Forecast Of The Day: Costco’s U.S. Revenue Per Square Foot

March 8th, 2022 by Trefis Team
+0.57%
Upside
722
Market
726
Trefis
COST: Costco logo
COST
Costco

What?

Costco’s (NASDAQ:COST) Revenue per Square Foot at its U.S. warehouses rose from $1,106 in 2019 to $1,392 in 2021. Trefis expects the metric to rise further to about $1,600 by 2023.

Why?

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Costco’s focus on low prices and a large selection is enabling it to scale up its membership base and overall revenue per square foot.

So What?

However, despite the strong growth, we think COST stock looks fully priced at current levels. We value the stock at about $550 per share, 4% ahead of the current market price.

See Our Complete Analysis For Costco

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.

Returns Mar 2022
MTD [1]		 2022
YTD [1]		 2017-22
Total [2]
 COST Return 2% -7% 230%
 S&P 500 Return -4% -12% 88%
 Trefis MS Portfolio Return -5% -15% 236%

[1] Month-to-date and year-to-date as of 3/8/2022
[2] Cumulative total returns since the end of 2016

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