Costco stock gets unstuck after strong December sales. Where Cramer stands now
Costco stock finally woke up.
TL;DR
- Costco stock surged nearly 5% after reporting stronger-than-expected December sales.
- U.S. comparable sales for December rose 6.3%, exceeding the 3.5% estimate and accelerating from November.
- This performance signals a potential end to the stock's sluggishness and bearish narrative from the previous year.
- Improvements were seen across categories, including high single-digit growth in fresh foods and mid-single-digit growth in non-food sales.
- The average transaction size accelerated to 4.2% in December.
- Analysts have increased their fiscal Q2 comparable sales estimates for Costco.
- E-commerce comparable sales increased 18.9% in December, a jump from November but lower than the prior year.
- Jim Cramer believes the tide is turning for Costco and expects the stock to continue rising.
- Jim Cramer's Charitable Trust is long COST, with a 200% gain realized on a portion of the shares.