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We recently compiled a list of the 10 Stocks Trade Weaker on Disappointing News. In this article, we are going to take a look at where Costco Wholesale Corporation (NASDAQ:COST) stands against the other stocks.
Wall Street finished the trading week on a strong note, with all major indices recording gains as investors digested the latest US jobs data, which fell short of expectations.
The tech-heavy Nasdaq posted the largest gain with 0.70 percent, followed by the S&P 500 with 0.55 percent, and the Dow Jones by 0.52 percent.
Ten companies across mixed sectors bucked a wider market optimism, ending Friday in the red territory. In this article, we have listed the 10 worst-performing names and detailed the reasons behind their performance.
To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
A customer in a warehouse aisles, browsing the wide range of branded and private-label products.
Costco Wholesale Corporation (NASDAQ:COST)
Costco Wholesale Corporation (NASDAQ:COST) fell back to the $900 territory on Friday, losing 6.07 percent to finish at $964.31 apiece as investor sentiment was disappointed by missed earnings estimates for the first half of fiscal year 2025.
In its latest earnings release, Costco Wholesale Corporation (NASDAQ:COST) said net income rose by 2.5 percent to $1.788 billion, or $4.02 per diluted share. This compared with $1.743 billion, or $3.92 per diluted share, in the last quarter of the year, thanks to a $94-billion tax benefit due to the deductibility of the $15 per share special dividend to the extent received by 401(k) plan participants.
Analysts expected the company to post $4.11 per share.
Net profit for the second half stood at $3.59 billion, or $8.06 per diluted share, compared with $3.33 billion, or $7.49 per diluted share, last year.
Overall COST ranks 8th on our list of Friday's worst performers. While we acknowledge the potential of COST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than COST but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.