Stock Analysis:Costco Wholesale Corporation (NASDAQ:COST) Target Raised
In an interesting research report shared with investors by Sterne Agee CRT on Friday morning, Costco Wholesale Corporation (NASDAQ:COST) had its Estimated Target Price raised to $186.00. The firm right now has a solid “Buy” rating on shares.
From a total of 23 analysts covering Costco Wholesale (NASDAQ:COST) stock, 19 rate it a ”Buy”, 0 a “Sell”, and 10 a ”Hold”. This means that 66% of the ratings are positive. The highest target price is $200 while the lowest target price is $136. The mean of all analyst targets is $169.3 with a 0.77% above today’s ($166.8) stock price. Costco Wholesale was the topic of 17 analyst reports since August 24, 2015 according to the firm StockzIntelligence Inc. Deutsche Bank upgraded shares on December 3 to “Buy” rating. UBS upgraded shares to “Buy” rating and $180 target share price in a report from an October 26. Citigroup initiated COST stock in a recent report from November 9 with “Neutral” rating. Williams Capital Group maintained the rating on October 23. Williams Capital Group has a “Hold” rating and a $165.0 price target on shares. Finally, Northcoast downgraded the stock to “Neutral” rating in a report issued on a November 3.
The stock increased 1.91% or $3.13 on December 4, striking $166.8. Approximately shares of stock traded hands. Costco Wholesale Corporation (NASDAQ:COST) has risen 14.44% since May 4, 2015 and is uptrending. It has outperformed by 15.52% the S&P500.
Analysts await Costco Wholesale Corporation (NASDAQ:COST) to reports earnings on December, 9. They expect $1.16 earnings per share, up 3.57% or $0.04 from last year’s $1.12 per share. COST’s profit will be $507.40 million for 35.95 P/E if the $1.16 EPS becomes reality. After $1.73 actual earnings per share reported by Costco Wholesale Corporation for the previous quarter, Wall Street now forecasts -32.95% negative EPS growth.
Costco Wholesale Corporation is engaged in the operation of membership warehouses in the United States (U.S.) and Puerto Rico, Canada, United Kingdom (U.K.), Mexico, Japan, Australia, Spain, and through majority-owned subsidiaries in Taiwan and Korea. The company has a market cap of $72.96 billion. The Firm operated 663 membership warehouses and an average warehouse is approximately 144,000 square feet. It has 31.07 P/E ratio. The Company’s warehouses generally operate on a seven-day, 69-hour week.
According to Zacks Investment Research, “Costco Wholesale Corp. operates membership warehouses based on the concept that offering members very low prices on a limited selection of nationally branded and selected private label products in a wide range of merchandise categories will produce high sales volumes and rapid inventory turnover. This rapid inventory turnover enables Costco to operate profitably at significantly lower gross margins than traditional wholesalers, discount retailers and supermarkets.” Get a free copy of the Zacks research report on Costco Wholesale Corporation (COST).