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Costco is slated to expand across North America over the next couple of months, with more than a dozen warehouses scheduled to open in the U.S. and Canada.

The company has already been growing this year in the U.S. and beyond, opening stores in California, Florida, Georgia, Minnesota, New York, Texas, Utah and Wisconsin, as well as Mexico and Taiwan.

Now, more warehouses are expected to open before the end of the year.

Five new Costco warehouses are set to open in October in Lee's Summit, Missouri; The Colony, Texas; Amherst, New York; Lawrence, Kansas, and Camarillo, California.

COSTCO BRINGS BACK FAN-FAVORITE KIRKLAND TREAT AFTER TWO-YEAR ABSENCE

Costco is set to expand across North America over the next couple of months. (David Paul Morris/Bloomberg / Getty Images)

In November, Costco will open nine additional warehouses, including four in Canada — Northeast Edmonton and Lloydminster in Alberta and East Windsor and Wasaga Beach in Ontario.

The U.S. stores set to open in November will be in South Meridian, Idaho; Vallejo, California; Chandler, Arizona; Newport News, Virginia, and Franklin, Wisconsin.

For some of the new stores, Costco is just relocating within the same city.

For example, the warehouse set to open soon in Newport News is replacing a store that has been in the city since 1988, after Costco purchased a 32-acre property a few blocks from its current warehouse, aiming to build a 163,000 square-foot retail warehouse and fuel station.

Five warehouses are set to open in October, with nine more scheduled for November, including four in Canada. (Gary Hershorn/Getty Images / Getty Images)

Costco is also planning to open warehouses in even more communities.

Downey, California, approved a plan earlier this year for a new store, while proposals were submitted over the summer in Charleston County, South Carolina, and Hillsborough County, Florida, according to local media.

The company is also exploring possible warehouses in Fresno, California; Lake St. Louis, Missouri; Southborough, Massachusetts; Silver Spring, Maryland; Scottsdale, Arizona, and Des Plaines, Illinois.

COSTCO ADDS HOT FAN FAVORITE TO FOOD COURT MENU AS SHOPPERS DEBATE TASTE AND VALUE

Costco is also planning to open warehouses in even more communities. (Angus Mordant/Bloomberg / Getty Images)

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Despite the expansion plans, Rhode Island, West Virginia and Wyoming will have to wait for now, as Costco is not expected to expand into any new states.

This comes after CEO Ron Vachris said earlier this year that the company wants to open 30 or more warehouses annually over the next five to 10 years. About half of those would be new warehouses in the U.S., while the remainder would open in locations around the world, with Vachris pointing out Mexico, Canada, Asia, Europe, Australia and New Zealand as potential spots for some of the future warehouses.

Key Takeaways Costco's Q4 net sales rose 11.3% to $93.9 billion, with comparable sales up 9.4%.Digitally enabled comparable sales climbed 19.5%, versus 9.4% companywide comparable-sales growth.Full-year digitally enabled comparable sales rose 20.9%, or 20.7% excluding gas and FX impacts. Costco Wholesale Corporation (COST - Free Report) closed fiscal 2026 on a strong sales note, with fourth-quarter net sales rising 11.3% year over year to $93.9 billion from $84.4 billion. The increase highlights solid sales momentum over the 16-week quarter, while the company’s digitally enabled business remained a notable contributor to the overall pace of growth.

Comparable sales for the fourth quarter increased 9.4% companywide. The United States posted a 10.7% comparable-sales gain, while Canada and Other International rose 5% and 7%, respectively. Against that backdrop, digitally enabled comparable sales climbed a much faster 19.5%, showing that Costco’s online and digitally supported channels continued to expand at a stronger rate.

The digital trend remained similarly strong after excluding the effects of gasoline-price changes and foreign exchange. On that basis, total company comparable sales advanced 6.7% in the quarter, while digitally enabled comparable sales increased 19.8%. This wide gap underscores the strength of digital activity during the period.

The momentum was also visible in August, when digitally enabled comparable sales rose 17.9%. For the full 52-week fiscal year, the metric increased 20.9%, or 20.7% excluding gasoline and foreign-exchange impacts.

Costco’s fourth-quarter sales performance was marked by double-digit net sales growth and a digitally enabled business that continued to grow materially faster than companywide comparable sales throughout the reported period.

How Costco Compares With Target and BJ’s WholesaleTarget Corporation (TGT - Free Report) also showed improving sales and digital momentum in second-quarter fiscal 2026. Target’s net sales rose 5.3% year over year to $ 26,539 million, while comparable sales increased 3.8%. Digital comparable sales advanced 8.7%, outpacing comparable store sales growth of 2.7%, with same-day delivery rising more than 25%. For Target, the results highlight how digital channels continued to supplement broader top-line growth during the quarter.

BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) posted stronger digital growth in second-quarter fiscal 2026, alongside a sharp increase in overall sales. BJ’s Wholesale net sales climbed 15.9% year over year to $6,091 million, while comparable club sales, excluding gasoline, rose 3.1%. Digitally enabled comparable sales surged 30%, representing 64% growth on a two-year stacked basis. For BJ’s Wholesale, digital convenience remained a key driver, supported by pickup, same-day delivery and ExpressPay engagement.

What the Latest Metrics Say About CostcoCostco has seen its shares tumble 6% over the past three months compared with the industry’s decline of 3.6%. 
 

Image Source: Zacks Investment Research

From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 40.71, higher than the industry’s ratio of 29.13. However, it is trading below its 12-month median level of 47.12, indicating some moderation in valuation.
 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.6% and 13.5%, respectively. For the next fiscal year, the consensus estimate indicates a 7.9% rise in sales and 10.2% growth in earnings.
 

Image Source: Zacks Investment Research

Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

D.B. Root & Company LLC purchased a new position in Costco Wholesale Corporation (NASDAQ:COST – Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm purchased 2,702 shares of the retailer’s stock, valued at approximately $2,527,000. Costco Wholesale comprises about 0.5% of D.B. Root & Company LLC’s holdings, making the stock its 27th biggest position.

A number of other institutional investors have also modified their holdings of the business. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in Costco Wholesale in the 4th quarter worth approximately $27,000. Lifetime Wealth Management P.C. bought a new stake in Costco Wholesale in the fourth quarter worth about $28,000. C M Bidwell & Associates Ltd. bought a new stake in shares of Costco Wholesale in the 2nd quarter worth approximately $28,000. Mcguire Capital Advisors Inc. acquired a new stake in shares of Costco Wholesale during the 4th quarter valued at $28,000. Finally, Burk Holdings LLC acquired a new position in shares of Costco Wholesale in the 2nd quarter valued at $30,000. Institutional investors own 68.48% of the company’s stock.

Analyst Upgrades and Downgrades Several analysts have issued reports on COST shares. UBS Group boosted their target price on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a “buy” rating in a research note on Wednesday, May 20th. Truist Financial lifted their price target on Costco Wholesale from $977.00 to $1,011.00 and gave the company a “hold” rating in a report on Friday, May 29th. Citigroup initiated coverage on Costco Wholesale in a research note on Thursday, June 18th. They issued a “neutral” rating and a $1,020.00 price target for the company. Guggenheim restated a “neutral” rating on shares of Costco Wholesale in a report on Monday, June 1st. Finally, Bank of America raised their price objective on shares of Costco Wholesale from $1,185.00 to $1,200.00 and gave the company a “buy” rating in a research report on Friday, May 29th. Twenty-one investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $1,056.90.

Get Our Latest Analysis on COST Costco Wholesale Stock Performance Shares of NASDAQ COST opened at $915.74 on Friday. The business has a fifty day simple moving average of $943.58 and a 200 day simple moving average of $977.75. The firm has a market capitalization of $406.11 billion, a price-to-earnings ratio of 46.06, a PEG ratio of 3.84 and a beta of 0.86. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17.

Costco Wholesale Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Shareholders of record on Friday, July 24th were issued a dividend of $1.47 per share. The ex-dividend date of this dividend was Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio (DPR) is presently 29.58%.

Insider Transactions at Costco Wholesale In other Costco Wholesale news, Director Kenneth Denman sold 885 shares of the business’s stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total value of $847,343.25. Following the transaction, the director directly owned 4,779 shares in the company, valued at $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.10% of the stock is owned by corporate insiders.

Key Stories Impacting Costco Wholesale Here are the key news stories impacting Costco Wholesale this week:

Positive Sentiment: Strong August sales: Net sales increased 9.9% year over year, with comparable sales rising across regions and digitally enabled sales advancing 17.9%. The figures point to resilient member demand and continued e-commerce momentum. Costco’s August Sales Rise 9.9% as Digital Growth Stays Strong Positive Sentiment: Analyst support remains broad: BTIG reiterated a Buy rating with a $1,125 target, while Bank of America maintained its Buy rating and $1,200 target. Analysts cited resilient core performance, market-share gains, and higher earnings estimates. BTIG Reaffirms Buy on Costco Positive Sentiment: Long-term shareholder appeal: Commentary highlighted Costco’s consistent dividend growth since 2004, membership model, customer loyalty, and potential for continued earnings expansion. Neutral Sentiment: Store expansion: Costco is reportedly considering a new location in Thompson’s Station, Tennessee, supporting its long-term warehouse growth strategy, although the potential site has no immediate earnings impact. Neutral Sentiment: Mixed analyst valuation signals: DA Davidson reaffirmed a Neutral rating with a $1,000 target, while Bernstein retained a Buy rating but lowered its target to $1,144, indicating less room for upside despite confidence in the business. Negative Sentiment: Valuation concerns: Jim Cramer and other commentators argued that COST trades at roughly 43–49 times earnings, leaving the stock vulnerable if growth slows or results merely meet expectations. Cramer Says Costco at 49 Times Earnings Is the Mistake Loyal Shoppers Keep Making Negative Sentiment: Regulatory risk: The Department of Justice expanded a beef-pricing antitrust inquiry to Costco, seeking information on prices, costs, margins, purchasing, and supply-chain practices. Potential compliance costs or scrutiny could pressure sentiment. US DOJ Widens Beef Price Inquiry Negative Sentiment: Costco Next shutdown: The company’s online marketplace reportedly went offline without notice, raising questions about its digital strategy, although the platform is not viewed as central to Costco’s core business. Costco Next Online Marketplace Shut Down (Free Report)

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company’s product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco’s business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.

Recommended Stories Five stocks we like better than Costco Wholesale Revolution Medicines Got Its Breakthrough—What Moves It Next? Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy FB Financial’s Southern Expansion and Buybacks Drive Analyst Optimism AST SpaceMobile Stock Soared 12%—This Was the Catalyst Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST – Free Report).

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L2 Asset Management LLC acquired a new stake in Costco Wholesale Corporation (NASDAQ:COST – Free Report) in the second quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 2,538 shares of the retailer’s stock, valued at approximately $2,374,000.

Other large investors have also recently made changes to their positions in the company. World Investment Advisors raised its holdings in shares of Costco Wholesale by 8.4% during the 4th quarter. World Investment Advisors now owns 20,081 shares of the retailer’s stock valued at $15,835,000 after buying an additional 1,560 shares in the last quarter. Sarasin & Partners LLP lifted its holdings in Costco Wholesale by 6.9% in the 2nd quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer’s stock worth $200,372,000 after buying an additional 13,795 shares during the period. Perryman Financial Advisory Inc. AD bought a new stake in Costco Wholesale in the fourth quarter valued at $9,300,000. Retail Employees Superannuation Pty Ltd as trustee for Retail Employees Superannuation Trust purchased a new position in shares of Costco Wholesale during the fourth quarter valued at about $5,813,000. Finally, Hyperion Asset Management Ltd boosted its position in shares of Costco Wholesale by 9.0% during the second quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer’s stock valued at $64,325,000 after purchasing an additional 5,656 shares in the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades COST has been the subject of a number of analyst reports. UBS Group raised their target price on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a “buy” rating in a research note on Wednesday, May 20th. DA Davidson reissued a “neutral” rating and set a $1,000.00 price target on shares of Costco Wholesale in a report on Thursday. The Goldman Sachs Group lifted their price objective on Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a “buy” rating in a report on Friday, May 29th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $1,091.00 target price on shares of Costco Wholesale in a research report on Friday. Finally, Roth Capital upped their price target on shares of Costco Wholesale from $769.00 to $781.00 and gave the company a “sell” rating in a research report on Friday, May 29th. Twenty-one analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,056.90.

Read Our Latest Report on Costco Wholesale Costco Wholesale News Summary Here are the key news stories impacting Costco Wholesale this week:

Positive Sentiment: Strong August sales: Net sales increased 9.9% year over year, with comparable sales rising across regions and digitally enabled sales advancing 17.9%. The figures point to resilient member demand and continued e-commerce momentum. Costco’s August Sales Rise 9.9% as Digital Growth Stays Strong Positive Sentiment: Analyst support remains broad: BTIG reiterated a Buy rating with a $1,125 target, while Bank of America maintained its Buy rating and $1,200 target. Analysts cited resilient core performance, market-share gains, and higher earnings estimates. BTIG Reaffirms Buy on Costco Positive Sentiment: Long-term shareholder appeal: Commentary highlighted Costco’s consistent dividend growth since 2004, membership model, customer loyalty, and potential for continued earnings expansion. Neutral Sentiment: Store expansion: Costco is reportedly considering a new location in Thompson’s Station, Tennessee, supporting its long-term warehouse growth strategy, although the potential site has no immediate earnings impact. Neutral Sentiment: Mixed analyst valuation signals: DA Davidson reaffirmed a Neutral rating with a $1,000 target, while Bernstein retained a Buy rating but lowered its target to $1,144, indicating less room for upside despite confidence in the business. Negative Sentiment: Valuation concerns: Jim Cramer and other commentators argued that COST trades at roughly 43–49 times earnings, leaving the stock vulnerable if growth slows or results merely meet expectations. Cramer Says Costco at 49 Times Earnings Is the Mistake Loyal Shoppers Keep Making Negative Sentiment: Regulatory risk: The Department of Justice expanded a beef-pricing antitrust inquiry to Costco, seeking information on prices, costs, margins, purchasing, and supply-chain practices. Potential compliance costs or scrutiny could pressure sentiment. US DOJ Widens Beef Price Inquiry Negative Sentiment: Costco Next shutdown: The company’s online marketplace reportedly went offline without notice, raising questions about its digital strategy, although the platform is not viewed as central to Costco’s core business. Costco Next Online Marketplace Shut Down Insiders Place Their Bets In other Costco Wholesale news, Director Kenneth Denman sold 885 shares of the stock in a transaction on Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the transaction, the director owned 4,779 shares in the company, valued at $4,575,653.55. This trade represents a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 0.10% of the company’s stock.

Costco Wholesale Stock Performance Shares of NASDAQ COST opened at $915.74 on Friday. The company has a market cap of $406.11 billion, a P/E ratio of 46.06, a P/E/G ratio of 3.84 and a beta of 0.86. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,096.50. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07. The firm’s fifty day moving average is $943.58 and its two-hundred day moving average is $977.75.

Costco Wholesale Announces Dividend The company also recently announced a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were given a dividend of $1.47 per share. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Friday, July 24th. Costco Wholesale’s dividend payout ratio is currently 29.58%.

Costco Wholesale Profile (Free Report)

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company’s product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco’s business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.

Featured Stories Five stocks we like better than Costco Wholesale Revolution Medicines Got Its Breakthrough—What Moves It Next? Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy FB Financial’s Southern Expansion and Buybacks Drive Analyst Optimism AST SpaceMobile Stock Soared 12%—This Was the Catalyst Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST – Free Report).

Receive News & Ratings for Costco Wholesale Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Costco Wholesale and related companies with MarketBeat.com's FREE daily email newsletter.

Front Street Capital Management Inc. acquired a new stake in Costco Wholesale Corporation (NASDAQ:COST – Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 16,076 shares of the retailer’s stock, valued at approximately $15,039,000. Costco Wholesale accounts for about 1.7% of Front Street Capital Management Inc.’s investment portfolio, making the stock its 21st biggest position.

A number of other hedge funds also recently modified their holdings of the stock. Brighton Jones LLC lifted its holdings in Costco Wholesale by 12.3% during the 4th quarter. Brighton Jones LLC now owns 19,825 shares of the retailer’s stock worth $18,165,000 after purchasing an additional 2,172 shares during the last quarter. Revolve Wealth Partners LLC grew its holdings in Costco Wholesale by 13.1% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,123 shares of the retailer’s stock valued at $1,029,000 after buying an additional 130 shares in the last quarter. Sivia Capital Partners LLC grew its holdings in Costco Wholesale by 4.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 3,853 shares of the retailer’s stock valued at $3,814,000 after buying an additional 165 shares in the last quarter. Pinnacle Wealth Planning Services Inc. increased its position in Costco Wholesale by 1.1% during the 2nd quarter. Pinnacle Wealth Planning Services Inc. now owns 2,110 shares of the retailer’s stock worth $2,089,000 after buying an additional 23 shares during the period. Finally, Schnieders Capital Management LLC. lifted its holdings in shares of Costco Wholesale by 2.2% during the second quarter. Schnieders Capital Management LLC. now owns 8,502 shares of the retailer’s stock worth $8,416,000 after buying an additional 182 shares in the last quarter. Institutional investors and hedge funds own 68.48% of the company’s stock.

Costco Wholesale Trading Down 1.0% Shares of Costco Wholesale stock opened at $915.74 on Friday. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. Costco Wholesale Corporation has a 12-month low of $844.06 and a 12-month high of $1,096.50. The company has a market capitalization of $406.11 billion, a price-to-earnings ratio of 46.06, a PEG ratio of 3.84 and a beta of 0.86. The firm’s 50-day moving average price is $943.58 and its two-hundred day moving average price is $977.75.

Costco Wholesale Dividend Announcement The company also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were paid a $1.47 dividend. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend was Friday, July 24th. Costco Wholesale’s dividend payout ratio (DPR) is 29.58%. Insider Transactions at Costco Wholesale In other Costco Wholesale news, Director Kenneth Denman sold 885 shares of the business’s stock in a transaction that occurred on Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the transaction, the director directly owned 4,779 shares in the company, valued at $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.10% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth A number of equities research analysts have recently issued reports on COST shares. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $1,091.00 target price on shares of Costco Wholesale in a research report on Friday. Roth Capital lifted their price objective on shares of Costco Wholesale from $769.00 to $781.00 and gave the stock a “sell” rating in a research note on Friday, May 29th. Guggenheim restated a “neutral” rating on shares of Costco Wholesale in a research report on Monday, June 1st. DA Davidson reaffirmed a “neutral” rating and set a $1,000.00 target price on shares of Costco Wholesale in a report on Thursday. Finally, The Goldman Sachs Group lifted their price target on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the company a “buy” rating in a research report on Friday, May 29th. Twenty-one equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $1,056.90.

View Our Latest Analysis on Costco Wholesale

Costco Wholesale News Summary Here are the key news stories impacting Costco Wholesale this week:

Positive Sentiment: Strong August sales: Net sales increased 9.9% year over year, with comparable sales rising across regions and digitally enabled sales advancing 17.9%. The figures point to resilient member demand and continued e-commerce momentum. Costco’s August Sales Rise 9.9% as Digital Growth Stays Strong Positive Sentiment: Analyst support remains broad: BTIG reiterated a Buy rating with a $1,125 target, while Bank of America maintained its Buy rating and $1,200 target. Analysts cited resilient core performance, market-share gains, and higher earnings estimates. BTIG Reaffirms Buy on Costco Positive Sentiment: Long-term shareholder appeal: Commentary highlighted Costco’s consistent dividend growth since 2004, membership model, customer loyalty, and potential for continued earnings expansion. Neutral Sentiment: Store expansion: Costco is reportedly considering a new location in Thompson’s Station, Tennessee, supporting its long-term warehouse growth strategy, although the potential site has no immediate earnings impact. Neutral Sentiment: Mixed analyst valuation signals: DA Davidson reaffirmed a Neutral rating with a $1,000 target, while Bernstein retained a Buy rating but lowered its target to $1,144, indicating less room for upside despite confidence in the business. Negative Sentiment: Valuation concerns: Jim Cramer and other commentators argued that COST trades at roughly 43–49 times earnings, leaving the stock vulnerable if growth slows or results merely meet expectations. Cramer Says Costco at 49 Times Earnings Is the Mistake Loyal Shoppers Keep Making Negative Sentiment: Regulatory risk: The Department of Justice expanded a beef-pricing antitrust inquiry to Costco, seeking information on prices, costs, margins, purchasing, and supply-chain practices. Potential compliance costs or scrutiny could pressure sentiment. US DOJ Widens Beef Price Inquiry Negative Sentiment: Costco Next shutdown: The company’s online marketplace reportedly went offline without notice, raising questions about its digital strategy, although the platform is not viewed as central to Costco’s core business. Costco Next Online Marketplace Shut Down Costco Wholesale Profile (Free Report)

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company’s product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco’s business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.

Featured Stories Five stocks we like better than Costco Wholesale Revolution Medicines Got Its Breakthrough—What Moves It Next? Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy FB Financial’s Southern Expansion and Buybacks Drive Analyst Optimism AST SpaceMobile Stock Soared 12%—This Was the Catalyst Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST – Free Report).

Receive News & Ratings for Costco Wholesale Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Costco Wholesale and related companies with MarketBeat.com's FREE daily email newsletter.

Jim Cramer is sounding an alarm about a beloved retailer that loyal shoppers treat as bulletproof, and the numbers behind his warning point toward a corner of retail that most investors still underestimate.

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On CNBC’s opening bell on September 3, 2026, Jim Cramer laid out a split that inverts most people’s assumptions about American retail. The membership warehouse with the best reputation in the business is stumbling, and the chains people quietly hit for essentials are running away with the story.

Costco (NASDAQ:COST | COST Price Prediction) trades near 47 times trailing earnings while its comparable sales have gone the wrong way for four straight reporting periods. Meanwhile, Five Below (NASDAQ:FIVE), Dollar Tree (NASDAQ:DLTR), and Dollar General (NYSE:DG) have each reported quarters that would look strong in any market.

Cramer’s read is that the trade-down is real, and it is not treating Costco the way loyal shoppers assume it should.

Trading Down That Actually Works Jim Cramer said, “If you want to know what trading down looks like in a positive way, you just look at what Winnie Park has done at Five Below. Still one more amazing quarter.” The endorsement lines up with the numbers.

Five Below’s second quarter delivered net sales of $1.3 billion, up 23%, with comparable sales growth of 14% and adjusted diluted EPS of $1.68. Park raised full-year adjusted EPS guidance to a midpoint of $10.07.

Trading down describes household dollars migrating toward retailers positioned where the marginal purchase now happens. Park emphasized broad-based growth across all income cohorts, geographies, and categories, which reads as trade-in behavior from higher-income shoppers rather than pure distress buying.

At roughly 31 times earnings, Five Below is priced for growth investors, and estimate revisions have moved higher across every forward quarter. That is a materially different proposition than paying 47 times for a warehouse chain whose top line is decelerating.

Costco’s Problem Runs Deeper Than a Multiple Cramer invoked Charlie Munger’s principle that at extreme multiples the price has already paid for the future, and then applied it to Costco. He is right, and the multiple is best read as a symptom of the underlying problem.

CNBC noted that Costco’s comparable store sales declined across May, June, July, and August, and also flagged weak renewal rates for membership card purchases. Management on the last call reported the worldwide renewal rate at 89.7%, attributing the pressure to a growing mix of online sign-ups that renew at lower rates than warehouse sign-ups.

A membership retailer that struggles to keep its members has a structural issue that a rebound in gasoline traffic cannot fix. Costco’s operating leverage lives in the fees line, and although membership fees ran $1.37 billion, up 10.7% in the most recent quarter, a slower renewal cadence eventually reaches that growth rate.

The stock has noticed. Costco is down 2% over the past year and sits below both its 50-day and 200-day moving averages.

Cramer’s Generational Worry Deserves a Serious Answer Jim Cramer said, “I don’t want it to be a generational thing where my generation is Costco and the newer generations don’t look at it like that.” That is the most interesting thing he said, and the evidence is genuinely mixed.

Bullish evidence: paid executive memberships grew 9.6% to 41.2 million, digitally enabled comparable sales rose 21.5%, and site and app traffic increased 37%. A brand losing the internet does not produce those numbers.

Bearish evidence: digital sign-ups renew at a lower rate than warehouse sign-ups. The new member is easier to acquire and harder to keep, which is the pattern you would expect if the brand’s cultural gravity were weakening at the margins.

Cramer’s fear is reasonable. The data does not yet confirm it.

Where the Value Has Moved, and What Ends the Trade Jim Cramer said, “I’m just wondering whether the great value isn’t in these dollar stores.” CNBC reported strong results from both Dollar Tree and Dollar General.

Dollar Tree posted comparable sales up 3.7% with gross margin expanding 850 basis points to 42.9%. Dollar General reported 3.5% same-store sales growth in its fifth consecutive quarter of traffic growth, and CEO Todd Vasos cited strong trade-in across middle- and high-income cohorts.

The economics are simple. When budgets tighten, the fixed-cost base of a small-box discount format levers hard against small increases in traffic, and a $1 price point does disproportionate merchandising work for a shopper counting pennies.

Dollar Tree at 16 times earnings and Dollar General at 17 times are priced as if the trade-down ends tomorrow, which it likely will not, unless real wages accelerate meaningfully at the low end.

The trade-down winners look like a cyclical opportunity that investors would size to their own risk tolerance. What ends the trade is a genuine improvement in purchasing power at the bottom two income quintiles. Until that shows up in the data, Five Below and the dollar stores are where the incremental household dollar is going.

Contact [email protected] for any questions or corrections.

Daiichi Life Insurance Co. Ltd. bought a new position in shares of Costco Wholesale Corporation (NASDAQ:COST – Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 26,146 shares of the retailer’s stock, valued at approximately $24,459,000.

Several other hedge funds and other institutional investors have also recently made changes to their positions in COST. Palisade Asset Management LLC grew its holdings in Costco Wholesale by 1.4% in the fourth quarter. Palisade Asset Management LLC now owns 702 shares of the retailer’s stock valued at $605,000 after purchasing an additional 10 shares during the last quarter. Graybill Wealth Management LTD. grew its position in shares of Costco Wholesale by 0.3% in the fourth quarter. Graybill Wealth Management LTD. now owns 3,194 shares of the retailer’s stock valued at $2,754,000 after purchasing an additional 10 shares during the last quarter. Wealth Effects LLC increased its stake in shares of Costco Wholesale by 1.2% during the 1st quarter. Wealth Effects LLC now owns 874 shares of the retailer’s stock worth $871,000 after purchasing an additional 10 shares in the last quarter. Folger Nolan Fleming Douglas Capital Management Inc. raised its position in shares of Costco Wholesale by 1.8% during the 1st quarter. Folger Nolan Fleming Douglas Capital Management Inc. now owns 551 shares of the retailer’s stock worth $549,000 after purchasing an additional 10 shares during the last quarter. Finally, First National Bank of Hutchinson raised its position in shares of Costco Wholesale by 0.9% during the 1st quarter. First National Bank of Hutchinson now owns 1,098 shares of the retailer’s stock worth $1,094,000 after purchasing an additional 10 shares during the last quarter. Institutional investors and hedge funds own 68.48% of the company’s stock.

Analyst Upgrades and Downgrades Several brokerages have recently issued reports on COST. Truist Financial upped their price objective on Costco Wholesale from $977.00 to $1,011.00 and gave the company a “hold” rating in a research report on Friday, May 29th. TD Cowen restated a “buy” rating and issued a $1,175.00 target price on shares of Costco Wholesale in a report on Wednesday, June 3rd. The Goldman Sachs Group raised their price target on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a “buy” rating in a research note on Friday, May 29th. Guggenheim reissued a “neutral” rating on shares of Costco Wholesale in a research report on Monday, June 1st. Finally, HC Wainwright reissued a “buy” rating on shares of Costco Wholesale in a research note on Monday, June 1st. Twenty-two research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $1,059.53.

Check Out Our Latest Research Report on Costco Wholesale Insider Transactions at Costco Wholesale In other news, Director Kenneth D. Denman sold 885 shares of the business’s stock in a transaction dated Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total value of $847,343.25. Following the completion of the sale, the director owned 4,779 shares of the company’s stock, valued at approximately $4,575,653.55. The trade was a 15.62% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.10% of the stock is owned by corporate insiders.

Costco Wholesale Stock Performance Costco Wholesale stock opened at $928.48 on Thursday. The firm has a market capitalization of $411.76 billion, a PE ratio of 46.70, a price-to-earnings-growth ratio of 3.89 and a beta of 0.87. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50. The stock’s 50 day moving average price is $944.65 and its 200 day moving average price is $978.84. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07.

Costco Wholesale Announces Dividend The business also recently declared a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were given a dividend of $1.47 per share. The ex-dividend date of this dividend was Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio (DPR) is presently 29.58%.

Costco Wholesale News Roundup Here are the key news stories impacting Costco Wholesale this week:

Positive Sentiment: Strong sales momentum supports the investment case. Costco reported August net sales of $23.70 billion, up 9.9% year over year. Fourth-quarter sales rose 11.3% to $93.9 billion, while fiscal-year sales increased 10.2% to $297.3 billion. Total comparable sales grew 8.4% for the year, and digitally enabled sales jumped 20.9%. Costco Wholesale Corporation Reports August Sales Results Positive Sentiment: Analyst sentiment remains favorable. Mizuho reiterated a Buy rating and maintained a $1,100 price target, citing confidence in Costco’s membership-driven growth. Recent analyst targets generally remain above the current trading level, with a reported six-month median target of $1,125. Analyst Reiterates Buy on Costco Neutral Sentiment: Calendar effects clouded the monthly comparison. Costco said the later timing of Labor Day reduced August total and comparable sales growth by slightly less than 75 basis points. Underlying performance remained positive, but investors may look for confirmation in the next report. Negative Sentiment: Costco Next was abruptly discontinued. The company shut down the online Costco Next marketplace without notice. While the service is unlikely to materially affect near-term financial results, the move could disappoint members and remove a customer-engagement perk. Costco has ended this online service without notice Negative Sentiment: Regulatory uncertainty increased. The U.S. Department of Justice expanded an investigation into rising beef prices to include Costco and other major retailers. Potential reputational, legal, or margin-related consequences create an overhang, although no wrongdoing has been established. DOJ expands beef price investigation Negative Sentiment: Valuation leaves little room for disappointment. Costco trades at roughly 47 times earnings, with a PEG ratio above 4, and shares remain below their 50-day and 200-day moving averages. Insider activity has also consisted of sales rather than purchases in recent months, adding to investor caution. (Free Report)

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company’s product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco’s business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.

Featured Stories Five stocks we like better than Costco Wholesale Striking Oil: How the U.S. Play for Venezuela Fuels Supermajors J.M. Smucker Stock’s Rally Has More Than Tariffs Behind It Wendy’s Rally Fades After Trian Steps Back: Was It Ever Real? GitLab’s Earnings Beat Just Gave Software Bulls a New SaaSpocalypse Test Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST – Free Report).

Receive News & Ratings for Costco Wholesale Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Costco Wholesale and related companies with MarketBeat.com's FREE daily email newsletter.

EP Wealth Advisors LLC purchased a new position in Costco Wholesale Corporation (NASDAQ:COST – Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 155,825 shares of the retailer’s stock, valued at approximately $145,770,000.

A number of other large investors have also made changes to their positions in the stock. C M Bidwell & Associates Ltd. acquired a new stake in shares of Costco Wholesale during the 2nd quarter worth about $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in shares of Costco Wholesale in the fourth quarter valued at approximately $27,000. Mcguire Capital Advisors Inc. acquired a new position in shares of Costco Wholesale in the fourth quarter valued at approximately $28,000. Lifetime Wealth Management P.C. purchased a new position in shares of Costco Wholesale during the fourth quarter valued at approximately $28,000. Finally, Manning & Napier Advisors LLC lifted its stake in shares of Costco Wholesale by 750.0% during the first quarter. Manning & Napier Advisors LLC now owns 34 shares of the retailer’s stock valued at $34,000 after buying an additional 30 shares during the period. Institutional investors and hedge funds own 68.48% of the company’s stock.

Wall Street Analyst Weigh In Several brokerages have weighed in on COST. TD Cowen reiterated a “buy” rating and issued a $1,175.00 price target on shares of Costco Wholesale in a report on Wednesday, June 3rd. JPMorgan Chase & Co. lowered their price objective on Costco Wholesale from $1,110.00 to $1,100.00 and set an “overweight” rating for the company in a research report on Thursday, July 9th. Oppenheimer upped their target price on Costco Wholesale from $1,100.00 to $1,160.00 and gave the company an “outperform” rating in a research note on Tuesday, May 19th. Citigroup started coverage on Costco Wholesale in a research report on Thursday, June 18th. They set a “neutral” rating and a $1,020.00 target price on the stock. Finally, Weiss Ratings lowered Costco Wholesale from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, June 23rd. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Costco Wholesale presently has a consensus rating of “Moderate Buy” and an average target price of $1,059.53.

View Our Latest Stock Report on Costco Wholesale Insider Buying and Selling In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the business’s stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the transaction, the director owned 4,779 shares in the company, valued at $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.10% of the stock is owned by company insiders.

Key Headlines Impacting Costco Wholesale Here are the key news stories impacting Costco Wholesale this week:

Positive Sentiment: Strong sales momentum supports the investment case. Costco reported August net sales of $23.70 billion, up 9.9% year over year. Fourth-quarter sales rose 11.3% to $93.9 billion, while fiscal-year sales increased 10.2% to $297.3 billion. Total comparable sales grew 8.4% for the year, and digitally enabled sales jumped 20.9%. Costco Wholesale Corporation Reports August Sales Results Positive Sentiment: Analyst sentiment remains favorable. Mizuho reiterated a Buy rating and maintained a $1,100 price target, citing confidence in Costco’s membership-driven growth. Recent analyst targets generally remain above the current trading level, with a reported six-month median target of $1,125. Analyst Reiterates Buy on Costco Neutral Sentiment: Calendar effects clouded the monthly comparison. Costco said the later timing of Labor Day reduced August total and comparable sales growth by slightly less than 75 basis points. Underlying performance remained positive, but investors may look for confirmation in the next report. Negative Sentiment: Costco Next was abruptly discontinued. The company shut down the online Costco Next marketplace without notice. While the service is unlikely to materially affect near-term financial results, the move could disappoint members and remove a customer-engagement perk. Costco has ended this online service without notice Negative Sentiment: Regulatory uncertainty increased. The U.S. Department of Justice expanded an investigation into rising beef prices to include Costco and other major retailers. Potential reputational, legal, or margin-related consequences create an overhang, although no wrongdoing has been established. DOJ expands beef price investigation Negative Sentiment: Valuation leaves little room for disappointment. Costco trades at roughly 47 times earnings, with a PEG ratio above 4, and shares remain below their 50-day and 200-day moving averages. Insider activity has also consisted of sales rather than purchases in recent months, adding to investor caution. Costco Wholesale Price Performance COST opened at $928.48 on Thursday. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. Costco Wholesale Corporation has a 52-week low of $844.06 and a 52-week high of $1,096.50. The company has a 50 day moving average of $944.65 and a two-hundred day moving average of $978.84. The company has a market cap of $411.76 billion, a P/E ratio of 46.70, a P/E/G ratio of 3.89 and a beta of 0.87.

Costco Wholesale Dividend Announcement The business also recently declared a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were issued a $1.47 dividend. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date was Friday, July 24th. Costco Wholesale’s dividend payout ratio is currently 29.58%.

Costco Wholesale Company Profile (Free Report)

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company’s product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco’s business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.

Further Reading Five stocks we like better than Costco Wholesale Striking Oil: How the U.S. Play for Venezuela Fuels Supermajors J.M. Smucker Stock’s Rally Has More Than Tariffs Behind It Wendy’s Rally Fades After Trian Steps Back: Was It Ever Real? GitLab’s Earnings Beat Just Gave Software Bulls a New SaaSpocalypse Test Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST – Free Report).

Receive News & Ratings for Costco Wholesale Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Costco Wholesale and related companies with MarketBeat.com's FREE daily email newsletter.

ISSAQUAH, Wash., Sept. 02, 2026 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $23.70 billion for the retail month of August, the four weeks ended August 30, 2026, an increase of 9.9 percent from $21.56 billion last year.

For the 16-week fourth quarter, the Company reported net sales of $93.9 billion, an increase of 11.3 percent compared to net sales of $84.4 billion last year.

For the 52-week fiscal year ended August 30, 2026, the Company reported net sales of $297.3 billion, an increase of 10.2 percent from $269.9 billion last year.

Comparable sales were as follows:

  4 Weeks 16 Weeks 52 Weeks  Retail Month Fourth Quarter Fiscal Year U.S.9.0% 10.7% 8.2% Canada4.0% 5.0% 7.8% Other International9.5% 7.0% 9.8%        Total Company8.4% 9.4% 8.4% 
Digitally-Enabled
17.9% 
19.5% 
20.9%        Comparable sales excluding the impacts from changes in gasoline prices and foreign exchange were as follows:

  4 Weeks 16 Weeks 52 Weeks  Retail Month Fourth Quarter Fiscal Year U.S.5.6% 7.2% 6.6% Canada2.8% 4.6% 6.7% Other International6.8% 6.2% 6.5%        Total Company5.4% 6.7% 6.6% 
Digitally-Enabled
17.9% 
19.8% 
20.7%        Labor Day in the U.S. and Canada will occur one week later this year. The shift negatively impacted August total and comparable sales by a little less than 75 bps.

Additional discussion of these results is available in a pre-recorded message. It can be accessed by visiting investor.costco.com (click on “Events & Presentations”). This message will be available through 4:00 p.m. (PT) on Wednesday, September 9, 2026.

Costco currently operates 939 warehouses, including 647 in the United States and Puerto Rico, 115 in Canada, 43 in Mexico, 37 in Japan, 29 in the United Kingdom, 20 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, three in France, two in Sweden, and one each in Iceland, and New Zealand. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan, Australia, and China.

Certain statements contained in this document and the pre-recorded message constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For these purposes, forward-looking statements are statements that address activities, events, conditions or developments that the Company expects or anticipates may occur in the future. In some cases forward-looking statements can be identified because they contain words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. These risks and uncertainties include, but are not limited to, domestic and international economic conditions, including exchange rates, inflation or deflation, the effects of competition and regulation, uncertainties in the financial markets, consumer and small business spending patterns and debt levels, breaches of security or privacy of member or business information, conditions affecting the acquisition, development, ownership or use of real estate, capital spending, actions of vendors, rising costs associated with employees (generally including health-care costs and wages), workforce interruptions, energy and certain commodities, geopolitical conditions (including tariffs and global conflicts), the ability to maintain effective internal control over financial reporting, regulatory and other impacts related to environmental and social matters, public-health related factors, and other risks identified from time to time in the Company’s public statements and reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and the Company does not undertake to update these statements, except as required by law. Comparable sales and comparable sales excluding impacts from changes in gasoline prices and foreign exchange are intended as supplemental information and are not a substitute for net sales presented in accordance with U.S. GAAP.

CONTACTS:Costco Wholesale Corporation
Josh Dahmen, 425/313-8254
Andrew Yoon, 425/313-6305
Bryan Starnes, 425/427-7403 COST-Sales

Shares of Costco Wholesale (COST -0.11%) have been terrific for long-term investors. Over the past five years, the stock is up 110%, beating the S&P 500's 73%. But over the past year, Costco has been roughly flat, while the index is up 19%; valuation has been a factor in that relative performance.

Image source: Getty Images.

The business is doing great. Third-quarter sales rose 11.6% year over year, and comparable-store sales were up a healthy 6.6% once you strip out gas prices and currency swings in international markets.

Costco is also still firing on multiple cylinders. E-commerce sales climbed 21% year over year, the company set new fuel-volume records, and it boosted member value by cutting prices on staples like eggs and beef.

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Valuation is the main factor holding the stock back. Costco traded at a stretched price-to-earnings multiple of 60 about a year ago. Even after that premium compressed, the stock still trades for about 47 times trailing earnings -- above its 10-year average of roughly 40.

At this price, Costco isn't an obvious buy. Investors may be better off waiting for the stock to move closer to its historical valuation, if not lower. Buying now risks owning a great business that still gets rerated to a lower P/E and continues to lag the market.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

Costco's membership business is compounding at a rate Wall Street continues to treat as a sideshow, and that gap between perception and reality is exactly where the opportunity lives.

Costco (NASDAQ: COST | COST Price Prediction) trades at $961.15, and our proprietary model sees moderate room to run. The 24/7 Wall St. price target for Costco is $1,024.41 over the next 12 months, implying 6.58% upside.

Our recommendation is buy, with a 90% confidence level. What drives the call is a membership and digital engine Wall Street still treats as secondary.

24/7 Wall St. Price Target Summary Metric Value Current Price $961.15 24/7 Wall St. Price Target $1,024.41 Upside 6.58% Recommendation BUY Confidence Level 90% Membership Fees Drive Growth Costco is up 1.88% over the past week, 3.89% on the month, and 13.14% year to date.

The May Q3 report delivered EPS of $4.93 on revenue of $70.53 billion, up 11.58% year over year, with net income climbing 15.19%. Membership fee income hit $1.373 billion, up 10.7%, paid Executive memberships reached 41.2 million, and digitally enabled comparable sales jumped 21.5% as site traffic surged 37%.

Why Bulls See a Breakout The bull case rests on a compounding engine. US and Canada renewal is 92.2%, worldwide renewal is 89.7%, and Executive members now drive 75% of sales. Management sees 30 plus net new warehouses annually, with China, Korea, Japan, and the UK identified as long runways.

Digitally enabled comps of 21.5%, AI-driven traffic growing at triple-digit rate, and a new Google Commerce Media and YouTube retail media partnership layer high-margin income on warehouse economics. Our bull-case scenario values the stock at $1,130.46, a 17.61% total return. The average sell-side target sits at $1,077.31 with 23 positive ratings versus 2 negative.

What Could Go Wrong Valuation is the key risk. Costco trades at 48x trailing earnings and 42x forward, with a PEG of 5. Any deceleration in comps or membership growth could trigger multiple compression. Management flagged tariff impacts, resin inflation, memory-chip costs, and Middle East shipping risk.

Core-on-core margins slipped nine basis points as Costco reinvested in lower prices, a deliberate move designed to widen Costco’s value gap. Our bear-case path lands at $943.98, a modest 1.79% pullback.

How Costco Compares to Walmart and BJ’s Wholesale Walmart (NYSE: WMT) is the most relevant scale comp. Walmart’s FY27 Q2 delivered adjusted EPS of $0.81 on revenue of $187.94 billion, and the stock trades at a trailing P/E near 39. Costco commands a materially higher multiple because renewal rates, Executive penetration, and digital comps outpace Sam’s Club.

BJ’s Wholesale Club (NYSE: BJ) is the pure warehouse-club comp. It posted Q2 FY27 EPS of $1.36, a 16.52% beat, with membership fee income up 9.9% and FY26 EPS guidance of $4.60 to $4.80. BJ’s is executing, but its $12.19 billion market cap and smaller international runway make Costco’s premium defensible.

Membership Moat Anchors the Bull Case The 24/7 Wall St. model rates Costco a buy with a price target of $1,024.41 at 90% confidence. The tipping factor is membership. High-margin recurring income compounding at double-digit rates, combined with a 92.2% renewal rate in the core market, is the closest thing retail offers to a subscription business.

The 200-day moving average sits at $959.29, a technical reference point for accumulation setups. Key signals to monitor include comparable traffic slipping below 2% or Executive penetration stalling.

Costco Price Prediction 2026 to 2030 Year 24/7 Wall St. Price Target 2026 $987.92 2027 $1,051.48 2028 $1,112.91 2029 $1,155.35 2030 $1,237.97 These projections assume Costco continues executing on membership growth, international warehouse expansion, and digital acceleration. Significant upside or downside could result from tariff regime shifts, a China ramp faster than modeled, or compression in consumer-defensive multiples.

Contact [email protected] for any questions or corrections.

Auxano Advisors LLC cut its stake in shares of Costco Wholesale Corporation (NASDAQ:COST – Free Report) by 14.4% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 23,358 shares of the retailer’s stock after selling 3,926 shares during the period. Costco Wholesale makes up approximately 4.1% of Auxano Advisors LLC’s investment portfolio, making the stock its 7th largest holding. Auxano Advisors LLC’s holdings in Costco Wholesale were worth $21,851,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in shares of Costco Wholesale during the 4th quarter worth $27,000. Lifetime Wealth Management P.C. acquired a new stake in Costco Wholesale in the fourth quarter valued at about $28,000. Mcguire Capital Advisors Inc. bought a new position in Costco Wholesale in the fourth quarter valued at about $28,000. Entrust Financial LLC bought a new position in Costco Wholesale in the fourth quarter valued at about $31,000. Finally, Manning & Napier Advisors LLC raised its stake in Costco Wholesale by 750.0% during the first quarter. Manning & Napier Advisors LLC now owns 34 shares of the retailer’s stock worth $34,000 after acquiring an additional 30 shares in the last quarter. Institutional investors own 68.48% of the company’s stock.

Costco Wholesale Trading Up 1.2% NASDAQ COST opened at $945.47 on Friday. Costco Wholesale Corporation has a one year low of $844.06 and a one year high of $1,096.50. The company’s 50 day moving average price is $945.80 and its 200 day moving average price is $979.92. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.61 and a current ratio of 1.07. The firm has a market capitalization of $419.30 billion, a price-to-earnings ratio of 47.56, a PEG ratio of 4.45 and a beta of 0.87.

Costco Wholesale (NASDAQ:COST – Get Free Report) last released its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The business had revenue of $70.53 billion for the quarter, compared to analysts’ expectations of $70.12 billion. During the same quarter in the prior year, the firm earned $4.28 earnings per share. On average, sell-side analysts predict that Costco Wholesale Corporation will post 20.42 EPS for the current year. Costco Wholesale Dividend Announcement The firm also recently declared a quarterly dividend, which was paid on Friday, August 7th. Investors of record on Friday, July 24th were issued a dividend of $1.47 per share. The ex-dividend date was Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale’s dividend payout ratio (DPR) is presently 29.58%.

Wall Street Analyst Weigh In A number of equities analysts recently commented on COST shares. Citigroup began coverage on Costco Wholesale in a research note on Thursday, June 18th. They issued a “neutral” rating and a $1,020.00 price objective on the stock. Mizuho set a $1,100.00 price target on shares of Costco Wholesale in a report on Monday, June 1st. Oppenheimer boosted their price target on shares of Costco Wholesale from $1,100.00 to $1,160.00 and gave the stock an “outperform” rating in a research report on Tuesday, May 19th. TD Cowen reaffirmed a “buy” rating and issued a $1,175.00 price objective on shares of Costco Wholesale in a research note on Wednesday, June 3rd. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $1,120.00 price target on shares of Costco Wholesale in a research report on Thursday, August 6th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Costco Wholesale presently has a consensus rating of “Moderate Buy” and an average target price of $1,059.53.

Get Our Latest Stock Analysis on Costco Wholesale

Insider Buying and Selling In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the business’s stock in a transaction that occurred on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the transaction, the director owned 4,779 shares of the company’s stock, valued at $4,575,653.55. The trade was a 15.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 0.10% of the company’s stock.

Costco Wholesale News Summary Here are the key news stories impacting Costco Wholesale this week:

Positive Sentiment: Delivery expansion could boost engagement: Costco is now offering delivery for customizable sheet cakes and party platters, improving convenience and potentially encouraging larger, higher-margin event-related purchases. Costco delivery for cakes and party platters Positive Sentiment: Physical expansion continues: Costco opened its first warehouse in Celina, Texas, one of the nation’s fastest-growing cities. New locations can add membership revenue and sales over time, although the financial contribution will develop gradually. Costco opens Celina store Positive Sentiment: Long-term investor appeal remains intact: Commentary highlights Costco’s strong competitive moat, membership economics and potential for dividend growth. Its partnership with SCAN Health Plan to offer Medicare Advantage and supplemental plans also provides a potential new customer-engagement channel. Costco Medicare partnership Neutral Sentiment: Pricing strategy is both a strength and a challenge: Costco continues to hold its iconic rotisserie chicken at $4.99 by controlling production costs. The price reinforces customer loyalty, but inflation and supply costs could pressure margins if the company maintains the price indefinitely. Costco rotisserie chicken and inflation Negative Sentiment: Legal and valuation concerns are weighing on sentiment: Costco is refunding certain tariff duties while contesting a related class-action lawsuit, creating uncertainty over costs and potential liabilities. Separately, the stock’s high earnings multiple and position below its 200-day moving average leave it vulnerable to profit-taking; its latest quarterly EPS narrowly missed estimates despite a revenue beat. Costco tariff refunds and lawsuit Costco Wholesale Profile (Free Report)

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company’s product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco’s business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.

Further Reading Five stocks we like better than Costco Wholesale 3 Financial Stocks Positioned for the Fed’s Next Move After Jackson Hole IREN’s AI Pivot Looks Real, But the Market Wanted a Faster Payoff After Earnings Boeing’s $131B F-15 Win: Mach 1 Momentum or Just Altitude? Okta Stock Surges 29%—Is $200 the Next Stop? Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST – Free Report).

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US consumers are continuing to spend, but recent results from major retailers suggest they are becoming more selective about where and how they spend their money.

Walmart's sharp stock decline following its latest earnings report has added to concerns that higher prices, elevated gasoline costs, and economic uncertainty are increasingly influencing household spending.

The shift is particularly important because Walmart is often viewed as a bellwether for the US consumer.

While shoppers continue to visit stores, recent results from Walmart, Target and Home Depot indicate that customers are making smaller and more deliberate purchases.

Walmart shares fell 9.2% on Thursday after investors looked beyond the retailer's latest profit beat and focused on its weaker third-quarter outlook and signs of pressure on consumers.

Bryan Hayes, a strategist at Zacks Investment Research, told MarketWatch that the market reaction suggested investors believe current consumer spending may be close to its peak, particularly given the valuations previously assigned to major retailers.

Walmart's results showed that customers were still visiting its stores, but spending less per trip.

US store traffic increased 1.5%, while spending per trip rose 1.1%. At Sam's Club, visits increased 7%, but spending per visit declined 2.5%.

Alexander Lis, chief investment officer at Social Discovery Ventures, told Invezz that consumers are becoming increasingly price-sensitive, forcing retailers to cut prices to attract and retain shoppers.

Lis pointed to Walmart's use of 11,000 price rollbacks in the second quarter, up from about 7,000 in the first quarter, as evidence that consumers are becoming more cautious.

Hayes described this as a more deliberate consumer rather than necessarily a weak one. He said shoppers are making more frequent, smaller, and more considered purchases as they seek value.

The distinction is important because Walmart has traditionally benefited when consumers become more cautious.

Lower-income households often turn to the retailer for cheaper products, while higher-income shoppers can also use Walmart to reduce household expenses.

Lis noted that Walmart is also gaining market share among higher-income consumers in discretionary categories such as fashion, suggesting that wealthier households are increasingly choosing cheaper alternatives. This points to a broader "trade down" trend rather than weakness being confined to lower-income consumers.

That makes the company's first comparable-sales decline in six years particularly notable, even though Walmart attributed the decline partly to temporary pricing pressure in its pharmacy business.

Walmart is not the only major retailer seeing signs of changing consumer behavior.

At Target, foot traffic increased 3.6% in the second quarter, but spending per trip remained flat.

The retailer has been working to attract customers with lower prices, while management said clothing and home goods remain areas requiring significant improvement.

Target CEO Michael Fiddelke said the company still has "much more work to do" to win back customers who have moved toward competitors offering deeper discounts.

Home Depot has also seen consumers continue to spend, but increasingly on smaller projects.

Plumbing, kitchen and gardening categories performed better, while demand for larger home-improvement projects remained under pressure.

Home Depot CFO Richard McPhail said consumer uncertainty and housing affordability were continuing to weigh on larger projects. Rival Lowe's similarly pointed to persistent macroeconomic pressures and softer discretionary spending.

The pattern suggests households are prioritizing necessities and lower-cost purchases while delaying larger expenditures.

The shift in spending comes as consumers face elevated costs for everyday necessities.

US gasoline prices have been around $4 a gallon, according to AAA, while higher energy costs linked to the artificial-intelligence boom have also contributed to rising costs for some goods, including electronics.

Walmart CFO John David Rainey said the company was facing "arguably a softer consumer environment than in February." He also noted that higher fuel prices appeared to influence consumer decisions.

Rainey said June provided clearer evidence of shoppers making trade-offs as gasoline prices moved above $4 a gallon. Walmart has responded by placing greater emphasis on lower prices.

The company's strategy is aimed at protecting market share by making products more affordable as consumers become more price-sensitive.

Recent economic data have also pointed toward more cautious household spending.

US retail sales fell 0.6% in July, marking the first decline in almost a year and significantly missing expectations for 0.1% growth.

The decline was partly influenced by cheaper fuel and a slowdown following Amazon's summer sales activity, but analysts also pointed to weaker discretionary spending.

Brian Mulberry, chief market strategist at Zacks, said the figures indicated that consumers were easing spending on more expensive purchases such as automobiles, electronics and appliances.

He also pointed to the continued divide between asset owners and consumers without significant assets.

Other indicators have added to the concerns.

The University of Michigan's consumer sentiment index declined in August for the first time in three months, while the July jobs report showed the US economy lost 23,000 nonfarm payrolls, compared with expectations for an increase of 80,000.

The weakening consumer comes as investors continue to assess the Federal Reserve's interest-rate path.

Lis said that if the softening consumer trend continues, it could remove rate hikes from consideration. "But given the persistent inflation, it would be hard for Fed to support the economy as well. So it is hard to anticipate a V-shaped this time", he added.

Markets are still pricing in at least one rate hike by year-end, but signs of softer consumer activity could complicate the case for tighter monetary policy.

At the same time, inflation remains a concern. Persistent geopolitical tensions, particularly the conflict involving Iran, could push energy prices higher and create additional inflationary pressure.

That could leave policymakers facing a difficult balance between containing inflation and avoiding additional pressure on an already more cautious consumer.

For retailers, the coming months will provide further evidence of whether the current slowdown is temporary or represents a broader change in household spending patterns.

Results from Costco and smaller specialty retailers are expected to offer additional clues.

Walmart's sharp stock decline shows that investors are increasingly sensitive to even modest signs of weakening demand from the US consumer.

With shoppers still spending but becoming more selective, the strength of household demand could become an increasingly important factor for both retailers and the Federal Reserve.

Costco (COST +0.55%) is known for its bulk-sized retail offerings, saving its members money in the process. The same can't be said about its quarterly dividend checks. Despite lifting its payouts for 22 consecutive years, Costco's stock has delivered heartier gains over that period, yet it yields a pedestrian 0.6% right now.

This is certainly better than no dividend, but it's not the kind of yield that will attract income investors. However, Costco does have a secret weapon in its arsenal. Every few years, the country's leading warehouse club operator declares a special one-time payout. It's been three years since the chain's last one-time dividend, making another distribution more than just possible later this year.

Image source: Getty Images.

Keeping things special If you're a buyer of Costco stock, your goal is capital appreciation and not the regular quarterly distributions. The shares are up 80% over the past three years, soaring 120% over the last five years. However, the special distributions it has historically declared every couple of years do sweeten the income stream for long-term investors beyond its modest current yield of 0.6%. Here are the last few one-time distributions.

Dec. 27, 2023: $15 a share Dec. 1, 2020: $10 May 8, 2017: $7 Feb. 5, 2015: $5 Dec. 6, 2012: $7 The cadence has been somewhat consistent since Costco began rolling out these one-off declarations 14 years ago. They have come once every two or three years. It's been three years since the last major distribution, so my fellow Costco shareholders and I are likely due for another distribution later this year.

Today's Change

(

0.55

%) $

5.33

Current Price

$

966.68

Everything counts in large amounts Even with Costco shares approaching four figures, the occasional special distributions are material. The $15-per-share one-off declaration would add another 1.56% to the current 0.6% yield. It also wouldn't be a surprise to see the payout be materially higher than $15 a share. Its last three special disbursements have been at least 40% higher than the previous offering.

At 40%, this would amount to a dividend of $21, yielding 2.2%. Costco is certainly good for the money. It may operate on lean margins intentionally to give its members more bang for their buck, but it still makes far more money than it pays out to shareholders every three months. Its cash and short-term investments have ballooned from $15 billion to $20 billion since its last one-time dividend. Its long-term debt is roughly the same, currently at $5.7 billion.

Don't be surprised if Costco declares a $21 one-time dividend -- or even $20, for the sake of round numbers -- in the fall, and pays it out by December. It should be easy to predict what a historically safe stock will do with its money.

Carnegie Investment Counsel reduced its stake in Costco Wholesale Corporation (NASDAQ:COST – Free Report) by 6.2% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 33,613 shares of the retailer’s stock after selling 2,229 shares during the period. Carnegie Investment Counsel’s holdings in Costco Wholesale were worth $31,444,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also made changes to their positions in COST. Diamant Asset Management Inc. boosted its stake in Costco Wholesale by 99,278.0% during the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock valued at $672,690,000 after purchasing an additional 6,720,130 shares in the last quarter. Norges Bank bought a new stake in shares of Costco Wholesale in the 4th quarter worth $5,195,415,000. Corient Private Wealth LLC raised its stake in shares of Costco Wholesale by 838.9% in the 4th quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer’s stock worth $5,282,182,000 after buying an additional 5,472,968 shares in the last quarter. Ascentis Wealth Management LLC lifted its holdings in shares of Costco Wholesale by 103,637.0% in the second quarter. Ascentis Wealth Management LLC now owns 2,500,062 shares of the retailer’s stock valued at $2,549,616,000 after buying an additional 2,497,652 shares during the period. Finally, Cardano Risk Management B.V. lifted its holdings in shares of Costco Wholesale by 907.1% in the fourth quarter. Cardano Risk Management B.V. now owns 1,785,080 shares of the retailer’s stock valued at $1,539,346,000 after buying an additional 1,607,833 shares during the period. Institutional investors and hedge funds own 68.48% of the company’s stock.

Costco Wholesale Trading Up 0.8% Shares of NASDAQ COST opened at $961.35 on Wednesday. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50. The company has a market cap of $426.34 billion, a price-to-earnings ratio of 48.36, a P/E/G ratio of 4.57 and a beta of 0.87. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The business has a fifty day simple moving average of $949.20 and a 200-day simple moving average of $981.20.

Costco Wholesale (NASDAQ:COST – Get Free Report) last released its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing analysts’ consensus estimates of $4.94 by ($0.01). Costco Wholesale had a net margin of 3.01% and a return on equity of 28.04%. The company had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. During the same quarter last year, the business earned $4.28 EPS. Sell-side analysts predict that Costco Wholesale Corporation will post 20.42 EPS for the current year. Costco Wholesale Dividend Announcement The business also recently disclosed a quarterly dividend, which was paid on Friday, August 7th. Stockholders of record on Friday, July 24th were issued a dividend of $1.47 per share. The ex-dividend date of this dividend was Friday, July 24th. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale’s dividend payout ratio is currently 29.58%.

Insider Buying and Selling at Costco Wholesale In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction that occurred on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the transaction, the director owned 4,779 shares in the company, valued at $4,575,653.55. This trade represents a 15.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders own 0.10% of the company’s stock.

Key Stories Impacting Costco Wholesale Here are the key news stories impacting Costco Wholesale this week:

Positive Sentiment: Costco plans to offer co-branded Medicare Advantage plans with nonprofit insurer SCAN Group, initially in two states pending regulatory approval. The offerings may eventually include pharmacy, vision, hearing and over-the-counter benefits, potentially increasing member engagement and monetization. Costco launching Medicare Advantage plans with SCAN Group Positive Sentiment: Analysts and market commentary continue to highlight Costco’s Executive membership growth, digital sales conversion and rising fee income as evidence that the company is extracting more value from its membership base. Costco also retains broadly favorable analyst coverage, with a consensus view around “Moderate Buy.” Can Costco Stock Reach New Highs in Member Monetization? Neutral Sentiment: Costco brought back a popular Kirkland product discontinued two years ago. The move may support customer goodwill and traffic, but it is unlikely to materially affect earnings or valuation. Costco discontinued this Kirkland favorite 2 years ago. Now it’s back Negative Sentiment: Despite a 121% five-year total return, Costco’s valuation remains a concern. Its elevated earnings multiple leaves less room for disappointment, particularly after the latest quarterly EPS slightly missed estimates, even though revenue exceeded expectations. Costco Stock Looks Fully Priced Despite 121% Returns And Earnings Questions Analysts Set New Price Targets A number of research analysts recently issued reports on COST shares. Sanford C. Bernstein lifted their target price on Costco Wholesale from $1,192.00 to $1,194.00 and gave the stock an “outperform” rating in a report on Friday, May 29th. Roth Capital raised their price objective on shares of Costco Wholesale from $769.00 to $781.00 and gave the company a “sell” rating in a research report on Friday, May 29th. UBS Group lifted their price objective on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a “buy” rating in a research note on Wednesday, May 20th. Truist Financial boosted their target price on shares of Costco Wholesale from $977.00 to $1,011.00 and gave the stock a “hold” rating in a report on Friday, May 29th. Finally, Citigroup began coverage on shares of Costco Wholesale in a research note on Thursday, June 18th. They set a “neutral” rating and a $1,020.00 target price for the company. Twenty-two equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $1,059.53.

View Our Latest Stock Analysis on COST

Costco Wholesale Profile (Free Report)

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company’s product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco’s business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.

Recommended Stories Five stocks we like better than Costco Wholesale The AI Boom Is Turning This Cable Maker Into a Stock to Watch A Star Investor Just Trimmed Amazon—Here’s What It means Wendy’s Deal Buzz May Give Fast-Food Investors a New Reason to Look Home Depot Analysts See a Path to $375 and Beyond Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST – Free Report).

Receive News & Ratings for Costco Wholesale Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Costco Wholesale and related companies with MarketBeat.com's FREE daily email newsletter.

Key Takeaways Costco membership fee revenues rose 10.7%, while Executive memberships grew 9.6% to 41.2 million. Executive members generated 75% of Costco sales, as upgrades and new premium sign-ups continued. Costco's personalized recommendations drove 3x conversion rates and nearly $500 million in e-commerce sales. Costco Wholesale Corporation (COST - Free Report) continues to unlock fresh potential in member monetization by expanding its high-value executive tier and deepening digital engagement. During the third quarter of fiscal 2026, membership fee revenues climbed 10.7% to $1,373 million from the year-ago period. The September 2024 membership fee increase contributed a little more than one-fourth of that growth. Excluding the fee increase and foreign exchange effects, membership income still advanced 7% year over year.

A key driver of this acceleration remains the strong momentum in Executive memberships, which grew 9.6% year over year to 41.2 million. Executive members also accounted for 75% of sales. Management said these members generally shop more frequently and spend more. Costco is seeing both Gold Star members upgrade and a higher share of new members choose Executive membership.

The expansion of Executive memberships into international markets such as China highlights additional runway for growth. Early adoption in China has exceeded expectations, showing that premium membership structures hold strong appeal across diverse geographies. Targeted digital communications and retention initiatives are helping stabilize renewal rates, even as online sign-ups naturally scale. Global renewal rates reached 89.7%, while U.S. and Canada renewals ticked up to 92.2% at the end of the third quarter.

Beyond core fee increases, member monetization is benefiting from expanded digital capabilities and value-added services. Personalized product recommendation carousels delivered conversion rates three times higher than standard rates, generating nearly half a billion dollars in e-commerce sales during the quarter. Enhanced pharmacy offerings, including GLP-1 treatments and member prescription programs, alongside third-party same-day delivery services, are driving higher engagement among top-tier spenders.

By growing its higher-tier memberships and offering more digital and convenient services, Costco continues to strengthen member monetization.

How Does Costco Stack Up Against Its Industry?Costco, which competes with Dollar General Corporation (DG - Free Report) and Target Corporation (TGT - Free Report) , has seen its shares drop 10.7% over the past three months compared with the industry’s 1.1% decline. While shares of Dollar General have risen 16%, those of Target have jumped 25.2% in the aforementioned period.

Image Source: Zacks Investment Research

What Does Costco’s Current Valuation Suggest?From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 42.85, higher than the industry’s ratio of 31.18. However, the stock is trading below its 12-month median level of 45.79, indicating some moderation in valuation despite sustained investor confidence in the stock.

Costco is trading at a premium to Target (with a forward 12-month P/E ratio of 17.75) and Dollar General (15.97).

Image Source: Zacks Investment Research

What Do Earnings Estimates Signal for Costco?The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.7% and 13.5%, respectively. For the next fiscal year, the consensus estimate indicates a 7.8% rise in sales and 10.2% growth in earnings.
 

Image Source: Zacks Investment Research

Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Although outsize returns in the Dow Jones Industrial Average (^DJI +0.28%), S&P 500 (^GSPC +0.62%), and Nasdaq Composite (^IXIC +1.30%) have been the norm under President Donald Trump, bouts of extreme volatility have been as well.

In early April 2025, the president unveiled his long-touted "Liberation Day" tariff and trade policy, featuring sweeping global tariffs and higher reciprocal tariffs on dozens of countries deemed to have adverse trade imbalances with America. These tariffs were designed to protect American manufacturing jobs and make U.S. goods more price-competitive with those imported from overseas markets.

The Trump administration is issuing up to $166 billion in tariff refunds. Image source: Official White House Photo by Patrick B. Ruddy.

But in the days following this announcement, the Dow, S&P 500, and Nasdaq Composite endured what's now known as the "tariff tantrum." Equities plunged amid historic uncertainty.

By February 2026, the U.S. Supreme Court had invalidated the tariffs that Donald Trump had imposed under the International Emergency Economic Powers Act (IEEPA). This left the Trump administration on the hook to refund approximately $166 billion in IEEPA tariffs it had collected. On Aug. 4, total refunds issued surpassed $100 billion.

Some of the best-known, consumer-facing companies are already receiving the largest refund checks -- but this doesn't mean tariffs are now yesterday's news.

Massive Trump tariff refunds are being issued The biggest IEEPA refund that's already in hand went to Apple (AAPL +0.29%). The iPhone maker received $2.19 billion (over 2% of total refunds thus far) in its fiscal third quarter, which lifted its quarterly earnings per share by $0.11. Outgoing CEO Tim Cook has pledged to reinvest this refund into innovation and domestic manufacturing.

Companies expecting tariff refunds:

• Amazon: $600 million
• Apple: $2.2 billion
• Ford: $1.3 billion
• General Motors: $500 million
• UPS: $500 million
• Walmart: $2.4 billionhttps://t.co/A0RQBr812d

-- Frank Luntz (@FrankLuntz) August 3, 2026 Dual-industry leader Amazon (AMZN +0.81%) also received $600 million in IEEPA refunds during the second quarter. Unlike most companies receiving a refund, Amazon has stated that it plans to return some of this cash to its customers.

In terms of expectations, Walmart (WMT -0.20%) could receive the fattest tariff refund of them all at $2.4 billion. Other sizable refund expectations include automakers Ford Motor Company (F +1.38%) and General Motors (GM +0.74%), which anticipate refunds of $1.3 billion and $500 million, respectively, and wholesale club Costco Wholesale (COST -0.14%), which could receive around $2 billion. Costco has pledged to return this cash to its members if/when the government reimburses it.

Image source: Getty Images.

New tariffs mean new problems While these IEEPA refunds are providing one-time bottom-line boosts for some of America's consumer-facing powerhouses, the tariff story is far from over.

Last month, Trump and his administration used Section 301 of the Trade Act of 1974 to impose new sweeping global tariffs on more than 80 countries, ranging from 10% to 12.5%. Though the courts will ultimately determine the legality and staying power of these tariffs, their impact on consumer prices will be noticeable in economic data.

Across the 10 responses included from this month's ISM survey of service-industry purchasing managers (the people who buy things on behalf of businesses), the dominant theme is rising costs, driven by fuel and energy prices, tariffs, and AI-related demand.

No respondent reports... pic.twitter.com/ICCGnIF0Nj

-- Nick Timiraos (@NickTimiraos) June 3, 2026 For the past year, former Fed Chair Jerome Powell and current Fed Chair Kevin Warsh have noted that Trump's tariffs are lifting prices in the goods sector. Adding duties atop unfinished imported goods (e.g., steel) can increase U.S. production costs, which are then passed on to consumers.

Just because IEEPA tariff refunds are progressing, it doesn't mean tariffs are yesterday's news. If anything, we're likely to see the inflationary effects of tariffs ramp back up in the coming quarters, which is potentially worrisome news for a historically expensive stock market.

Sean Williams has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Apple, Costco Wholesale, and Walmart. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.

ISSAQUAH, Wash., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $23.12 billion for the retail month of July, the four weeks ended August 2, 2026, an increase of 10.7 percent from $20.89 billion last year.

         Net sales for the first 48 weeks were $273.55 billion, an increase of 10.1 percent from $248.35 billion last year.

Comparable sales for the periods ended August 2, 2026, were as follows:

 4 Weeks 48 WeeksU.S.10.3%
 8.1%
Canada4.2%
 8.1%
Other International6.0%
 9.8%
    Total Company8.9%
 8.4%

Digitally-Enabled17.7%
 21.2%
       Comparable sales excluding the impacts from changes in gasoline prices and foreign exchange were as follows:

 4 Weeks 48 WeeksU.S.6.9%
 6.7%
Canada4.9%
 7.0%
Other International6.6%
 6.5%
    Total Company6.6%
 6.7%

Digitally-Enabled18.2%
 20.9%
       Additional discussion of these results is available in a pre-recorded message. It can be accessed by visiting investor.costco.com (click on “Events & Presentations”). This message will be available through 4:00 p.m. (PT) on Wednesday, August 12, 2026.

         Costco currently operates 933 warehouses, including 641 in the United States and Puerto Rico, 115 in Canada, 43 in Mexico, 37 in Japan, 29 in the United Kingdom, 20 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, three in France, two in Sweden, and one each in Iceland, and New Zealand. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan, Australia, and China.

Certain statements contained in this document and the pre-recorded message constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For these purposes, forward-looking statements are statements that address activities, events, conditions or developments that the Company expects or anticipates may occur in the future. In some cases forward-looking statements can be identified because they contain words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. These risks and uncertainties include, but are not limited to, domestic and international economic conditions, including exchange rates, inflation or deflation, the effects of competition and regulation, uncertainties in the financial markets, consumer and small business spending patterns and debt levels, breaches of security or privacy of member or business information, conditions affecting the acquisition, development, ownership or use of real estate, capital spending, actions of vendors, rising costs associated with employees (generally including health-care costs and wages), workforce interruptions, energy and certain commodities, geopolitical conditions (including tariffs and global conflicts), the ability to maintain effective internal control over financial reporting, regulatory and other impacts related to environmental and social matters, public-health related factors, and other risks identified from time to time in the Company’s public statements and reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and the Company does not undertake to update these statements, except as required by law. Comparable sales and comparable sales excluding impacts from changes in gasoline prices and foreign exchange are intended as supplemental information and are not a substitute for net sales presented in accordance with U.S. GAAP.

CONTACTS:Costco Wholesale Corporation Josh Dahmen, 425/313-8254 Andrew Yoon, 425/313-6305 Bryan Starnes, 425/427-7403 COST-Sales

Key Takeaways Costco is turning Kirkland Signature into a key growth engine across food, sundries and new categories.Kirkland products offer equal or better quality with savings of at least 15%-20% versus national brands.New launches and price cuts show Costco is prioritizing member value and changing consumer preferences. Costco Wholesale Corporation (COST - Free Report) is demonstrating remarkable momentum in its private label operations, leveraging its Kirkland Signature brand to deliver exceptional value to members. It is evolving into one of the retailer’s most effective growth engines, helping strengthen member loyalty while supporting merchandising differentiation.

Management highlighted that Kirkland Signature continues to drive growth in food and sundries by pairing equal or better quality with savings of at least 15% to 20% compared with national brands. Rather than relying on promotions, Costco is expanding the assortment with products designed to meet emerging consumer preferences.

New launches during the third quarter of fiscal 2026 included Kirkland Signature Energy Drink, Kirkland Signature Ultra Filtered Milk, Kirkland Signature Sea Salt Popcorn and Kirkland Signature Oven Roasted Chicken Dog Food, reflecting the brand’s expansion into faster-growing categories.

 The strategy extends beyond introducing new products. Costco also lowered prices on several Kirkland Signature staples, including Crispy Wings, Milk Chocolate Almonds, Golf Balls and King Size Sheets, underscoring management’s commitment to passing cost efficiencies back to members instead of protecting margins.

Management suggested that Kirkland Signature is keeping pace with changing consumption trends. The company pointed to strong demand for protein-focused products, noting that its newly launched Ultra Filtered Protein Milk has gained traction quickly as shoppers increasingly prioritize health and wellness.

What the Latest Metrics Say About CostcoCostco, which competes with Dollar General Corporation (DG - Free Report) and Target Corporation (TGT - Free Report) , has seen its shares drop 5.9% over the past three months compared with the industry’s 1.4% decline. While shares of Dollar General have risen 1.3%, those of Target have jumped 7.6% in the aforementioned period.
 

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From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 41.93, higher than the industry’s ratio of 30.58. However, the stock is trading below its 12-month median level of 46.07, indicating some moderation in valuation despite sustained investor confidence in the stock.

Costco is trading at a premium to Target (with a forward 12-month P/E ratio of 15.88) and Dollar General (15.26).

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The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.6% and 13.5%, respectively. For the next fiscal year, the consensus estimate indicates a 7.8% rise in sales and 10.2% growth in earnings.

The consensus estimates for earnings per share for both the current and next fiscal year have increased by 6 cents to $20.42 and $22.50, respectively, over the past 60 days.

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Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Posted by Defense World Staff on Jul 21st, 2026

Andra AP fonden grew its position in shares of Costco Wholesale Corporation (NASDAQ:COST – Free Report) by 284.7% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 62,622 shares of the retailer’s stock after acquiring an additional 46,342 shares during the period. Costco Wholesale comprises 0.8% of Andra AP fonden’s portfolio, making the stock its 17th largest position. Andra AP fonden’s holdings in Costco Wholesale were worth $62,398,000 at the end of the most recent quarter.

A number of other institutional investors also recently modified their holdings of the company. World Investment Advisors increased its holdings in Costco Wholesale by 8.4% in the 4th quarter. World Investment Advisors now owns 20,081 shares of the retailer’s stock valued at $15,835,000 after purchasing an additional 1,560 shares during the last quarter. Teacher Retirement System of Texas lifted its stake in Costco Wholesale by 24.5% during the fourth quarter. Teacher Retirement System of Texas now owns 140,429 shares of the retailer’s stock worth $121,098,000 after purchasing an additional 27,625 shares in the last quarter. Curtis Advisory Group LLC raised its holdings in shares of Costco Wholesale by 56.7% in the 4th quarter. Curtis Advisory Group LLC now owns 4,535 shares of the retailer’s stock valued at $3,911,000 after buying an additional 1,641 shares during the period. Perryman Financial Advisory Inc. AD purchased a new stake in shares of Costco Wholesale in the 4th quarter valued at $9,300,000. Finally, Oak Ridge Investments LLC lifted its stake in Costco Wholesale by 7.3% during the 4th quarter. Oak Ridge Investments LLC now owns 22,117 shares of the retailer’s stock worth $19,072,000 after acquiring an additional 1,496 shares in the last quarter. 68.48% of the stock is currently owned by hedge funds and other institutional investors.

Costco Wholesale Stock Down 0.5% Shares of NASDAQ:COST opened at $935.80 on Tuesday. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50. The firm’s 50 day moving average price is $974.46 and its 200 day moving average price is $978.81. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The stock has a market cap of $415.01 billion, a price-to-earnings ratio of 47.07, a price-to-earnings-growth ratio of 4.56 and a beta of 0.88.

Costco Wholesale (NASDAQ:COST – Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 EPS for the quarter, missing the consensus estimate of $4.94 by ($0.01). The firm had revenue of $70.53 billion for the quarter, compared to analyst estimates of $70.12 billion. Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.During the same quarter last year, the firm earned $4.28 EPS. As a group, equities research analysts predict that Costco Wholesale Corporation will post 20.39 earnings per share for the current fiscal year.

Costco Wholesale Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 7th. Shareholders of record on Friday, July 24th will be given a dividend of $1.47 per share. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Friday, July 24th. Costco Wholesale’s dividend payout ratio (DPR) is presently 29.58%.

Key Headlines Impacting Costco Wholesale Here are the key news stories impacting Costco Wholesale this week:

Positive Sentiment: Costco’s warehouse expansion story remains intact, with plans for 26 net-new warehouses in fiscal 2026 and a strong international pipeline that could extend its growth runway. Why Costco’s Warehouse Growth Story Is Far From Over Positive Sentiment: Analysts and market-watch articles continue to frame COST as a high-quality long-term compounder, highlighting strong sales trends, a high membership renewal rate, and appeal for retirement investors. Costco Is a No-Brainer Buy for Retirement Investors Right Now Positive Sentiment: Another upbeat take says Costco’s recent pullback from a 52-week high could be an attractive entry point if its continued double-digit comparable sales growth holds up. Price Prediction: Will Costco Hit a New-High This Year? Neutral Sentiment: Costco remains one of the most widely watched retail stocks, which can keep sentiment and trading volume elevated even without a major new catalyst. Costco Wholesale Corporation (COST) is Attracting Investor Attention: Here is What You Should Know Negative Sentiment: Shares were also pressured by a report that Costco may build standalone gas stations, a move some investors fear could weaken a key traffic-driving feature of its warehouses and hurt margins. Costco Stock (COST) Drops despite Bet on Standalone Gas Stations in Sales Push Negative Sentiment: Costco’s valuation remains a concern for some commentators, with articles noting that strong quality metrics do not necessarily mean the stock is cheap at current levels. 3 Dividend Stocks That Pass Buffett’s Test: Buy, Sell or Hold? Insider Buying and Selling at Costco Wholesale In related news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the sale, the director directly owned 4,779 shares of the company’s stock, valued at $4,575,653.55. This trade represents a 15.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 0.10% of the company’s stock.

Wall Street Analysts Forecast Growth A number of brokerages recently commented on COST. Truist Financial raised their target price on Costco Wholesale from $977.00 to $1,011.00 and gave the company a “hold” rating in a report on Friday, May 29th. Citigroup initiated coverage on shares of Costco Wholesale in a research report on Thursday, June 18th. They set a “neutral” rating and a $1,020.00 price target on the stock. HC Wainwright reissued a “buy” rating on shares of Costco Wholesale in a research note on Monday, June 1st. UBS Group lifted their price objective on shares of Costco Wholesale from $1,205.00 to $1,275.00 and gave the company a “buy” rating in a report on Wednesday, May 20th. Finally, Wells Fargo & Company upped their target price on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the stock an “equal weight” rating in a research note on Thursday, April 9th. Twenty-two investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $1,059.07.

Read Our Latest Stock Analysis on Costco Wholesale

About Costco Wholesale (Free Report)

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company’s product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco’s business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.

Read More Five stocks we like better than Costco Wholesale The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST – Free Report).

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Costco (NASDAQ:COST | COST Price Prediction) stock stands out as one of the strongest setups in the retirement investor’s playbook right now, and the case rests on three numbers that are hard to argue with. The membership economics are hardening, the balance sheet is getting stronger by the quarter, and the growth premium versus the obvious alternative keeps widening. This is a conviction position.

The Membership Machine Is Compounding Faster Costco posted Q3 FY2026 revenue of $70.53 billion, up 11.58% year over year, with net income climbing 15.19% to $2.19 billion. Membership fees alone reached $1.37 billion, up 10.7%, with a worldwide renewal rate of 89.7% and 75.0% executive-tier penetration. That is annuity-like income growing at a double-digit clip, the kind of cash-flow profile retirement portfolios tend to prize behind an equity position.

Balance Sheet Built for Payouts Cash and equivalents jumped to $18.95 billion, a 36.93% year-over-year gain, while shareholders’ equity expanded 23.54%. CFO Gary Millerchip signaled that a special dividend remains on the table, noting Costco continues to “generate excess cash beyond those priorities”. Costco has paid special dividends of $15 in 2023, $10 in 2020 and $7 in 2017. The regular quarterly dividend already stepped up to $1.47 in May 2026 from $1.30. Retirees get a growing base payout plus periodic lump-sum surprises.

The Head-to-Head With Walmart Is Not Close Walmart (NASDAQ:WMT) is the natural comparable, and it loses on the metrics that matter for a compounder. Walmart’s quarterly revenue grew just 7.3% versus Costco’s 11.58%, and quarterly earnings growth was 19.4% against Costco’s 15.19% off a much larger base. Costco’s return on equity is 29.1% versus Walmart’s 24.1%.

Yes, Walmart yields 0.85% to Costco’s 0.57%, but Walmart trades at a forward P/E of 38x versus Costco’s 42x. That is a small premium for meaningfully faster growth and a membership annuity Walmart cannot replicate.

The One Risk, Dismissed Consumer sentiment sits at 44.8, deep in pessimistic territory. Yet retail sales hit a high of $763.7 billion in May, a 90.9th percentile reading. Costco’s 89.7% renewal rate proves members do not cancel a $130 card when times get tight. They trade down into Kirkland, and Costco captures the wallet share anyway.

For retirement investors seeking a durable compounder with rising income and optional special-dividend upside, Costco around $938 screens as a durable compounder worth research.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Costco didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Key Takeaways Costco's June net sales rose 10.6% to $29.24 billion, while comparable sales increased 8.8%.Digitally enabled comparable sales climbed 20.9%, reinforcing growth beyond Costco's warehouses.Costco trades at 41.30 times forward earnings, well above the industry's 30.05 multiple. Costco Wholesale Corporation's (COST - Free Report) valuation remains among the highest in the retail sector, leaving little room for operational missteps. That makes monthly sales updates closely monitored by investors. June's sales results once again highlighted resilient consumer demand, decent comparable sales growth and strong digital momentum, but are these trends enough to support the stock's premium multiple going forward?

A Closer Look at Costco's June SalesFor a retailer trading at a premium multiple, the quality and consistency of growth matter as much as the pace. Costco’s June report certainly provided encouraging evidence. Net sales increased 10.6% year over year to $29.24 billion during the five weeks ended July 5, 2026. Comparable sales rose 8.8% companywide, while adjusted comparable sales, excluding gasoline price and foreign exchange impacts, advanced 7%. Those figures point to broad-based demand rather than growth driven solely by external factors.

Although June comparable sales remained strong, they moderated from the 12.5% and 11.6% growth recorded in May and April, respectively. The sequential slowdown does not undermine Costco's performance, but it highlights the broad-based growth needed to support its premium valuation.

Digital performance remained another bright spot. Costco's digitally enabled comparable sales climbed 20.9% on a reported basis and 21.5% after adjusting for fuel and currency effects. Sustained online growth of this magnitude complements warehouse traffic and reinforces the company's ability to expand sales beyond its physical footprint without compromising its value proposition.

Do Costco’s Latest Metrics Justify Its Premium Valuation?Costco trades at a forward 12-month price-to-earnings ratio of 41.30, well above the industry’s ratio of 30.05. The premium reflects investors' confidence in the company's membership-driven business model, recurring fee income, resilient sales growth and disciplined execution. Even so, the multiple remains below its 12-month median of 46.32, indicating that valuation has moderated from historical levels.

The premium is even more evident when compared with mass-merchandise retailers. Costco continues to command a meaningful premium over Dollar General Corporation (DG - Free Report) and Target Corporation (TGT - Free Report) . Costco is trading at a premium to Dollar General (forward 12-month P/E of 15.53) and Target (15.73).

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Why Has Costco Stock Pulled Back?Despite another month of resilient sales growth, Costco shares have dropped 6.5% over the past month, modestly underperforming the industry's 5.6% decline. The softness may be tied to the stock’s rich valuation rather than to any deterioration in underlying fundamentals. The moderation in June’s comparable sales growth from the stronger gains recorded in May and April may have also tempered investor enthusiasm.

Over the same period, shares of Dollar General have gained 2.2%, while Target has advanced 1.5%.

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How Are Costco's Earnings Estimates Trending?The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.6% and 13.3%, respectively. For the next fiscal year, the consensus estimate indicates a 7.9% rise in sales and 10.2% growth in earnings.

The consensus estimate for earnings per share for the current and next fiscal year has increased by 6 cents and 8 cents to $20.38 and $22.47, respectively, over the past 60 days. The upward revisions suggest that analysts remain confident in Costco's ability to deliver steady earnings growth.

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Can Costco Continue to Command a Premium?Costco’s June sales once again reinforced the strength of its membership-driven business model, supported by healthy comparable sales growth and continued digital momentum. Improving earnings estimates further lend support. However, given its significant premium to the industry, Costco will need to sustain strong execution to justify its valuation and drive the stock higher.

Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Costco Wholesale Corporation (NASDAQ:COST, XETRA:CTO) shares fell about 4% to $913 on Wednesday after the warehouse retailer reported a moderation in June comparable sales growth, though Bank of America analysts maintained their ‘Buy’ rating, arguing the company's value-focused strategy and affluent customer base should continue to support market share gains.

For the five weeks ended July 5, total sales rose 10.6%, while US comparable sales excluding gasoline increased 7.6%. Bank of America noted the result represented a slowdown on both a one-year and two-year stacked basis following a stronger May.

The analysts wrote that Costco's "philosophy of leading with value and its weighting towards a higher income consumer gives us confidence share gains across categories will continue."

Non-food comparable sales increased by a mid- to high-single-digit percentage, driven by jewelry, home furnishings and major appliances. Management also highlighted higher prices in consumer electronics and appliances due to inflation in memory chip prices.

Fresh food comparable sales rose by a mid-single-digit percentage, supported by bakery and meat, while food and sundries posted low- to mid-single-digit growth led by food, candy and frozen products.

Overall inflation remained in the low- to mid-single-digit range, with food inflation at the lower end due to egg price deflation and non-food inflation at the higher end because of rising memory prices.

Customer traffic increased 3.2% during the month, easing from 3.9% in May, while average ticket growth excluding gasoline and foreign exchange was 3.7%, compared with 4% in the prior month.

Bank of America also noted Costco is now lapping the rollout of extended shopping hours introduced last July for executive members and later for all members. Management previously estimated the additional hours contributed roughly one percentage point to weekly US sales following their introduction.

Elsewhere, ancillary sales growth slowed as gasoline prices eased, while comparable sales growth moderated in Canada and other international markets. Digital comparable sales remained strong, rising 21.5% in June and improving sequentially from the previous month.

The analysts also noted Costco shifted its member appreciation days to coincide with Amazon's Prime Day and other competing promotional events.

Key Takeaways Costco's June total comparable sales rose 8.8%, slowing from May and April but showing healthy demand.Digitally enabled comparable sales grew 20.9% in June, continuing strong online momentum.Costco's June net sales rose 10.6% to $29.24 billion, supported by value and digital strength. Costco Wholesale Corporation’s (COST - Free Report) June sales data showed that consumer demand remains resilient, even as comparable sales growth moderated. The company continued to benefit from its value-driven pricing, quality merchandise, strong digital momentum and broad warehouse footprint, which are helping attract shoppers in a cautious consumer environment.

Sneak Peek Into Costco’s Comparable Sales PerformanceFor the five weeks ended July 5, 2026, Costco reported an 8.8% year-over-year increase in total comparable sales. Regionally, comparable sales rose 10.6% in the United States, 3.7% in Canada and 4.7% in Other International markets. While this marked a slowdown from total comparable sales growth of 12.5% in May and 11.6% in April, the June performance still reflected healthy underlying demand.

Excluding the effects of gasoline prices and foreign exchange, U.S. comparable sales increased 7.6%, while Canada and Other International markets posted gains of 4.9% and 5.6%, respectively. Overall, total comparable sales, excluding these factors, rose 7% in June, following increases of 8% in May and 7.8% in April.

Digitally enabled comparable sales remained a standout, rising 20.9% in June, or 21.5% after adjusting for fuel and currency impacts. This followed gains of 21.1% in May and 18.8% in April, underscoring sustained momentum in Costco’s online channel.

Costco’s net sales for June increased 10.6% to $29.24 billion from $26.44 billion in the year-ago period. Although growth moderated from May’s 14.5% increase and April’s 13% gain, the retailer’s June performance suggests that its value proposition and digital strength continue to support solid sales momentum.

How Costco Compares With Walmart and TargetWalmart Inc. (WMT - Free Report) continues to post resilient comparable sales growth despite a cautious consumer backdrop. Walmart reported 4.1% U.S. comparable sales growth (excluding fuel) in first-quarter fiscal 2027, supported by a 3% increase in transactions and 26% global e-commerce growth. Walmart also benefited from a stronger marketplace, advertising and Walmart+ membership performance, reinforcing traffic, customer engagement and market-share gains while sustaining healthy comparable sales momentum.

Meanwhile, Target Corporation (TGT - Free Report) is also demonstrating solid comparable sales momentum through strong traffic and digital growth. Target delivered 5.6% comparable sales growth in first-quarter 2026, driven by a 4.4% increase in traffic and 8.9% digital comparable sales growth, with strength across all six merchandise categories. Target continues to enhance comparable sales through merchandising innovation, Target Circle 360, same-day delivery and an improved omnichannel experience, positioning Target for sustained long-term growth.

What the Latest Metrics Say About CostcoCostco has seen its shares tumble 4.5% over the past three months compared with the industry’s decline of 3%. 
 

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From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 43.02, higher than the industry’s ratio of 30.43. However, it is trading below its 12-month median level of 46.34, indicating some moderation in valuation despite sustained investor confidence in the stock.
 

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The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.5% and 13.3%, respectively. For the next fiscal year, the consensus estimate indicates a 7.9% rise in sales and 10.2% growth in earnings.

The consensus estimate for earnings per share for the current and next fiscal year has increased by 6 cents and 7 cents to $20.38 and $22.46, respectively, over the past 60 days.

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Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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$275.24 billion. That is what Costco (NASDAQ:COST | COST Price Prediction) rang up in revenue for fiscal year 2025, representing a +8.17% year-over-year haul that pushed the warehouse operator past a quarter-trillion dollars in annual sales. The company followed this impressive report with a Q3 FY2026 quarter that showed this growth machine is still accelerating in the right direction, posting $70.53 billion in revenue, up 11.58% year over year.

What It Means A quarter-trillion-dollar retailer that keeps compounding sales at a double-digit clip is a rare animal. Costco is making this happen, while continuing to open physical stores. Management ended Q3 with 931 warehouses across 14 countries and told investors it now targets “30-plus net new openings per year in the coming years”, with roughly 12 new warehouses still scheduled for the remainder of FY2026.

The company’s membership model is what makes Costco’s top line so durable. Membership fees hit $1.37 billion in the quarter, up 10.7% year over year, on a 89.7% worldwide renewal rate and 82.9 million paid members. Executive memberships now account for 75.0% of net sales. Additionally, comparable sales rose 9.8% (6.6% adjusted for gas and FX), with digitally enabled comps up 21.5% and e-commerce site and app traffic up 37%.

Profitability is scaling with the company’s top line. FY2025 net income reached $8.099 billion (+9.94%), operating cash flow rose to $13.335 billion (+17.6%), and free cash flow expanded 18.22% to $7.837 billion. Q3 FY2026 net income came in at $2.19 billion, up 15.19%, on $4.93 diluted EPS that edged the $4.923 consensus.

Bull Case I think Costco’s bull case rests on three data points that keep pointing the same direction.

First, membership economics. A 89.7% worldwide renewal rate paired with 92.2% in the U.S. and Canada means members overwhelmingly keep paying to shop. Executive memberships grew 9.6% year over year to 41.2 million, and CFO Gary Millerchip told the call the company is “seeing increases in membership upgrades from gold to executive”. That is recurring, high-margin income that flows straight through to the company’s bottom line.

Second, unit growth. Costco’s 30-plus net new openings per year cadence, backed by approximately $6.5 billion in FY26 capital expenditure, gives investors a physical, measurable growth lever. CEO Ron Vachris described a runway that stretches well beyond North America, with “very strong international expansion over the next five to ten years” across Canada, China, Korea, Japan, France, Spain, and the U.K.

Third, balance sheet and digital flywheel. Cash and equivalents jumped 36.93% year over year to $18.95 billion, and shareholders’ equity climbed 23.54% to $33.51 billion. Importantly, the company’s digital segment is compounding on top of the physical footprint. In fact, digitally-enabled comps were up 21.5%, same-day delivery averaging under 45 minutes in the U.S. with a 4.8 out of 5 satisfaction rating, and triple-digit growth in AI-search-driven traffic with the highest conversion rate of any channel.

Even the macro cross-currents work in Costco’s favor. Consumer sentiment sits at a 44.8 reading, well below the 60 recessionary threshold, yet May 2026 total PCE reached $22,059.8 billion, with food spending at $1,566.8 billion versus $1,518.3 billion a year earlier. Nervous households trade down to value, and Costco is the value.

Bottom Line A retailer that clears $275.235 billion in annual revenue while still growing comps 9.8%, adding 30-plus warehouses per year, and renewing members at 89.7% is compounding on multiple axes at once.

Long-term holders should watch three data points from here: the pace of the remaining 12 FY2026 warehouse openings toward the 940 target, the trajectory of executive membership penetration above 75.0% of net sales, and any decision on the special dividend that Millerchip described as “typically the most effective way to return excess cash”. The quarter-trillion-dollar strategy is still adding warehouses, members, and cash faster than it is spending them.

Contact [email protected] for any questions or corrections.