This Analyst Expects Solid October Sales Report From Costco - Costco Wholesale (NASDAQ:COST)

Telsey Advisory Group analyst Joseph Feldman reiterated an Outperform rating on the shares of Costco Wholesale Corp COST with a price target of $590.00.
The analyst estimates total comparable sales for October to be 4.3% versus 17.5% last year.
Feldman said the company’s October sales should benefit from high food and overall inflation, which pushes consumers to the store in search for value.
It will also likely benefit from an early start to the holiday season, with special deals online along with elevated fuel prices.
Meanwhile, the analyst added that the softness across discretionary products and elevated promotions related to high inventory levels across retail will partly offset the favorable conditions.
The strength of the U.S. dollar also should weigh on results.
Feldman expects October traffic to be up 2.0% and average ticket to be up 2.3%, partly helped by inflation.
The analyst sees Food & Sundries and Fresh Foods to outperform, helped by increased at-home consumption and inflation.
The analyst believes Costco continues to execute well in a tough operating environment.
Overall, Feldman thinks Costco should remain a share gainer, with its solid sales and high membership renewal rates.
Also Read: Costco Wholesale Posts 10.1% Rise In September Sales
Price Action: COST shares are trading higher by 2.83% at $510.60 on the last check Friday.