rtmark
LearnBonds.com

Costco Stock Price Jumped 50% in 2019; Here’s What to Expect in 2020

Costco stock price

Costco (NASDAQ: COST) stock price surged close to 46% in fiscal 2019 on the back of stellar financial and operational performances. The company has been topping the consensus estimates over the past couple of quarters along with awarding investors with big cash returns.

In addition, it is only among the few discount stores that are generating mid-single-digit growth in comparable sales.

Its move towards digital sales has been contributing significantly to revenue and margins growth. The company is planning to sustain the momentum in fiscal 2020 through investments in organic and non-organic growth opportunities.

COST Costco Wholesale Corporation daily Stock Chart

Financial Growth Supports Costco Stock Price Upside

Costco reported comparable sales growth of 5.0% and the e-commerce sales grew 5.5%. Its net sales for the first quarter came in at $36.24 billion, representing a boost of 5.6% from last year’s quarter. The company has also been supporting margins and earnings through share buybacks and investment in high margin areas

Its net income stood around $1.90 per diluted share, up from $1.73 per diluted share last year. Moreover, the company appears in a position to enhance the cash returns in 2020. This is because of its strong cash generation potential.

The company reported $2.1 billion in operating cash flows in the latest quarter. Its capital expenditure stood around $765 million. Thus, the company was left with $1.4 billion in free cash flows. Its dividend payments stand around only $0.57 billion only. Thus, the huge gap in free cash flows and dividend payments offer a room for a dividend increase.

Robust Outlook Support Upside in 2020

The company expects to extend the revenue growth momentum in 2020. They are investing in organic and inorganic growth opportunities along with its supply chain network. It is expanding comparable sales growth at mid-single-digit in the past two months, which indicates robust growth trends. Overall, Costco’s stock price is receiving support from financial growth.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
Users should remember that all trading carries risks and users should only invest in regulated firms. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.