Reflecting on my recent visit to Costco (COST), I share some insights.
I underestimated the crowd on a weekend visit, assuming lower foot traffic due to a recent revenue miss by Costco.
Despite a minor revenue miss, the company’s performance remains robust. The stock’s 6% drop post-earnings is attributed to profit-taking from a stock priced for perfection.
One notable aspect was the decision to keep membership fees stagnant, despite analyst expectations of an increase. With the CFO departure, future strategies are anticipated.
Costco’s history shows that previous membership fee hikes led to temporary stock dips followed by substantial growth. The recent pullback could present a buying opportunity.
Consider adding Costco shares during this correction phase for potential long-term gains.
Bottom Line
Despite recent volatility, Costco shares have shown stability compared to the Nasdaq 100. Consider taking advantage of the current pullback for potential gains.
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About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.
