Costco Stock Buy Hold or Sell Recommendation

COST
 Stock
  

USD 487.17  20.77  4.45%   

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Costco Wholesale is 'Hold'. Macroaxis provides Costco Wholesale buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding COST positions. The advice algorithm takes into account all of Costco Wholesale's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Costco Wholesale's buy-and-hold perspective. Continue to Costco Wholesale Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Costco and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Costco Wholesale.

Execute Costco Wholesale Buy or Sell Advice

The Costco recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Costco Wholesale. Macroaxis does not own or have any residual interests in Costco Wholesale or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Costco Wholesale's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Costco WholesaleBuy Costco Wholesale
Hold

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Details

Reporting Quality (M-Score)

Details
For the selected time horizon Costco Wholesale has a Risk Adjusted Performance of 0.0288, Jensen Alpha of 0.08, Total Risk Alpha of 0.0984, Sortino Ratio of 0.0397 and Treynor Ratio of 0.0254
Macroaxis provides advice on Costco Wholesale to complement and cross-verify current analyst consensus on Costco Wholesale. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Costco Wholesale is not overpriced, please confirm all Costco Wholesale fundamentals, including its current ratio, and the relationship between the ebitda and number of employees . Given that Costco Wholesale has a price to book of 10.00 X, we suggest you to validate Costco Wholesale market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Costco Wholesale Trading Alerts and Improvement Suggestions

Costco Wholesale generated a negative expected return over the last 90 days
Costco Wholesale is unlikely to experience financial distress in the next 2 years
About 69.0% of the company shares are held by institutions such as insurance companies
On 12th of August 2022 Costco Wholesale paid $ 0.09 per share dividend to its current shareholders
Latest headline from www.nasdaq.com: Costco Stock A Hedge Against a Potential Recession - Nasdaq

Costco Wholesale current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Costco analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Costco analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price574.07
Target Median Price583.00
Target High Price678.00
Recommendation Mean2.10
Number Of Analyst Opinions28
Target Low Price440.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Costco Wholesale Returns Distribution Density

The distribution of Costco Wholesale's historical returns is an attempt to chart the uncertainty of Costco Wholesale's future price movements. The chart of the probability distribution of Costco Wholesale stock daily returns describes the distribution of returns around its average expected value. We use Costco Wholesale price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Costco Wholesale returns is essential to provide solid investment advice for Costco Wholesale.
Mean Return0.0375Value At Risk-3.25
Potential Upside2.15Standard Deviation1.67
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Costco Wholesale historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Costco Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Costco Wholesale is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Costco Wholesale backward and forwards among themselves. Costco Wholesale's institutional investor refers to the entity that pools money to purchase Costco Wholesale's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Vanguard Group IncCommon Shares38.5 M18.5 B
Blackrock IncCommon Shares31 M14.9 B
State Street CorpCommon Shares18.8 MB
Fmr LlcCommon Shares10.3 MB
Bank Of America CorpCommon Shares8.4 MB
Geode Capital Management LlcCommon Shares7.9 M3.8 B
Morgan StanleyCommon SharesM3.4 B
Note, although Costco Wholesale's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Costco Wholesale Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Costco Wholesale or Consumer Defensive sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Costco Wholesale's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Costco stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.08
β
Beta against DOW1.08
σ
Overall volatility
1.62
Ir
Information ratio 0.0456

Costco Wholesale Volatility Alert

Costco Wholesale has relatively low volatility with skewness of -0.67 and kurtosis of 1.5. 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. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Costco Wholesale's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Costco Wholesale's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Costco Wholesale Implied Volatility

Costco Wholesale's implied volatility exposes the market's sentiment of Costco Wholesale stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Costco Wholesale's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Costco Wholesale stock will not fluctuate a lot when Costco Wholesale's options are near their expiration.

Costco Wholesale Fundamentals Vs Peers

Comparing Costco Wholesale's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Costco Wholesale's direct or indirect competition across all of the common fundamentals between Costco Wholesale and the related equities. This way, we can detect undervalued stocks with similar characteristics as Costco Wholesale or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Costco Wholesale's fundamental indicators could also be used in its relative valuation, which is a method of valuing Costco Wholesale by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Costco Wholesale to competition
FundamentalsCostco WholesalePeer Average
Return On Equity38.80 %(0.31) %
Return On Asset10.11 %(0.14) %
Profit Margin2.59 %(1.27) %
Current Valuation204.45 B16.62 B
Shares Outstanding442.96 M571.82 M
Shares Owned by Insiders0.22 %10.09 %
Shares Owned by Institutions68.85 %39.21 %
Number of Shares Shorted4.1 M4.71 M
Price to Earning36.72 X28.72 X
Price to Book10.00 X9.51 X
Price to Sales0.72 X11.42 X
Revenue288.36 B9.43 B
Gross Profit25.25 B27.38 B
EBITDA10.07 B3.9 B
Net Income7.47 B570.98 M
Cash and Equivalents11.05 B2.7 B
Cash per Share24.96 X5.01 X
Total Debt9.04 B5.32 B
Debt to Equity0.44 %48.70 %
Current Ratio1.02 X2.16 X
Book Value Per Share46.63 X1.93 K
Cash Flow from Operations7.83 B971.22 M
Short Ratio2.23 X4.00 X
Earnings Per Share12.70 X3.12 X
Price to Earnings To Growth2.43 X4.89 X
Number of Employees288 K18.84 K
Beta0.69-0.15
Market Capitalization206.6 B19.03 B
Total Asset33.16 B29.47 B
Retained Earnings8.12 B9.33 B
Working Capital(357 M)1.48 B
Current Asset15.22 B9.34 B
Current Liabilities15.57 B7.9 B
   Payment of 662 shares by Callans Patrick J of Costco Wholesale subject to Rule 16b-3 [view details]

About Costco Wholesale Buy or Sell Advice

When is the right time to buy or sell Costco Wholesale? Buying financial instruments such as Costco Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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Robots And Drones
Robots And Drones Theme
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Continue to Costco Wholesale Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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Is Costco Wholesale's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Costco Wholesale. If investors know Costco will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Costco Wholesale listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Costco Wholesale is measured differently than its book value, which is the value of Costco that is recorded on the company's balance sheet. Investors also form their own opinion of Costco Wholesale's value that differs from its market value or its book value, called intrinsic value, which is Costco Wholesale's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Costco Wholesale's market value can be influenced by many factors that don't directly affect Costco Wholesale's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Costco Wholesale's value and its price as these two are different measures arrived at by different means. Investors typically determine Costco Wholesale value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Costco Wholesale's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.