- Shares of Costco (NASDAQ:COST) are volatile after the retailer easily topped estimates for June sales. After jumping over 2% to $161.35, shares are now only up 0.56%.
- BMO Capital Markets (Outperform, $185 PT) analyst Kelly Bania calls out the "particularly impressive" results for Costco considering the ongoing challenging trends experienced across other parts of retail and Amazon (NASDAQ:AMZN) fears. RBC Capital (Outperform, $190 PT) thinks investors have a chance to buy Costco at a significant discount to its historic earnings multiple after the Amazon-Whole Foods deal cut into share price. Stifel Nicolaus (Buy, $173 PT) expects another three quarters of at least mid single-digit sales growth. Looking further ahead, Wells Fargo (NYSE:WFC) (Market Perform, $170 PT) sees challenges for the industry amid higher operating costs and increased competition. Valuation is a "sticking point" for Wells analyst Zachary Fadem.
- Sources: Bloomberg and Benzinga. Investors Business Daily
- Previously: Costco reports strong comp sales (ex-gas and F/X) in June (July 5)
- Now read: Is Costco Itself The Next Great Bargain It Offers Its Customers?
Original article