If you’re looking for a stock to buy, you’re going to conduct your analysis, but also borrow ideas from some of the biggest traders. Wall Street analysts and hedge funds are some of the entities that dig deeper into stocks than the average trader. These top analysts often get it right with their expectations, and that’s why you can be confident that, besides the amazing performance that Costco Wholesale Corporation (NASDAQ:COST) has exhibited over the past 5 years, the confidence that hedge funds have on it is a reason enough to trigger you to buy.
Costco Wholesale has posted 12% growth per year in earnings per share for more than 5 years now, with the stock price gone up by 110% over the same period. The stock boasts of a shareholder return of 31% over the past year, which is higher than the 19% it has posted over the past 5 years. That’s a clear indication that Costco Wholesale’s performance is recently more attractive.
In the markets, the 50-day simple moving average of Costco Wholesale Corporation (NASDAQ:COST) is $296.65, and its 200-day simple moving average is $275.51. Looking at Costco’s short-term and long-term moving averages, the stock is currently rated as a strong “buy,” with 15 “buy” ratings from a select team of Wall Street analysts. With such sentiments, investors have every reason to eye this stock.
In its most recent quarterly earnings report, Costco Wholesale Corporation (NASDAQ:COST) reported $2.69 in earnings per share, trouncing Zacks consensus estimate of $2.54. In the same quarter last year, Costco Wholesale reported earnings per share of $2.36. The retailer posted a net margin of 2.40%, as well as a return on equity of 25.00%. The earnings were on revenue of $47.50 billion, slightly falling short of the consensus estimate of $47.71 billion. The posted revenue represented a 7.0% increase compared to the same quarter last year.
Costco Wholesale Corporation (NASDAQ:COST) paid out its quarterly dividend on Friday, November 15, 2019. On Friday, November 1, stockholders received a dividend of $0.65 per share, representing an annualized dividend of $2.60 and a yield of 0.86%. The retailer’s dividend payout ratio is currently at 31.75%, quite a promising figure.
Costco Wholesale Corporation is a global retailer, with well-established warehouse club operations spread across eight countries. The company offers a range of products, both branded and private-labeled. Some of the merchandise categories include dry and packed foods, electronics, groceries, cleaning supplies, health and beauty aids, as well as alcoholic and nonalcoholic beverages. This $132.23 billion market cap company is headquartered in Issaquah, Washington, United States.