Is Costco Wholesale Stock a Good Investment?
Costco Wholesale Investment Advice | COST |
- Examine Costco Wholesale's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Costco Wholesale's leadership team and their track record. Good management can help Costco Wholesale navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Consumer Staples Distribution & Retail space and any emerging trends that could impact Costco Wholesale's business and its evolving consumer preferences.
- Compare Costco Wholesale's performance and market position to its competitors. Analyze how Costco Wholesale is positioned in terms of product offerings, innovation, and market share.
- Check if Costco Wholesale pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Costco Wholesale's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Costco Wholesale Corp stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Costco Wholesale Corp is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Costco Wholesale Stock
Researching Costco Wholesale's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 72.0% of the company shares are held by institutions such as insurance companies. The company recorded earning per share (EPS) of 17.13. Costco Wholesale Corp last dividend was issued on the 7th of February 2025. The entity had 2:1 split on the 14th of January 2000.
To determine if Costco Wholesale is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Costco Wholesale's research are outlined below:
| Costco Wholesale generated a negative expected return over the last 90 days | |
| Costco Wholesale has a strong financial position based on the latest SEC filings | |
| About 72.0% of the company shares are held by institutions such as insurance companies | |
| On 21st of February 2025 Costco Wholesale paid $ 1.16 per share dividend to its current shareholders | |
| Latest headline from finance.yahoo.com: Costco Just Confirmed a Major Change and Members Have a Lot to Say |
Costco Wholesale Quarterly Good Will |
|
Costco Wholesale uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Costco Wholesale Corp. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Costco Wholesale's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 7th of March 2024 Upcoming Quarterly Report | View | |
| 23rd of May 2024 Next Financial Report | View | |
| 29th of February 2024 Next Fiscal Quarter End | View | |
| 24th of September 2024 Next Fiscal Year End | View | |
| 30th of November 2023 Last Quarter Report | View | |
| 31st of August 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Costco Wholesale's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Costco Wholesale's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2004-06-17 | 2004-05-31 | 0.38 | 0.42 | 0.04 | 10 | ||
2009-10-07 | 2009-08-31 | 0.77 | 0.85 | 0.08 | 10 | ||
2014-03-06 | 2014-02-28 | 1.17 | 1.05 | -0.12 | 10 | ||
2020-12-10 | 2020-11-30 | 2.05 | 2.3 | 0.25 | 12 | ||
2021-12-09 | 2021-11-30 | 2.64 | 2.98 | 0.34 | 12 | ||
2023-05-25 | 2023-02-28 | 3.29 | 2.93 | -0.36 | 10 | ||
2021-05-27 | 2021-02-28 | 2.34 | 2.75 | 0.41 | 17 |
Costco Wholesale Target Price Consensus
Costco target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Costco Wholesale's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 38 | Strong Buy |
Most Costco analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Costco stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Costco Wholesale Corp, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationCostco Wholesale Target Price Projection
Costco Wholesale's current and average target prices are 930.15 and 1,018, respectively. The current price of Costco Wholesale is the price at which Costco Wholesale Corp is currently trading. On the other hand, Costco Wholesale's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Costco Wholesale Market Quote on 25th of March 2025
Target Price
Analyst Consensus On Costco Wholesale Target Price
Costco Wholesale Analyst Ratings
Costco Wholesale's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Costco Wholesale stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Costco Wholesale's financials, market performance, and future outlook by experienced professionals. Costco Wholesale's historical ratings below, therefore, can serve as a valuable tool for investors.Know Costco Wholesale's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Costco Wholesale is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Costco Wholesale Corp backward and forwards among themselves. Costco Wholesale's institutional investor refers to the entity that pools money to purchase Costco Wholesale's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Alliancebernstein L.p. | 2024-12-31 | 4.3 M | Royal Bank Of Canada | 2024-12-31 | 4.2 M | Capital World Investors | 2024-12-31 | 4 M | Amvescap Plc. | 2024-12-31 | 3.7 M | Jpmorgan Chase & Co | 2024-12-31 | 3.5 M | Nuveen Asset Management, Llc | 2024-12-31 | 3.5 M | Ubs Asset Mgmt Americas Inc | 2024-12-31 | 3.3 M | Jennison Associates Llc | 2024-12-31 | 3.2 M | Goldman Sachs Group Inc | 2024-12-31 | 3.2 M | Vanguard Group Inc | 2024-12-31 | 42.2 M | Blackrock Inc | 2024-12-31 | 34.8 M |
Costco Wholesale's market capitalization trends
The company currently falls under 'Mega-Cap' category with a current market capitalization of 410.87 B.Market Cap |
|
Costco Wholesale's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.06 | 0.08 | |
| Return On Capital Employed | 0.17 | 0.14 | |
| Return On Assets | 0.06 | 0.08 | |
| Return On Equity | 0.17 | 0.14 |
Determining Costco Wholesale's profitability involves analyzing its financial statements and using various financial metrics to determine if Costco Wholesale is a good buy. For example, gross profit margin measures Costco Wholesale's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Costco Wholesale's profitability and make more informed investment decisions.
Costco Wholesale's Earnings Breakdown by Geography
Please note, the imprecision that can be found in Costco Wholesale's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Costco Wholesale Corp. Check Costco Wholesale's Beneish M Score to see the likelihood of Costco Wholesale's management manipulating its earnings.
Evaluate Costco Wholesale's management efficiency
Costco Wholesale Corp has return on total asset (ROA) of 0.0873 % which means that it generated a profit of $0.0873 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.3289 %, meaning that it created $0.3289 on every $100 dollars invested by stockholders. Costco Wholesale's management efficiency ratios could be used to measure how well Costco Wholesale manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Costco Wholesale's Return On Tangible Assets are comparatively stable compared to the past year. Return On Assets is likely to gain to 0.08 in 2025, whereas Return On Capital Employed is likely to drop 0.14 in 2025. At this time, Costco Wholesale's Total Current Liabilities is comparatively stable compared to the past year. Liabilities And Stockholders Equity is likely to gain to about 84.3 B in 2025, whereas Non Current Liabilities Other is likely to drop slightly above 2.3 B in 2025.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 28.53 | 14.84 | |
| Tangible Book Value Per Share | 28.53 | 14.58 | |
| Enterprise Value Over EBITDA | 12.09 | 11.86 | |
| Price Book Value Ratio | 4.32 | 3.54 | |
| Enterprise Value Multiple | 12.09 | 11.86 | |
| Price Fair Value | 4.32 | 3.54 | |
| Enterprise Value | 7.4 B | 7 B |
Leadership at Costco Wholesale emphasizes sustainable growth and financial prudence. Our analysis evaluates how these priorities impact the stock's performance in the market.
Basic technical analysis of Costco Stock
As of the 25th of March, Costco Wholesale shows the Standard Deviation of 1.6, risk adjusted performance of (0.05), and Mean Deviation of 1.19. Costco Wholesale Corp technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Costco Wholesale's Outstanding Corporate Bonds
Costco Wholesale issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Costco Wholesale Corp uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Costco bonds can be classified according to their maturity, which is the date when Costco Wholesale Corp has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| COSTCO WHOLESALE P Corp BondUS22160KAM71 | View | |
| COSTCO WHOLESALE PORATION Corp BondUS22160KAN54 | View | |
| COSTCO WHOLESALE PORATION Corp BondUS22160KAP03 | View | |
| COSTCO WHOLESALE PORATION Corp BondUS22160KAQ85 | View | |
| US22160NAA72 Corp BondUS22160NAA72 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View | |
| AerCap Global Aviation Corp BondUS00773HAA59 | View |
Understand Costco Wholesale's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Costco Wholesale's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.05) | |||
| Market Risk Adjusted Performance | (0.12) | |||
| Mean Deviation | 1.19 | |||
| Coefficient Of Variation | (1,753) | |||
| Standard Deviation | 1.6 | |||
| Variance | 2.55 | |||
| Information Ratio | (0.04) | |||
| Jensen Alpha | (0.07) | |||
| Total Risk Alpha | (0.04) | |||
| Treynor Ratio | (0.13) | |||
| Maximum Drawdown | 8.79 | |||
| Value At Risk | (2.61) | |||
| Potential Upside | 2.55 | |||
| Skewness | (0.85) | |||
| Kurtosis | 2.11 |
| Risk Adjusted Performance | (0.05) | |||
| Market Risk Adjusted Performance | (0.12) | |||
| Mean Deviation | 1.19 | |||
| Coefficient Of Variation | (1,753) | |||
| Standard Deviation | 1.6 | |||
| Variance | 2.55 | |||
| Information Ratio | (0.04) | |||
| Jensen Alpha | (0.07) | |||
| Total Risk Alpha | (0.04) | |||
| Treynor Ratio | (0.13) | |||
| Maximum Drawdown | 8.79 | |||
| Value At Risk | (2.61) | |||
| Potential Upside | 2.55 | |||
| Skewness | (0.85) | |||
| Kurtosis | 2.11 |
Consider Costco Wholesale's intraday indicators
Costco Wholesale intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Costco Wholesale stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 16874.89 | |||
| Daily Balance Of Power | 0.422 | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 927.42 | |||
| Day Typical Price | 928.33 | |||
| Price Action Indicator | 4.79 | |||
| Period Momentum Indicator | 4.11 |
Costco Wholesale Corporate Filings
F4 | 20th of March 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 13th of March 2025 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 6th of March 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 17th of January 2025 Other Reports | ViewVerify |
Costco Stock media impact
Far too much social signal, news, headlines, and media speculation about Costco Wholesale that are available to investors today. That information is available publicly through Costco media outlets and privately through word of mouth or via Costco internal channels. However, regardless of the origin, that massive amount of Costco data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Costco Wholesale news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Costco Wholesale relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Costco Wholesale's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Costco Wholesale alpha.
Costco Wholesale Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Costco Wholesale can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Costco Wholesale Corp Historical Investor Sentiment
Investor biases related to Costco Wholesale's public news can be used to forecast risks associated with an investment in Costco. The trend in average sentiment can be used to explain how an investor holding Costco can time the market purely based on public headlines and social activities around Costco Wholesale Corp. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Costco Wholesale's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Costco Wholesale and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Costco Wholesale news discussions. The higher the estimate score, the more favorable the investor's outlook on Costco Wholesale.
Costco Wholesale Maximum Pain Price Across June 20th 2025 Option Contracts
Costco Wholesale's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Costco Wholesale close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Costco Wholesale's options.
Costco Wholesale Corporate Management
| John Sullivan | General VP | Profile | |
| Sheri Flies | Senior Compliance | Profile | |
| Pierre Riel | Executive Division | Profile | |
| David Sherwood | Vice Relations | Profile | |
| Daniel Hines | Senior Controller | Profile | |
| Javier Polit | Executive Technology | Profile |
Additional Tools for Costco Stock Analysis
When running Costco Wholesale's price analysis, check to measure Costco Wholesale's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Costco Wholesale is operating at the current time. Most of Costco Wholesale's value examination focuses on studying past and present price action to predict the probability of Costco Wholesale's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Costco Wholesale's price. Additionally, you may evaluate how the addition of Costco Wholesale to your portfolios can decrease your overall portfolio volatility.