Ratings for Costco Wholesale COST were provided by 28 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 9 | 14 | 5 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 2 | 5 | 2 | 0 | 0 |
| 2M Ago | 2 | 4 | 0 | 0 | 0 |
| 3M Ago | 5 | 5 | 2 | 0 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $920.14, a high estimate of $975.00, and a low estimate of $780.00. Surpassing the previous average price target of $886.88, the current average has increased by 3.75%.
Deciphering Analyst Ratings: An In-Depth Analysis
A comprehensive examination of how financial experts perceive Costco Wholesale is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Karen Short | Melius Research | Announces | Hold | $950.00 | - |
| Daniela Nedialkova | Redburn Atlantic | Raises | Neutral | $890.00 | $860.00 |
| Simeon Gutman | Morgan Stanley | Raises | Overweight | $950.00 | $855.00 |
| Laura Champine | Loop Capital | Raises | Buy | $975.00 | $970.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $925.00 | $925.00 |
| Mark Astrachan | Stifel | Raises | Buy | $915.00 | $910.00 |
| Michael Baker | DA Davidson | Maintains | Neutral | $780.00 | $780.00 |
| 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 |
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: 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: Understanding forecasts, analysts offer estimates for Costco Wholesale's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
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 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.
Financial Milestones: Costco Wholesale's Journey
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: Over the 3 months period, Costco Wholesale showcased positive performance, achieving a revenue growth rate of 9.07% as of 31 May, 2024. This reflects 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: Costco Wholesale's net margin is impressive, surpassing industry averages. With a net margin of 2.87%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Costco Wholesale's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 7.9% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Costco Wholesale's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.5% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: With a below-average debt-to-equity ratio of 0.43, Costco Wholesale adopts a prudent financial strategy, indicating a balanced approach to debt management.
How Are Analyst Ratings Determined?
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
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.
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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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