Costco (COST) Stock Gains on June Sales

Costco (COST) stock is higher in pre-market trading after reporting an increase in June same-store sales.
By Rachel Graf ,

NEW YORK (TheStreet) -- Shares of Costco Wholesale (COST) - Get Report are up 1.30% to $158.04 in pre-market trading on Thursday after reporting better-than-expected same-store sales for June.

The membership-only warehouse club reported flat same-store sales for last month, better than the 1.5% decline projected by analysts. Excluding certain items such as foreign exchange, same-store sales rose 3%.

Last year, Costco reported a 1% decline in June same-store stores, or a 6% gain excluding certain items. 

Total sales increased 3% to $11.33 billion last month, up from $11.03 billion a year ago.

(Costco is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial here.)

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A-.

Costco's strengths such as its revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

You can view the full analysis from the report here: COST

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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