Costco Wholesale Corporation (COST): Retail's Featured Stock Of The Day

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Costco Wholesale Corporation ( COST) pushed the Retail industry higher today making it today's featured retail winner. The industry as a whole closed the day up 1%. By the end of trading, Costco Wholesale Corporation rose $1.34 (1.3%) to $105.55 on average volume. Throughout the day, 2.7 million shares of Costco Wholesale Corporation exchanged hands as compared to its average daily volume of two million shares. The stock ranged in a price between $104.55-$105.79 after having opened the day at $104.73 as compared to the previous trading day's close of $104.21. Other companies within the Retail industry that increased today were: QKL Stores ( QKLS), up 10.3%, ValueVision Media ( VVTV), up 7.3%, J.C. Penney ( JCP), up 5.6%, and PC Connection ( PCCC), up 5.1%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Costco Wholesale Corporation engages in the operation of membership warehouses. The company offers branded and private-label products in a range of merchandise categories. Costco Wholesale Corporation has a market cap of $46.31 billion and is part of the services sector. The company has a P/E ratio of 23.8, above the S&P 500 P/E ratio of 17.7. Shares are up 7.5% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Costco Wholesale Corporation a buy, two analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Costco Wholesale Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the retail industry could consider SPDR S&P Retail ETF ( XRT) while those bearish on the retail industry could consider ProShares Ultra Sht Consumer Goods ( SZK).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100% See his top picks for 14-days FREE.

null

More from Markets

Global Stocks Rebound But US-China Trade War Concerns Keep Investors on Edge

Global Stocks Rebound But US-China Trade War Concerns Keep Investors on Edge

REPLAY: Jim Cramer on How to Navigate the Stock Market Amid Tariff Worries

REPLAY: Jim Cramer on How to Navigate the Stock Market Amid Tariff Worries

Global Markets Hit Hard; AMC Entertainment Sells Stake in Ad Unit -- ICYMI

Global Markets Hit Hard; AMC Entertainment Sells Stake in Ad Unit -- ICYMI

CVS, Walgreens and Citigroup: Cramer's 'Off the Charts'

CVS, Walgreens and Citigroup: Cramer's 'Off the Charts'

Jim Cramer: 4 Stocks Could Get Throttled By a 'Knock Down Drag Out' With China

Jim Cramer: 4 Stocks Could Get Throttled By a 'Knock Down Drag Out' With China