Costco Soars on Fresh Wave of Momentum: Can It Last?

This American classic is starting to look more like a rising star with serious profit power… [Derby City Daily logo]( [Derby City Daily logo]( December 15, 2023 [Costco Soars on Fresh Wave of Momentum: Can It Last?]( 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, [Andy Swan's signature] [Andy Swan's signature] Andy Swan Founder, LikeFolio [Add This $3 Moonshot to Your Portfolio for 2024]( 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](. Get Instant Access Click to read these free reports and automatically sign up for research throughout the week. [25 Doomed Blue Chip Stocks]( [The Infinite Income Manifesto]( © 2023 TradeSmith, LLC t/a Derby City Insights. All Rights Reserved. 1125 N. Charles Street, Baltimore, MD 21201 To unsubscribe or change your email preferences, please [click here](. [Terms of Use]( | [Privacy Policy](