WD-40 Stock Discussion

In after-hours action, Costco Wholesale gained 2% after announcing its first membership rate increase since 2017. WD-40 Company added 12% on the back of its fiscal third quarter report, posting total net sales that rose 9% from the year-ago period.
Earlier in the day, the S&P 500 added 1.02% to close above 5,600 for the first time, while the Nasdaq Composite advanced 1.18% to a record close. The 30-stock Dow gained 429.39 points, or 1.09%.
These moves come before a key inflation report due to ...

Market participants hold the company in high regard despite slower EPS growth. The high P/E ratio and recent TSR improvement suggest optimism about the company's future growth.

WD-40's earnings potential is promising due to its satisfactory free cash flow relative to profit. The company's EPS has increased by 11% over the last twelve months, but a comprehensive understanding of the company requires more than just these factors.

WD-40's dividend sustainability is likely due to flat earnings per share and reasonable payout limits. However, the lack of significant EPS growth and a high payout ratio may limit future growth. Overall, WD-40's dividend appeal is not particularly high.

Despite WD-40's market-leveled earnings outlook, investors' high expectations and reluctance to sell their stocks are not echoed in the firm's high P/E ratio, potentially setting shareholders up for disappointment if the P/E aligns with the growth forecast.