10 Stocks That May Be Splitting Soon

5. Costco Wholesale Corporation (NASDAQ:COST)

Share Price as of August 30: $886.63

Number of Hedge Fund Holders: 71

Costco Wholesale Corporation (NASDAQ:COST) is an American multinational corporation that operates a chain of membership-only big-box warehouse club retail stores, known for its bulk-sized products, low prices, and wide selection. It offers a variety of goods, including groceries, electronics, clothing, household items, and more.

The company intentionally creates value for members by delivering lower prices and reducing costs wherever possible. New Kirkland Signature items and price reductions on existing items further enhance value.

The company’s strong sales growth in FQ3 2024 was driven by merchandising teams identifying high-quality items that resonated with members. Members purchased more discretionary items and core merchandise, bakery sales also thrived with new items.

Since the end of FQ3, there was an opening in Loomis, California, and one in the seventh building in China in the Nanjing market. For the remainder of 2024, 9 openings in the US, 2 in Japan, and 1 in Korea are planned.

The company’s curated marketplace, Costco Next, is growing steadily, with 8 new vendors in FQ3, bringing the total to 75. App downloads increased by 32%, and site traffic increased by 16%. The average order value also rose 8%.

Net sales increased 9.1% for this quarter. Executive members now represent over 46% of paid members and 73.1% of worldwide sales. The year-over-year improvement was 9.07%, with a revenue of $58.52 billion and earnings per share of $3.78.

The company’s stock price also soared in a year with a 63.51% rise. Costco Wholesale Corporation (NASDAQ:COST) has engaged in 2 stock splits previously, and this rise in share price might just bring another one.

It expanded its partnership with Uber, allowing consumers to order from Costco through Uber Eats in Canada and 17 US. states. Management says this partnership will be expanded to more international countries soon. Such partnerships reflect optimism in the company’s future growth.

71 hedge funds hold long positions in the country as of June 30. The largest stake has a position of $2,512,487,521, held by Fisher Asset Management.

ClearBridge Sustainability Leaders Strategy stated the following regarding Costco Wholesale Corporation (NASDAQ:COST) in its Q2 2024 investor letter:

“Consumer staples holdings were also standouts in the quarter, such as Costco Wholesale Corporation (NASDAQ:COST), which continues to execute well and delivered better than expected earnings, helped by strong traffic driving better expense leverage. Customers also looked to be shifting toward more discretionary purchases.”