Is Costco a good stock to buy? (2024)

Is Costco a good stock to buy?

Based on analyst ratings, Costco's 12-month average price target is $786.38. Costco has 9.91% upside potential, based on the analysts' average price target. Costco has a conensus rating of Strong Buy which is based on 19 buy ratings, 6 hold ratings and 0 sell ratings.

Why is Costco a good stock to buy right now?

Priced for perfection

Yet its valuation is also unusually high right now. That's partly due to the bull market rally that's pushed many stocks into record territory and the fact that Costco has outpaced the S&P 500's recent gains by a wide margin.

Is Walmart or Costco a better stock?

While Costco appears to have the best growth prospects, that isn't enough to make it the best investment. Walmart trades at a lower valuation, and its higher dividend yield means you will receive more in dividend payments than you would on the same amount of money invested in Costco. That makes Walmart the winner.

What will Costco stock be worth in 5 years?

According to the latest long-term forecast, Costco price will hit $800 by the end of 2024 and then $900 by the middle of 2025. Costco will rise to $1000 within the year of 2026, $1200 in 2027, $1400 in 2028, $1500 in 2029, $1600 in 2030, $1700 in 2031, $1800 in 2032 and $2000 in 2034.

Is Costco stock undervalued?

Key Points. Stock valuations can be subjective, but shares of Costco appear to be objectively overvalued. The retail giant has a great business model that has delighted both customers and shareholders. But BJ's Wholesale Club offers investors the same model -- and at a more reasonable valuation.

Is Costco a long term buy?

A generous dividend policy sets Costco apart from many of its peers. Those payouts make a serious difference for long-term shareholders. That 10-year return of 712% would shrink to 546% if you didn't sign up for dividend reinvestments. The compound annual return falls from 23.3% to 20.5%.

Is Costco a good long-term stock?

COST sits at a Zacks Rank #3 (Hold), holds a Growth Style Score of A, and has a VGM Score of A. Earnings and sales are forecasted to increase 7.3% and 4.1% year-over-year, respectively.

Is Costco a low risk stock?

Investors should understand Costco's business model before investing in the company's stock because it is a very real risk given current trends.

Who is more profitable, Costco or Sam's Club?

In terms of net sales, Costco ranked number one generating more than double than its counterpart Sam's Club, and twelve times more than BJ's Wholesale Club.

Who has the most shares in Costco?

The top individual insider shareholders of Costco are Craig Jelinek, Charles Munger, and Patrick Callans, and the top institutional shareholders are Vanguard Group Inc., BlackRock Inc., and State Street Corp.

Will Costco stock hit $1,000?

But I believe that Costco's P/E ratio could actually contract because of how expensive it is right now, and this creates downside risk for investors. Don't expect the $1,000 mark to be met in 2024. And for investors who are drawn to the business, it's best to practice patience and wait for a better valuation.

Will Costco stock reach $1,000?

For Costco's stock to reach $1,000 by year end with the multiple remaining constant, earnings per share would have to rise by 50%. This seems unlikely given how mature this business is. That type of rapid bottom-line growth just isn't in the cards anymore.

Is Costco a buy, sell, or hold?

Costco has a conensus rating of Strong Buy which is based on 19 buy ratings, 6 hold ratings and 0 sell ratings. The average price target for Costco is $783.04. This is based on 25 Wall Streets Analysts 12-month price targets, issued in the past 3 months.

Is Costco a good dividend stock?

Costco stock is always expensive

Costco's dividend yield is tiny at 0.5%, largely thanks to its long history of successful growth. Value investors and those trying to maximize the income they generate probably won't find it attractive.

Is Costco a stable stock?

NASDAQ: COST

Costco's growth rate rarely disappoints, and its earnings are much more stable than its peers thanks to a steady stream of subscription fee income. Those competitive assets have been enough to allow the stock to roughly triple the wider market's gains over the last several years.

What is the highest Costco stock has ever been?

Historical daily share price chart and data for Costco since 1986 adjusted for splits and dividends. The latest closing stock price for Costco as of April 24, 2024 is 723.89. The all-time high Costco stock closing price was 785.59 on March 07, 2024.

Does Costco have a future?

Of course, Costco is going to have a much larger number of stores in the future. In the last 10 years, the store count expanded at a compound annual rate of 3%. Management opened 23 net new locations in fiscal 2023, with plans to open 31 in the current fiscal year.

How high will Costco stock go?

The 26 analysts with 12-month price forecasts for Costco stock have an average target of 720.04, with a low estimate of 585 and a high estimate of 870. The average target predicts a decrease of -0.37% from the current stock price of 722.68.

Is Costco financially healthy?

The financial risk ratios show Costco has low debt-to-capital and debt-to-equity and a positive trend.

Is Costco a high risk stock?

Costco Wholesale Corp has a volatility of 1.37 and is 2.17 times more volatile than NYSE Composite. 12 percent of all equities and portfolios are less risky than Costco Wholesale. You can use Costco Wholesale Corp to enhance the returns of your portfolios. The stock experiences a moderate upward volatility.

Why is Costco stock so expensive?

Costco's stock isn't cheap, but there are multiple catalysts that could strengthen its earnings power and, thus, bring down that multiple in the long run. One is an increase to its membership price, and the other is continued growth in international markets. The company's earnings still have a lot of room to grow.

Why is Costco stock crashing?

Costco Wholesale topped earnings expectations, but the stock fell following the company's rare revenue miss. The company's fiscal second-quarter revenue of $58.4 billion missed analyst projections for $59.1 billion.

Is Costco a better stock than the spy?

While Costco has far outperformed the S&P 500 over the past 30 years by a margin of over 30x, it appears overvalued by 4.1% using a discounted cash flow forecast analysis. For that reason, the S&P 500 is likely the better bet for investors over the short-to-medium term.

Who is Costco owned by?

Costco is mainly owned by institutional investors, who own over 70% of shares. The largest shareholders in December 2023 were: The Vanguard Group (9.10%) BlackRock (6.90%)

What is Costco's most profitable item?

Costco's best-selling item is its Kirkland Signature Bath Tissue. It sells more than a billion rolls every year, bringing in over $400 million dollars in revenue. Costco's toilet paper is thicker and more absorbent than most other brands. It is also less expensive per sheet than many other brands.