Is Costco a good long term investment? (2024)

Is Costco a good long term investment?

But its solid business model, with high expansion opportunities leading to ever-increasing members, is a long-term tailwind that sets it up for future success. Costco is a stock you can buy today and hold forever.

Is Costco a long term investment?

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What will Costco stock be worth in 5 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 2031, $1800 in 2033 and $2000 in 2035.

Why is Costco a good stock to invest in?

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 financially stable?

Costco's growth rate rarely disappoints, and its earnings are much more stable than its peers thanks to a steady stream of subscription fee income. Those competitive assets have been enough to allow the stock to roughly triple the wider market's gains over the last several years.

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.

Should you invest in Costco?

Costco's growth rate rarely disappoints, and its earnings are much more stable than its peers thanks to a steady stream of subscription fee income. Those competitive assets have been enough to allow the stock to roughly triple the wider market's gains over the last several years.

Will Costco stock hit $1,000?

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.

What will Costco stock be in 2030?

What is the stock projection for Costco in 2030?

With Membership income doubling and overseas growth accelerating, our model shows Costco earning $30 billion in net income by 2030. Applying a premium 35x P/E ratio gives us a potential future stock price of $1,900.

Is Costco a good stock to buy 2024?

Costco sales are accelerating

The main piece of good news driving shares higher into 2024 is Costco's improving growth rates. The company releases monthly sales updates, in contrast with most retailing peers, and that's why investors know more about how this business performed through the holiday shopping season.

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.

Who are the biggest investors in Costco?

Largest shareholders include Vanguard Group Inc, BlackRock Inc., State Street Corp, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, VFINX - Vanguard 500 Index Fund Investor Shares, Fmr Llc, Morgan Stanley, Geode Capital Management, Llc, Invesco Qqq Trust, Series 1, and Bank Of America Corp /de/ .

How high can Costco stock go?

Average Price Target

Based on 26 Wall Street analysts offering 12 month price targets for Costco in the last 3 months. The average price target is $777.08 with a high forecast of $905.00 and a low forecast of $601.00. The average price target represents a 8.88% change from the last price of $713.72.

Why is Costco tanking?

Shares of membership-only discount retailer Costco (NASDAQ:COST) fell 7.7% in the afternoon session after the company reported fourth-quarter results with revenue falling short of analysts' expectations. Free cash flow also underwhelmed during the quarter with the company recording a significant amount of cash burn.

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.

Will Costco keep growing?

Still growing

According to Wall Street analysts' estimates, Costco's revenue is set to increase at a compound annual rate of 6.1% between fiscal 2023 and 2026. There's still some growth to be achieved. Profits have risen at an even faster clip due to the benefits of economies of scale.

Is Costco over or undervalued?

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 is the long term growth rate of Costco?

Costco revenue for the twelve months ending February 29, 2024 was $248.828B, a 6.16% increase year-over-year. Costco annual revenue for 2023 was $242.29B, a 6.76% increase from 2022. Costco annual revenue for 2022 was $226.954B, a 15.83% increase from 2021.

What are the cons of Costco?

What is the future growth of Costco?

Costco clocked a 90.5% global renewal rate in the quarter (92.9% in the US and Canada), and management reaffirmed its commitment to opening new warehouses, with 28 planned for fiscal 2024. Despite operating over 600 warehouses in the US, we think Costco has room to add at least 100 more over the next decade.

Why is Costco so profitable?

Costco's financial success has been driven by its membership model. Memberships drive customer loyalty while producing high-margin revenue. Costco's stock has been a huge winner, and its valuation is excessive.

Is Kirkland a good investment?

Based on analyst ratings, Kirkland's's 12-month average price target is $2.50. Kirkland's has 15.21% upside potential, based on the analysts' average price target.

Is Costco stock splitting?

Costco: Playing by its own rules

It split its stock four times from 1990 through 2000 but hasn't since -- and that's despite gaining more than 1,300% since then.

Is Costco a high risk stock?

Costco Wholesale Corp has a volatility of 1.36 and is 2.19 times more volatile than NYSE Composite. 12 percent of all equities and portfolios are less risky than Costco Wholesale. You can use Costco Wholesale Corp to protect your portfolios against small market fluctuations.