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Pro Analysis

Costco to hike member fees later this year, so buy the stock, Goldman Sachs says

Customers shop at a Costco Wholesale Corp. store in Hackensack, New Jersey.
Ron Antonelli | Bloomberg | Getty Images
Customers shop at a Costco Wholesale Corp. store in Hackensack, New Jersey.

Investors should buy Costco shares now before two events in the next 12 months add significantly to earnings, according to Goldman Sachs.

"Costco has high-visibility catalysts for 2017, and we expect investors to focus on them as we make our way through mid-year. These include the transition to a new credit card and a prospective member fee rate hike," Goldman Sachs' Matthew Fassler wrote in a note to clients Tuesday.

"We expect accelerating earnings momentum to drive some multiple expansion, and outperformance."