why Costco Wholesale Corporation [COST] is a Good Choice for Investors After New Price Target of $374.46

Costco Wholesale Corporation [NASDAQ: COST] traded at a low on 12/03/20, posting a -2.46 loss after which it closed the day’ session at $374.05. The company report on December 3, 2020 that Costco Wholesale Corporation Reports November and First Quarter Fiscal Year 2021 Sales Results.

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Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) reported net sales of $15.67 billion for the retail month of November, the four weeks ended November 29, 2020, an increase of 15.1 percent from $13.62 billion last year.

For the twelve-week first quarter ended November 22, 2020, the Company reported net sales of $42.35 billion, an increase of 16.9 percent from $36.24 billion last year.

The results of the trading session contributed to over 3964790 shares changing hands. Over the past one week, the price volatility of Costco Wholesale Corporation stands at 1.49% while the volatility over the past one month is 1.75%.

The market cap for COST stock reached $164.77 billion, with 443.03 million shares outstanding and 440.24 million shares in the current float. Compared to the average trading volume of 2.38M shares, COST reached a trading volume of 3964790 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say 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 $374.46 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 November 30, 2020. While these analysts kept the previous recommendation, Telsey Advisory Group raised their target price to Outperform. The new note on the price target was released on November 17, 2020, representing the official price target for Costco Wholesale Corporation stock. Previously, the target price had yet another raise from $321 to $435, while Jefferies kept a Buy rating on COST stock.

The Average True Range (ATR) for Costco Wholesale Corporation is set at 6.96, with the Price to Sales ratio for COST stock in the period of the last 12 months amounting to 0.99. The Price to Book ratio for the last quarter was 9.06, with the Price to Cash per share for the same quarter was set at 30.20. Price to Free Cash Flow for COST in the course of the last twelve months was 36.04 with Quick ratio for the last quarter at 0.60.

How has COST stock performed recently?

Costco Wholesale Corporation [COST] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.01. With this latest performance, COST shares gained by 3.20% in over the last four-week period, additionally plugging by 23.01% over the last 6 months – not to mention a rise of 29.45% 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 53.99, with the RSI for the last a single of trading hit 38.25, and the three-weeks RSI is set at 49.47 for Costco Wholesale Corporation [COST]. The present Moving Average for the last 50 days of trading for this stock 372.22, while it was recorded at 385.05 for the last single week of trading, and 329.54 for the last 200 days.

Costco Wholesale Corporation [COST]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Costco Wholesale Corporation [COST] shares currently have an operating margin of +3.64 and a Gross Margin at +13.15. Costco Wholesale Corporation’s Net Margin is presently recorded at +2.40.

Return on Total Capital for COST is now 23.10, given the latest momentum, and Return on Invested Capital for the company is 16.08. Return on Equity for this stock inclined to 23.87, with Return on Assets sitting at 7.93. When it comes to the capital structure of this company, Costco Wholesale Corporation [COST] has a Total Debt to Total Equity ratio set at 60.63. Additionally, COST Total Debt to Total Capital is recorded at 37.75, with Total Debt to Total Assets ending up at 19.95. Long-Term Debt to Equity for the company is recorded at 58.68, with the Long-Term Debt to Total Capital now at 36.53.

Reflecting on the efficiency of the workforce at the company, Costco Wholesale Corporation [COST] managed to generate an average of $14,659 per employee. Receivables Turnover for the company is 108.11 with a Total Asset Turnover recorded at a value of 3.30.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.

Earnings analysis for Costco Wholesale Corporation [COST]

With the latest financial reports released by the company, Costco Wholesale Corporation posted 1.73/share EPS, while the average EPS was predicted by analysts to be reported at 1.71/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 1.20%. 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 7.33%.

Insider trade positions for Costco Wholesale Corporation [COST]

There are presently around $113,754 million, or 70.60% of COST stock, in the hands of institutional investors. The top three institutional holders of COST stocks are: VANGUARD GROUP INC with ownership of 37,412,602, which is approximately -1.377% of the company’s market cap and around 0.20% of the total institutional ownership; BLACKROCK INC., holding 29,435,211 shares of the stock with an approximate value of $11.01 billion in COST stocks shares; and STATE STREET CORP, currently with $6.76 billion in COST stock with ownership of nearly -1.811% of the company’s market capitalization.

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Positions in Costco Wholesale Corporation stocks held by institutional investors increased at the end of December and at the time of the December reporting period, where 1,067 institutional holders increased their position in Costco Wholesale Corporation [NASDAQ:COST] by around 12,738,772 shares. Additionally, 879 investors decreased positions by around 15,461,066 shares, while 292 investors held positions by with 275,915,313 shares. The mentioned changes placed institutional holdings at 304,115,151 shares, according to the latest SEC report filing. COST stock had 161 new institutional investments in for a total of 2,153,040 shares, while 74 institutional investors sold positions of 5,195,817 shares during the same period.

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