Costco stock price soared sharply in the past three months amid high double-digit sales growth. The company has impressed several analysts by generating double-digit growth in all core merchandising categories.

Its share price surged more than 15% in the last three months. Costco stock price has hit an all-time high of $363 early this month.

COST Costco Wholesale Corporation daily Stock Chart

Its fourth-quarter revenue of $53.38 billion grew 12.4% year over year and topped analysts’ consensus estimate by $1.02 billion. Comparable sales increased 14% in the fourth quarter from the past year period while e-commerce sales grew 91%.

Although the company incurred additional costs due to the pandemic, it has still successfully turned double-digit revenue growth into big profits. Its fourth-quarter earnings per share came in at $3.13, compared to $2.47 per diluted share in the past year period.

The market analysts are expecting a special dividend from the company in addition to regular dividends. The company offers a dividend yield of 0.81% and it currently offers a quarterly dividend of $0.70 per share. Costco has substantial dividend growth potential amid robust growth in earnings and cash flows.

Oppenheimer and Bank of America have provided a $400 price target to Costco stock, representing a significant upside from the current level of $350. Shares of Costco grew 135% in the past five years but fundamentals suggest that the stock has more upside potential in days ahead.

Cowen has set a $410 price target for Costco. Its analyst Oliver Chen said, “We view COST as one of the top share winners during the pandemic driven by strength in food & other categories. COST well-positioned for continued physical & digital traffic as its core competency is to offer members exceptional value given a fixed markup model. We also believe COST’s e-comm investments in talent, infrastructure, & products will drive innovation & loyalty.”