Costco Wholesale COST underwent analysis by 34 analysts in the last quarter, revealing a spectrum of viewpoints 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 | 12 | 16 | 6 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 4 | 5 | 2 | 0 | 0 |
| 2M Ago | 3 | 3 | 0 | 0 | 0 |
| 3M Ago | 5 | 7 | 4 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $877.24, with a high estimate of $975.00 and a low estimate of $676.00. This current average reflects an increase of 5.76% from the previous average price target of $829.44.
Deciphering Analyst Ratings: An In-Depth Analysis
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 |
|---|---|---|---|---|---|
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $925.00 | $925.00 |
| Oliver Chen | TD Cowen | Raises | Buy | $925.00 | $850.00 |
| George Kelly | Wells Fargo | Raises | Equal-Weight | $800.00 | $775.00 |
| Rupesh Parikh | Oppenheimer | Raises | Outperform | $950.00 | $905.00 |
| Greg Melich | Evercore ISI Group | Raises | Outperform | $920.00 | $890.00 |
| Karen Short | Barclays | Raises | Equal-Weight | $830.00 | $765.00 |
| Laura Champine | Loop Capital | Raises | Buy | $970.00 | $940.00 |
| Mark Astrachan | Stifel | Raises | Buy | $950.00 | $900.00 |
| Robert Ohmes | B of A Securities | Raises | Buy | $962.00 | $874.00 |
| Peter Benedict | Baird | Raises | Outperform | $975.00 | $850.00 |
| Joseph Feldman | Telsey Advisory Group | Raises | Outperform | $925.00 | $900.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $900.00 | $900.00 |
| Mark Astrachan | Stifel | Raises | Buy | $900.00 | $850.00 |
| Ivan Feinseth | Tigress Financial | Raises | Buy | $975.00 | $870.00 |
| Greg Melich | Evercore ISI Group | Raises | Outperform | $890.00 | $860.00 |
| Laura Champine | Loop Capital | Raises | Buy | $940.00 | $890.00 |
| Rupesh Parikh | Oppenheimer | Raises | Outperform | $905.00 | $850.00 |
| Joseph Feldman | Telsey Advisory Group | Raises | Outperform | $900.00 | $850.00 |
| Laura Champine | Loop Capital | Raises | Buy | $890.00 | $840.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $850.00 | $850.00 |
| Paul Lejuez | Citigroup | Raises | Neutral | $800.00 | $710.00 |
| Karen Short | Barclays | Raises | Equal-Weight | $765.00 | $700.00 |
| Oliver Chen | TD Cowen | Raises | Buy | $850.00 | $777.00 |
| Kelly Bania | BMO Capital | Raises | Outperform | $875.00 | $800.00 |
| Bill Kirk | Roth MKM | Raises | Neutral | $676.00 | $650.00 |
| George Kelly | Wells Fargo | Raises | Equal-Weight | $775.00 | $750.00 |
| Scot Ciccarelli | Truist Securities | Raises | Buy | $873.00 | $815.00 |
| Greg Melich | Evercore ISI Group | Raises | Outperform | $860.00 | $845.00 |
| Mark Astrachan | Stifel | Raises | Buy | $850.00 | $800.00 |
| Joseph Feldman | Telsey Advisory Group | Raises | Outperform | $850.00 | $800.00 |
| Chris Graja | Argus Research | Raises | Buy | $900.00 | $805.00 |
| Rupesh Parikh | Oppenheimer | Raises | Outperform | $850.00 | $805.00 |
| Greg Melich | Evercore ISI Group | Raises | Outperform | $820.00 | $810.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $800.00 | $800.00 |
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: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey 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.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Costco Wholesale's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on Costco Wholesale analyst ratings.
Delving into Costco Wholesale's Background
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 enjoys 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.
Understanding the Numbers: Costco Wholesale's Finances
Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
Positive Revenue Trend: Examining Costco Wholesale's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 9.07% as of 31 May, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Staples sector.
Net Margin: Costco Wholesale's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.87% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Costco Wholesale's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 7.9%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Costco Wholesale's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.5%, the company showcases efficient use of assets and strong financial health.
Debt Management: Costco Wholesale's debt-to-equity ratio is below the industry average at 0.43, reflecting a lower dependency on debt financing and a more conservative financial approach.
How Are Analyst Ratings Determined?
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.
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.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.
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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