Expert Outlook: Costco Wholesale Through The Eyes Of 12 Analysts

Costco Wholesale (NASDAQ:COST) has been analyzed by 12 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $1106.0, a high estimate of $1225.00, and a low estimate of $1042.00. This current average has increased by 1.16% from the previous average price target of $1093.33.

Breaking Down Analyst Ratings: A Detailed Examination

The standing of Costco Wholesale among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Costco Wholesale. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Costco Wholesale compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Costco Wholesale's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Capture valuable insights into Costco Wholesale's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Costco Wholesale analyst ratings.

Discovering Costco Wholesale: A Closer Look

Costco operates a membership-based, no-frills retail model predicated on offering a select product assortment in bulk quantities at bargain prices. The firm avoids maintaining costly product displays by keeping inventory on pallets and limits distribution expenses by storing its inventory at point of sale in the warehouse. Given its frugal cost structure, the firm is able to price its merchandise below that of competing retailers, driving high sales volume per warehouse and generating strong profits on thin margins. Costco operates over 600 warehouses in the United States and has over 60% share in the domestic warehouse club industry. Internationally, Costco operates about 280 warehouses, primarily in Canada, Mexico, Japan, and the UK.

Understanding the Numbers: Costco Wholesale's Finances

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Costco Wholesale's remarkable performance in 3M is evident. As of 31 May, 2025, the company achieved an impressive revenue growth rate of 8.02%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Staples sector.

Net Margin: Costco Wholesale's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 3.01%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Costco Wholesale's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 7.22%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Costco Wholesale's ROA stands out, surpassing industry averages. With an impressive ROA of 2.56%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Costco Wholesale's debt-to-equity ratio is below the industry average. With a ratio of 0.3, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

How Are Analyst Ratings Determined?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.