Costco Stock Price Analysis:
Deutsche Bank Capital maintains the Buy rating for and lowers the Costco stock price target to $578 from $581 on the company’s stock (COST:NSD).
The average analyst Costco stock price target over the next 12 months, based on 15 analysts’ projections for the company’s shares, is USD 559.61. The average analyst recommendation for Costco Wholesale Corp. is Strong Buy.
Costco Wholesale Corp.’s stock analysis by Stock Target Advisor is Bullish and is based on 13 positive and 4 negative signals. The stock price of Costco Wholesale Corp. was USD 530.92 at the most recent close. The share price of Costco Wholesale Corp. has changed by +1.44% in the last week, +3.92% in the last month, and -2.79% in the last year.
The consensus Crowd Rating on Costco is set at a Hold, with a 12-month average Crowd Target forecast of $505 per share.
Costco Wholesale Corp. (COST:NSD) News:
Over the past year, many insiders of Costco Wholesale Corporation sold their shares, which may be of interest to the stockholders to understand the direction of the stock.
EVP Russell D. Miller on Friday, the 4th of November, sold 1,000 shares of the company’s stock. The stock value totaled $483,580.00, at an average selling price of $483.58 per share. Currently, the executive vice president now owns 11,593 of Costco’s stock, which has a valuation of over $5.5 million.
Fundamental Stock Analysis:
High market capitalization:
This organization is among the top quartile and is one of the biggest in its industry. These businesses are typically more reliable.
Superior returns on risk:
In the top quartile, this stock has outperformed its sector rivals on a risk-adjusted basis over the course of at least a 12-month holding period.
For a hold duration of at least 12 months, the stock’s yearly returns have been stable and constant when compared to peers in its industry, and they are in the top quartile. Although stability is desirable, it can also restrict returns.
Outstanding total returns:
The stock is in the top quartile and has beaten its sector rivals over the previous five years (for a hold duration of at least 12 months).
A high dividend yield:
The stock has outperformed its industry rivals over the past 5 years (for a hold duration of at least 12 months) and is in the top percentile in terms of average annual dividend returns. For investors seeking high-income yields, this could be an excellent purchase, especially if it is excelling on a total return basis.
Excellent return on equity:
The management of the company has outperformed its competitors in terms of return on equity over the last four quarters, ranking it in the top quartile.
Superior capital efficiency:
In the last four quarters, firm management outperformed its counterparts in terms of return on invested capital, putting it in the top quartile.
Excellent return on assets:
The management of the company has outperformed its counterparts in terms of return on assets over the last four quarters, putting it in the top quartile.
A healthy cash flow:
The last four quarters saw positive total cash flow for the organization.
A favourable free cash flow:
The last four quarters saw the company generate positive total free cash flow.
Superior growth in earnings:
In the preceding five years, this stock’s profits growth was in the top quartile for its industry.
Superior growth in revenue:
Compared to its industry, this stock’s revenue growth over the previous five years has been in the top quartile.
High Asset to Gross Profit Ratio:
When compared to its rivals, this stock’s Gross Profit to Asset Ratio is in the top quartile. Value investors choose this metric because it exhibits superior long-term returns.
Excessively expensive in relation to earnings:
Costco stock price is trading above the sector median and at a premium to its peers in terms of price to earnings.
Compared to book value, it is overpriced:
On a price to book value basis, the stock is selling at a premium to the median of its peer group.
Overpriced based on cash flow:
On a price to cash flow ratio, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median.
Priced excessively based on free cash flow:
On a price to free cash flow basis, the stock is trading at a premium to that of its competitors. Its pricing is higher than the sector median.
Conclusion of the Costco Stock Price Analysis: