Shares of Costco Wholesale Corp. (NASDAQ: COST) have added about 59% over the past 12 months, including a drop of about 16% in January. February was a different story, with the stock adding back about 9.5%. Costco has beat revenue estimates in each of the past eight quarters but has missed profit estimates twice in that time, including the most recent quarter. E-commerce sales have continued to grow and have provided a nice complement to the company’s traditional warehouse sales.
Analysts are positive on the stock, with 24 of 35 giving it a Buy or Strong Buy rating. Another 10 rate the stock at Hold. At a share price of around $523.00, the upside based on a median price target of $567.50 is 8.5%. At the high price target of $650, the upside potential is 24.3%.
Second-quarter revenue is forecast at $51.40 billion, up about 2.1% sequentially and 14.8% year over year. Adjusted EPS are forecast at $2.72, up 6.3% sequentially and 21.3% year over year. For full fiscal 2022 ending in August, current estimates call for EPS of $12.79, up 15.5%, on sales of $219.25 billion, up 11.9%.
Costco stock trades at 41.0 times expected 2022 EPS, 37.4 times estimated 2023 earnings of $14.01 and 33.2 times estimated 2024 earnings of $15.78 per share. The stock’s 52-week range is $307.00 to $571.49. Broadcom pays an annual dividend of $3.07 (yield of 0.6%). Total shareholder return for the past year was about 60.5%.
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Apparel retailer Gap Inc. (NYSE: GPS) has seen its share price tumble by more than 40% over the past 12 months. Since reaching a peak in mid-May last year, the stock has plunged by around 60%. Last month, the company was booted from the S&P 500 index because its market cap has fallen below the minimum typically needed for inclusion. The company’s attempts to rebrand itself as a lifestyle brand have enjoyed some short-term buzz but no long-term success in retaining customers.
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