Truist Keeps Hold Rating on Costco (COST) After August Sales Report

Costco Wholesale Corporation (NASDAQ:COST) is one of the 10 Unrivaled Stocks of the Next 3 Years. On September 5, Truist Securities reaffirmed its Hold rating on Costco Wholesale Corporation (NASDAQ:COST) with a price target of $1,042. This decision came after the company reported strong sales in August.

In the US, Costco Wholesale Corporation (NASDAQ:COST) saw comparable sales rise by 6.7% in August, excluding the impacts from changes in gasoline prices and foreign exchange. This performance was a small improvement of 20 basis points compared to July. For the fourth fiscal quarter, US comparable sales increased by 6%.

Costco Wholesale Corporation (NASDAQ:COST) saw total sales rise by 6.9% in August, excluding fuel and foreign exchange effects. Net sales for the quarter reached $84.4 billion, up 8% year-over-year and in line with Truist’s estimates.

Truist Securities acknowledged Costco Wholesale Corporation’s (NASDAQ:COST) ability to attract value-conscious customers with competitive offerings. However, the firm remains on the sidelines because of valuation concerns as the stock trades at about 50 times the estimated earnings per share for calendar year 2025.

Costco Wholesale Corporation (NASDAQ:COST) is a global retailer that operates an international chain of membership warehouses, offering well-known brand products at prices much lower than regular wholesale or retail stores.

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Disclosure: None. This article is originally published at Insider Monkey.