Retail powerhouse Costco (COST) is set to release its Q1 FY25 financial results on December 12. Wall Street analysts expect the company to report earnings of $3.79 per share for Q1, down 22% year-over-year. Also, analysts expect revenues to decrease 16% from the year-ago figure to $66.52 billion, according to TipRanks’ data.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
In terms of stock price, Costco shares have risen about 64% this year, driven by solid comparable sales growth and rising memberships that are boosting its bottom line.
Analysts’ Opinions Ahead of Costco’s Q1 Earnings
Ahead of Costco’s Q1 results, many analysts raised their price targets for the stock. Among them, Oppenheimer’s Rupesh Parikh increased his price target from $980 to $1,075 and maintained a Buy rating on the stock.
Parikh remains positive about Costco’s ability to grow its market share. He believes that the company is well positioned to sustain its robust top-line momentum. Oppenheimer also highlighted Costco’s enhanced merchandising strategy, such as its gift card options and the addition of premium brands in stores. It’s worth noting that Parikh is a five-star analyst with a 65% success rate and an average return of 12.10% per rating.
Likewise, Jefferies analyst Corey Tarlowe increased his price target for Costco to $1,145 from $1,050 while reaffirming a Buy rating. Tarlowe noted that November sales were “solid” despite foreign exchange headwinds. Although the firm slightly lowered its comparable and net sales estimates, the price target was increased modestly to reflect a higher valuation multiple, driven by the company’s ongoing momentum.
However, three analysts maintained their Hold ratings ahead of the Q1 print.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can gauge options traders’ expectations for the stock post-earnings report. Based on a $980 strike price, with call options priced at $23.10 and put options at $10.66, the expected price movement, based on the at-the-money straddle, is 3.43%.
Is Costco Stock a Buy or Sell?
Turning to Wall Street, Costco has a Moderate Buy consensus rating based on 17 Buys and seven Holds assigned in the last three months. At $995.85, the average COST price target implies 0.25% upside potential.
