In the latest quarter, 24 analysts provided ratings for Costco Wholesale COST, showcasing a mix of bullish and bearish perspectives.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 13 | 7 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 4 | 8 | 7 | 0 | 0 |
| 3M Ago | 0 | 3 | 0 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $1041.75, with a high estimate of $1175.00 and a low estimate of $900.00. This upward trend is apparent, with the current average reflecting a 7.35% increase from the previous average price target of $970.38.
Investigating Analyst Ratings: An Elaborate Study
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 | Maintains | Outperform | $1100.00 | $1100.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $1100.00 | $1100.00 |
| 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 |
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 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: Understanding forecasts, analysts offer estimates for Costco Wholesale's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
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.
Delving into Costco Wholesale's Background
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's Financial Performance
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's remarkable performance in 3 months is evident. As of 30 November, 2024, the company achieved an impressive revenue growth rate of 7.53%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out 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): Costco Wholesale's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.51% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Costco Wholesale's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.33.
How Are Analyst Ratings Determined?
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 also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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