From Nasdaq: 2024-06-06 05:07:00

Costco (NASDAQ: COST) reported strong fiscal Q3 results with revenue up 9% to $58.5 billion. Same-store sales rose 6.6%, and e-commerce revenue jumped 20.7%. The company has 74.5 million paid household members and is considering a membership-fee increase.

Costco plans to add 12 new stores this fiscal year and expand services like Uber Eats delivery. The company is evaluating a membership-fee increase, which hasn’t been raised since 2017. Costco also noted its high renewal rates in North America and worldwide.

Increasing membership fees could significantly boost Costco’s earnings. However, with a high forward P/E ratio and an already elevated stock valuation, it may be prudent to stay on the sidelines for now. Despite Costco’s historical stock performance, the current valuation may limit future gains.

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Read more at Nasdaq: Is It Time to Buy Costco Stock Amid Talk of Increasing Membership Fees?