Costco Wholesale (NASDAQ:COST) Price Target Raised to $1,040.00

Costco Wholesale (NASDAQ:COST) had its price objective raised by equities research analysts at DA Davidson from $1,000.00 to $1,040.00 in a research note issued on Friday, Benzinga reports. The brokerage presently has a “neutral” rating on the retailer’s stock. DA Davidson’s price target points to a potential upside of 13.14% from the company’s current price.

COST has been the topic of a number of other research reports. Truist Financial decreased their price target on shares of Costco Wholesale from $1,011.00 to $955.00 and set a “hold” rating on the stock in a research note on Friday. Bank of America reduced their price objective on shares of Costco Wholesale from $1,200.00 to $1,095.00 and set a “buy” rating on the stock in a research report on Wednesday, September 16th. Royal Bank Of Canada reissued a “sector perform” rating and issued a $1,000.00 price objective on shares of Costco Wholesale in a research note on Friday. JPMorgan Chase & Co. cut their target price on Costco Wholesale from $1,100.00 to $1,015.00 and set an “overweight” rating on the stock in a research note on Friday. Finally, Weiss Ratings downgraded Costco Wholesale from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, September 2nd. Twenty-three equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $1,047.42.

Costco Wholesale Stock Performance

NASDAQ COST traded up $22.73 on Friday, reaching $919.21. 1,336,827 shares of the stock were exchanged, compared to its average volume of 2,178,490. The company’s 50-day simple moving average is $934.32 and its two-hundred day simple moving average is $968.18. 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 $407.65 billion, a PE ratio of 46.30, a PEG ratio of 3.78 and a beta of 0.86. Costco Wholesale has a one year low of $844.06 and a one year 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 for the quarter, beating analysts’ consensus estimates of $6.54 by $0.21. The company had revenue of $95.72 billion for the quarter, compared to analysts’ expectations of $94.97 billion. Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. Analysts expect that Costco Wholesale will post 20.42 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of COST. C M Bidwell & Associates Ltd. purchased a new stake in shares of Costco Wholesale in the 2nd quarter worth $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in shares of Costco Wholesale during the 4th quarter worth $27,000. Burk Holdings LLC purchased a new position in shares of Costco Wholesale during the second quarter valued at $30,000. Manning & Napier Advisors LLC purchased a new position in shares of Costco Wholesale during the second quarter valued at $30,000. Finally, Lifetime Wealth Management P.C. bought a new stake in shares of Costco Wholesale in the fourth quarter valued at about $28,000. Institutional investors 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: Costco reported fourth-quarter EPS of $6.75 versus the $6.54 consensus estimate and revenue of $95.72 billion versus $94.97 billion expected. Net income rose 14.9% to approximately $3 billion. Costco earnings beat expectations
• Positive Sentiment: Underlying demand remained healthy, with fourth-quarter comparable sales increasing 9.4% and digitally enabled comparable sales jumping 19.5%. Strong traffic, pharmacy sales and e-commerce momentum support the company’s growth outlook. Costco beats quarterly sales estimates
• Positive Sentiment: Several analysts remain bullish. Mizuho lowered its target to $1,065 while retaining an Outperform rating, and Bernstein set a $1,143 target with the same rating. UBS also maintained a $1,275 Buy target, implying substantial upside from the reference price.
• Neutral Sentiment: The earnings beat included a roughly $0.15-per-share benefit from IEEPA tariff refunds, meaning some of the upside was non-recurring. Costco’s reported $6.75 EPS therefore may overstate the quarter’s sustainable earnings power. Costco posts fourth-quarter net income rise
• Negative Sentiment: Costco’s premium valuation remains a major obstacle: shares trade at roughly 45 times earnings despite a market capitalization near $398 billion. Analysts warn that slowing membership growth and the eventual fading benefit of the 2024 membership-fee increase could limit further multiple expansion.
• Negative Sentiment: Management flagged rising electronics costs tied to memory inflation, creating potential margin pressure. This, combined with the one-time tariff benefit and elevated valuation, helps explain why the stock’s earnings reaction has been weaker than the headline results might suggest. Costco flags rising electronics costs

About Costco Wholesale

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.