In the last three months, 36 analysts have published ratings on Costco Wholesale COST, offering a diverse range of perspectives from bullish to bearish.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 10 | 16 | 10 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 6 | 6 | 8 | 0 | 0 |
| 2M Ago | 2 | 5 | 2 | 0 | 0 |
| 3M Ago | 2 | 4 | 0 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $933.89, along with a high estimate of $1065.00 and a low estimate of $755.00. This upward trend is apparent, with the current average reflecting a 3.76% increase from the previous average price target of $900.09.
Interpreting Analyst Ratings: A Closer Look
The analysis of recent analyst actions sheds light on the perception of Costco Wholesale by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Dean Rosenblum | Bernstein | Announces | Outperform | $1016.00 | - |
| Ivan Feinseth | Tigress Financial | Announces | Buy | $1065.00 | - |
| 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: 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: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Costco Wholesale compared to the broader market.
- Price Targets: Analysts predict movements in price targets, offering estimates for Costco Wholesale's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
To gain a panoramic view of Costco Wholesale's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on Costco Wholesale analyst ratings.
Get to Know Costco Wholesale Better
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.
Costco Wholesale: Financial Performance Dissected
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
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 0.96%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower 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 2.95%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Costco Wholesale's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 10.37% ROE, the company effectively utilizes shareholder equity capital.
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: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.35.
How Are Analyst Ratings Determined?
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.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
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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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