Royal Bank Of Canada Reaffirms Sector Perform Rating for Costco Wholesale (NASDAQ:COST)

Costco Wholesale (NASDAQ:COST)‘s stock had its “sector perform” rating reiterated by research analysts at Royal Bank Of Canada in a research note issued to investors on Friday, Benzinga reports. They currently have a $1,000.00 target price on the retailer’s stock. Royal Bank Of Canada’s price target points to a potential upside of 8.74% from the company’s previous close.

COST has been the topic of a number of other research reports. The Goldman Sachs Group increased their price target on Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a “buy” rating in a research report on Friday, May 29th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $1,091.00 price target on shares of Costco Wholesale in a research note on Friday, September 4th. HC Wainwright reiterated a “buy” rating on shares of Costco Wholesale in a research note on Monday, June 1st. HSBC upgraded Costco Wholesale to a “buy” rating in a research note on Friday. Finally, TD Cowen reaffirmed a “buy” rating on shares of Costco Wholesale in a research report on Friday. Twenty-three investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $1,047.42.

Costco Wholesale Stock Up 2.6%

Shares of COST stock traded up $23.18 on Friday, hitting $919.66. 2,383,356 shares of the stock were exchanged, compared to its average volume of 2,186,358. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. The firm has a market capitalization of $407.85 billion, a P/E ratio of 46.31, a price-to-earnings-growth ratio of 3.78 and a beta of 0.86. The business has a 50-day moving average of $934.32 and a 200 day moving average of $968.18. Costco Wholesale has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50.

Costco Wholesale (NASDAQ:COST) last released its earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.54 by $0.21. The business had revenue of $95.72 billion for the quarter, compared to analyst estimates of $94.97 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%. Equities analysts anticipate that Costco Wholesale will post 20.42 EPS for the current year.

Institutional Trading of Costco Wholesale

A number of large investors have recently bought and sold shares of COST. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in Costco Wholesale during the 4th quarter worth $27,000. Lifetime Wealth Management P.C. purchased a new position in Costco Wholesale during the 4th quarter worth $28,000. C M Bidwell & Associates Ltd. purchased a new position in Costco Wholesale during the 2nd quarter worth $28,000. Burk Holdings LLC purchased a new position in Costco Wholesale during the 2nd quarter worth $30,000. Finally, Manning & Napier Advisors LLC purchased a new position in Costco Wholesale during the 2nd quarter worth $30,000. Institutional investors and hedge funds own 68.48% of the company’s stock.

Trending Headlines about Costco Wholesale

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: Quarterly beat and broad-based demand: Costco reported $6.75 in adjusted earnings per share versus approximately $6.54 expected, while revenue reached $95.72 billion versus a $94.97 billion consensus. Net sales rose 11.2%, comparable sales increased 9.4%, and digitally enabled comparable sales jumped 19.5%. Reuters article
• Positive Sentiment: Strong operating momentum: Membership fees, pharmacy and digital categories supported growth, while resilient demand for essential goods continues to drive warehouse traffic. Net income rose to nearly $3 billion from $2.61 billion a year earlier. Proactive Investors article
• Positive Sentiment: Several analysts remain constructive: Goldman Sachs sees potential for a sharp move higher, while UBS reiterated a Buy rating with a $1,275 target. Raymond James maintained Outperform at $1,050, and Mizuho and Bernstein also retained Outperform ratings despite lowering targets.
• Neutral Sentiment: Price-target revisions are mixed: DA Davidson raised its target to $1,040, while JPMorgan, Truist, Wells Fargo and Raymond James reduced their targets. Most revised targets still imply upside, but the changes indicate more cautious expectations after earnings.
• Negative Sentiment: Quality of the earnings beat is under scrutiny: Fourth-quarter EPS included an estimated $0.15 benefit from IEEPA tariff refunds, making the result less repeatable. Membership-fee growth also slowed sharply, an important concern because fees contribute a substantial portion of operating income. MarketWatch article
• Negative Sentiment: Valuation and cost risks remain: At a premium earnings multiple, Costco needs continued acceleration to justify its share price. Rising electronics costs, elevated Treasury yields, oil-price pressure and potential margin compression are additional headwinds.

Costco Wholesale Company Profile

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally competitive prices. Its product range includes groceries, fresh foods, apparel, appliances, electronics, furniture, jewelry, hardware, and seasonal goods, along with private-label products sold under the Kirkland Signature brand.

The company also provides a variety of ancillary services, including gasoline stations, pharmacies, optical centers, hearing-aid centers, food courts, tire centers, and travel services.