D.A. Davidson analyst Michael Baker maintains $Costco (COST.US)$ with a hold rating.
According to TipRanks data, the analyst has a success rate of 62.0% and a total average return of 7.2% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Costco (COST.US)$'s main analysts recently are as follows:
Costco has reported another robust quarter, showcasing stable underlying trends, advancements in e-commerce with enhanced profitability, and strong membership growth. It is anticipated that Costco's positive momentum will persist.
The firm noted that Costco's US traffic increase of 5.6% and a gross margin improvement of 44 basis points are noteworthy, especially considering the company's emphasis on value, expansion of product selection, and appeal to a younger demographic. The company benefited from digital expansion and gasoline sales in terms of gross margins, which helped to balance out investments in wages and administrative expenses.
The company showcased robust underlying earnings for Q4, with gross margins and comparable sales slightly surpassing expectations, in addition to a steady global customer traffic increase of 6%. Although the projected EPS growth for FY24 is above average, a more prudent forecast is suggested for the upcoming years, taking into account the company's pattern of reinvesting member fee income rises. Nonetheless, optimism is maintained due to the momentum in e-commerce expansion and the appealing valuation of the company's stock.
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