Expert Outlook: Costco Wholesale Through The Eyes Of 27 Analysts

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During the last three months, 27 analysts shared their evaluations of Costco Wholesale COST, revealing diverse outlooks from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 5 15 7 0 0
Last 30D 0 0 1 0 0
1M Ago 1 5 2 0 0
2M Ago 3 7 3 0 0
3M Ago 1 3 1 0 0

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $772.96, with a high estimate of $870.00 and a low estimate of $650.00. This current average reflects an increase of 6.06% from the previous average price target of $728.80.

price target chart

Understanding Analyst Ratings: A Comprehensive Breakdown

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
Paul Lejuez Citigroup Raises Neutral $710.00 $630.00
Greg Melich Evercore ISI Group Lowers Outperform $790.00 $805.00
Laura Champine Loop Capital Lowers Buy $820.00 $830.00
Michael Baker DA Davidson Maintains Neutral $680.00 $680.00
Greg Melich Evercore ISI Group Raises Outperform $805.00 $795.00
Bill Kirk Roth MKM Raises Neutral $650.00 $601.00
Joseph Feldman Telsey Advisory Group Maintains Outperform $800.00 $800.00
Joseph Feldman Telsey Advisory Group Maintains Outperform $800.00 $800.00
Chuck Grom Gordon Haskett Announces Accumulate $775.00 -
Ivan Feinseth Tigress Financial Raises Buy $870.00 $745.00
Kelly Bania BMO Capital Raises Outperform $800.00 $770.00
Seth Sigman Barclays Raises Equal-Weight $700.00 $614.00
Michael Baker DA Davidson Raises Neutral $680.00 $600.00
Mark Astrachan Stifel Raises Buy $800.00 $735.00
Greg Melich Evercore ISI Group Raises Outperform $815.00 $770.00
Scot Ciccarelli Truist Securities Raises Buy $815.00 $741.00
Rupesh Parikh Oppenheimer Maintains Outperform $805.00 $805.00
George Kelly Wells Fargo Raises Equal-Weight $750.00 $675.00
Peter Benedict Baird Raises Outperform $850.00 $775.00
Joseph Feldman Telsey Advisory Group Raises Outperform $800.00 $785.00
Rupesh Parikh Oppenheimer Raises Outperform $805.00 $760.00
Joseph Feldman Telsey Advisory Group Raises Outperform $785.00 $750.00
Kate McShane Goldman Sachs Raises Buy $830.00 $749.00
George Kelly Wells Fargo Raises Equal-Weight $675.00 $610.00
Joseph Feldman Telsey Advisory Group Maintains Outperform $750.00 -
Joseph Feldman Telsey Advisory Group Raises Outperform $750.00 $700.00
Rupesh Parikh Oppenheimer Raises Outperform $760.00 $695.00

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Costco Wholesale. This offers insight into analysts' perspectives on 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: Analysts provide insights into price targets, offering estimates for the future value of Costco Wholesale's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Costco Wholesale's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Costco Wholesale analyst ratings.

All You Need to Know 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 over 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 UK.

Financial Insights: Costco Wholesale

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Costco Wholesale's remarkable performance in 3 months is evident. As of 29 February, 2024, the company achieved an impressive revenue growth rate of 5.75%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Staples sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 2.98%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 7.43%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Costco Wholesale's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.49% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.45.

Understanding the Relevance of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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