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 table below summarizes their recent ratings, showcasing the evolving sentiments within 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 | 2 | 4 | 1 | 0 | 0 |
| 2M Ago | 6 | 7 | 9 | 0 | 0 |
| 3M Ago | 2 | 4 | 0 | 0 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $935.97, a high estimate of $1065.00, and a low estimate of $755.00. This upward trend is evident, with the current average reflecting a 3.72% increase from the previous average price target of $902.44.
Decoding Analyst Ratings: A Detailed Look
The standing of Costco Wholesale among financial experts becomes clear 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 |
| 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 |
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 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: Gaining insights, analysts provide estimates for the future value of Costco Wholesale's stock. This comparison reveals trends in analysts' expectations over time.
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Costco Wholesale's market standing. Stay informed and make data-driven decisions with 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 boasts 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 Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Revenue Growth: Costco Wholesale's revenue growth over a period of 3 months has been noteworthy. As of 31 August, 2024, the company achieved a revenue growth rate of approximately 0.96%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Staples sector.
Net Margin: Costco Wholesale's net margin is impressive, surpassing industry averages. With a net margin of 2.95%, the company demonstrates strong profitability and effective cost management.
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 ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.42% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.35.
Analyst Ratings: What Are They?
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.
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.
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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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