In the preceding three months, 21 analysts have released ratings for Costco Wholesale COST, presenting a wide array of perspectives from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 8 | 10 | 3 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 5 | 6 | 3 | 0 | 0 |
| 3M Ago | 3 | 2 | 0 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $667.05, with a high estimate of $760.00 and a low estimate of $595.00. Observing a 7.14% increase, the current average has risen from the previous average price target of $622.59.
Decoding Analyst Ratings: A Detailed Look
An in-depth analysis of recent analyst actions unveils how financial experts perceive Costco Wholesale. The following summary 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 |
|---|---|---|---|---|---|
| Rupesh Parikh | Oppenheimer | Raises | Outperform | $760.00 | $695.00 |
| Rupesh Parikh | Oppenheimer | Raises | Outperform | $695.00 | $675.00 |
| Ivan Feinseth | Tigress Financial | Raises | Buy | $745.00 | $635.00 |
| Scot Ciccarelli | Truist Securities | Raises | Buy | $741.00 | $693.00 |
| 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 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Costco Wholesale. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Costco Wholesale compared to the broader market.
- Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Costco Wholesale's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on Costco Wholesale analyst ratings.
Unveiling the Story Behind 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 nearly 600 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.
Understanding the Numbers: Costco Wholesale's Finances
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: Costco Wholesale's revenue growth over a period of 3 months has been noteworthy. As of 30 November, 2023, the company achieved a revenue growth rate of approximately 6.18%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Consumer Staples sector, the company excelled with a growth rate higher 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 financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 6.21%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Costco Wholesale's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.23% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: With a below-average debt-to-equity ratio of 0.36, Costco Wholesale adopts a prudent financial strategy, indicating a balanced approach to debt management.
The Core of Analyst Ratings: What Every Investor Should Know
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
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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