Costco Wholesale Corporation (NASDAQ:COST) rebounded in morning trading Friday after releasing a well-received first-quarter earnings report and surprising with a special dividend of $15 per share.
On Wall Street, Jefferies analyst Corey Tarlowe noted that Costco (COST) continues to open new club stores in the US and is seen as having significant runway for continued growth overseas, including China.
UBS analyst Michael Lasser said that at a high level, Costco's (COST) first quarter provided further evidence that the stock is a good fit for what the market is looking for right now. “A high-quality business that will be more insulated from current macroeconomic pressures than the rest of the group, generally,” he noted.
Telsey Advisory Group also remained in the bull camp. “Costco's decision to announce a special dividend in this environment reflects solid results over the past few years and management and board confidence in future business trends,” analyst Joseph Feldman updated.
Meanwhile, Oppenheimer said the glory days aren't over for Costco (COST), even as the stock hit a new 52-week high on Friday. “For long-term players, with COST stock trading in line with peak valuations, we would take advantage of any dip,” warned analyst Rupesh Parikh.
Costco (COST) Stock Rises 3.49% at 11:22 am and are 35% higher over the last 52 weeks. Costco (COST) has outperformed Walmart (WMT) and Target (TGT) by a wide margin during that stretch.