Costco Wholesale Corp Stock Forecast:
According to a forecast from 29 analysts, the average target price for Costco Wholesale Corp stock over the next 12 months is USD 549.11. The average analyst rating for the company is Strong Buy. Stock Target Advisor‘s analysis of Costco Wholesale Corp indicates a Bullish outlook, based on 13 positive signals and 5 negative signals. As of the last closing, Costco Wholesale Corp’s stock price was USD 486.55. The stock price has experienced a decrease of -2.32% over the past week and -3.30% over the past month, but has seen a positive change of +10.55% over the last year.
Latest Analysts Coverage Change:
- Morgan Stanley & Co. (RANK #1) has maintained an “Overweight” rating for Costco and raised the target price to $535 from $520 on May 11th, 2023.
- Truist Financial (RANK #35) has lowered the target price for Costco to $568 from $571 on May 4th, 2023.
Costco Wholesale Corp. News:
Costco Wholesale Corp reported lower-than-expected earnings for the quarter as consumers tightened their belts amidst persistent inflation and economic uncertainties. The shift in consumer behavior towards prioritizing essential spending has impacted one-stop retailers like Costco, resulting in reduced demand for higher-margin items such as home furnishings, jewelry, toys, and electronics. Although the company witnessed growth in membership revenue, it was not enough to offset the decline in overall sales. Let’s delve deeper into the factors behind Costco’s missed estimates and explore the implications for the company.
Earnings and Revenue were a disappointment for Costco, who reported a quarterly profit of $2.93 per share, falling short of analysts’ expectations of $3.29 per share. The warehouse club operator’s total revenue for the third quarter was $53.65 billion, also below estimates of $54.57 billion. This underperformance can be attributed to a decrease in non-essential spending by consumers, who have been facing rising costs and economic uncertainties.
FA Score (Fundamental Analysis):
The fundamental analysis of Costco Wholesale Corp. is “Bullish” with a FA score of 7.2 out of 10, where 0 is very bearish and 10 is very bullish.
