Throughout the last three months, 21 analysts have evaluated Costco Wholesale COST, offering a diverse set of opinions 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 | 6 | 11 | 4 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 1 | 2 | 1 | 0 | 0 |
| 2M Ago | 0 | 2 | 0 | 0 | 0 |
| 3M Ago | 5 | 6 | 3 | 0 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $698.24, a high estimate of $785.00, and a low estimate of $600.00. This current average has increased by 8.92% from the previous average price target of $641.06.
Analyzing Analyst Ratings: A Detailed Breakdown
The standing of Costco Wholesale among financial experts is revealed through an in-depth exploration 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 | Raises | Outperform | $785.00 | $750.00 |
| Kate McShane | Goldman Sachs | Raises | Buy | $749.00 | $665.00 |
| George Kelly | Wells Fargo | Raises | Equal-Weight | $675.00 | $610.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $750.00 | - |
| Joseph Feldman | Telsey Advisory Group | Raises | Outperform | $750.00 | $700.00 |
| Rupesh Parikh | Oppenheimer | Raises | Outperform | $760.00 | $695.00 |
| Rupesh Parikh | Oppenheimer | Raises | Outperform | $695.00 | $675.00 |
| Ivan Feinseth | Tigress Financial | Raises | Buy | $745.00 | $635.00 |
| Scot Ciccarelli | Truist Securities | Raises | Buy | $741.00 | $693.00 |
| Chuck Cerankosky | Northcoast Research | Announces | Neutral | $620.00 | - |
| Kelly Bania | BMO Capital | Raises | Outperform | $700.00 | $612.00 |
| Michael Baker | DA Davidson | Raises | Neutral | $600.00 | $570.00 |
| Mark Astrachan | Stifel | Raises | Buy | $675.00 | $615.00 |
| Paul Lejuez | Citigroup | Raises | Neutral | $630.00 | $585.00 |
| Michael Lasser | UBS | Raises | Buy | $725.00 | $640.00 |
| Rupesh Parikh | Oppenheimer | Maintains | Outperform | $675.00 | - |
| Bobby Griffin | Raymond James | Raises | Outperform | $670.00 | $580.00 |
| Scot Ciccarelli | Truist Securities | Raises | Buy | $693.00 | $619.00 |
| Joseph Feldman | Telsey Advisory Group | Raises | Outperform | $700.00 | $625.00 |
| Rupesh Parikh | Oppenheimer | Raises | Outperform | $675.00 | $630.00 |
| Greg Melich | Evercore ISI Group | Raises | Outperform | $650.00 | $640.00 |
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: 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.
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 nearly 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 U.K.
A Deep Dive into Costco Wholesale's Financials
Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
Revenue Growth: Over the 3 months period, Costco Wholesale showcased positive performance, achieving a revenue growth rate of 6.18% as of 30 November, 2023. This reflects 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: Costco Wholesale's net margin is impressive, surpassing industry averages. With a net margin of 2.75%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Costco Wholesale's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 6.21%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Costco Wholesale's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.23%, 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 0.36, reflecting a lower dependency on debt financing and a more conservative financial approach.
Analyst Ratings: What Are They?
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
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.
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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