COST (Costco Wholesale Corporation): Time to Pay Attention?

The price of Costco Wholesale Corporation (NASDAQ: COST) closed at 487.17 in the last session, down -1.20% from day before closing price of $493.07. In other words, the price has decreased by $-5.90 from its previous closing price. On the day, 3005278 shares were traded. COST reached its highest trading level at $493.34 during the session, while it also had its lowest trading level at $484.42.

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We take a closer look at COST’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 18.22 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 79.79. For the most recent quarter (mrq), Quick Ratio is recorded 0.50 and its Current Ratio is at 1.00. In the meantime, Its Debt-to-Equity ratio is 0.33 whereas as Long-Term Debt/Eq ratio is at 0.33.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Deutsche Bank on July 14, 2022, Upgraded its rating to Buy and sets its target price to $579 from $525 previously.

On March 04, 2022, Truist reiterated its Buy rating and also upped its target price recommendation from $606 to $603.

Telsey Advisory Group reiterated its Outperform rating for the stock on March 04, 2022, while the target price for the stock was revised from $610 to $615.

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on Jul 20 when Murphy James P. sold 1,500 shares for $525.20 per share. The transaction valued at 787,798 led to the insider holds 36,230 shares of the business.

DENMAN KENNETH D sold 300 shares of COST for $156,503 on Jul 15. The Director now owns 5,197 shares after completing the transaction at $521.68 per share. On Jul 14, another insider, GALANTI RICHARD A, who serves as the Executive VP and CFO of the company, sold 1,000 shares for $505.60 each. As a result, the insider received 505,597 and left with 25,750 shares of the company.

Valuation Measures:

As of this moment, Costco’s Price-to-Earnings (P/E) ratio for their current fiscal year is 38.37, and their Forward P/E ratio for the next fiscal year is 33.59. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 2.79. For the stock, the TTM Price-to-Sale (P/S) ratio is 0.99 while its Price-to-Book (P/B) ratio in mrq is 10.83.

Stock Price History:

Over the past 52 weeks, COST has reached a high of $612.27, while it has fallen to a 52-week low of $406.51. The 50-Day Moving Average of the stock is 529.59, while the 200-Day Moving Average is calculated to be 521.79.

Shares Statistics:

According to the various share statistics, COST traded on average about 2.08M shares per day over the past 3-months and 2.15M shares per day over the past 10 days. A total of 443.70M shares are outstanding, with a floating share count of 442.01M. Insiders hold about 0.22% of the company’s shares, while institutions hold 69.20% stake in the company. Shares short for COST as of Jul 14, 2022 were 3.67M with a Short Ratio of 1.97, compared to 4.14M on Jun 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 0.83% and a Short% of Float of 0.83%.

Dividends & Splits

The forward annual dividend rate for COST is 3.60, which was 2.80 in the trailing 12 months. Against a Trailing Annual Dividend Yield of 0.57%, it implies a Forward Annual Dividend Yield of 0.67%. The stock’s 5-year Average Dividend Yield is 0.85. The current Payout Ratio is 24.80% for COST, which recently paid a dividend on Aug 11, 2022 with an ex-dividend date of Jul 27, 2022. Stock splits for the company last occurred on Jan 13, 2000 when the company split stock in a 2:1 ratio.

Earnings Estimates

The company has 26 analysts who recommend its stock at the moment. On average, analysts expect EPS of $4.11 for the current quarter, with a high estimate of $4.5 and a low estimate of $3.72, while EPS last year was $3.9. The consensus estimate for the next quarter is $3.1, with high estimates of $3.71 and low estimates of $2.65.

Analysts are recommending an EPS of between $13.43 and $12.71 for the fiscal current year, implying an average EPS of $13.07. EPS for the following year is $14.5, with 33 analysts recommending between $17.43 and $13.55.

Revenue Estimates

According to 24 analysts, the current quarter’s revenue is expected to be $71.28B. It ranges from a high estimate of $74.08B to a low estimate of $67.62B. As of the current estimate, Costco Wholesale Corporation’s year-ago sales were $62.67B, an estimated increase of 13.70% from the year-ago figure.

A total of 29 analysts have provided revenue estimates for COST’s current fiscal year. The highest revenue estimate was $228.95B, while the lowest revenue estimate was $222.48B, resulting in an average revenue estimate of $226.07B. In the same quarter a year ago, actual revenue was $195.93B, up 15.40% from the average estimate. Based on 29 analysts’ estimates, the company’s revenue will be $245.85B in the next fiscal year. The high estimate is $255.55B and the low estimate is $235.77B. The average revenue growth estimate for next year is up 8.80% from the average revenue estimate for this year.