Analysts' ratings for Costco Wholesale (NASDAQ:COST) over the last quarter vary from bullish to bearish, as provided by 33 analysts.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 8 | 15 | 10 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 3 | 0 | 0 | 0 |
| 2M Ago | 3 | 5 | 1 | 0 | 0 |
| 3M Ago | 5 | 6 | 9 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $945.55, a high estimate of $1075.00, and a low estimate of $755.00. This current average has increased by 4.05% from the previous average price target of $908.77.
Diving into Analyst Ratings: An In-Depth Exploration
The analysis of recent analyst actions sheds light on the perception of Costco Wholesale by financial experts. The following summary presents 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 | $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 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $1000.00 | $1000.00 |
| Dean Rosenblum | Bernstein | Announces | Outperform | $1016.00 | - |
| Ivan Feinseth | Tigress Financial | Announces | Buy | $1065.00 | - |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $1000.00 | $1000.00 |
| Michael Baker | DA Davidson | Maintains | Neutral | $880.00 | $880.00 |
| Mark Astrachan | Stifel | Raises | Buy | $935.00 | $925.00 |
| Rupesh Parikh | Oppenheimer | Raises | Outperform | $980.00 | $955.00 |
| Greg Melich | Evercore ISI Group | Raises | Outperform | $990.00 | $985.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $1000.00 | $1000.00 |
| Oliver Chen | TD Cowen | Raises | Buy | $975.00 | $925.00 |
| Bill Kirk | Roth MKM | Raises | Neutral | $755.00 | $676.00 |
| Michael Baker | DA Davidson | Raises | Neutral | $880.00 | $780.00 |
| Kate McShane | Goldman Sachs | Raises | Buy | $995.00 | $876.00 |
| George Kelly | Wells Fargo | Raises | Equal-Weight | $850.00 | $800.00 |
| Joseph Feldman | Telsey Advisory Group | Raises | Outperform | $1000.00 | $925.00 |
| Karen Short | Barclays | Raises | Equal-Weight | $850.00 | $830.00 |
| Scot Ciccarelli | Truist Securities | Raises | Hold | $909.00 | $873.00 |
| Kelly Bania | BMO Capital | Raises | Outperform | $980.00 | $950.00 |
| Mark Astrachan | Stifel | Raises | Buy | $925.00 | $915.00 |
| Laura Champine | Loop Capital | Raises | Buy | $1005.00 | $975.00 |
| Scot Ciccarelli | Truist Securities | Maintains | Hold | $873.00 | $873.00 |
| Karen Short | Melius Research | Announces | Hold | $950.00 | - |
| Daniela Nedialkova | Redburn Atlantic | Raises | Neutral | $890.00 | $860.00 |
| Simeon Gutman | Morgan Stanley | Raises | Overweight | $950.00 | $855.00 |
| Laura Champine | Loop Capital | Raises | Buy | $975.00 | $970.00 |
| Joseph Feldman | Telsey Advisory Group | Maintains | Outperform | $925.00 | $925.00 |
| Mark Astrachan | Stifel | Raises | Buy | $915.00 | $910.00 |
| Michael Baker | DA Davidson | Maintains | Neutral | $780.00 | $780.00 |
| Greg Melich | Evercore ISI Group | Raises | Outperform | $925.00 | $915.00 |
| Rupesh Parikh | Oppenheimer | Raises | Outperform | $955.00 | $925.00 |
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: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' 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.
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.
Unveiling the Story Behind 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.
Costco Wholesale: Financial Performance Dissected
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 31 August, 2024, the company achieved an impressive revenue growth rate of 0.96%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Staples sector.
Net Margin: Costco Wholesale's net margin excels beyond industry benchmarks, reaching 2.95%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Costco Wholesale's ROE excels beyond industry benchmarks, reaching 10.37%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Costco Wholesale's ROA excels beyond industry benchmarks, reaching 3.42%. This signifies efficient management of assets and strong financial health.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.35.
The Core of Analyst Ratings: What Every Investor Should Know
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.
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.
