COST - Why Costco Stock Gained 29% in the First Half of 2024
2024-07-11 08:40:36 ET
Costco Wholesale (NASDAQ: COST) stock gained 29% in the first half of the year. The stock has been demonstrating incredible resilience, and sales growth is accelerating. It also issued a juicy special dividend to shareholders. And shareholders have been anticipating a lot more.
Costco enjoyed elevated sales growth early in the pandemic, and that decelerated when high inflation hit. There was a short lap period, and sales growth is accelerating again to even higher rates than before the pandemic.
In the 2024 fiscal third quarter (ended May 12), sales increased 9.1% year over year, with a 6.6% comparable sales increase and 20.7% increase in e-commerce. Costco has been expanding its e-commerce business, and it now serves as a strong overall growth driver. Earnings per share (EPS) rose from $2.93 to $3.78.
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Why Costco Stock Gained 29% in the First Half of 2024