Where Costco Wholesale Stands With Analysts

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In the latest quarter, 30 analysts provided ratings for Costco Wholesale COST, showcasing a mix of bullish and bearish perspectives.

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 6 16 8 0 0
Last 30D 0 1 0 0 0
1M Ago 4 7 7 0 0
2M Ago 0 4 0 0 0
3M Ago 2 4 1 0 0

The 12-month price targets, analyzed by analysts, offer insights with an average target of $1022.27, a high estimate of $1175.00, and a low estimate of $880.00. Surpassing the previous average price target of $958.36, the current average has increased by 6.67%.

price target chart

Exploring Analyst Ratings: An In-Depth Overview

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 $1100.00 $1100.00
Paul Lejuez Citigroup Raises Neutral $1060.00 $800.00
Edward Kelly Wells Fargo Raises Equal-Weight $1000.00 $950.00
Michael Baker DA Davidson Raises Neutral $900.00 $880.00
Simeon Gutman Morgan Stanley Raises Overweight $1150.00 $950.00
Oliver Chen TD Cowen Raises Buy $1090.00 $975.00
Scot Ciccarelli Truist Securities Raises Hold $935.00 $909.00
Karen Short Barclays Raises Equal-Weight $940.00 $850.00
Laura Champine Loop Capital Raises Buy $1095.00 $1005.00
Kelly Bania BMO Capital Raises Outperform $1175.00 $1075.00
Bill Kirk Roth MKM Raises Neutral $907.00 $755.00
Greg Melich Evercore ISI Group Raises Outperform $1030.00 $1020.00
Joseph Feldman Telsey Advisory Group Maintains Outperform $1050.00 $1050.00
Rupesh Parikh Oppenheimer Raises Outperform $1075.00 $980.00
Corey Tarlowe Jefferies Raises Buy $1145.00 $1050.00
Mark Astrachan Stifel Raises Buy $1000.00 $935.00
George Kelly Wells Fargo Raises Equal-Weight $950.00 $850.00
Peter Benedict Baird Raises Outperform $1075.00 $975.00
Joseph Feldman Telsey Advisory Group Raises Outperform $1050.00 $1000.00
Joseph Feldman Telsey Advisory Group Maintains Outperform $1000.00 $1000.00
Kelly Bania BMO Capital Raises Outperform $1075.00 $980.00
Joseph Feldman Telsey Advisory Group Maintains Outperform $1000.00 $1000.00
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

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: 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 navigate through adjustments in price targets, providing estimates for Costco Wholesale's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

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 boasts over 60% market share in the domestic warehouse club industry. Internationally, Costco operates another 280 warehouses, primarily in markets such as Canada, Mexico, Japan, and the UK.

Costco Wholesale: Financial Performance Dissected

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Costco Wholesale's revenue growth over a period of 3 months has been noteworthy. As of 30 November, 2024, the company achieved a revenue growth rate of approximately 7.53%. This indicates a substantial increase in the company's 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: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 2.89%, 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 7.48% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.51%, the company showcases effective utilization of assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.33.

Analyst Ratings: What Are They?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.

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