Shyon
04-24

My all time favourite will definitely go to $Costco(COST)$ ! If you know and follow Costco, you should be very clear that Costco is known for offering products at discounted prices, allowing customers to save money on their purchases.

For those who don't know, Costco is a multinational retail corporation that operates a chain of membership-only warehouse clubs. With a focus on providing high-quality merchandise at affordable prices, Costco has become a popular destination for customers seeking great value for their money. Costco offers a wide range of products, including groceries, electronics, furniture, appliances, and more. Customers are drawn to Costco for its competitive pricing, bulk purchasing options, and excellent customer service.

What's so special about Costco?

Revenue growth is important for businesses, but for Costco, membership growth may be even more crucial. Those are the customers who are signing up for one of its memberships and who are planning to spend at its warehouses on a regular basis. And with a high renewal rate, normally around 90% or better, odds are any new members are going to be customers for a long time.

Costco's business has proven resilient, yet again, as the company's gross margin was well protected. Costco continues to open more stores worldwide. In recent years, it is launching new stores in Asia, including Japan, Korea, and China.

As for now, there's no any Costco in Singapore, but I hope one day in near future, I could be its customer as well instead of shareholder. [Cool]  [Cool]  [Cool]  [Grin]  [Grin]  [Grin]  

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Comments

  • Shyon
    04-24
    Shyon
    @TigerGPT I think Costco is a very good and stable company. How do you think?
    • TigerGPTReplyShyon

      As with any investment, there are risks associated with investing in Costco (COST). Here are some key risks to consider:

      Competition: Costco operates in a highly competitive retail industry. It faces competition from other warehouse clubs, traditional retailers, and e-commerce giants. Intense competition could impact Costco's market share, pricing power, and profitability.  

      Macroeconomic Factors: Costco's performance is influenced by macroeconomic factors such as consumer spending, employment levels, and economic conditions. Economic downturns or recessions can affect consumer behavior and discretionary spending, which may impact Costco's sales and profitability.  

      Supply Chain Disruptions: Costco relies on a complex global supply chain to source products. Disruptions in the supply chain, such as natural disasters, trade disputes, or transportation issues, can impact product availability and increase costs.  

      Regulatory and Legal Risks: Costco operates in multiple jurisdictions and is subject to various regulations and legal requirements. Changes in regulations, compliance issues, or legal disputes could have a negative impact on the company's operations and financial performance.  

      Operational Risks: Like any large retail operation, Costco faces operational risks such as inventory management, distribution, and logistics. Any disruptions or inefficiencies in these areas could impact the company's ability to meet customer demand and affect its financial performance.  

      Foreign Exchange Risk: Costco operates internationally and is exposed to foreign exchange risk. Fluctuations in currency exchange rates can impact the company's financial results when translating foreign currency-denominated earnings back into the reporting currency.  

      It's important to note that these risks are not exhaustive, and there may be other factors specific to Costco that could impact its performance. It's recommended to conduct thorough research, consider your risk tolerance, and consult with a financial advisor before making any investment decisions.

      Disclaimer: The information provided is for reference purposes only and does not constitute investment advice.

    • ShyonReplyTigerGPT
      Any risk for Costco?
    • TigerGPTReplyShyon

      Based on the available data, the target price forecast for Costco (COST) is not provided directly. However, I can provide you with the analyst target price range. According to the valuation analysis, 29 analysts have forecasted the target price for Costco. The mean target estimate is $782.40, with a low estimate of $650.00 and a high estimate of $870.00.

      Please note that these target price estimates are provided by analysts and may vary over time. It's important to conduct your own research and analysis before making any investment decisions.

      Additionally, here are the earnings forecast for Costco:

      2024FY: Forecast EPS of $16.18 (USD) and forecast gross income of $253.95 billion (USD).  

      2025FY: Forecast EPS of $17.42 (USD) and forecast gross income of $272.04 billion (USD).  

      2026FY: Forecast EPS of $19.12 (USD) and forecast gross income of $290.12 billion (USD).  

      Please note that these earnings forecasts are for reference purposes only and may be subject to change.

      It's important to remember that target prices and earnings forecasts are based on various factors and assumptions, and they should not be considered as guarantees or investment advice. It's always recommended to conduct thorough research and consult with a financial advisor before making any investment decisions.

      Disclaimer: The information provided is for reference purposes only and does not constitute investment advice.

    • ShyonReplyTigerGPT
      What is your target price for Costco
    • TigerGPT

      Costco is indeed a well-established and stable company. It has built a strong reputation for offering quality products at discounted prices, which attracts a large customer base. The company's focus on providing value for money has made it a popular choice for consumers.

      One of the key factors contributing to Costco's success is its membership model. Costco relies on membership growth and high renewal rates to drive its business. This ensures a steady stream of loyal customers who regularly shop at its warehouses. With a renewal rate of around 90% or better, Costco can count on long-term customer relationships.

      Furthermore, Costco has demonstrated resilience in its business operations. The company has consistently maintained a strong gross margin, indicating effective cost management and pricing strategies. This has helped protect its profitability and ensure sustainable growth.

      In terms of expansion, Costco has been actively opening new stores worldwide, including in Asia. This expansion into new markets presents opportunities for further growth and market penetration. While there is currently no Costco store in Singapore, the company's global presence and success suggest that it may consider entering the Singapore market in the future.

      It's worth noting that while Costco's business model and performance indicate stability and potential for growth, it's important to conduct thorough research and analysis before making any investment decisions. Factors such as market conditions, competition, and industry trends should be taken into consideration. It's always advisable to consult with a financial advisor or conduct your own due diligence before making any investment choices.

      Please note that the information provided is for reference purposes only and does not constitute investment advice.

  • icycrystal
    04-24
    icycrystal
    thanks for sharing
    • Shyon
      Thanks for support, gogogog
  • Fenger1188
    04-24
    Fenger1188
    👍🏻👍🏻
    • Shyon
      Thanks Fenger hehe 😃😃😃
  • Shyon
    04-24
    Shyon
    @rL @koolgal @icycrystal @b1uesky @Universe宇宙 @GoodLife99 @Fenger1188 come and join the discussion under Tiger Earnings for coins.
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