Related posts

Tech rally loses steamDow make new high, TSX fadesTop 7 Canadian Grocery Stocks to Buy and Forget
Investor Insights

This summary was created by AI, based on 38 opinions in the last 12 months.

Costco Wholesale Corporation is seen as a stable company with strong revenue generation from its Kirkland brand and a focus on value for customers, particularly in terms of its membership fees. The company has reported solid same-store sales growth, with a focus on in-store traffic driving revenue gains. However, there is concern about the stock's premium valuation and the potential impact of inflation on margins.

Consensus
Positive
Valuation
Overvalued
COMMENT

It is a stable company which makes its money on volume and membership fees. The Kirkland brand itself generates a huge amount of revenue. However its valuation is quite stretched at 45X earnings.

department stores
PARTIAL SELL

She trimmed it before it declined last week after earnings. Really likes it, but Costco is expensive now.

department stores
PARTIAL BUY

Shares are down 7% after a mixed quarter after a slight miss on the top and a beat on the bottom; some softness in discretionary spending which is a little concerning. The street was expecting better from membership numbers. They have runway ahead and remain the best big-box retailer.

department stores
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS of $3.92 beat estimates of $3.62; revenue of $58.44B missed estimates by 1%. Costco's same-store sales growth remains solid as consumers continue to appreciate value. In-store traffic is the main driver, outpacing gains in average transaction size, a trend likely to persist in fiscal 3Q. Strength in food and sundries is a bright spot, though discretionary spending on some big-ticket items is slowly improving. This is helping drive e-commerce revenue gains, which skew to higher-priced items. Improvements to the mobile app and better advertising campaigns are also aiding digital-sales growth. Inflation is moderating in some categories, letting the company lower prices and reinforce its value proposition, helping to drive robust membership-renewal rates. Merchandise gross margin may slightly expand in 3Q on lower supply-chain related costs. The stock dropped on concern on lower margins, and lack of near-term catalysts, but a planned membership price hike (being considered) may change this. But nothing in the release gives us any real concern, though the stock does remain premium priced. 
Unlock Premium - Try 5i Free

department stores
WATCH

Retail advantage: low prices due to its club membership model. They report tomorrow. Also, they have such scale, they can collect massive data and harness that data using AI to better predict their business.

department stores
BUY ON WEAKNESS

Excellent business, but valuation of stock price is high. Amazing management of business with own processes that keep prices low for customers. Is excellent for long term holders to buy (5+ years). Membership fee allows company to weather ups and downs of retail. 

department stores
COMMENT

New managers in early March will focus on raising digital sales, which are only 7% of overall now. COST is a permanent compounder.

department stores
BUY

Loves it. Loves their subscription model. Likes today's price increase by Wall Street. Generates tons of cash and can withstand a consumer slowdown. He own Walmart for similar reasons.

department stores
PARTIAL BUY

Sometimes the best time to plant an oak tree is today. If you're trying to find the best time to buy, buy half now, and the rest on a downdraft. Well run, usually delivers. Short-term suggestion that it can come back into its range.

department stores
premium

🔒 Premium Content Alert – This buzzing stock opinion is accessible only to Premium members

Discover an exclusive list and analysis of the stocks that are trending on social medias—accessible only to our Premium subscribers. With a keen focus on the stocks that are setting social media ablaze, this weekly feature offers an invaluable lens through which to evaluate market movers. Say goodbye to the endless scroll through social media timelines; we curate the buzz so you can invest your time as wisely as your money. Unlock Premium Now.

TOP PICK

Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. It offers branded and private-label products in a range of merchandise categories. Social media mentions are up 267% in the past 24h.

department stores
HOLD

Not a fan of retail, except for this one. The best, well run. 

department stores
BUY ON WEAKNESS

Recent pullback good time to buy. Excellent business overall. Highly valued, but a good long term investment. Could be better opportunities in Dollar General for capital appreciation. 

department stores
BUY ON WEAKNESS

A leader. Dominant position in US. Buy on any day "that ends in 'y'". Always seems expensive if you look at the high 30s PE ratio. Chart looks stretched. Look for a pullback, perhaps when December seasonality subsides early in the new year. Membership rate increases every couple of years creates earnings power, as there are few good substitutes.

About as good as it gets on long-term buy and hold.

department stores
BUY ON WEAKNESS

Very strong business in North America. Offshore business units not as strong. Inflation will attract new consumers. Execution of business very good. 40x P/E ratio very high. Would wait to buy on weakness. 

department stores
BUY

Up 44% this year, 4.5% today. Nobody does it better than them in retail. Last night they reported an amazing quarter: 7% increase in cardholders, member fee income up 8.2%, enjoying lower freight costs and will pay a special one-time dividend to shareholders. Plus, they're controlling shoplifting. One to own forever.

department stores
Showing 1 to 15 of 318 entries

Costco Wholesale Corporation(COST-Q) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 31

Neutral - Hold Signals / Votes : 4

Bearish - Sell Signals / Votes : 5

Total Signals / Votes : 40

Stockchase rating for Costco Wholesale Corporation is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Costco Wholesale Corporation(COST-Q) Frequently Asked Questions

What is Costco Wholesale Corporation stock symbol?

Costco Wholesale Corporation is a American stock, trading under the symbol COST-Q on the NASDAQ (COST). It is usually referred to as NASDAQ:COST or COST-Q

Is Costco Wholesale Corporation a buy or a sell?

In the last year, 40 stock analysts published opinions about COST-Q. 31 analysts recommended to BUY the stock. 5 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Costco Wholesale Corporation.

Is Costco Wholesale Corporation a good investment or a top pick?

Costco Wholesale Corporation was recommended as a Top Pick by on . Read the latest stock experts ratings for Costco Wholesale Corporation.

Why is Costco Wholesale Corporation stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Costco Wholesale Corporation worth watching?

40 stock analysts on Stockchase covered Costco Wholesale Corporation In the last year. It is a trending stock that is worth watching.

What is Costco Wholesale Corporation stock price?

On 2024-03-28, Costco Wholesale Corporation (COST-Q) stock closed at a price of $732.395.