Truist Financial Has Lowered Expectations for Costco Wholesale (NASDAQ:COST) Stock Price

Costco Wholesale (NASDAQ:COST) had its target price cut by investment analysts at Truist Financial from $1,011.00 to $955.00 in a note issued to investors on Friday, Benzinga reports. The brokerage presently has a “hold” rating on the retailer’s stock. Truist Financial’s price objective points to a potential upside of 3.89% from the stock’s previous close.

A number of other equities research analysts have also issued reports on COST. HC Wainwright restated a “buy” rating on shares of Costco Wholesale in a report on Monday, June 1st. Raymond James Financial reissued an “outperform” rating and set a $1,050.00 target price on shares of Costco Wholesale in a research note on Friday. Oppenheimer reissued an “outperform” rating and set a $1,160.00 price objective on shares of Costco Wholesale in a research report on Wednesday, September 16th. HSBC raised Costco Wholesale to a “buy” rating in a research report on Friday. Finally, Robert W. Baird set a $1,175.00 price target on Costco Wholesale in a report on Friday. Twenty-three analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $1,047.42.

Costco Wholesale Price Performance

Shares of NASDAQ COST traded up $22.73 during trading on Friday, hitting $919.21. The company had a trading volume of 1,336,827 shares, compared to its average volume of 2,178,490. The company has a market cap of $407.65 billion, a P/E ratio of 46.30, a PEG ratio of 3.78 and a beta of 0.86. Costco Wholesale has a 52 week low of $844.06 and a 52 week high of $1,096.50. The business’s 50-day moving average is $934.32 and its 200 day moving average is $968.18. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07.

Costco Wholesale (NASDAQ:COST) last issued its earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $6.54 by $0.21. The business had revenue of $95.72 billion for the quarter, compared to analysts’ expectations of $94.97 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%. Equities research analysts predict that Costco Wholesale will post 20.42 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in shares of Costco Wholesale during the 4th quarter valued at about $27,000. Lifetime Wealth Management P.C. acquired a new stake in Costco Wholesale during the 4th quarter worth approximately $28,000. C M Bidwell & Associates Ltd. acquired a new stake in Costco Wholesale during the 2nd quarter worth approximately $28,000. Burk Holdings LLC bought a new position in Costco Wholesale in the second quarter valued at approximately $30,000. Finally, Manning & Napier Advisors LLC bought a new position in Costco Wholesale in the second quarter valued at approximately $30,000. 68.48% of the stock is currently owned by institutional investors.

More Costco Wholesale News

Here are the key news stories impacting Costco Wholesale this week:

• Positive Sentiment: Costco reported fourth-quarter EPS of $6.75 versus the $6.54 consensus estimate and revenue of $95.72 billion versus $94.97 billion expected. Net income rose 14.9% to approximately $3 billion. Costco earnings beat expectations
• Positive Sentiment: Underlying demand remained healthy, with fourth-quarter comparable sales increasing 9.4% and digitally enabled comparable sales jumping 19.5%. Strong traffic, pharmacy sales and e-commerce momentum support the company’s growth outlook. Costco beats quarterly sales estimates
• Positive Sentiment: Several analysts remain bullish. Mizuho lowered its target to $1,065 while retaining an Outperform rating, and Bernstein set a $1,143 target with the same rating. UBS also maintained a $1,275 Buy target, implying substantial upside from the reference price.
• Neutral Sentiment: The earnings beat included a roughly $0.15-per-share benefit from IEEPA tariff refunds, meaning some of the upside was non-recurring. Costco’s reported $6.75 EPS therefore may overstate the quarter’s sustainable earnings power. Costco posts fourth-quarter net income rise
• Negative Sentiment: Costco’s premium valuation remains a major obstacle: shares trade at roughly 45 times earnings despite a market capitalization near $398 billion. Analysts warn that slowing membership growth and the eventual fading benefit of the 2024 membership-fee increase could limit further multiple expansion.
• Negative Sentiment: Management flagged rising electronics costs tied to memory inflation, creating potential margin pressure. This, combined with the one-time tariff benefit and elevated valuation, helps explain why the stock’s earnings reaction has been weaker than the headline results might suggest. Costco flags rising electronics costs

Costco Wholesale Company Profile

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally competitive prices. Its product range includes groceries, fresh foods, apparel, appliances, electronics, furniture, jewelry, hardware, and seasonal goods, along with private-label products sold under the Kirkland Signature brand.

The company also provides a variety of ancillary services, including gasoline stations, pharmacies, optical centers, hearing-aid centers, food courts, tire centers, and travel services.