Analyst Activity: Costco Wholesale Corporation (NASDAQ:COST)

Analysts are weighing in on how Costco Wholesale Corporation (NASDAQ:COST) , might perform in the near term. Wall Street analysts have a much less favorable assessment of the stock, with a mean rating of 2.2. The stock is rated as buy by 14 analysts, with 5 outperform and 10 hold rating. The rating score is on a scale of 1 to 5 where 1 stands for strong buy and 5 stands for strong sell.

For the current quarter, the 25.00 analysts offering adjusted EPS forecast have a consensus estimate of $1.75 a share, which would compare with $1.73 in the same quarter last year. They have a high estimate of $1.82 and a low estimate of $1.67. Revenue for the period is expected to total nearly $37.28B from $35.78B the year-ago period.

For the full year, 27.00 Wall Street analysts forecast this company would deliver earnings of 5.31 per share, with a high estimate of $5.38 and a low estimate of $5.22. It had reported earnings per share of $5.27 in the corresponding quarter of the previous year. Revenue for the period is expected to total nearly $119.24B versus 116.20B in the preceding year.

The analysts project the company to maintain annual growth of around 9.02% percent over the next five years as compared to an average growth rate of 12.11% percent expected for its competitors in the same industry.

Among the 21 analysts Data provided by Thomson/First Call tracks, the 12-month average price target for COST is $167.71 but some analysts are projecting the price to go as high as $195.00. If the optimistic analysts are correct, that represents a 27 percent upside potential from the recent closing price of $154.05. Some sell-side analysts, particularly the bearish ones, have called for $135.00 price targets on shares of Costco Wholesale Corporation (NASDAQ:COST) .

In the last reported results, the company reported earnings of $1.73 per share, while analysts were calling for share earnings of $1.66. It was an earnings surprise of 4.20%percent. In the matter of earnings surprises, the term Cockroach Effect is often implied. Cockroach Effect is a market theory that suggests that when a company reveals bad news to the public, there may be many more related negative events that have yet to be revealed. In the case of earnings surprises, if a company is suggesting a negative earnings surprise it means there are more to come.

Costco Wholesale Corporation, together with its subsidiaries, operates membership warehouses. The company offers branded and private-label products in a range of merchandise categories. It provides dry and institutionally packaged foods; snack foods, candy, tobacco, alcoholic and nonalcoholic beverages, and cleaning and institutional supplies; appliances, electronics, health and beauty aids, hardware, and garden and patio; meat, bakery, deli, and produce; and apparel and small appliances. The company also operates gas stations, pharmacies, food courts, optical dispensing centers, photo processing centers, and hearing-aid centers; and engages in the travel business. In addition, it provides gold star (individual) and business membership services. As of October 29, 2015, it operated 690 warehouses, including 482 warehouses in the United States and Puerto Rico, 90 in Canada, 36 in Mexico, 27 in the United Kingdom, 23 in Japan, 12 in Korea, 11 in Taiwan, 7 in Australia, and 2 in Spain. Costco Wholesale Corporation also sells its products through online. The company was formerly known as Costco Companies, Inc. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.