During the last three months, 27 analysts shared their evaluations of Costco Wholesale (NASDAQ:COST), revealing diverse outlooks from bullish to bearish.
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 | 5 | 15 | 7 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 1 | 5 | 2 | 0 | 0 |
| 2M Ago | 3 | 7 | 3 | 0 | 0 |
| 3M Ago | 1 | 3 | 1 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $772.96, with a high estimate of $870.00 and a low estimate of $650.00. This current average reflects an increase of 6.06% from the previous average price target of $728.80.
Understanding Analyst Ratings: A Comprehensive Breakdown
An in-depth analysis of recent analyst actions unveils 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 |
|---|---|---|---|---|---|
| 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 | - |
| Ivan Feinseth | Tigress Financial | Raises | Buy | $870.00 | $745.00 |
| Kelly Bania | BMO Capital | Raises | Outperform | $800.00 | $770.00 |
| Seth Sigman | Barclays | Raises | Equal-Weight | $700.00 | $614.00 |
| Michael Baker | DA Davidson | Raises | Neutral | $680.00 | $600.00 |
| Mark Astrachan | Stifel | Raises | Buy | $800.00 | $735.00 |
| Greg Melich | Evercore ISI Group | Raises | Outperform | $815.00 | $770.00 |
| Scot Ciccarelli | Truist Securities | Raises | Buy | $815.00 | $741.00 |
| Rupesh Parikh | Oppenheimer | Maintains | Outperform | $805.00 | $805.00 |
| George Kelly | Wells Fargo | Raises | Equal-Weight | $750.00 | $675.00 |
| Peter Benedict | Baird | Raises | Outperform | $850.00 | $775.00 |
| Joseph Feldman | Telsey Advisory Group | Raises | Outperform | $800.00 | $785.00 |
| Rupesh Parikh | Oppenheimer | Raises | Outperform | $805.00 | $760.00 |
| Joseph Feldman | Telsey Advisory Group | Raises | Outperform | $785.00 | $750.00 |
| Kate McShane | Goldman Sachs | Raises | Buy | $830.00 | $749.00 |
| 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 |
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: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect 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.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Costco Wholesale's market position. Stay informed and make well-judged decisions with the assistance of 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.
Financial Insights: Costco Wholesale
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: Costco Wholesale's remarkable performance in 3 months is evident. As of 29 February, 2024, the company achieved an impressive revenue growth rate of 5.75%. 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 2.98%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 7.43%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Costco Wholesale's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.49% 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 0.45.
Understanding the Relevance of Analyst Ratings
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
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.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
