Costco Wholesale COST underwent analysis by 24 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 9 | 13 | 2 | 0 | 0 |
| Last 30D | 0 | 2 | 0 | 0 | 0 |
| 1M Ago | 2 | 4 | 0 | 0 | 0 |
| 2M Ago | 4 | 6 | 2 | 0 | 0 |
| 3M Ago | 3 | 1 | 0 | 0 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $924.33, a high estimate of $975.00, and a low estimate of $800.00. This upward trend is evident, with the current average reflecting a 4.32% increase from the previous average price target of $886.04.
Decoding Analyst Ratings: A Detailed Look
In examining recent analyst actions, we gain insights into 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 |
|---|---|---|---|---|---|
| Greg Melich | Evercore ISI Group | Raises | Outperform | $925.00 | $915.00 |
| Rupesh Parikh | Oppenheimer | Raises | Outperform | $955.00 | $925.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $925.00 | $925.00 |
| Kelly Bania | BMO Capital | Raises | Outperform | $950.00 | $875.00 |
| Chuck Grom | Gordon Haskett | Announces | Buy | $925.00 | - |
| Krisztina Katai | Deutsche Bank | Raises | Buy | $927.00 | $925.00 |
| Rupesh Parikh | Oppenheimer | Lowers | Outperform | $925.00 | $950.00 |
| Greg Melich | Evercore ISI Group | Lowers | Outperform | $915.00 | $920.00 |
| 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 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Costco Wholesale. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Costco Wholesale compared to the broader market.
- Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Costco Wholesale's stock. This examination reveals shifts in analysts' expectations over time.
For valuable insights into Costco Wholesale's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on Costco Wholesale analyst ratings.
Discovering Costco Wholesale: A Closer Look
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.
A Deep Dive into Costco Wholesale's Financials
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
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 competitors, the company surpassed expectations with a growth rate higher than the average among peers in the 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): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 7.9%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Costco Wholesale's ROA excels beyond industry benchmarks, reaching 2.5%. This signifies efficient management of assets and strong financial health.
Debt Management: Costco Wholesale's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.43.
The Basics of Analyst Ratings
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
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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