Earnings and Growth Analysis : Costco Wholesale (NASDAQ:COST)

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Earnings results for Costco Wholesale (NASDAQ:COST)

Costco Wholesale Corporation is expected* to report earnings on 09/24/2020 after market close. The report will be for the fiscal Quarter ending Aug 2020. According to Zacks Investment Research, based on 13 analysts’ forecasts, the consensus EPS forecast for the quarter is $2.85. The reported EPS for the same quarter last year was $2.69.

Analyst Opinion on Costco Wholesale (NASDAQ:COST)

30 Wall Street analysts have issued ratings and price targets for Costco Wholesale in the last 12 months. Their average twelve-month price target is $356.82, predicting that the stock has a possible upside of 3.54%. The high price target for COST is $410.00 and the low price target for COST is $299.00. There are currently 11 hold ratings and 19 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Costco Wholesale has received a consensus rating of Buy. The company’s average rating score is 2.63, and is based on 19 buy ratings, 11 hold ratings, and no sell ratings. According to analysts’ consensus price target of $356.82, Costco Wholesale has a forecasted upside of 3.5% from its current price of $344.63. Costco Wholesale has been the subject of 16 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Costco Wholesale (NASDAQ:COST)

Costco Wholesale has a dividend yield of 0.81%, which is in the bottom 25% of all stocks that pay dividends. Costco Wholesale has been increasing its dividend for 15 years. The dividend payout ratio of Costco Wholesale is 34.19%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Costco Wholesale will have a dividend payout ratio of 29.66% next year. This indicates that Costco Wholesale will be able to sustain or increase its dividend.

Insiders buying/selling: Costco Wholesale (NASDAQ:COST)

In the past three months, Costco Wholesale insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $5,915,919.00 in company stock. Only 0.22% of the stock of Costco Wholesale is held by insiders. 68.20% of the stock of Costco Wholesale is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Costco Wholesale (NASDAQ:COST

Earnings for Costco Wholesale are expected to grow by 10.02% in the coming year, from $8.58 to $9.44 per share. The P/E ratio of Costco Wholesale is 41.22, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 18.04. The P/E ratio of Costco Wholesale is 41.22, which means that it is trading at a more expensive P/E ratio than the Retail/Wholesale sector average P/E ratio of about 31.53. Costco Wholesale has a PEG Ratio of 4.24. PEG Ratios above 1 indicate that a company could be overvalued. Costco Wholesale has a P/B Ratio of 9.72. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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