Costco Wholesale Corp. (COST:NSD) Analysts rate as a Strong Buy, $577 target

STA Research
by: STA Research
Costco Stock Forecast

Costco Stock Forecast Analysis:

Based on the Costco stock forecast from 17 analysts, the average analyst target price for Costco Wholesale Corp is USD 576.89 over the next 12 months. Costco Wholesale Corp’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Costco Wholesale Corp is Bullish, which is based on 14 positive signals and 5 negative signals. At the last closing, Costco Wholesale Corp’s stock price was USD 493.07Costco Wholesale Corp’s stock price has changed by -2.94% over the past week, -11.08% over the past month and +9.06% over the last year.

 

About Costco Wholesale Corp (COST:NSD)

Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. It offers branded and private-label products in a range of merchandise categories. The company offers sundries, dry groceries, candies, coolers, freezers, liquor, and tobacco and deli products; appliances, electronics, health and beauty aids, hardware, garden and patio products, sporting goods, tires, toys and seasonal products, office supplies, automotive care products, postages, tickets, apparel, small appliances, furniture, domestics, housewares, special order kiosks, and jewelry; and meat, produce, service deli, and bakery products. It also operates pharmacies, opticals, food courts, hearing-aid centers, and tire installation centers, as well as 636 gas stations; and offers business delivery, travel, same-day grocery, and various other services online in various countries. As of August 29, 2021, the company operated 815 membership warehouses, including 564 in the United States and Puerto Rico, 105 in Canada, 39 in Mexico, 30 in Japan, 29 in the United Kingdom, 16 in South Korea, 14 in Taiwan, 12 in Australia, 3 in Spain, 1 in Iceland, 1 in France, and 1 in China. It also operates e-commerce websites in the United States, Canada, the United Kingdom, Mexico, South Korea, Taiwan, Japan, and Australia. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.

 

Most Recent Analyst Ratings for COST’s stock:

Target Raised by Deutsche Bank Capital USD 579 » USD 581 2022-09-21
Target Up Jefferies Financial LLC USD 610 2022-09-06
Target Up Evercore ISI USD 585 2022-09-06
Reiterated by Robert W Baird Outperform USD 575 2022-09-02
Target Up Citigroup USD 545 2022-08-09
Target Raised by Truist Securities USD 543 » USD 571 2022-08-05
Maintains Raymond James Outperform USD 560 » USD 600 2022-08-05
Maintains Goldman Sachs Buy USD 516 » USD 573 2022-08-04
Target Raised by Oppenheimer Holdings USD 535 » USD 600 2022-08-04
Upgrade Deutsche Bank Capital Hold » Buy USD 525 » USD 579 2022-07-14
Target Up Oppenheimer Holdings USD 525 2022-06-03
Maintains Jefferies Financial LLC Buy USD 560 » USD 580 2022-06-02
Maintains Raymond James Outperform USD 645 » USD 560 2022-05-31
Reiterated by BMO Financial Buy USD 580 2022-05-30
Maintains Truist Securities Buy USD 503 » USD 543 2022-05-27
Maintains Telsey Advisory Outperform USD 615 » USD 590 2022-05-27
Maintains Robert W Baird Outperform USD 600 » USD 560 2022-05-27
Target Down JP Morgan & Company USD 525 2022-05-27
Maintains Loop Capital Buy USD 650 » USD 610 2022-05-27
Maintains Citigroup Neutral USD 590 » USD 510 2022-05-27
Maintains Credit Suisse Neutral USD 570 » USD 550 2022-05-27
Maintains Deutsche Bank Capital Hold USD 530 » USD 525 2022-05-25
Target Down Oppenheimer Holdings Outperform USD 500 2022-05-20
Target Down Stifel Nicolaus Research Hold USD 515 2022-05-19
Target Lowered by Truist Securities Buy USD 634 » USD 503 2022-05-19

 

What we like about Costco Stock Forecast:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like about Costco Stock Forecast:

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

 

 

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