Costco Price Plunge Equals Opportunity for Investors

From Nasdaq: 2025-03-11 07:12:00

Costco Wholesale (NASDAQ: COST) experienced a price plunge in March 2025, making it an attractive buy for investors ahead of an expected special dividend payment. The company has been increasing its cash by 25% YTD in Q2 and 35% compared to the prior year, putting it on track for another special distribution.

Despite a bottom-line miss in Q2, Costco reported a 9% revenue growth outpacing competitors like Walmart and Target. Earnings grew at a slightly slower 8%, but the result was enough to increase the cash balance and improve the balance sheet. Analysts are optimistic about 7% top and 12% bottom-line growth in Q3.



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