Jefferies analyst Corey Tarlowe maintains $Costco (COST.US)$ with a buy rating, and maintains the target price at $1,050.
According to TipRanks data, the analyst has a success rate of 66.2% and a total average return of 17.1% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Costco (COST.US)$'s main analysts recently are as follows:
The company demonstrated another robust quarter with sustained underlying trends, advancements in e-commerce with enhanced profitability, and strong membership patterns. Momentum is anticipated to persist for the company, although the current stock valuation appears to incorporate these expectations.
Costco's recent performance shows commendable U.S. traffic growth of 5.6% and a noteworthy increase in gross margins by 44 basis points. This success is attributed to the company's dedication to value, enhancement of customer baskets through product innovation, and increased appeal to younger members. Additionally, the positive effects of digital expansion and gas sales are evident in the gross margin improvements, which have balanced out the investments in wages and SG&A.
Costco has demonstrated robust underlying earnings for Q4, with gross margins and comparable sales slightly surpassing forecasts, complemented by a solid 6% increase in global customer traffic. Although the expectations for Costco's FY24 EPS growth are above average, a more cautious perspective is adopted for projected EPS growth in subsequent years due to the company's tradition of reinvesting member fee income gains. Nonetheless, the company's e-commerce expansion and the stock's valuation continue to present an encouraging picture.
Note:
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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.
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