In the preceding three months, 20 analysts have released ratings for Costco Wholesale COST, presenting a wide array of perspectives from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 12 | 4 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 3 | 7 | 3 | 0 | 0 |
| 2M Ago | 1 | 2 | 1 | 0 | 0 |
| 3M Ago | 0 | 2 | 0 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $775.5, along with a high estimate of $870.00 and a low estimate of $675.00. Surpassing the previous average price target of $719.67, the current average has increased by 7.76%.
Analyzing Analyst Ratings: A Detailed Breakdown
A clear picture of Costco Wholesale's perception among financial experts is painted with a thorough analysis 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 |
|---|---|---|---|---|---|
| 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 |
| Rupesh Parikh | Oppenheimer | Raises | Outperform | $695.00 | $675.00 |
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: Gaining insights, analysts provide estimates for the future value of Costco Wholesale's stock. This comparison reveals trends in analysts' expectations over time.
To gain a panoramic view of Costco Wholesale's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using 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 270 warehouses, primarily in markets such as Canada, Mexico, Japan, and the UK.
Unraveling the Financial Story of Costco Wholesale
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Revenue Growth: Over the 3 months period, Costco Wholesale showcased positive performance, achieving a revenue growth rate of 5.75% as of 29 February, 2024. This reflects a substantial 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 excels beyond industry benchmarks, reaching 2.98%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Costco Wholesale's ROE excels beyond industry benchmarks, reaching 7.43%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.49%, the company showcases effective utilization of assets.
Debt Management: With a below-average debt-to-equity ratio of 0.45, Costco Wholesale adopts a prudent financial strategy, indicating a balanced approach to debt management.
The Basics of Analyst Ratings
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
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.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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