Costco stock: buy or sell?

COST stock price: $286.36 -0.51% At close on September 20th, 2019

Updated on:
September 20th, 2019

5

Costco Wholesale shares declined -0.51% to $286.36 today.

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?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. That's why is so important to define your own trading plan that matches with 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.

None of our preferred buy setups matches with Costco Wholesale stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean COST will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Costco Wholesale stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. 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 11 positive ratings.
Is COST a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-9UBS Groupn/aBuy
2019-9-9JPMorgan Chase & Co.n/aOverweight
2019-9-6Wells Fargo & Con/aMarket Perform
2019-9-6Stifel Nicolausn/aBuy
2019-9-6Loop Capitaln/aBuy
2019-9-20Gordon HaskettHoldAccumulate
2019-9-2Liberum Capitaln/aBuy
2019-9-11OppenheimerOutperformMarket Perform
2019-8-21Liberum Capitaln/aBuy
2019-8-19Peel Huntn/aBuy
2019-7-18Raymond Jamesn/aOutperform
2019-7-11Stifel Nicolausn/aBuy
2019-7-11Robert W. Bairdn/aOutperform
2019-7-11Nomuran/aNeutral
2019-7-11Loop Capitaln/aBuy

Costco stock analysis

Daily outlook

Costco Wholesale declined a bad -0.51% and closed at $286.36.

Costco Wholesale shares declined -0.51% to $286.36 today. COST marked a lower low and a lower high in the short term, defining a downward trend. Climbing above $294.07 would break this short term down trend and open possibilities for reversing this situation. On May, SMA100d and SMA200d crossed up triggering a rise of 15.56%. On September/9, COST hit a new all time high, pushing higher than on Sep/6 tops. Check different trading setups that use ATHs as triggers. On Aug/15 COST price bounced up over the SMA of 50 days demonstrating to be a significant support for this stock.

COST stock chart (daily)

Weekly outlook

Costco Wholesale shares declined -1.90% this week, ending at $286.36. Late August COST rocketed a dazzling 7.24% in just one week.

In a weekly time frame, Costco Wholesale stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, COST might consolidate in a flat-base, waiting to break out over or down under . Not so far away is the last price record Costco Wholesale marked last week. Since early May when SMA20w and SMA40w crossed up, COST price gained $42.94 per share (17.64%). Since price and SMA40w lines crossed up late February, COST climbed $71.13 (33.05%).

COST stock chart (weekly)

Costco stock price history

Costco stock went public on July 9th, 1986 with a price of $7.831. Since then, COST stock surged a 3,557.20%, with a yearly average of 107.80%. If you had invested $1,000 in Costco stock in 1986, it would worth $35,572.00 today.

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

Costco stock historical price chart

COST stock reached all-time highs on September 9th with a price of $307.34.

Costco stock price target is $305.00

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. You should not follow the analysts' COST stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we found 12 price targets for COST stock:
COST stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-9UBS GroupRaises Target$280.00$335.0019.6%
2019-9-9JPMorgan Chase & Co.Raises Target$271.00$330.0021.8%
2019-9-6Wells Fargo & CoRaises Target$240.00$290.0020.8%
2019-9-6Stifel NicolausRaises Target$289.00$310.007.3%
2019-9-6Loop CapitalRaises Targetn/a$330.00-
2019-9-20Gordon HaskettUpgrades$255.00$330.0029.4%
2019-9-11OppenheimerDowngrades$295.00$300.001.7%
2019-7-18Raymond JamesRaises Target$260.00$300.0015.4%
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-
(in average)$265.60$305.0015.0%
Moving in a range from $335.00 and $256.00, the price forecast for COST stock is $305.00. In average, analysts' outlook on COST price forecast is positive, upgrading the target by a 15.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Costco Wholesale presented impressive results for 2019-Q1 on March. Costco Wholesale boosted Earnings per Share (EPS) by 20.40%, beating analysts 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

In 2018, Costco Wholesale annual turnover escalated a great 9.73% to $141,576.00 M USD from $129,025.00 marked in 2017. Instead, its income margin (compared to revenues) stayed steady to 2.21%, that is $3,134.00 million.

Costco Wholesale fiscal year ends in August, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Costco Wholesale TTM sales up to February 2019 were $147,237.00 and earnings $3,449.00 million USD. 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, inched a nice 4.00%. Instead, profit margin (net income/revenues) remained constant 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 M with a profit margin of 2.51%. Profit margin stayed constant 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 rose 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 stock, it's always worth to have a look 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.

For a better context understanding, the next table shows ownership data compared to other related companies:

COSTBIGDGDLTRFIVE
Market cap$125.9 B$894.9 M$40.3 B$26.3 B$7.2 B
Total shares439.8 M39.0 M257.1 M236.6 M55.7 M
Float shares432.9 M38.6 M243.1 M233.0 M54.4 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

Friday, September 20th, 2019
Open$288.75
Close$286.36
Day range$286.14 - $289.41
Previous close$287.83
Session gain-0.51%
Average true range$5.23
50d mov avg$282.16
100d mov avg$267.94
200d mov avg$244.64
Daily patternlb06a
Weekly pattern lt06a

Costco Wholesale performance

To measure stock performance is always good to compare with competitors or related stocks. In the following table, we compare Costco Wholesale performance to Big Lots, Dollar General, Dollar Tree, Five Below, PriceSmart, Target and Walmart:
Stock3m6m12m
COSTCostco Wholesale7.84%21.13%23.20%
BIGBig Lots-19.85%-33.04%-41.92%
DGDollar General13.25%34.14%46.36%
DLTRDollar Tree-1.00%9.50%30.56%
FIVEFive Below-2.14%9.84%2.58%
PSMTPriceSmart18.32%3.60%-27.40%
TGTTarget24.09%40.04%27.78%
WMTWalmart5.90%20.38%24.70%

Costco Wholesale competitors

We picked a few stocks to conform a list of Costco Wholesale competitors to watch if you are interested in investing in COST:

Latest Costco stock news