Costco stock: buy or sell?

COST stock price: $280.65 0.02% At close on July 16th, 2019

Updated on:
July 16th, 2019

5

After several days of continuous hikes in past weeks, Costco Wholesale remained steady 0.02% to $280.65. Counting Tuesday, it's been 5 green sessions in a row, soaring $10.68 or 3.96%.

Costco Wholesale Corporation, together with its subsidiaries, operates membership warehouses. It offers branded and private-label products in a range of merchandise categories.

Should I buy Costco stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. That's why is so important to choose your own trading plan that fits your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

These 2 buy setups match with Costco Wholesale stock right now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Costco Wholesale stock a buy?

Banks and financial institutions publish stock ratings everyday. At Stocks2.com, we detected 15 ratings published for COST stock in the last 30 days.

The general sentiment of these ratings is bullish for COST stock, with 9 positive ratings.
Is COST a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-11Stifel Nicolausn/aBuy
2019-7-11Robert W. Bairdn/aOutperform
2019-7-11Nomuran/aNeutral
2019-7-11Loop Capitaln/aBuy
2019-7-11Goldman Sachs GroupBuyBuy
2019-7-10Oppenheimern/an/a
2019-6-3Morgan Stanleyn/aEqual Weight
2019-6-28Tigress Financialn/aBuy
2019-6-17Loop Capitaln/aBuy
2019-5-9Wells Fargo & Con/aMarket Perform
2019-5-31Citigroupn/aNeutral
2019-4-9Telsey Advisory GroupOutperformOutperform
2019-4-17OppenheimerOutperformOutperform
2019-4-1Loop Capitaln/aBuy
2019-4-1CitigroupNeutralNeutral

Costco stock analysis

Daily outlook

After climbing to all-time highs several times in past weeks, Costco Wholesale remained constant 0.02% to $280.65.

Costco Wholesale remained steady 0.02% to $280.65 after topping to all time highs today. Since May when SMA100d and SMA200d crossed up, COST price gained $32.30 per share (13.01%). Since price and SMA200d lines crossed up on March, COST climbed $64.44 (29.80%). Today, COST hit a new all time high, pushing higher than yesterday tops. Check different trading setups that use ATHs as triggers.

COST stock chart (daily)

Weekly outlook

Costco Wholesale remained constant 0.43% this week and set a new all time high at $281.37. Counting this, it's been 3 green weeks in a row, gaining $16.39 or 6.16%. Early June COST skyrocketed an amazing 6.42% in just one week.

Since early May when SMA20w and SMA40w crossed up, COST price gained $36.69 per share (15.04%). Since price and SMA40w lines crossed up late February, COST climbed $64.94 (30.11%).

COST stock chart (weekly)

Costco stock price history

Costco stock went public on July 9th, 1986 with a price of $7.841. Since then, COST stock grew a 3,479.70%, with a yearly average of 105.40%. If you had invested $1,000 in Costco stock in 1986, it would worth $34,797.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Costco stock historical price chart

COST stock reached all-time highs today with a price of $281.37.

Costco stock price target is $268.90

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we found 14 price predictions for COST stock:
COST stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-11Stifel NicolausRaises Target$261.00$289.0010.7%
2019-7-11Robert W. BairdRaises Target$270.00$290.007.4%
2019-7-11NomuraRaises Target$235.00$256.008.9%
2019-7-11Loop CapitalRaises Targetn/a$300.00-
2019-7-11Goldman Sachs GroupInitiatesn/a$290.00-
2019-7-10OppenheimerRaises Target$270.00$295.009.3%
2019-6-3Morgan StanleyRaises Target$220.00$230.004.5%
2019-6-17Loop CapitalRaises Targetn/a$290.00-
2019-5-9Wells Fargo & CoReiterates$225.00$240.006.7%
2019-5-31CitigroupLowers Target$243.00$241.00-0.8%
2019-4-9Telsey Advisory GroupReiterates$250.00$265.006%
2019-4-17OppenheimerRaises Target$245.00$270.0010.2%
2019-4-1Loop CapitalReiterates$260.00$265.001.9%
2019-4-1CitigroupRaises Target$242.00$243.000.4%
(in average)$247.40$268.909.0%
Moving in a range from $300.00 and $230.00, the price forecast for Costco Wholesale stock is $268.90. In average, analysts' outlook on COST price forecast is positive, increasing the target by a 9.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Costco Wholesale reported wonderful results for 2019-Q1 on March. Costco Wholesale skyrocketed Earnings per Share (EPS) by 20.40%, beating analysts estimates of $1.67. Costco Wholesale posted $2.01.
COST earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.59n/a
2017-Q3-n/a2.08n/a
2017-Q42018-03-071.471.598.2%
2018-Q12018-03-071.451.42-2.1%
2018-Q22018-05-311.681.71.2%
2018-Q32018-10-042.342.360.9%
2018-Q42018-12-131.621.61-0.6%
2019-Q12019-03-071.672.0120.4%
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual revenues report draw an impressive growth of 9.73% to $141,576.00 million dollars. When comparing 2018 vs 2017, however, profit margin (that is, the net income divided by revenues) stayed constant a 0.14% to 2.21%.

To have an updated picture of the financial situation of Costco Wholesale, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Costco Wholesale TTM sales up to February 2019 were $147,237.00 and income was $3,449.00 M dollars. When comparing this TTM figures with the last reported annuality, we can review Costco Wholesale business evolution since August 2018: Annual revenues up to February, compared to lastest yearly report, stepped up a good 4.00%. On the other hand, profit margin (net income/sales) stayed steady at 2.21%.

COST annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$105,160 M-$2,040 M1.9%-
2014$112,640 M7.11%$2,060 M1.8%0.98%
2015$116,199 M3.16%$2,377 M2.0%15.39%
2016$118,719 M2.17%$2,350 M2.0%-1.14%
2017$129,025 M8.68%$2,679 M2.1%14.00%
2018$141,576 M9.73%$3,134 M2.2%16.98%
TTM $147,237 M4.00%$3,449 M2.3%10.05%

Quarterly financial results

Costco Wholesale reported $35,396.00 M in revenues for 2019-Q1, a 0.93% up compared to previous quarter. Reported quarter earnings marked $889.00 million with a profit margin of 2.51%. Profit margin stayed steady a 0.32% compared to previous quarter when profit margin was 2.19%. When comparing sales to same quarter last year, Costco Wholesale sales marked a very good increase and escalated a 7.28%.
COST quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$28,860 M-$700 M2.4%-
2017-Q3$42,300 M46.57%$919 M2.2%31.29%
2017-Q4$31,809 M-24.80%$640 M2.0%-30.36%
2018-Q1$32,995 M3.73%$701 M2.1%9.53%
2018-Q2$32,361 M-1.92%$750 M2.3%6.99%
2018-Q3$44,411 M37.24%$1,043 M2.3%39.07%
2018-Q4$35,069 M-21.04%$767 M2.2%-26.46%
2019-Q1$35,396 M0.93%$889 M2.5%15.91%

Costco Wholesale ownership

When you are planning to invest in a company, it's always worth to check its ownership structure.

Costco Wholesale shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.52% of all shares.

In case of Costco Wholesale stock, 73.52% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for COST stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Costco Wholesale:

COSTBIGDGDLTRFIVE
Market cap$123.4 B$945.6 M$36.7 B$26.7 B$6.9 B
Total shares439.8 M39.9 M258.3 M237.6 M55.9 M
Float shares433.2 M38.5 M244.9 M234.1 M54.7 M
  - Institutional holdings (%)73.5%110.1%104.6%96.6%96.9%
  - Insider holdings (%)0.5%1.7%0.1%2.8%2.3%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Costco summary

Tuesday, July 16th, 2019
Open$281.00
Close$280.65
Day range$279.80 - $281.37
Previous close$280.58
Session gain0.02%
Average true range$3.18
50d mov avg$256.55
100d mov avg$246.24
200d mov avg$232.07
Daily pattern
Weekly pattern

Costco Wholesale performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. For Costco Wholesale, the comparison is made against Big Lots, Dollar General, Dollar Tree, Five Below, PriceSmart, Target and Walmart.
Stock3m6m12m
COSTCostco Wholesale14.48%32.11%29.65%
BIGBig Lots-38.70%-24.23%-43.33%
DGDollar General15.41%25.93%46.42%
DLTRDollar Tree3.36%18.66%29.94%
FIVEFive Below-13.17%0.26%19.49%
PSMTPriceSmart1.94%-6.35%-22.88%
TGTTarget5.19%25.02%15.47%
WMTWalmart12.03%18.92%33.46%

Costco Wholesale competitors

One check before investing in any stock is to have a look a list of its competitors, in this case for Costco Wholesale. We selected 7 companies as Costco Wholesale competitors as they are in the same industry or have similar market objectives.

Latest Costco stock news