Costco Wholesale Corporation (COST) stock is experiencing a surge on Thursday, mirroring a broader positive trend in retail stocks. This uptick follows the release of strong fiscal earnings from Walmart (WMT), a leading retail giant.
Walmart’s financial report for the second quarter of its 2024 fiscal year, released earlier today, revealed impressive results. The company reported earnings per share (EPS) of 67 cents, exceeding analyst expectations of 64 cents. Revenue also outperformed estimates, reaching $169.33 billion compared to the projected $168.56 billion.
These positive figures from Walmart have injected optimism into the retail sector, bolstering investor confidence and driving up shares of companies like Costco.
Currently, Costco stock is trading at approximately $871, comfortably above its 50-day moving average of $845. The stock’s 52-week range spans from $530 to $896, providing a historical perspective on its performance.
Adding to the positive outlook for Costco, several analysts have recently revised their price targets for the company’s stock. Oppenheimer analyst Rupesh Parikh maintained his “Outperform” rating but lowered the price target from $950 to $925. Deutsche Bank analyst Krisztina Katai also reiterated a “Buy” rating and increased the price target from $925 to $927. Gordon Haskett analyst Chuck Grom upgraded Costco from “Accumulate” to “Buy” and set a $925 price target. BMO Capital analyst Kelly Bania maintained an “Outperform” rating and raised the price target from $875 to $950.
How to Invest in Costco Shares
If you’re interested in investing in Costco stock, the process is relatively straightforward. You’ll typically need to open a brokerage account, through which you can purchase shares. Many brokerage platforms offer the option to buy “fractional shares,” allowing you to invest in portions of a stock without purchasing a whole share. This is particularly beneficial for stocks like Berkshire Hathaway or Amazon.com, which can be very expensive to buy even a single share.
For example, with Costco currently trading at $870.00, an investment of $100 would grant you 0.11 shares of the stock.
Shorting Costco Stock
Shorting a stock, or betting against its price decline, is a more complex process. It involves accessing an options trading platform or working with a broker who allows for short selling. Short selling entails borrowing shares to sell them, with the hope of buying them back later at a lower price and pocketing the difference.
Alternatively, if your brokerage account supports options trading, you can either buy a put option or sell a call option at a strike price above the current trading price. Both options provide a way to profit from a decline in the share price.
Costco’s Price Action
As of this writing, Costco shares are trading at $870.00, reflecting a 0.8% increase. This positive momentum suggests investor confidence in the company’s future performance, fueled by the strong retail sector and favorable analyst sentiment.
