Costco Posts Weak March Sales. Is the Stock Still a Buy?
On the surface, the number is more than a little alarming. Costco Wholesale (NASDAQ: COST) reported a mere 0.5% year-over-year sales increase for March -- the weakest top-line improvement seen since the COVID-19 pandemic spread across the world in April 2020. The slowdown also extends an already long streak of waning growth. The apparent trend, of course, bodes poorly for the company's future. That's why Costco stock abruptly fell when March's sales-growth figure was reported on Thursday.
As the old adage goes, there's more to the story. The pullback following last month's revenue report is actually a buying opportunity because bigger-picture sales are still growing nicely. March's lackluster growth just comes with a major footnote.
Costco is one of the (very) few remaining retailers to still provide monthly sales data. But more information isn't necessarily better for shareholders if those investors don't keep things in perspective.
Source Fool.com
