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Why Costco Stock Fell on Friday

By Daniel Sparks - Feb 28, 2020 at 6:51PM

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Shares of the warehouse club are trading lower ahead of earnings next week.

What happened

Shares of Costco (COST 0.94%) took a hit on Friday. The stock declined as much as 7.5% and finished the trading day down about 4.1%.

The warehouse club stock's decline was likely primarily due to growing fears about the COVID-19 coronavirus' impact on the global economy.

A cart in the aisle of a warehouse club

Image source: Getty Images.

So what

Highlighting the continued bearishness in the market on Friday, the S&P 500 index declined 0.8%, bringing the market's total decline this week to 11.5%. Shares of Costco tracked similarly throughout the week, falling about 12%.

Some investors may have felt that it was a good time to take profits on Costco. Shares have risen sharply over the past year. Even including this week's pullback, the stock is up 29% over the past 12 months. This compares to the S&P 500's 5.8% gain over this same time frame.

Now what

Investors have high expectations for Costco, as same-store sales have consistently risen at robust rates. January same-store sales were up 6.6%.

Costco will report its February sales and its fiscal second-quarter results next week, after market close, on March 5. 

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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