Costco Story

<div class='circular--portrait' style='background:#169D0B;color: #E6E6FA;font-size:4em;'>CW</div>
COST -- USA Stock  

USD 374.60  1.15  0.31%

The basic rationale behind this perspective is to give private investors our perspective on Costco for October. We will forecast Costco Wholesale value for private investors.
Published over three weeks ago
View all stories for Costco Wholesale | View All Stories
Are Costco (NASDAQ:COST) private investors starting to hold back?
The company has a beta of -0.1485. Let's try to break down what Costco's beta means in this case. As returns on the market increase, Costco Wholesale returns are expected to increase less than the market. However, during the bear market, the loss on holding Costco Wholesale will be expected to be smaller as well. The beta indicator helps investors understand whether Costco Wholesale moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Costco deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Costco Wholesale. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Costco Wholesale


How important is Costco Wholesale's Liquidity

Costco Wholesale financial leverage refers to using borrowed capital as a funding source to finance Costco Wholesale ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Costco Wholesale financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Costco Wholesale's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Costco Wholesale, but it might be worth checking our own buy vs. sell analysis

Is Costco Wholesale valued wisely by the market?

Costco Wholesale has relatively low volatility with skewness of -0.4 and kurtosis of 2.7. However, we advise all investors to independently investigate Costco Wholesale to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Margin Breakdown

Operating Margin2.75
EBITDA Margin0.0432
Gross Margin0.14
Profit Margin0.0207

Costco is expecting lower volatility in October

Kurtosis is down to 2.7. It may call for a possible volatility drop. Costco Wholesale has relatively low volatility with skewness of -0.4 and kurtosis of 2.7. However, we advise all investors to independently investigate Costco Wholesale to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Final Take On Costco Wholesale

Whereas many of the other players within the discount stores industry are still a little expensive, even after the recent corrections, Costco Wholesale may offer a potential longer-term growth to private investors. While some private investors may not share our view, we believe that right now is not a good time to increase your holdings in Costco. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Costco Wholesale.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Costco Wholesale. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com