Costco WHSL is one of the few companies that has been able beat the 2022 bear market, the firm has decreased by 13% year over yearWhile the S&P 500 fell 15%. what five experts think about it pointing at her Market position and its membership programAccording to Dylan Krall at Yahoo Finance,
Ivan Fenseth De Tigres Financial Partners
The good thing about Costco stock: The company reports consistently solid same-store sales growth, in both good and tough retail environments. Costco is in a good position to watch Increase in online and in-store trafficLargely because it provides a significant low cost value proposition to consumers. In addition, Costco benefits from Growing service offerings including travel, home improvement and extended professional services, The renewal rate is also at an all-time high.
what worries: always what worries Changes in consumer spending trends In the light of economic changes.
Rating/Price Target: Buy/$678
Final Thoughts: Costco move on through the good times As consumers increase spending on discretionary goods (such as air travel). In tough economic times, consumers are looking for bargains, You can see this from the strength of membership, which continues to grow. Their customers pay for the opportunity to shop there and believe it is worth it because of Costco’s strong value proposition.
oliver chain de cowen
The Good Thing About Costco Stock: Costco Is Still One of the Best Stocks to Buy Main consumer brands for us, We view the company as well-positioned for a strong top-line performance Encouraging historic sustainability and a unique membership model focused on deep value, We especially love Costco’s differentiation through private label. Kirkland Signature And this Assortment limited to 3,500 stock units (SKUs)Providing immense purchasing power to the company.
What’s Worrying: In our view, the major debates surrounding Costco remain: (1) the rise of more stringent comparable metrics As the company continues to grow; (2) the Evolution of Consumer Behavior and the company’s ability to maintain loyalty and rigorous membership metrics; (3) high rating Given the current price-earnings ratio, which is five per cent lower than its three-year average.
Qualification/Price Target: More/$650
Final Thoughts: We believe that The company has both the skills and experience to continue to deliver strong retail execution and we believe it has the core competencies, A key strength is that Costco is one of the few American concepts that has a global success, Also: Its size makes it one of the chief buyer With large purchasing power over a limited variety of goods. eventually Unique vertically integrated supply chain Costco lends itself to impressive cost and delivery efficiencies, (which is why) we maintain a rating of “superior performance”.
Michelle Baker by DA Davison
Good for Costco Stock: Positives for the Stock Will Include Strong and consistent same store sales growth,
What worries: Our biggest concern and we have reason for it Neutral rating COST multiples above average, We also saw some decline in gross margin.
Rating/Price Target: Neutral/$455
Final Thoughts: Costco Is the One first level operator With solid trends and prospects for sales and earnings. but we think so is reflected in the present value Of actions.
Chuck Grom D Gordon Haskett Research Advisors
The good thing about Costco stock: The Continuity of core compensation business month-on-month, which has been led by generally healthy traffic trends. This also membership dues flow This is a long term annuity. balance is also very healthy with Low leverage and abundant cash,
What is worrying: The Valuation has always been an important point For investors, but for the 20+ years I’ve covered Costco.
Valuation/Price Target: Buy/$600
final thoughts: Costco does what is right for its customers first, employees second and shareholders third., This approach makes it one of the best retailers we cover.
Corey Tarlow Day Jefferies
The Good Thing About Costco Stock: Well…in today’s economic climate, it’s a business in great shape, Take Subscription model that generates recurring income; Have very stable margins and predictable cash flows, it’s such a business At a time when inflation is 8%, more consumers are looking for ways to save money. And Costco is a great way to do that with better prices than most other retailers in America. It’s a business that has a lot of growth drivers ahead such as a potential increase in its membership fees.
what is worrying: he has a really strong year this year, So riding this year could be a bit of a hindrance next year. But still, this is something I think Costco would be able to achieve.
Qualification/Price Target: Buy/$610
Final Thoughts: This is a business that It is very well positioned in the current environment. We do not know what to expect from a macroeconomic point of view in the future. But this is a business, as I said, that does a great job in good times, and does a good job in bad times. This is one stock you want to buy today.
Costco WHSL Trading closed on Monday at $489, continuing a downward trend, and the 70-period moving average is above the previous three candles. Meanwhile, EI indicators are mostly bearish.