37 analysts have expressed a variety of opinions on Costco Wholesale COST over the past quarter, offering a diverse set of opinions from bullish to bearish.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 11 | 20 | 6 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 5 | 8 | 2 | 0 | 0 |
| 2M Ago | 1 | 3 | 0 | 0 | 0 |
| 3M Ago | 5 | 9 | 3 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $621.95, a high estimate of $725.00, and a low estimate of $502.00. Observing a 5.73% increase, the current average has risen from the previous average price target of $588.27.
Investigating Analyst Ratings: An Elaborate Study
A clear picture of Costco Wholesale's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Chuck Cerankosky | Northcoast Research | Announces | Neutral | $620.00 | - |
| Kelly Bania | BMO Capital | Raises | Outperform | $700.00 | $612.00 |
| Michael Baker | DA Davidson | Raises | Neutral | $600.00 | $570.00 |
| Mark Astrachan | Stifel | Raises | Buy | $675.00 | $615.00 |
| Paul Lejuez | Citigroup | Raises | Neutral | $630.00 | $585.00 |
| Michael Lasser | UBS | Raises | Buy | $725.00 | $640.00 |
| Rupesh Parikh | Oppenheimer | Maintains | Outperform | $675.00 | - |
| Bobby Griffin | Raymond James | Raises | Outperform | $670.00 | $580.00 |
| Scot Ciccarelli | Truist Securities | Raises | Buy | $693.00 | $619.00 |
| Joseph Feldman | Telsey Advisory Group | Raises | Outperform | $700.00 | $625.00 |
| Rupesh Parikh | Oppenheimer | Raises | Outperform | $675.00 | $630.00 |
| Greg Melich | Evercore ISI Group | Raises | Outperform | $650.00 | $640.00 |
| Mark Astrachan | Stifel | Raises | Buy | $615.00 | $595.00 |
| Scot Ciccarelli | Truist Securities | Maintains | Buy | $619.00 | - |
| Joseph Feldman | Telsey Advisory Group | Raises | Outperform | $625.00 | $600.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $600.00 | - |
| Mark Astrachan | Stifel | Raises | Buy | $595.00 | $575.00 |
| Christopher Horvers | JP Morgan | Lowers | Overweight | $605.00 | $620.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $600.00 | - |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $600.00 | - |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $600.00 | - |
| Scot Ciccarelli | Truist Securities | Maintains | Buy | $619.00 | - |
| Christopher Horvers | JP Morgan | Raises | Overweight | $620.00 | $571.00 |
| Joseph Feldman | Telsey Advisory Group | Raises | Outperform | $600.00 | $575.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $575.00 | - |
| Chris Graja | Argus Research | Raises | Buy | $650.00 | $630.00 |
| Robert Ohmes | B of A Securities | Raises | Buy | $610.00 | $575.00 |
| Michael Baker | DA Davidson | Raises | Neutral | $570.00 | $478.00 |
| Scot Ciccarelli | Truist Securities | Raises | Buy | $619.00 | $597.00 |
| Bill Kirk | Roth MKM | Raises | Neutral | $502.00 | $482.00 |
| Simeon Gutman | Morgan Stanley | Raises | Overweight | $585.00 | $535.00 |
| Kelly Bania | BMO Capital | Raises | Outperform | $612.00 | $600.00 |
| Krisztina Katai | Deutsche Bank | Raises | Buy | $652.00 | $651.00 |
| Christopher Horvers | JP Morgan | Raises | Overweight | $571.00 | $525.00 |
| Bobby Griffin | Raymond James | Raises | Outperform | $580.00 | $570.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $575.00 | - |
| Daniela Bretthauer | HSBC | Announces | Hold | $600.00 | - |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Costco Wholesale. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Costco Wholesale compared to the broader market.
- Price Targets: Gaining insights, analysts provide estimates for the future value of Costco Wholesale's stock. This comparison reveals trends in analysts' expectations over time.
Capture valuable insights into Costco Wholesale's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
Stay up to date on Costco Wholesale analyst ratings.
About Costco Wholesale
Costco operates a membership-based, no-frills retail model, predicated on offering a select product assortment in bulk quantities at bargain prices. The firm avoids maintaining costly product displays by keeping inventory on pallets and limits distribution expenses by storing its inventory at point of sale in the warehouse. Given Costco's frugal cost structure, the firm is able to price its merchandise below competing retailers, driving high sales volume per warehouse and allowing the retailer to generate strong profits on thin margins. Costco operates 591 warehouses in the United States and boasts over 60% market share in the domestic warehouse club industry. Internationally, Costco operates another 270 warehouses, primarily in markets such as Canada, Mexico, Japan, and the U.K.
Unraveling the Financial Story of Costco Wholesale
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
Negative Revenue Trend: Examining Costco Wholesale's financials over 3 months reveals challenges. As of 30 November, 2023, the company experienced a decline of approximately -26.78% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Consumer Staples sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Costco Wholesale's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 2.75%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Costco Wholesale's ROE stands out, surpassing industry averages. With an impressive ROE of 6.21%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Costco Wholesale's ROA excels beyond industry benchmarks, reaching 2.23%. This signifies efficient management of assets and strong financial health.
Debt Management: Costco Wholesale's debt-to-equity ratio is below the industry average at 0.36, reflecting a lower dependency on debt financing and a more conservative financial approach.
Understanding the Relevance of Analyst Ratings
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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