From Nasdaq: 2024-12-17 07:15:00

Costco’s stock is trading at 55x its current year earnings estimate, but analysts believe it can continue to rally in 2025 due to factors like a growing cash balance and robust growth outlook. The company had a solid quarter in FQ1, with $62.15 billion in net revenue, driven by membership fees and comp store growth.

With a cash balance of nearly $11 billion, Costco has the capacity to pay a substantial special dividend in 2025. The company has a history of paying special dividends and the trend is increasing, with the possibility of more dividends in the future. The outlook for Costco remains bright, with positive revenue and earnings growth expected.

Analysts have raised their price targets for Costco stock, with some predicting it could trade above $1000. Despite some struggle in the stock price following the news, the overall trend remains positive. Critical support is near $900, while resistance is around $1000. The stock may consolidate before moving higher in the next few quarters.



Read more at Nasdaq:: Why Costco’s Rally May Continue Into 2025