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Barchart
Barchart
Mark R. Hake, CFA

Costco Wholesale's Strong Free Cash Flow Could Push COST Stock 20% Higher

COST Costco Barchart NTM

Costco Wholesale Corp (COST) delivered mixed results yesterday for its fiscal year ending Aug. 31. Although revenue was lower than expected, earnings per share and free cash flow (FCF) were strong. In addition, its FCF margins held up, although slightly lower than last year. 

As a result, analysts are estimating higher revenue for the next two years. Given its high FCF margins, this could lead to a 20% higher target price for COST stock at over $1,057 per share over the next year.

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