why Costco Wholesale Corporation [COST] is a Good Choice for Investors After New Price Target of $328.44

Costco Wholesale Corporation [NASDAQ: COST] gained 0.05% or 0.18 points to close at $339.97 with a heavy trading volume of 2916685 shares. The company report on August 5, 2020 that Costco Wholesale Corporation Reports July Sales Results.

Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $13.04 billion for the retail month of July, the four weeks ended August 2, 2020, an increase of 14.1 percent from $11.43 billion last year.

For the forty-eight weeks ended August 2, 2020, the Company reported net sales of $149.66 billion, an increase of 8.8 percent from $137.56 billion during the similar period last year.

It opened the trading session at $341.855, the shares rose to $342.73 and dropped to $337.59, the range by which the price of stock traded the whole day. The daily chart for COST points out that the company has recorded 10.04% gains over the past six months. However, it is still -29.41% lower than its most recent low trading price.

If we look at the average trading volume of 2.67M shares, COST reached to a volume of 2916685 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Costco Wholesale Corporation [COST]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for COST shares is $328.44 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on COST stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Telsey Advisory Group have made an estimate for Costco Wholesale Corporation shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on August 03, 2020. While these analysts kept the previous recommendation, MKM Partners raised their target price to Neutral. The new note on the price target was released on July 30, 2020, representing the official price target for Costco Wholesale Corporation stock. Previously, the target price had yet another raise to $375, while Atlantic Equities analysts kept a Overweight rating on COST stock. On April 15, 2020, analysts increased their price target for COST shares from 305 to 310.

The Average True Range (ATR) for Costco Wholesale Corporation is set at 5.37, with the Price to Sales ratio for COST stock in the period of the last 12 months amounting to 0.93. The Price to Book ratio for the last quarter was 8.95, with the Price to Cash per share for the same quarter was set at 26.73. Price to Free Cash Flow for COST in the course of the last twelve months was 53.51 with Quick ratio for the last quarter at 0.60.

Trading performance analysis for COST stock

Costco Wholesale Corporation [COST] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 4.24. With this latest performance, COST shares gained by 7.51% in over the last four-week period, additionally plugging by 10.04% over the last 6 months – not to mention a rise of 26.24% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for COST stock in for the last two-week period is set at 75.52, with the RSI for the last a single of trading hit 81.52, and the three-weeks RSI is set at 71.16 for Costco Wholesale Corporation [COST]. The present Moving Average for the last 50 days of trading for this stock 313.96, while it was recorded at 331.89 for the last single week of trading, and 304.93 for the last 200 days.

Costco Wholesale Corporation [COST]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Costco Wholesale Corporation [COST] shares currently have an operating margin of +3.16 and a Gross Margin at +12.98. Costco Wholesale Corporation’s Net Margin is presently recorded at +2.40.

Return on Total Capital for COST is now 22.48, given the latest momentum, and Return on Invested Capital for the company is 18.10. Return on Equity for this stock inclined to 26.10, with Return on Assets sitting at 8.49. When it comes to the capital structure of this company, Costco Wholesale Corporation [COST] has a Total Debt to Total Equity ratio set at 47.52. Additionally, COST Total Debt to Total Capital is recorded at 32.21, with Total Debt to Total Assets ending up at 15.96. Long-Term Debt to Equity for the company is recorded at 36.21, with the Long-Term Debt to Total Capital now at 24.54.

Reflecting on the efficiency of the workforce at the company, Costco Wholesale Corporation [COST] managed to generate an average of $14,406 per employee. Receivables Turnover for the company is 95.32 with a Total Asset Turnover recorded at a value of 3.54.Costco Wholesale Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.60 and a Current Ratio set at 1.10.

Costco Wholesale Corporation [COST]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Costco Wholesale Corporation posted 2.69/share EPS, while the average EPS was predicted by analysts to be reported at 2.54/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 5.90%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for COST. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Costco Wholesale Corporation go to 7.06%.

An analysis of insider ownership at Costco Wholesale Corporation [COST]

There are presently around $105,239 million, or 71.10% of COST stock, in the hands of institutional investors. The top three institutional holders of COST stocks are: VANGUARD GROUP INC with ownership of 39,202,406, which is approximately 2.855% of the company’s market cap and around 0.10% of the total institutional ownership; BLACKROCK INC., holding 27,997,552 shares of the stock with an approximate value of $9.52 billion in COST stocks shares; and STATE STREET CORP, currently with $6.24 billion in COST stock with ownership of nearly -0.593% of the company’s market capitalization.

Positions in Costco Wholesale Corporation stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 1,051 institutional holders increased their position in Costco Wholesale Corporation [NASDAQ:COST] by around 16,221,366 shares. Additionally, 888 investors decreased positions by around 18,062,116 shares, while 227 investors held positions by with 275,269,647 shares. The mentioned changes placed institutional holdings at 309,553,129 shares, according to the latest SEC report filing. COST stock had 158 new institutional investments in for a total of 1,545,052 shares, while 103 institutional investors sold positions of 1,745,888 shares during the same period.

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