The Goldman Sachs Group Issues Positive Forecast for Costco Wholesale (NASDAQ:COST) Stock Price

Key Points

• Goldman Sachs raised its price target on Costco from $1,088 to $1,159 and kept a buy rating, implying about 21.3% upside from the current share price.
• Wall Street remains broadly optimistic on COST: 21 analysts rate it Buy, 11 Hold, and 1 Sell, with an average consensus rating of Moderate Buy and a target price of $1,055.79.
• Costco shares fell 4.0% to $955.44 despite strong revenue of $70.53 billion in the latest quarter; EPS came in slightly below estimates at $4.93 versus $4.98 expected.

Costco Wholesale (NASDAQ:COST - Get Free Report) had its price target hoisted by equities researchers at The Goldman Sachs Group from $1,088.00 to $1,159.00 in a research report issued to clients and investors on Friday,MarketScreener reports. The brokerage currently has a "buy" rating on the retailer's stock. The Goldman Sachs Group's price objective indicates a potential upside of 21.31% from the stock's current price.

Several other brokerages also recently issued reports on COST. BTIG Research reaffirmed a "buy" rating and issued a $1,125.00 price objective on shares of Costco Wholesale in a research report on Friday. Daiwa Securities Group boosted their target price on shares of Costco Wholesale from $917.00 to $975.00 and gave the stock a "neutral" rating in a research report on Tuesday, March 10th. Evercore set a $1,100.00 target price on shares of Costco Wholesale in a research note on Monday, March 2nd. Bank of America assumed coverage on shares of Costco Wholesale in a report on Friday, February 27th. They set a "buy" rating and a $1,185.00 price target for the company. Finally, Raymond James Financial lifted their price target on shares of Costco Wholesale from $1,000.00 to $1,100.00 and gave the stock an "outperform" rating in a research note on Friday, March 6th. Twenty-one research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $1,055.79.

Costco Wholesale Stock Down 4.0%

Shares of COST traded down $39.76 during midday trading on Friday, reaching $955.44. 1,356,024 shares of the company were exchanged, compared to its average volume of 2,104,118. Costco Wholesale has a 1-year low of $844.06 and a 1-year high of $1,096.50. The stock has a 50-day moving average price of $1,008.28 and a 200-day moving average price of $962.53. The company has a current ratio of 1.06, a quick ratio of 0.59 and a debt-to-equity ratio of 0.18. The company has a market cap of $423.88 billion, a price-to-earnings ratio of 49.77, a P/E/G ratio of 4.94 and a beta of 0.92.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.98 by ($0.05). The company had revenue of $70.53 billion during the quarter, compared to analyst estimates of $69.68 billion. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. During the same quarter last year, the business posted $4.28 EPS. Research analysts expect that Costco Wholesale will post 20.33 earnings per share for the current year.

Insiders Place Their Bets

In related news, EVP Claudine Adamo sold 730 shares of the firm's stock in a transaction on Monday, March 9th. The stock was sold at an average price of $1,003.02, for a total transaction of $732,204.60. Following the transaction, the executive vice president directly owned 6,121 shares in the company, valued at $6,139,485.42. This trade represents a 10.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Costco Wholesale

Several institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. grew its holdings in shares of Costco Wholesale by 0.4% during the fourth quarter. Vanguard Group Inc. now owns 43,620,717 shares of the retailer's stock valued at $37,615,889,000 after purchasing an additional 165,349 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Costco Wholesale by 0.3% in the 4th quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer's stock worth $8,919,573,000 after purchasing an additional 26,690 shares during the last quarter. Morgan Stanley lifted its holdings in shares of Costco Wholesale by 1.1% in the 4th quarter. Morgan Stanley now owns 9,523,423 shares of the retailer's stock worth $8,212,433,000 after purchasing an additional 107,775 shares during the last quarter. Bank of America Corp DE boosted its position in Costco Wholesale by 11.5% during the 1st quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer's stock valued at $7,488,203,000 after purchasing an additional 773,651 shares during the period. Finally, Diamant Asset Management Inc. grew its stake in Costco Wholesale by 99,278.0% during the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer's stock worth $672,690,000 after buying an additional 6,720,130 shares during the last quarter. Institutional investors and hedge funds own 68.48% of the company's stock.

More Costco Wholesale News

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

• Positive Sentiment: Costco reported stronger-than-expected sales, with revenue of $70.53 billion versus estimates of $69.68 billion, and U.S. same-store sales rising 9.8%, showing that value-focused shoppers are still spending. Reuters article
• Positive Sentiment: Fuel demand was a standout driver, with Costco’s gas stations setting record volumes as drivers chased lower prices, adding an extra boost to traffic and sales. MarketWatch article
• Positive Sentiment: Digital demand and membership strength continue to support the long-term thesis, with multiple articles highlighting surging e-commerce activity and resilient member-driven growth. TipRanks article
• Positive Sentiment: Analysts remained bullish after the report, with BTIG and Morgan Stanley reaffirming positive ratings and raising price targets to $1,125 and $1,130, respectively. TipRanks article
• Neutral Sentiment: EPS came in at $4.93, slightly below the $4.98 consensus, so margin pressure remains a concern even as top-line momentum stays strong. MarketBeat earnings report
• Negative Sentiment: Gross margin and transportation costs are still pressuring profitability, which is why some commentary described the quarter as “mixed” despite the sales beat. Motley Fool article

About Costco Wholesale

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company's product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco's business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.

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