Tuesday was characterized by a sluggish and largely forgettable news cycle for Costco Wholesale, yet the major retailer’s stock managed to close the day with a solid gain, increasing by nearly 2%. This rise stood out against the S&P 500 index’s modest increase of just 0.2%. A positive boost to this upward movement came from a glowing analyst report that highlighted Costco’s current strong performance and promising prospects.
More Enticing Products, More Enticing Company
Ahead of the market’s opening, Rupesh Parikh of Oppenheimer released a fresh research note focused on Costco. He expressed an optimistic view of the retailer’s future, particularly emphasizing comprehensive enhancements in its product assortment.
Parikh commented that
He further predicted that this positive momentum will sustain Costco through the conclusion of 2024.
In his analysis, Parikh reaffirmed his outperform rating (essentially a buy recommendation) and maintained a price target of $925 per share.
Is a Stock Split on the Horizon?
Parikh also speculated that Costco might be the next major publicly-traded entity to initiate a stock split. Although the company has executed stock splits on several occasions in the past, the most recent instance occurred in January 2000. Currently, Costco’s growing popularity among investors has driven its share price close to the four-digit mark, with a recent close just under $909 per share. Companies often resort to stock splits when their share prices become significantly high on a per-share basis.
