D.A. Davidson analyst Michael Baker maintains $Costco (COST.US)$ with a hold rating.
According to TipRanks data, the analyst has a success rate of 61.2% and a total average return of 6.6% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Costco (COST.US)$'s main analysts recently are as follows:
Costco reported another robust quarter, underpinned by solid underlying trends, advancements in e-commerce with enhanced profitability, and strong membership growth. The momentum for Costco is anticipated to persist, with the current valuation of the stock embodying these prospects.
Costco has been reported to have robust underlying quarterly earnings, with its gross margins and comparable store sales slightly surpassing forecasts, coupled with a steady 6% increase in global customer traffic. Despite projecting above-average earnings per share growth for the fiscal year, a more cautious view is held regarding the company's earnings growth in the forthcoming years. This is due to the company's history of reinvesting income from member fees. Nonetheless, optimism is maintained regarding the company's e-commerce expansion and the stock's valuation continues to be seen as appealing.
After Costco's announcement of favorable fiscal Q4 outcomes with EBIT slightly surpassing the consensus, an analyst underscored the company's robust comp growth of 6.9% and a year-over-year core-on-core gross margin expansion of 9 basis points, contributing to approximately 13% EPS growth. This performance underscores the resilience of the company's business model. It is anticipated that the recently implemented membership fee hike will be predominantly reinvested, which should further support sales, comp, and traffic increases in the forthcoming 12-18 months. Consequently, earnings projections for FY25-FY26 have been modestly revised upwards post-report.
Note:
TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.
Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.