| By Andy Swan Take a look at this chart: 
That might look like a rising star tech stock. But it's actually an American classic: Costco (COST).
This "Steady Eddie" portfolio staple that's been padding investor profits year after year is now soaring into 2024 on a fresh wave of investor momentum.
Shares rallied this week ahead of earnings with investors speculating about a potential price increase.
And no, we're not talking about its iconic $1.50 hotdog – we're talking about a hike in its membership fees.
The last time Costco raised the price of membership was in June 2017, so it's due for another.
An anticipated hike would serve as a sort of double punch, building on previous efforts to crack down on membership sharing through an extra ID check at self-checkout.
While last night's earnings results didn't deliver the membership fee increase Wall Street was expecting, what we got might've been even better.
Along with a 6.1% year-over-year boost in net sales to $56.72 billion, a 7.6% increase in paid household members, and strong earnings beat, Costco announced a special cash dividend – just in time for the holidays.
Any investor holding COST as of December 28 will receive a special dividend payout of $15 per share on January 12, 2024.
That was enough to send COST soaring another 5% today to a new intra-day high of $661.88 (as of this writing), putting it on track for another record close to top off a week-long rally.
From an execution standpoint, Costco is firing on all cylinders.
But what about from a consumer standpoint? That's where our data offers unique insight.
Here's the full story on whether Costco could sustain this growth into 2024, even with a membership fee increase still looming... Click here to continue reading Until next time, |
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Andy Swan
Founder, LikeFolio Costco is a great bet on an American classic. But there's always room in our portfolio for another kind of bet – a moonshot.
You know, one of those lesser-known stocks trading for just a few bucks... but with the potential to skyrocket?
Well, we've got our eye on a $3 pick that fits the "moonshot" bill to a T. Not only is it riding the AI profit train – but it's set to benefit from a political ad spending spree in the new year.
Check out this gem today while it's still flying under the radar.
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