1 Retail Stock That Should See a Boost This Holiday Season

This retail giant has a global presence and solid market position that are helping it remain steady amid shifting consumer behavior and an uncertain economic climate. Despite high inflation…

COST’s October net sales increased 7.7% year-over-year to $17.73.

Although consumers have been cutting on spending amid inflationary pressures, the National Retail Federation (NRF) today forecast that holiday retail sales during November and December will grow between 6% and 8% over 2021.

NRF Chief Economist Jack Kleinhenz said, “Despite record levels of inflation, rising interest rates, and low levels of confidence, consumers have been steadfast in their spending and remain in the driver’s seat.”

Moreover, inflation in October came in at 7.7%, better than consensus estimates, providing some relief to the consumers. This, along with the usual holiday shopping, should boost COST’s performance.

COST shares have gained 10% over the past month and marginally over the past year. However, the stock has lost 9.6% year-to-date to close the last trading session at $513.13.

Here is what could shape COST’s performance in the near term:

Solid Financials and Dividend Paying Record

COST’s net sales came in at $70.76 billion for the fourth quarter that ended August 28, 2022, up 15.2% year-over-year. Its total revenue increased 15% year-over-year to $72.09 billion. Also, its operating income increased 9.8% year-over-year to $2.50 billion.


Continue reading at STOCKNEWS.com


You May Also Like

About the Author: admin