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Shares of Costco Wholesale Corporation COST have lost more than 13% this month.
The company, which is scheduled to report December sales after markets close on Jan. 5, could announce strong numbers, according to Telsey Advisory Group.
The Costco Analyst: Joseph Feldman reiterated an Outperform rating on Costco with a $580 price target.
The Costco Takeaways: The company’s sales in December may continue to benefit from high food prices and overall inflation, “which pushes consumers to the store in a search for value,” Feldman said in a Thursday note.
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“This should be partly offset by softness in discretionary categories due to tough macro trends and elevated inventory/promotions across retail,” the analyst said. “Furthermore, lower fuel prices and stronger U.S. dollar should weigh on results,” he added.
Feldman forecast total comps of 1.3% versus 14.5% last year.
“We believe Costco should remain a share gainer, with its solid sales and high membership renewal rates,” he said.
COST Price Action: Shares of Costco Wholesale were trading 0.75% higher at $456.39 Thursday afternoon.
Photo via Pixabay.
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Image and article originally from www.benzinga.com. Read the original article here.