Costco Wholesale Corporation (NASDAQ: COST ) ranks among the stocks to invest in before they split next . Costco Wholesale Corporation (NASDAQ:COST) has split its shares three times in its history: 2-for-1 in 1991, 3-for-2 in 1992, and 2-for-1 in 2000. Based on the current pricing, the market is speculating whether Costco Wholesale Corporation (NASDAQ:COST) may split its stock in order to lower the price and attract more retail investors.
On April 16, Mizuho Financial Group boosted its price target for Costco Wholesale Corporation (NASDAQ:COST) to $1,100 from $1,065 while keeping an Outperform rating, citing sustained operational performance. Costco’s fuel business has been a key driver of recent improvement, with March volumes increasing considerably.
Fuel sales, along with a roughly 20% increase in average selling prices, contributed approximately 250 basis points to U.S. comparable sales growth. If fuel costs remain high, this tailwind may continue into the coming quarters, leading to possible year-over-year price gains of 30% or more.
That said, the firm warned that adding low-margin gas revenues would likely reduce the composite gross margin rate by roughly 20 basis points, excluding membership fees, in line with previous examples. However, Mizuho added that the fuel trends do not affect its bullish outlook on the shares and advised investors to hold long.
A membership-based warehouse club, Costco Wholesale Corporation (NASDAQ:COST), offers bulk discounts on an array of products, including food, electronics, and household products.
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