Why Costco stock hit the market on Tuesday

Tuesday was a slow and largely unmemorable news day for Costco Wholesale (NASDAQ: COST). Still, the big retailer’s stock landed comfortably in positive territory, up nearly 2% on the day from S&P 500 marginal index gain of 0.2%. A glowing analyst note about the company’s current performance and the future ahead was a tailwind for this growth.

More attractive products, more attractive company

Before the market opens, OppenheimerRupesh Parikh published a new research note on Costco. In his latest review of the retailer, he became bullish on its future, paying particular attention to overall improvements in its product mix.

Parikh wrote this

The analyst added that he expects this momentum to carry Costco through the end of 2024.

In his note, Parikh reiterated his Outperform (buy, in other words) recommendation and price target of $925 per share.

Is there a stock split coming up?

Parikh also noted that Costco could be the next large, publicly traded company to adopt a stock split. Although it has pulled the trigger on a stock split several times, the last such action was in January 2000. Meanwhile, the company’s popularity among investors has pushed its stock price close to four-digit territory as, most recently , closed at just $909. per action. Companies frequently do stock splits when their capital becomes so expensive per share.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

Why Costco stock hit the market on Tuesday was originally published by The Motley Fool