Is Walmart's Warning a Red Flag for Costco Stock?
Shares of Costco Wholesale (NASDAQ: COST) are trading close to new highs but sold off recently along with several other retail stocks. In its most recent earnings report, (NYSE: WMT) said it is more cautious about the holiday quarter than it was three months ago. It noted sluggish sales in the second half of October.
Walmart is seen as a barometer for the health of consumer spending since it is such a large business. Slowing retail sales could be a problem for Costco shares, which trade at a price-to-earnings ratio of 41.6 (compared to the 23.5 P/E ratio for the S 500 index). The company's October sales report also showed a slight deceleration in comparable sales over September.
Let's find out more about how Walmart's news might impact Costco, and the stock, in the near term.
Source Fool.com
Walmart Inc. Stock
The stock is an absolute favorite of our community with 78 Buy predictions and no Sell predictions.
With a target price of 75 € there is a slightly positive potential of 17.79% for Walmart Inc. compared to the current price of 63.67 €.
