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.

Is Costco considered a blue-chip stock?

Costco Wholesale (NASDAQ:COST) stock continues to be one of the best blue-chip stocks investors can buy and remains the gold standard of the retail sector.

What type of stock is Costco?

Costco Wholesale Corporation Common Stock (COST)

Is Costco a good long term stock?

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 2024?

Costco Wholesale (NASDAQ: COST) stock has been reaching new highs in 2024, but it could have more room to run.

Is Costco a good company to invest in?

Costco could be a good long-term buy -- but at its current multiple, investors are paying for a lot of future earnings growth. If you want to hang on to it for decades, then it could still be a good investment for you.

Is it good to invest in Costco?

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 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.

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 22, 2024 is 715.46. The all-time high Costco stock closing price was 785.59 on March 07, 2024.

What are the pros and cons of Costco stock?

Costco Wholesale

The retailer seems like an obvious buy due to its impressive competitive advantages and track record for market-share growth through a wide range of selling environments. But there are drawbacks to this stock, too, including its relatively low profit margin, modest dividend payment, and high price.

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.

Is Walmart or Costco a better 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.

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.

Will Costco stock reach $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 stock will boom in 2024?

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.

Is Costco a safe stock to buy?

Key Points. Costco shares have more than tripled in the past five years. Because of that strong performance, the stock trades at a steep P/E ratio of 49. This is no doubt a superb business, but it's not a smart buy right now.

Who owns the most shares 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.

Why is Costco a strong buy?

Costco now has 73.4 million paid household members and 132 million cardholders. It's an encouraging sign that even amid inflation and as budgets tighten up, consumers are seeing enough value in Costco's membership to sign up. That bodes well for the company's growth prospects this year and beyond.

Is Costco a stable stock?

NASDAQ: COST

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.

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.

What 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 2031, $1800 in 2032 and $2000 in 2035.

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.

Do Costco employees get free stock?

One unique perk Costco offers is its Employee Stock Purchase Plan (ESPP). Through this program, employees can purchase Costco stock at a discounted price. Employees can build their wealth by participating in the ESPP and benefit from the company's success.

Is Costco a good dividend stock?

As mentioned earlier, for investors looking to outperform the market average today, it might be best to wait for a better valuation for Costco stock. However, for those looking to lock in a predictable dividend that's poised to increase annually for years to come, then Costco stock is a great candidate.