Is it time to Buy before this week’s earning report Costco Wholesale (NASDAQ:COST)

Earnings results for Costco Wholesale (NASDAQ:COST)

Costco Wholesale Corporation is expected* to report earnings on 05/27/2021 after market close. The report will be for the fiscal Quarter ending May 2021. According to Zacks Investment Research, based on 13 analysts’ forecasts, the consensus EPS forecast for the quarter is $2.2800000000000002. The reported EPS for the same quarter last year was $1.8900000000000001.

Costco Wholesale last posted its quarterly earnings results on March 3rd, 2021. The retailer reported $2.14 EPS for the quarter, missing analysts’ consensus estimates of $2.45 by $0.31. The company had revenue of $44.77 billion for the quarter, compared to the consensus estimate of $43.71 billion. Its revenue was up 14.6% on a year-over-year basis. Costco Wholesale has generated $8.85 earnings per share over the last year and currently has a price-to-earnings ratio of 39.4. Costco Wholesale has confirmed that its next quarterly earnings report will be published on Thursday, May 27th, 2021.

Analyst Opinion on Costco Wholesale (NASDAQ:COST)

25 Wall Street analysts have issued ratings and price targets for Costco Wholesale in the last 12 months. Their average twelve-month price target is $391.78, predicting that the stock has a possible upside of 1.60%. The high price target for COST is $430.00 and the low price target for COST is $325.00. There are currently 7 hold ratings and 18 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 2.72, and is based on 18 buy ratings, 7 hold ratings, and no sell ratings. According to analysts’ consensus price target of $391.78, Costco Wholesale has a forecasted upside of 1.6% from its current price of $385.62. Costco Wholesale has been the subject of 13 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 0.82%, which is in the bottom 25% of all stocks that pay dividends. Costco Wholesale has been increasing its dividend for 16 years. The dividend payout ratio of Costco Wholesale is 35.71%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Costco Wholesale will have a dividend payout ratio of 28.60% 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 $2,267,184.00 in company stock. Only 0.22% of the stock of Costco Wholesale is held by insiders. 65.79% 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 10.61% in the coming year, from $9.99 to $11.05 per share. The P/E ratio of Costco Wholesale is 39.43, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 22.69. The P/E ratio of Costco Wholesale is 39.43, which means that it is trading at a less expensive P/E ratio than the Retail/Wholesale sector average P/E ratio of about 72.43. Costco Wholesale has a PEG Ratio of 4.38. PEG Ratios above 1 indicate that a company could be overvalued. Costco Wholesale has a P/B Ratio of 9.10. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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