Costco: Not a riveting first quarter

That's not so great, really, especially when you take into account the fact that the U.S. locations were something of a drag on the blended number: U.S. same-store sales rose 1%, while international same-store sales were up 13%. It would be nice to see the domestic side of things doing equally as well as the international assets.

Not only was the report devoid of action, but so was the trading in the stock. Shares of the food club closed up by only a dime at the end of yesterday's session. At $58.76, the stock is less than three bucks from its 52-week high.

Of course, maybe boring is ultimately good for this business. As The Fly On The Wall reminds us, Costco hasn't had the easiest of times during the year. In fact, I recall covering one of the tougher quarters back in March.

Now, however, it's possible that things will be looking up for the company. It's all about execution at this point. Management should focus on efficiency of the supply chain and better merchandising efforts to drive those comps.

Costco isn't my favorite stock right now. I believe it will do well over the long term, so I don't hate it, but I also don't perceive anything from the earnings release that makes the company a compelling buy. And I agree with Joseph Lazzaro's recent comments on the valuation of the shares. I would like to look at Costco again after it gets a little cheaper.

Disclosure: I don't own any company mentioned; positions can change without notice.