Costco Wholesale Corporation (NASDAQ:COST) soared in morning trading on Friday following a stellar FQ1 earnings report and a surprising $15 per share special dividend.
Over on Wall Street, Jefferies analyst Corey Tarlowe highlighted that Costco (COST) is continuing to introduce new club stores in the U.S. and is poised for significant overseas growth, including in China.
UBS analyst Michael Lasser emphasized that Costco’s (COST) Q1 further solidified the stock as a fitting investment for the current market demands. “A high-quality business that is more shielded from ongoing macro pressures compared to the rest of the pack,” he pointed out.
Telsey Advisory Group also echoed the optimism. “Costco’s decision to declare a special dividend in this environment reflects robust performance over the past few years and the management and the board’s confidence in future business trends,” stated analyst Joseph Feldman.
On the other hand, Oppenheimer indicated that Costco’s (COST) best days are far from over, even as the stock reached a new 52-week high on Friday. “For long-term players, with COST shares consistently trading at peak valuations, we would take advantage of any downturns,” advised analyst Rupesh Parikh.
Shares of Costco (COST) were up 3.49% at 11:22 a.m. and have risen by 35% over the last 52 weeks. Costco (COST) has outperformed Walmart (WMT) and Target (TGT) by a significant margin over that period.