Is Costco a blue-chip stock? (2024)

Is Costco a blue-chip stock?

At the same time, blue-chip stocks can deliver healthy capital gains. As a small example, Costco Wholesale (NASDAQ:COST) has trended higher by 226% (capital gains) in the last five years. This has led to this list of blue-chip stocks under $20.

What type of stock is Costco?

Costco Wholesale Corporation's (“Costco”) shareholder services and transfer agent, Computershare, offers the Investor Services Program for investors wishing to purchase or sell Costco common stock.

Is Costco a good long-term investment?

On a historic basis, Costco has generated cash flow growth of 14.1%, and is expected to report cash flow expansion of 10.4% this year. Investors should take the time to consider COST for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores.

Is Costco a good stock to buy in 2024?

Costco (NASDAQ: COST) has a habit of proving the skeptics wrong. Having started 2024 at a premium price compared to its rivals, the warehouse retailer has gone on to outperform peers again while touching new highs. Shares are up a blazing 45% in the past 12 months compared to Walmart's 20% gain.

Is Costco stock overvalued?

Key Points. Stock valuations can be subjective, but shares of Costco appear to be objectively overvalued. The retail giant has a great business model that has delighted both customers and shareholders. But BJ's Wholesale Club offers investors the same model -- and at a more reasonable valuation.

What are the downsides of investing in Costco?

The downside is that Costco's profit margin tends to remain low, at about 3% of sales, even during boom times. Investors also might be disappointed with the chain's cash returns in the coming years.

Is Costco a low risk stock?

Investors should understand Costco's business model before investing in the company's stock because it is a very real risk given current trends.

Should you buy Costco stock now?

Costco Wholesale

The retailer's stock is expensive, but for some good reasons. You can tell just by a glance at its share price chart that Wall Street loves Costco Wholesale (COST -0.29%) right now. The warehouse retailer is trading near all-time highs, having jumped over 50% since early 2023.

Is Costco stock a strong buy?

Costco has a conensus rating of Strong Buy which is based on 19 buy ratings, 6 hold ratings and 0 sell ratings. The average price target for Costco is $783.04. This is based on 25 Wall Streets Analysts 12-month price targets, issued in the past 3 months.

Is Costco financially stable?

Furthermore, the earnings per share (EPS) estimates for the fiscal year indicate a stable financial outlook for Costco, yet the projected earnings growth may already be priced into the market.

What is the highest Costco stock has ever been?

Historical daily share price chart and data for Costco since 1986 adjusted for splits and dividends. The latest closing stock price for Costco as of April 24, 2024 is 723.89. The all-time high Costco stock closing price was 785.59 on March 07, 2024.

Who has the most stock 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 stock will boom in 2024?

Why is Costco stock crashing?

Costco Wholesale topped earnings expectations, but the stock fell following the company's rare revenue miss. The company's fiscal second-quarter revenue of $58.4 billion missed analyst projections for $59.1 billion.

Should I buy Costco or Walmart stock?

While Costco appears to have the best growth prospects, that isn't enough to make it the best investment. Walmart trades at a lower valuation, and its higher dividend yield means you will receive more in dividend payments than you would on the same amount of money invested in Costco. That makes Walmart the winner.

What are analysts saying about Costco stock?

According to analysts, Costco Wholesale's stock has a predicted upside of 5.50% based on their 12-month stock forecasts.

Is Costco in debt?

Total debt on the balance sheet as of February 2024 : $9.43 B. According to Costco's latest financial reports the company's total debt is $9.43 B. A company's total debt is the sum of all current and non-current debts.

Why should you invest in Costco stock?

Costco Wholesale

It has every chance to continue beating the market. Costco Wholesale (COST -0.32%) has trounced the market over almost any period you can check. It has a differentiated operating model that breeds loyalty and high sales and is resilient during challenging times.

Is Costco a good dividend stock?

Costco stock is always expensive

Costco's dividend yield is tiny at 0.5%, largely thanks to its long history of successful growth. Value investors and those trying to maximize the income they generate probably won't find it attractive.

How much will Costco stock be worth in 10 years?

According to the latest long-term forecast, Costco price will hit $800 by the end of 2024 and then $900 by the middle of 2025. Costco will rise to $1000 within the year of 2026, $1100 in 2027, $1300 in 2028, $1500 in 2029, $1600 in 2030, $1700 in 2032, $1800 in 2033 and $2000 in 2035.

Why is Costco tanking?

At the heart of the pullback was Costco's slight revenue miss for the holiday quarter, which ended in mid-February. As Barrons' Andrew Bary noted this weekend, a quarterly sales increase of 6% was hardly enough to justify the stock's lofty valuation.

Does Costco have a future?

Of course, Costco is going to have a much larger number of stores in the future. In the last 10 years, the store count expanded at a compound annual rate of 3%. Management opened 23 net new locations in fiscal 2023, with plans to open 31 in the current fiscal year.

What will Costco stock be worth in 5 years?

Costco Wholesale Corp quote is equal to 722.335 USD at 2024-04-24. Based on our forecasts, a long-term increase is expected, the "COST" stock price prognosis for 2029-04-18 is 1112.158 USD. With a 5-year investment, the revenue is expected to be around +53.97%. Your current $100 investment may be up to $153.97 in 2029.

Will Costco stock reach $1000?

But I believe that Costco's P/E ratio could actually contract because of how expensive it is right now, and this creates downside risk for investors. Don't expect the $1,000 mark to be met in 2024. And for investors who are drawn to the business, it's best to practice patience and wait for a better valuation.

Why is Costco stock so expensive?

Costco's stock isn't cheap, but there are multiple catalysts that could strengthen its earnings power and, thus, bring down that multiple in the long run. One is an increase to its membership price, and the other is continued growth in international markets. The company's earnings still have a lot of room to grow.