Costco Wholesale Corp Stock Forecast:
The average target price for Costco Wholesale Corp (COST) stock over the next 12 months according to 25 analysts is USD 548.76. The average analyst rating for the stock is Strong Buy, and Stock Target Advisor‘s own analysis of the stock is Bullish, based on a positive signal-to-negative signal ratio of 13 to 5. Costco’s current stock price as of the last closing was USD 514.80 and has seen recent positive changes, with a 2.29% increase over the past week and a 14.35% increase over the past month. However, over the last year, the stock price has declined by 0.96%.
Analysts Coverage Change:
Wells Fargo & Co. maintains an Equal-weight rating and raises the target price to $475 from $450 on the Costco (COST:NSD) stock.
Positive Fundamentals:
Costco stock is considered a highly attractive investment opportunity due to several favorable factors. Firstly, it has a high market capitalization, making it one of the largest and most stable companies in its sector. Secondly, the stock has performed well on a risk-adjusted basis and has low volatility, providing consistent returns. Additionally, the stock has outperformed its sector peers in terms of total returns and dividend returns, making it a good choice for investors seeking high income yields. The company management has also demonstrated strong performance in terms of return on equity, invested capital, and assets, indicating efficient utilization of capital. Furthermore, the company has positive cash flow and free cash flow, as well as top quartile growth in earnings and revenue. Finally, the high Gross Profit to Asset Ratio further adds to the stock’s appeal for value investors.
Negative Fundamentals:
Costco’s stock is considered overpriced based on multiple financial metrics such as earnings, book value, cash flow, and free cash flow. It is trading above its sector median on all these metrics, indicating that the stock may be overvalued compared to its peers. Additionally, the company is highly leveraged and has a lower debt to equity compared to its sector peers, which is a cause for caution. However, it is important to consider the company’s growth strategy and management statements before making an investment decision. Overall, if you are considering buying Costco stock, proceed with caution as it may be overpriced based on various financial metrics.
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.
