Loading...
Loading...
Credit Suisse recently issued their 2016 Outlook, naming Costco Wholesale Corporation
as their top stock in the Retail industry.
Michael Exstein and Anjani Vedula, analysts at Credit Suisse, wrote, "With its singular focus on its one format anchored by its membership model, COST continues to be one of our few Outperform-rated stocks. We think that COST is the least vulnerable to secular issues impacting most retailers such as the tighter labor market, subscriptions, e-commerce, and the decline in the credit tailwind. While COST may not hit your classic "value" screen in terms of P/E or EV/EBITDA, we think these shares are "cheap" when considering they can grow earnings at a 10 percent or better rate while paying both quarterly and one time dividends."
Analysts gave two key takeaways on why they see strength in Costco in 2016:
1. Employee benefits
Credit Suisse wrote that Costco pays its employees some of the highest wages in retail. This has allowed for low employee turnover and increasing productivity as workers become highly skilled at their jobs.
2. Subscription growth
Costco has seen its subscription growth rate increase in recent quarters due to consumer demand for their high quality and high-value items. Credit Suisse believes that the constant stream of revenue from subscriptions has allowed Costco to create a unique advantage in the ultra-competitive food and retail marketplace.
Currently, Costco is trading at $150.52, down 0.40 percent.
Loading...
Loading...
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in