Analysts' ratings for Costco Wholesale (NASDAQ:COST) over the last quarter vary from bullish to bearish, as provided by 29 analysts.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 7 | 15 | 7 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 5 | 7 | 4 | 0 | 0 |
| 2M Ago | 0 | 4 | 1 | 0 | 0 |
| 3M Ago | 1 | 4 | 2 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $815.83, a high estimate of $940.00, and a low estimate of $650.00. This current average reflects an increase of 4.36% from the previous average price target of $781.71.
Breaking Down Analyst Ratings: A Detailed Examination
In examining recent analyst actions, we gain insights into how financial experts perceive Costco Wholesale. The following summary 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 |
|---|---|---|---|---|---|
| Laura Champine | Loop Capital | Raises | Buy | $940.00 | $890.00 |
| Rupesh Parikh | Oppenheimer | Raises | Outperform | $905.00 | $850.00 |
| Joseph Feldman | Telsey Advisory Group | Raises | Outperform | $900.00 | $850.00 |
| Laura Champine | Loop Capital | Raises | Buy | $890.00 | $840.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $850.00 | $850.00 |
| Paul Lejuez | Citigroup | Raises | Neutral | $800.00 | $710.00 |
| Karen Short | Barclays | Raises | Equal-Weight | $765.00 | $700.00 |
| Oliver Chen | TD Cowen | Raises | Buy | $850.00 | $777.00 |
| Kelly Bania | BMO Capital | Raises | Outperform | $875.00 | $800.00 |
| Bill Kirk | Roth MKM | Raises | Neutral | $676.00 | $650.00 |
| George Kelly | Wells Fargo | Raises | Equal-Weight | $775.00 | $750.00 |
| Scot Ciccarelli | Truist Securities | Raises | Buy | $873.00 | $815.00 |
| Greg Melich | Evercore ISI Group | Raises | Outperform | $860.00 | $845.00 |
| Mark Astrachan | Stifel | Raises | Buy | $850.00 | $800.00 |
| Joseph Feldman | Telsey Advisory Group | Raises | Outperform | $850.00 | $800.00 |
| Chris Graja | Argus Research | Raises | Buy | $900.00 | $805.00 |
| Rupesh Parikh | Oppenheimer | Raises | Outperform | $850.00 | $805.00 |
| Greg Melich | Evercore ISI Group | Raises | Outperform | $820.00 | $810.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $800.00 | $800.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $800.00 | $800.00 |
| Paul Lejuez | Citigroup | Raises | Neutral | $710.00 | $630.00 |
| Greg Melich | Evercore ISI Group | Lowers | Outperform | $790.00 | $805.00 |
| Laura Champine | Loop Capital | Lowers | Buy | $820.00 | $830.00 |
| Michael Baker | DA Davidson | Maintains | Neutral | $680.00 | $680.00 |
| Greg Melich | Evercore ISI Group | Raises | Outperform | $805.00 | $795.00 |
| Bill Kirk | Roth MKM | Raises | Neutral | $650.00 | $601.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $800.00 | $800.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $800.00 | $800.00 |
| Chuck Grom | Gordon Haskett | Announces | Accumulate | $775.00 | - |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Costco Wholesale. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate 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.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Costco Wholesale's market standing. Stay informed and make well-considered 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 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.
Financial Insights: Costco Wholesale
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
Revenue Growth: Costco Wholesale displayed positive results in 3 months. As of 31 May, 2024, the company achieved a solid revenue growth rate of approximately 9.07%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Staples sector.
Net Margin: Costco Wholesale's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.87% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Costco Wholesale's ROE stands out, surpassing industry averages. With an impressive ROE of 7.9%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Costco Wholesale's ROA stands out, surpassing industry averages. With an impressive ROA of 2.5%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: With a below-average debt-to-equity ratio of 0.43, Costco Wholesale adopts a prudent financial strategy, indicating a balanced approach to debt management.
Understanding the Relevance of Analyst Ratings
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.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
