The Analyst Verdict: Costco Wholesale In The Eyes Of 19 Experts

19 analysts have shared their evaluations of Costco Wholesale (NASDAQ:COST) during the recent three months, expressing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

	Bullish	Somewhat Bullish	Indifferent	Somewhat Bearish	Bearish
Total Ratings	4	11	4	0	0
Last 30D	0	1	0	0	0
1M Ago	1	2	1	0	0
2M Ago	2	5	2	0	0
3M Ago	1	3	1	0	0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $1067.11, a high estimate of $1135.00, and a low estimate of $975.00. Observing a 0.67% increase, the current average has risen from the previous average price target of $1060.00.

Decoding Analyst Ratings: A Detailed Look

In examining recent analyst actions, we gain insights into how financial experts perceive Costco Wholesale. The following summary 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 | |--------------------|---------------------|---------------|---------------|--------------------|--------------------| |Joseph Feldman |Telsey Advisory Group|Maintains |Outperform | $1100.00|$1100.00 | |David Belinger |Mizuho |Announces |Neutral | $975.00|- | |Joseph Feldman |Telsey Advisory Group|Maintains |Outperform | $1100.00|$1100.00 | |Laura Champine |Loop Capital |Lowers |Buy | $1045.00|$1150.00 | |Joseph Feldman |Telsey Advisory Group|Maintains |Outperform | $1100.00|$1100.00 | |Mark Astrachan |Stifel |Lowers |Buy | $1035.00|$1075.00 | |Greg Melich |Evercore ISI Group |Raises |Outperform | $1070.00|$1050.00 | |Karen Short |Barclays |Raises |Equal-Weight | $980.00|$940.00 | |Laura Champine |Loop Capital |Lowers |Buy | $1135.00|$1150.00 | |Scot Ciccarelli |Truist Securities |Raises |Hold | $995.00|$935.00 | |Christopher Horvers |JP Morgan |Raises |Overweight | $1070.00|$1065.00 | |Peter Benedict |Baird |Raises |Outperform | $1125.00|$1075.00 | |Joseph Feldman |Telsey Advisory Group|Maintains |Outperform | $1100.00|$1100.00 | |Joseph Feldman |Telsey Advisory Group|Maintains |Outperform | $1100.00|$1100.00 | |Michael Baker |DA Davidson |Raises |Neutral | $1000.00|$900.00 | |Mark Astrachan |Stifel |Raises |Buy | $1075.00|$1000.00 | |Greg Melich |Evercore ISI Group |Raises |Outperform | $1070.00|$1040.00 | |Joseph Feldman |Telsey Advisory Group|Maintains |Outperform | $1100.00|$1100.00 | |Joseph Feldman |Telsey Advisory Group|Maintains |Outperform | $1100.00|$1100.00 |

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Costco Wholesale. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate 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.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Costco Wholesale's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Costco Wholesale analyst ratings.

Discovering Costco Wholesale: A Closer Look

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 its frugal cost structure, the firm is able to price its merchandise below that of competing retailers, driving high sales volume per warehouse and generating strong profits on thin margins. Costco operates over 600 warehouses in the United States and has over 60% share in the domestic warehouse club industry. Internationally, Costco operates another 280 warehouses, primarily in Canada, Mexico, Japan, and the UK.

A Deep Dive into Costco Wholesale's Financials

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Over the 3M period, Costco Wholesale showcased positive performance, achieving a revenue growth rate of 9.04% as of 28 February, 2025. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Staples sector.

Net Margin: Costco Wholesale's net margin excels beyond industry benchmarks, reaching 2.81%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Costco Wholesale's ROE excels beyond industry benchmarks, reaching 7.15%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Costco Wholesale's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.44%, the company showcases efficient use of assets and strong financial health.

Debt Management: Costco Wholesale's debt-to-equity ratio is below the industry average at 0.31, reflecting a lower dependency on debt financing and a more conservative financial approach.

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 will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.