Market Impact Analysis The Teamsters union, representing over 18,000 Costco workers, has voted by an 85% margin to authorize a nationwide strike. The current contract expires on January 31, 2025, with final negotiations beginning on January 20, 2025. This development creates significant near-term uncertainty.

Technical Analysis The stock is currently trading at $943.19, showing mixed technical signals with an RSI of 52.42, indicating neutral momentum. The stock is trading above its 20-day SMA of $933.99, suggesting short-term bullish momentum.

Analyst Sentiment Recent analyst coverage remains largely positive:

Telsey Advisory Group maintains Buy rating with $1,100 price target (17.4% upside)
BMO Capital raised target to $1,175 (18.76% upside)
Morgan Stanley increased target to $1,150 (16.24% upside)

Risk Assessment The immediate labor dispute presents a significant risk. If negotiations fail and workers strike after January 31, it could disrupt operations and impact revenue. However, Costco's strong market position and history of employee relations suggest they may reach an agreement before the deadline.

Recommendation SELL. Despite strong analyst support and solid technical indicators, the imminent strike risk creates too much uncertainty. The stock is trading near all-time highs, making it vulnerable to negative news. Consider re-entering after labor negotiations conclude.

What is price prediction 2025 for COST Stock?

Based on the provided data and recent news, here's a price prediction for COST stock in 2025:

Technical Analysis

Current Market Position

Current Price: $943.19 (as of Jan 17, 2025)
YTD Performance: +2.55%
RSI (14): 52.42 (neutral territory)

Key Price Drivers & Analysis

Labor Relations Risk: The Teamsters union representing 18,000 Costco workers has voted 85% in favor of authorizing a strike, with contract negotiations deadline on January 31, 2025. This presents a significant near-term risk that could impact operations and stock price.
Growth Fundamentals:

Revenue growth of 7.5% in Q1 FY2025
Comparable store sales growth of 5.2%
E-commerce revenue growth of 17.1%

Valuation Concerns:

Trading at 58x trailing earnings, significantly above its 10-year average of 36x
P/E ratio near all-time highs, suggesting potential overvaluation

Price Target 2025

Based on the analysis of current trends and risk factors, here's the projected price range for COST by end of 2025:

Base case: $920-950 (current levels)
Bull case: $1,000-1,050 (potential upside of ~11%)
Bear case: $800-850 (potential downside of ~15%)

The most likely scenario is the base case, with the stock trading sideways or slightly lower from current levels due to:

High valuation multiples limiting upside potential
Near-term labor relations risk
Slowing growth rate compared to previous years

The stock appears to be fully valued at current levels, and while Costco remains a strong business, the risk-reward ratio doesn't favor significant upside from here.

Note: This analysis is for informational purposes only and should not be considered as financial advice. Stock prices are subject to market risks and can be volatile. Always conduct your own research before making investment decisions.

What is surpport and resistant level for COST Stock?

The S1 support level for COST Stock is $915.66 ,The R1 resistant level for COST Stock is $951.29.

What is the current price of COST Stock?

As of the end of day on 2025-01-24, the price of COST Stock was $939.24.

What is the target price of COST Stock?

The target price for COST Stock according to analyst rating is 1,059, with the highest price target at 1,195 and the lowest at 900.00. Analysts have a Moderate Buy rating on COST Stock overall.

What is the market cap of Costco Wholesale Corp?

The market cap of COST is $417.1B.

Is Costco Wholesale Corp (COST) overvalued?

Based on the provided data and context, I'll analyze whether COST is overvalued in 5 concise sentences:

COST is currently trading at a P/E ratio of 56.6x (FY2025 Q1), which is significantly higher than its 5-year mean of 39.79x and 10-year mean of 33.28x. The stock's current valuation appears stretched with a FWD PEG ratio of 5.85x compared to its sector median of 2.43x, while its membership fee revenue growth of 7.4% YoY and comparable sales growth of 5.2% don't justify such premium multiples. The upcoming Teamsters strike risk, with 85% of members voting to authorize a strike ahead of the January 31 contract deadline, poses a significant near-term threat to operations and could pressure the stock price. While Costco maintains excellent business fundamentals with strong membership retention at 90.4% and healthy margins, the current share price of $943 has fully priced in the projected boost from the recent 8.3% membership fee increase and leaves little room for further upside. Given the lofty valuation multiples, labor relations risk, and limited catalysts for multiple expansion, COST appears overvalued at current levels.

What is Costco Wholesale Corp (COST)'s business?

Costco Wholesale Corporation operates membership warehouses and e-commerce websites. The Company operates 861 warehouses, including 591 in the United States and Puerto Rico, 107 in Canada, 40 in Mexico, 33 in Japan, 29 in the United Kingdom, 18 in Korea, 15 in Australia, 14 in Taiwan, five in China, four in Spain, two in France, and one each in Iceland, New Zealand and Sweden. It also operates e-commerce sites in the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan and Australia. It provides a wide selection of merchandise, convenience of specialty departments and exclusive member services. It operates through three segments: United States Operations, Canadian Operations, and Other International Operations. The Company offers merchandise categories (foods and sundries, non-foods, and fresh foods), warehouse ancillary (gasoline, pharmacy, optical, food court, hearing aids and tire installation) and other businesses (e-commerce, business centers, travel and other).