyst added that he anticipates this momentum will carry Costco through the highest of 2024.
In his note, Parikh reiterated his outperform (buy, in other words) suggestion and price goal of $925 per share.
Is a stock split coming?
Parikh also mentioned that Costco could potentially be the next big-name, publicly traded company to enact a stock split. While it has pulled the stock-split lever several times previously, the last such motion occurred in January 2000. Meanwhile, the company’s popularity with investors has pushed its share price near four-digit territory, since it most recently closed just shy of $909 per share. Corporations steadily conduct stock splits when their equity gets that expensive on a per-share basis.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Idiot has positions in and recommends Costco Wholesale. The Motley Idiot has a disclosure policy.
Why Costco Stock Topped the Market on Tuesday was originally published by The Motley Idiot