Costco Wholesale Corp Stock Buy Hold or Sell Recommendation
| COST Stock | USD 715.46 5.95 0.84% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Costco Wholesale Corp is 'Strong Hold'. Macroaxis provides Costco Wholesale buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding COST positions. The advice algorithm takes into account all of Costco Wholesale's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Costco Wholesale's buy or sell advice are summarized below:
Real Value 660.25 | Target Price 595.25 | Hype Value 714.09 | Market Value 715.46 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Costco Wholesale Corp given historical horizon and risk tolerance towards Costco Wholesale. When Macroaxis issues a 'buy' or 'sell' recommendation for Costco Wholesale Corp, the advice is generated through an automated system that utilizes algorithms and statistical models.
Costco |
Execute Costco Wholesale Buy or Sell Advice
The Costco recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Costco Wholesale Corp. Macroaxis does not own or have any residual interests in Costco Wholesale Corp or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Costco Wholesale's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Insignificant | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Costco Wholesale Trading Alerts and Improvement Suggestions
| Costco Wholesale has a strong financial position based on the latest SEC filings | |
| About 72.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from patch.com: Higher Bolingbrook Gas Prices Result Of Oversea Wars, AAA Says |
Costco Wholesale Returns Distribution Density
The distribution of Costco Wholesale's historical returns is an attempt to chart the uncertainty of Costco Wholesale's future price movements. The chart of the probability distribution of Costco Wholesale daily returns describes the distribution of returns around its average expected value. We use Costco Wholesale Corp price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Costco Wholesale returns is essential to provide solid investment advice for Costco Wholesale.
| Mean Return | 0.07 | Value At Risk | -1.55 | Potential Upside | 1.57 | Standard Deviation | 1.33 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Costco Wholesale historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Costco Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Costco Wholesale is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Costco Wholesale Corp backward and forwards among themselves. Costco Wholesale's institutional investor refers to the entity that pools money to purchase Costco Wholesale's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Alliancebernstein L.p. | 2023-12-31 | 4.4 M | Jpmorgan Chase & Co | 2023-12-31 | 4.4 M | Royal Bank Of Canada | 2023-12-31 | 4.3 M | Nuveen Asset Management, Llc | 2023-12-31 | 3.9 M | Capital World Investors | 2023-12-31 | 3.5 M | Legal & General Group Plc | 2023-12-31 | 3.5 M | Jennison Associates Llc | 2023-12-31 | 3.4 M | Wells Fargo & Co | 2023-12-31 | 3.3 M | Ubs Group Ag | 2023-12-31 | 2.9 M | Vanguard Group Inc | 2023-12-31 | 40.4 M | Blackrock Inc | 2023-12-31 | 30.6 M |
Costco Wholesale Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (791M) | (1.9B) | (4.0B) | 1.2B | 1.1B | 1.2B | |
| Change In Cash | 3.9B | (1.0B) | (1.1B) | 3.5B | 4.0B | 4.2B | |
| Free Cash Flow | 6.1B | 5.4B | 3.5B | 6.7B | 7.8B | 8.1B | |
| Depreciation | 1.6B | 1.8B | 1.9B | 2.1B | 2.4B | 2.5B | |
| Other Non Cash Items | 236M | 371M | 453M | 907M | 1.0B | 1.1B | |
| Dividends Paid | 1.5B | 5.7B | 1.5B | 1.3B | 1.4B | 1.4B | |
| Capital Expenditures | 2.8B | 3.6B | 3.9B | 4.3B | 5.0B | 5.2B | |
| Net Income | 4.1B | 5.1B | 5.9B | 6.3B | 7.2B | 7.6B | |
| End Period Cash Flow | 12.3B | 11.3B | 10.2B | 13.7B | 15.8B | 16.5B | |
| Investments | 52M | 115M | 24M | (5.0B) | (4.5B) | (4.3B) | |
| Net Borrowings | 929M | 135M | (800M) | (384M) | (345.6M) | (328.3M) | |
| Change To Netincome | 1.0B | 1.2B | 763M | 1.7B | 1.9B | 1.1B |
Costco Wholesale Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Costco Wholesale or Consumer Staples Distribution & Retail sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Costco Wholesale's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Costco stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.0074 | |
β | Beta against NYSE Composite | 0.88 | |
σ | Overall volatility | 1.37 | |
Ir | Information ratio | -0.01 |
Costco Wholesale Volatility Alert
Costco Wholesale Corp has relatively low volatility with skewness of -2.83 and kurtosis of 16.66. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Costco Wholesale's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Costco Wholesale's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Costco Wholesale Implied Volatility
Costco Wholesale's implied volatility exposes the market's sentiment of Costco Wholesale Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Costco Wholesale's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Costco Wholesale stock will not fluctuate a lot when Costco Wholesale's options are near their expiration.
Costco Wholesale Fundamentals Vs Peers
Comparing Costco Wholesale's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Costco Wholesale's direct or indirect competition across all of the common fundamentals between Costco Wholesale and the related equities. This way, we can detect undervalued stocks with similar characteristics as Costco Wholesale or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Costco Wholesale's fundamental indicators could also be used in its relative valuation, which is a method of valuing Costco Wholesale by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Costco Wholesale to competition |
| Fundamentals | Costco Wholesale | Peer Average |
| Return On Equity | 0.31 | -0.31 |
| Return On Asset | 0.0835 | -0.14 |
| Profit Margin | 0.03 % | (1.27) % |
| Operating Margin | 0.04 % | (5.51) % |
| Current Valuation | 316.42 B | 16.62 B |
| Shares Outstanding | 443.5 M | 571.82 M |
| Shares Owned By Insiders | 0.10 % | 10.09 % |
| Shares Owned By Institutions | 72.27 % | 39.21 % |
| Number Of Shares Shorted | 6.36 M | 4.71 M |
| Price To Earning | 40.61 X | 28.72 X |
| Price To Book | 15.62 X | 9.51 X |
| Price To Sales | 1.30 X | 11.42 X |
| Revenue | 242.29 B | 9.43 B |
| Gross Profit | 30.09 B | 27.38 B |
| EBITDA | 10.72 B | 3.9 B |
| Net Income | 6.29 B | 570.98 M |
| Cash And Equivalents | 13.7 B | 2.7 B |
| Cash Per Share | 24.96 X | 5.01 X |
| Total Debt | 8.88 B | 5.32 B |
| Debt To Equity | 0.53 % | 48.70 % |
| Current Ratio | 1.02 X | 2.16 X |
| Book Value Per Share | 46.80 X | 1.93 K |
| Cash Flow From Operations | 11.07 B | 971.22 M |
| Short Ratio | 2.54 X | 4.00 X |
| Earnings Per Share | 15.31 X | 3.12 X |
| Price To Earnings To Growth | 5.15 X | 4.89 X |
| Target Price | 779.64 | |
| Number Of Employees | 316 K | 18.84 K |
| Beta | 0.76 | -0.15 |
| Market Capitalization | 317.31 B | 19.03 B |
| Total Asset | 68.99 B | 29.47 B |
| Retained Earnings | 19.52 B | 9.33 B |
| Working Capital | 2.3 B | 1.48 B |
Costco Wholesale Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Costco . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Costco Wholesale Buy or Sell Advice
When is the right time to buy or sell Costco Wholesale Corp? Buying financial instruments such as Costco Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 9.0B | 8.9B | 10.2B | 10.7B | Total Assets | 64.2B | 69.0B | 79.3B | 83.3B |
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In addition to having Costco Wholesale in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Costco Wholesale Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Complementary Tools for Costco Stock analysis
When running Costco Wholesale's price analysis, check to measure Costco Wholesale's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Costco Wholesale is operating at the current time. Most of Costco Wholesale's value examination focuses on studying past and present price action to predict the probability of Costco Wholesale's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Costco Wholesale's price. Additionally, you may evaluate how the addition of Costco Wholesale to your portfolios can decrease your overall portfolio volatility.
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Is Costco Wholesale's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Costco Wholesale. If investors know Costco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Costco Wholesale listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.188 | Dividend Share 4.08 | Earnings Share 15.31 | Revenue Per Share 560.607 | Quarterly Revenue Growth 0.057 |
The market value of Costco Wholesale Corp is measured differently than its book value, which is the value of Costco that is recorded on the company's balance sheet. Investors also form their own opinion of Costco Wholesale's value that differs from its market value or its book value, called intrinsic value, which is Costco Wholesale's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Costco Wholesale's market value can be influenced by many factors that don't directly affect Costco Wholesale's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Costco Wholesale's value and its price as these two are different measures arrived at by different means. Investors typically determine if Costco Wholesale is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Costco Wholesale's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.