In the last three months, 34 analysts have published ratings on Costco Wholesale COST, offering a diverse range of perspectives from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 9 | 15 | 10 | 0 | 0 |
| Last 30D | 1 | 3 | 1 | 0 | 0 |
| 1M Ago | 4 | 3 | 8 | 0 | 0 |
| 2M Ago | 2 | 6 | 1 | 0 | 0 |
| 3M Ago | 2 | 3 | 0 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $927.62, a high estimate of $1005.00, and a low estimate of $755.00. Witnessing a positive shift, the current average has risen by 3.06% from the previous average price target of $900.09.
Investigating Analyst Ratings: An Elaborate Study
A clear picture of Costco Wholesale's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below 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 | $1000.00 | $1000.00 |
| Michael Baker | DA Davidson | Maintains | Neutral | $880.00 | $880.00 |
| Mark Astrachan | Stifel | Raises | Buy | $935.00 | $925.00 |
| Rupesh Parikh | Oppenheimer | Raises | Outperform | $980.00 | $955.00 |
| Greg Melich | Evercore ISI Group | Raises | Outperform | $990.00 | $985.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $1000.00 | $1000.00 |
| Oliver Chen | TD Cowen | Raises | Buy | $975.00 | $925.00 |
| Bill Kirk | Roth MKM | Raises | Neutral | $755.00 | $676.00 |
| Michael Baker | DA Davidson | Raises | Neutral | $880.00 | $780.00 |
| Kate McShane | Goldman Sachs | Raises | Buy | $995.00 | $876.00 |
| George Kelly | Wells Fargo | Raises | Equal-Weight | $850.00 | $800.00 |
| Joseph Feldman | Telsey Advisory Group | Raises | Outperform | $1000.00 | $925.00 |
| Karen Short | Barclays | Raises | Equal-Weight | $850.00 | $830.00 |
| Scot Ciccarelli | Truist Securities | Raises | Hold | $909.00 | $873.00 |
| Kelly Bania | BMO Capital | Raises | Outperform | $980.00 | $950.00 |
| Mark Astrachan | Stifel | Raises | Buy | $925.00 | $915.00 |
| Laura Champine | Loop Capital | Raises | Buy | $1005.00 | $975.00 |
| Scot Ciccarelli | Truist Securities | Maintains | Hold | $873.00 | $873.00 |
| 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 |
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: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into 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.
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.
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 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 Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: Costco Wholesale displayed positive results in 3 months. As of 31 August, 2024, the company achieved a solid revenue growth rate of approximately 36.2%. This indicates a notable 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 net margin excels beyond industry benchmarks, reaching 2.95%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Costco Wholesale's ROE stands out, surpassing industry averages. With an impressive ROE of 10.37%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Costco Wholesale's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 3.42%, 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 0.35, reflecting a lower dependency on debt financing and a more conservative financial approach.
Understanding the Relevance of Analyst Ratings
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.
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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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