COST - Costco Just Made a Move That Could Drive Its Share Price Up to $1000 This Year
2024-07-18 04:30:00 ET
Costco Wholesale (NASDAQ: COST) is one of the more expensive retail stocks you can buy. It trades at a price-to-earnings multiple north of 50 and its market cap is $370 billion. In just five years, the shares have soared by 200%. While Costco has a great business, the biggest reason to not invest in the company today is its high valuation.
But investors shouldn't count out this stock in either the short or long term. Costco has many levers it can pull on to drive more growth for its business, and it just used one of them: raising the price of its memberships.
Normally, Costco announces a membership price hike every five or six years. But perhaps due to rising inflation, it didn't want to simply join the long list of companies increasing their prices and it waited a little longer before raising its member fees once again.
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Costco Just Made a Move That Could Drive Its Share Price Up to $1,000 This Year