Membership warehouse shopping company Costco Wholesale Corp. (NASDAQ: COST) had a huge month in August. According to the latest data from the business, net sales increased by 15% last month. This continues the trend of growth from May, June, and July.
Here’s what investors need to know about this latest news.
Food Retailers are Seeing Big Gains With Restrictions Removed
While some states are still enforcing restrictions on movement, social gatherings, and commercial activities, much of America is open for business. Costco has managed to stay open throughout the year in some form. When stores were closed, it turned to online distribution, thanks to its designation as an essential retailer.
Any challenges the company faced were short-lived. Revenue has been rising now since May. Take a look at the data to see how the company has been performing…
- In May, net sales increased by 7.5% year over year.
- In June, net sales increased by 11% year over year.
- In July, net sales increased by 14.1% year over year.
- In August, net sales increased by 15% year over year.
This is great news for Costco and its investors. For the quarter ending August 30, the company generated $52.3 billion in revenue, an increase of 12.7% over the same period last year.
Even if the pandemic situation worsens and Costco faces physical store closures, it will be able to fall back to its online distribution model with deliveries and contactless pickups.
How Do Analysts See Costco Stock in the Coming Months?
Investors who purchased Costco shares earlier in 2020 have seen strong gains. The stock is now up 22.09% in the year to date.
For investors who want to get on board after the latest news, there’s still growth potential. The most bullish analysts see the stock hitting as high as $385 in the short term, likely before the end of the year. The company’s revenue growth and resilience in the face of the health crisis have put confidence at a high.
This stock has more than just growth to look forward to. There’s a 0.78% dividend yield which can help to create income during this unprecedented time in America’s economic history.
Any investor seeking a strong retail pick for September can consider Costco to be one of the best on the market.
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