Is Costco a good stock to buy? (2024)

Is Costco a good stock to buy?

Investors love its reliable growth and robust profitability, and it even pays a dividend. It performs well in good times, and sometimes even better in rough times. Costco stock is up about 44% over the past year, or about double the S&P 500's rise.

Is Costco stock a buy right now?

Costco is a retailer, and that means investors will want to follow comparable-store sales for signs that the business is on the right track. There's no cause for concern here. Sure, comps decelerated in fiscal 2023. But the slowdown was modest (gains fell to 3% from 5%) and there's already a rebound in the works.

Is Costco a good long-term investment?

Costco could be a good long-term buy -- but at its current multiple, investors are paying for a lot of future earnings growth. If you want to hang on to it for decades, then it could still be a good investment for you.

What will Costco stock be worth in 5 years?

Costco stock price stood at $714.25

According to the latest long-term forecast, Costco price will hit $1000 by the end of 2024 and then $1100 by the end of 2025. Costco will rise to $1200 within the year of 2026, $1300 in 2027, $1600 in 2028, $1800 in 2029 and $2000 in 2032.

What is the prediction for Costco stock?

Why should you invest in Costco stock?

It has been a hotter buy than all those other popular tech stocks. The secret behind Costco's success isn't some flashy new artificial intelligence chatbot or cutting-edge technology. Instead, the company's strong brand, customer loyalty, and solid results have made it a top growth stock for many investors.

Is Costco stock a buy or sell?

Costco Wholesale has received a consensus rating of Moderate Buy. The company's average rating score is 2.72, and is based on 18 buy ratings, 7 hold ratings, and no sell ratings.

Is Costco a safe stock?

Over the coming years, Costco has proven a safe bet because of its stickiness and large addressable market. Once consumers become members, they tend to stick around (management reports a global renewal rate of 90.5%).

Will Costco stock reach $1 000?

For Costco's stock to reach $1,000 by year end with the multiple remaining constant, earnings per share would have to rise by 50%. This seems unlikely given how mature this business is. That type of rapid bottom-line growth just isn't in the cards anymore.

Who is the biggest investor in Costco?

The largest shareholders of Costco

According to Investopedia, Craig Jelinek is the largest shareholder in the company and also holds the roles of President and CEO.

Who has the most shares in Costco?

The top individual insider shareholders of Costco are Craig Jelinek, Charles Munger, and Patrick Callans, and the top institutional shareholders are Vanguard Group Inc., BlackRock Inc., and State Street Corp.

What is the highest Costco stock has ever been?

Has Costco stock ever split?

Costco's last stock split was in 2000

The last time Costco management enacted a stock split was back in early 2000 when the warehouse club retailer split shares on a 2-for-1 basis. There were a few other splits in the 1990s, but nothing in more than two decades.

Is Costco a low risk stock?

Costco Wholesale Corp has a volatility of 1.1 and is 1.86 times more volatile than NYSE Composite. 9 of all equities and portfolios are less risky than Costco Wholesale.

How much was Costco stock in 1998?

The closing price for Costco Wholesale (COST) in 1998 was $24.35, on December 31, 1998. It was up 61.8% for the year. The latest price is $722.68.

Is Amazon a buy or sell?

Amazon's analyst rating consensus is a Strong Buy. This is based on the ratings of 39 Wall Streets Analysts.

Why did Warren Buffett sell Costco stock?

While Buffett has never discussed his reasoning of selling his Costco shares, speculation reveals he felt the stock had become overvalued. Since Buffett sold out of Costco, its share price has gained 60%. COST stock is up 145% over the last five years.

Why is Costco stock so expensive?

Key Takeaways. Costco shares hit a record high after reporting better-than-expected earnings and revenue. Sales of groceries and other items including gold bars helped boost its results.

Is Costco over or undervalued?

As of 2023-12-18, Costco Wholesale Corp's intrinsic value as calculated by the Discounted Earnings model is $299.53. It's currently trading at a price of $658.695. Therefore, the margin of safety based on the DCF model is -119.91%. The company is significantly overvalued.

How often does Costco get new stock?

Costco restocks their shelves on a regular basis in order to ensure that their customers have access to the latest products. However, the frequency of restocking varies depending on the item. For example, mineral water is typically restocked every two weeks, while laundry detergent may only be restocked once a month.

Is Walmart a good stock to buy now?

Walmart has a conensus rating of Strong Buy which is based on 25 buy ratings, 4 hold ratings and 0 sell ratings. What is Walmart's price target? The average price target for Walmart is $176.04. This is based on 29 Wall Streets Analysts 12-month price targets, issued in the past 3 months.

Is Walmart or Costco a better stock?

Stock Price Performance and Dividend Yield

On the basis of forward price/earnings, Walmart is priced at 24.5, compared to Costco's 37.9. Likewise, WMT is also more attractively valued on the basis of forward price/sales (WMT: 0.67 vs. COST: 1.04) and price/cash flow (WMT: 14.69 vs. COST: 27.21).

Is Costco stock better than Walmart?

We can see that Costco far outpaced Walmart in any kind of earnings metric. Even the dividend CAGR stands at 12.4% (Costco) vs. 1.93% for Walmart. And this is while operating in the same sector.

Why is Costco a strong buy?

Costco's success isn't a secret among investors. Strong customer loyalty, profitable store growth, and consistently higher profitability have led to an ever-increasing share price. That means you'll pay up to buy the shares. Costco's price-to-earnings (P/E) ratio stands at 49.

Will Kirkland stock go up?

The average price target for Kirkland's is $7.00. This is based on 2 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $7.00 ,the lowest forecast is $7.00. The average price target represents 131.79% Increase from the current price of $3.02.