Howland Capital Management LLC lifted its holdings in Costco Wholesale Corporation (NASDAQ:COST – Free Report) by 6.1% during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 28,588 shares of the retailer’s stock after buying an additional 1,650 shares during the period. Costco Wholesale comprises 0.9% of Howland Capital Management LLC’s holdings, making the stock its 28th largest holding. Howland Capital Management LLC’s holdings in Costco Wholesale were worth $26,025,000 as of its most recent SEC filing.
Several other hedge funds have also recently made changes to their positions in COST. State Street Corp grew its position in Costco Wholesale by 31.7% in the second quarter. State Street Corp now owns 23,901,594 shares of the retailer’s stock worth $22,359,224,000 after acquiring an additional 5,749,362 shares in the last quarter. Bank of America Corp DE raised its position in Costco Wholesale by 11.5% during the first quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer’s stock valued at $7,488,203,000 after purchasing an additional 773,651 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Costco Wholesale by 5.5% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,068,312 shares of the retailer’s stock valued at $2,870,314,000 after purchasing an additional 160,893 shares during the period. Amundi raised its position in Costco Wholesale by 11.1% during the first quarter. Amundi now owns 2,839,016 shares of the retailer’s stock valued at $2,828,881,000 after purchasing an additional 283,360 shares during the period. Finally, Ascentis Wealth Management LLC lifted its stake in shares of Costco Wholesale by 103,637.0% in the 2nd quarter. Ascentis Wealth Management LLC now owns 2,500,062 shares of the retailer’s stock valued at $2,549,616,000 after purchasing an additional 2,497,652 shares during the last quarter. 68.48% of the stock is currently owned by hedge funds and other institutional investors.
Insider Buying and Selling In related news, EVP Claudine Adamo sold 2,200 shares of the stock in a transaction that occurred on Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total value of $2,015,046.00. Following the transaction, the executive vice president owned 7,134 shares of the company’s stock, valued at $6,534,244.62. This represents a 23.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP William Richard Wilcox sold 1,100 shares of the stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total value of $1,054,031.00. Following the completion of the transaction, the executive vice president directly owned 3,094 shares in the company, valued at approximately $2,964,701.74. This trade represents a 26.23% decrease in their position. The SEC filing for this sale provides additional information. 0.10% of the stock is currently owned by insiders.
More Costco Wholesale News Here are the key news stories impacting Costco Wholesale this week: Positive Sentiment: Analyst support remains strong. CICC initiated coverage with an Outperform rating, while Tigress Financial raised its price target to $1,250. Erste Group also increased its FY2028 EPS estimate to $25.07 from $25.01, above the current-year consensus estimate of $22.70. CICC coverage article Tigress Financial price target article Positive Sentiment: Growth and customer engagement remain key positives. Costco’s membership model has delivered substantial long-term shareholder returns, and the company is reportedly using purchasing data to better target high-spending members. REJURAN Cosmetics is also expanding through Costco’s first Beauty Table program, potentially adding traffic and broadening its premium beauty offering. Costco customer spending article REJURAN retail expansion article Neutral Sentiment: Long-term growth screens are favorable, and analysts’ average recommendation is equivalent to a Buy. However, these reports largely reiterate existing optimism rather than provide a new earnings catalyst. Zacks growth stock article Negative Sentiment: Valuation and competition remain concerns. Costco trades at a high earnings multiple, leaving the stock sensitive to profit-taking or disappointing growth. Kroger is planning major investments and price cuts to win back market share from Costco and Walmart, which could intensify grocery competition and pressure margins. Kroger competition article Wall Street Analysts Forecast Growth COST has been the subject of a number of recent research reports. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $1,000.00 target price on shares of Costco Wholesale in a report on Friday, October 9th. Weiss Ratings upgraded Costco Wholesale from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, October 8th. CICC Research assumed coverage on Costco Wholesale in a research report on Wednesday. They issued an “outperform” rating and a $1,050.00 price target for the company. Sanford C. Bernstein dropped their price objective on shares of Costco Wholesale from $1,144.00 to $1,143.00 and set an “outperform” rating for the company in a research note on Friday, September 25th. Finally, Freedom Broker cut their price objective on shares of Costco Wholesale from $1,030.00 to $1,010.00 and set a “buy” rating on the stock in a research report on Friday, September 25th. Twenty-five equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Costco Wholesale presently has a consensus rating of “Moderate Buy” and an average target price of $1,086.19.
View Our Latest Report on Costco Wholesale
Costco Wholesale Trading Down 1.5% Shares of COST opened at $1,003.32 on Friday. Costco Wholesale Corporation has a 1-year low of $844.06 and a 1-year high of $1,096.50. The company has a 50-day moving average of $937.96 and a 200 day moving average of $963.21. The firm has a market capitalization of $444.60 billion, a price-to-earnings ratio of 48.33, a PEG ratio of 4.35 and a beta of 0.88. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.06 and a quick ratio of 0.62.
Costco Wholesale (NASDAQ:COST – Get Free Report) last issued its earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, topping analysts’ consensus estimates of $6.54 by $0.21. The business had revenue of $95.72 billion for the quarter, compared to the consensus estimate of $94.97 billion. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The company’s revenue for the quarter was up 11.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $5.87 EPS. On average, research analysts expect that Costco Wholesale Corporation will post 22.70 EPS for the current year.
Costco Wholesale Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Friday, October 30th will be issued a $1.47 dividend. The ex-dividend date is Friday, October 30th. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale’s payout ratio is presently 28.32%.
Costco Wholesale Company Profile (Free Report)
Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells merchandise in bulk and at competitive prices through warehouse clubs and e-commerce platforms, serving individual consumers, businesses and other organizations.
Its product selection includes groceries and fresh foods, household supplies, appliances, electronics, furniture, apparel, health and beauty products, jewelry, automotive products and prescription drugs. Costco also provides services such as optical care, pharmacy services, hearing-aid sales, travel offerings and fuel sales, depending on location.
The company traces its roots to Price Club, which opened in San Diego in 1976.
Featured Stories Five stocks we like better than Costco Wholesale Spotify Soars After Earnings as the Company Touts AI Benefits and Moderating Costs Lockheed Martin’s Record $292 Billion Backlog Comes With a Delivery Test Palantir’s Next Big Test Isn’t a Partnership—It’s the Numbers Kinder Morgan’s $4.7 Billion Pipeline Bet Could Be Bigger Than Its Earnings Beat 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.
Shares of membership-based warehouse retailer Costco Wholesale (COST -1.46%) trade near $1,010 as I write, nearly 8% under the record close of $1,094.32 they set on May 19.
The company behind the stock keeps delivering. Costco's earnings per share grew 14% in fiscal 2026 (the 52 weeks ending Aug. 30, 2026), faster than the 10% increase a year earlier. And net sales climbed 10% to around $297 billion.
What might $5,000 put in the stock now be worth by the end of 2030?
With a forecast based on earnings growth, a lower valuation multiple, and the dividend, I get around $6,350. It's a decent gain. But the same $5,000 in an index fund matching the long-term average of the S&P 500 (^GSPC -0.52%) might reach around $7,450.
Image source: Getty Images.
How fast can earnings grow?Costco's fiscal 2026 earnings included a one-time boost of $0.15 a share from tariff refunds in the fiscal fourth quarter. Without that, the company earned around $20.61 a share, still about 13% above fiscal 2025's $18.21.
Earnings per share were $11.27 in fiscal 2021, so this rate matches their average growth of around 13% a year for the last five years.
But the next few years likely won't match it. Costco hiked its yearly membership fees in the U.S. and Canada on Sept. 1, 2024, and it records that income gradually over each member's year. The higher fees made up around 30% of the 11% growth in membership fee revenue in fiscal 2026, according to Costco's annual report. By the fiscal fourth quarter, membership fee income was up only about 7% year over year.
That matters because membership fees brought in around $5.9 billion last fiscal year, or about half of Costco's $11.7 billion in operating income.
The rest of the business still has room to grow, of course. Comparable sales excluding gas prices and foreign exchange climbed 6.6% in fiscal 2026, and Costco plans to open up to 33 warehouses in fiscal 2027, including five relocations.
I'll assume earnings per share grow around 11% a year from here, a step down from the last five years but still a solid rate. That puts fiscal 2030 earnings per share at about $31.30.
Costco's valuation might come downThe price investors pay for these earnings arguably counts just as much. At around $1,010, Costco stock trades at about 49 times fiscal 2026 earnings. At the end of fiscal 2023, the stock fetched about 38 times that year's earnings of $14.16 per share.
I'll assume the price-to-earnings ratio lands at 40 times earnings by the end of 2030. That's still a premium price for a retailer, and I think it's fair for a business growing earnings roughly 11% a year.
At 40 times fiscal 2030 earnings of about $31.30, Costco stock would trade near $1,250. Now, $5,000 gets about 4.95 shares, so the stake might be worth around $6,190.
Costco also pays a dividend of $1.47 per share a quarter, after lifting it 13% in April. If the payout keeps climbing around 11% a year, in line with earnings, the 4.95 shares might collect a bit over $150 in regular dividends by the end of 2030 (I'm not counting any special dividends). That takes the total to around $6,350, a gain of about 6% a year.
COST Costco Wholesale$1,003.32-$14.89 (-1.46%)
NASDAQ · As of 4:00 PM ET 10/23/26
An index fund might do betterWith dividends, the S&P 500 has returned about 10% a year since 1928. At that rate, $5,000 put in the index through a fund on Oct. 23 could rise to about $7,450 by the end of 2030 -- about $1,100 more than my Costco forecast.
Then again, the market could return less than its long-run average in the next few years. And Costco's price-to-earnings ratio may not come down at all. The stock closed each of the last three fiscal years at more than 45 times earnings. But for Costco to keep up with the index fund, it'd have to trade at about 47 times earnings at the end of 2030, near where it trades today, while still growing earnings 11% a year.
Put another way, the company might do everything I'm assuming, and the stock could still trail the market if investors pay a bit less for every dollar Costco earns.
I think the warehouse club is still one of the best retailers to own for the long run, and I'd be comfortable adding shares slowly over time. But I wouldn't expect the stock to beat an index fund from here.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Costco (COST - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Costco currently has an average brokerage recommendation (ABR) of 1.80, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 38 brokerage firms. An ABR of 1.80 approximates between Strong Buy and Buy.
Of the 38 recommendations that derive the current ABR, 21 are Strong Buy and five are Buy. Strong Buy and Buy respectively account for 55.3% and 13.2% of all recommendations.
Brokerage Recommendation Trends for COST
Check price target & stock forecast for Costco here>>>
While the ABR calls for buying Costco, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is COST a Good Investment?Looking at the earnings estimate revisions for Costco, the Zacks Consensus Estimate for the current year has increased 0.8% over the past month to $22.7.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Costco. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Costco may serve as a useful guide for investors.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Costco (COST - Free Report) Based in Issaquah, WA, Costco Wholesale Corporation operates membership warehouses offering food, general merchandise and services at competitive prices. One of the largest warehouse club operators in the United States, Costco follows a low-price, high-volume business model, offering a limited selection of nationally branded and private-label products. Its strategy emphasizes rapid inventory turnover, volume purchasing, efficient distribution and reduced merchandise handling through no-frills, self-service warehouses. The company also operates e-commerce sites across nine markets, including the United States, Canada, Mexico, the United Kingdom, Korea, Taiwan, Japan, Australia and China.
COST is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. COST has a Growth Style Score of A, forecasting year-over-year earnings growth of 11% for the current fiscal year.
For fiscal 2027, 13 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.19 to $22.70 per share. COST boasts an average earnings surprise of +1.2%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, COST should be on investors' short list.
AMG Asset Management Group Inc. reduced its stake in Costco Wholesale Corporation (NASDAQ: COST) by 42.0% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 727 shares of the retailer's stock after selling 526 shares during the period. AMG Asset Management Group
Costco's membership model looks deceptively simple, yet patient shareholders who held through years of premium valuations and wild price swings discovered something the broader market consistently failed to match. The numbers tell a story worth understanding before the next decade…
How a Membership Card Became a Compounding Machine
Ten years ago, Costco (NASDAQ:COST | COST Price Prediction) was already an established warehouse club. Over the decade, investors rewarded its predictability. The model itself stayed simple. Costco charges an annual fee, sells bulk goods and Kirkland Signature products on thin margins, and relies on renewals to drive profits.
That formula scaled. Costco now runs 939 warehouses across 14 countries and territories, with 150.4 million cardholders and a worldwide renewal rate of 89.8%. Executive members pay a higher fee and drive 75.6% of sales. The latest fee hike helped lift fee income 14% earlier in fiscal 2026.
Special Dividends Sweetened a Decade of Steady Growth
On top of the regular payout, shareholders collected special dividends of $7 in 2017, $10 in 2020, and $15 in 2023. The regular quarterly dividend rose from $0.45 in 2016 to $1.47. Digital also expanded, with digitally enabled sales topping $33 billion in fiscal 2026 as Uber Technologies (NYSE:UBER) and DoorDash (NASDAQ:DASH) delivery went nationwide.
Your $1,000 Became $8,018 and Left the Market Far Behind
1-Year Return
Initial Investment: $1,000
Current Value: $1,083.50
Total Return: 8.35%
S&P 500 (same period): $1,136.10 (13.61%)
5-Year Return
Initial Investment: $1,000
Current Value: $2,210.10
Total Return: 121.01%
Annualized Return: 17.19%
S&P 500 (same period): $1,683 (68.3%)
10-Year Return
Initial Investment: $1,000
Current Value: $8,018
Total Return: 701.8%
Annualized Return: 23.14%
S&P 500 (same period): $3,564 (256.4%)
Costco figures are dividend-adjusted. The S&P 500 figures track the price change of the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) only.
Costco beat the index by a wide margin over five and ten years, then trailed it over the past year. Holding still took patience: shares swung between $840.35 and $1,094.76 over the last 52 weeks. The business delivered throughout. Fiscal 2026 revenue rose 10.14% to $303.15 billion, and EPS came in at $20.76.
At 48x Earnings, Costco’s Premium Leaves Little Room for Error
Costco’s case today rests on membership growth and per-member spending continuing to stack up. The key risk is earnings growth slowing while the stock still carries a premium multiple. Costco is the kind of long-term compounder most investors watched from the sidelines, and we studied that pattern in a free report on the winners you already missed.
Bull case: Costco plans to open 33 warehouses in fiscal 2027, and comparable sales excluding gas and currency have held near 6% to 7%. The CFO summed up the plan: “For sustained top line growth, we see a balance between continued membership base growth and continued growth in spend per member.”
Bear case: The stock trades at 48 times trailing earnings and 40 times forward earnings, with a PEG ratio of 4.434. Fourth-quarter EPS also included a $0.15 one-time tariff refund benefit. Over the next ten years, the multiple has little room to expand so that returns will come from earnings growth.
Shares sit at $1,009.89, well above the 52-week low.
Contact [email protected] for any questions or corrections.
Costco Wholesale (COST +1.27%) last split its stock in January 2000. Just after the 2-for-1 split, the shares sold for about $49.
Now one share costs roughly $994 as of this writing, or about what 20 shares cost back then. Even after a dip, that's only about 9% off the warehouse club's all-time closing high of $1,094.32, hit in May.
Investors have noticed. An analyst asked about a split on an earnings call, shareholders asked at both of the past two annual meetings, and Costco hasn't announced one.
Could a split finally be coming?
Image source: Getty Images.
Costco says its board keeps looking at itThe fullest answer came from CFO Gary Millerchip on the company's earnings call in December 2024. Asked about splits, Millerchip said there wasn't a plan for one then.
He also laid out why a split matters less than before.
"[T]he economic arguments that were true in the past are a little bit less clear because retail investors and employees both have the ability now to buy fractional shares," Millerchip said.
But he also said a lower share price can make the stock seem more affordable for the same investors and employees. And he added the company would keep talking it over with the board.
CEO Ron Vachris has given shareholders a shorter version of that answer since. At the annual meeting in January 2025, he said there was nothing to report on a split. A year later, at the meeting on Jan. 15, 2026, a shareholder asked about both a split and a special dividend.
"I have nothing to report at this time, but I can tell you that it's being reviewed with the board, and we look at it regularly," Vachris said.
I'd read it as a polite no for now. A split didn't come up in Costco's fiscal fourth-quarter call on Sept. 24, and its next annual meeting is on Jan. 21, 2027.
Two retailers that did splitTwo other retailers split their shares recently, and both said they did it mostly for their employees.
Walmart (WMT +1.42%) announced a 3-for-1 split on Jan. 30, 2024, when its stock closed around $166. Back then, over 400,000 of its workers were in its stock purchase plan. O'Reilly Automotive (ORLY +1.66%) followed in March 2025, when its board approved a 15-for-1 split with the shares near $1,300.
Both CEOs even used the same words, describing the aim as letting employees buy "whole shares, rather than fractions."
Costco's chief financial officer, though, took the other side of that point. After all, fractions are easy to get now. Charles Schwab, for instance, lets investors buy fractional shares of most U.S.-listed stocks for as little as $1.
And the share price alone likely doesn't force Costco's hand. It's about six times what Walmart's stock cost when it announced its split, but below where O'Reilly's was.
A split wouldn't make Costco cheaperEven if Costco did split its shares, its valuation would stay the same. With about 443 million shares outstanding, Costco is worth roughly $441 billion at today's price. A 10-for-1 split would just turn that into about 4.4 billion shares at about $99 each.
What drives the stock over time is what a share earns. Costco earned $20.76 per share in fiscal 2026 (ended Aug. 30, 2026), up 14% from the year before. That's faster than fiscal 2025's 10% gain, so earnings growth is accelerating. Shares around $994 put the stock's price-to-earnings ratio at about 48. That means buyers pay about $48 for every $1 Costco earned last fiscal year. And I think a price like that already asks a lot of a company growing earnings at around 14%, and a split wouldn't change it.
COST Costco Wholesale$1,010.97+$12.66 (+1.27%)
NASDAQ · As of 10:50 AM ET 10/22/26
If Costco wants to give shareholders something, the other item in Vachris' answer could do it. Costco's regular quarterly dividend of $1.47 per share works out to a yield of only around 0.6%, so it isn't much of a dividend stock by itself. But Costco has paid five special dividends since 2012, the biggest a $15 per share payout in January 2024 that cost the company around $6.7 billion. It hasn't paid any since.
Is a split next, then? I doubt one is close. Costco's leaders have given the same answer at least three times since December 2024, and the chief financial officer's point on fractional shares goes against the one Walmart and O'Reilly made.
If a split does happen, it changes the price of a share and little else. I'd focus more on the special dividend, the other item on the board's list, because it's the one that gives shareholders cash.
Costco (COST - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this warehouse club operator have returned +10.8%, compared to the Zacks S&P 500 composite's +0.7% change. During this period, the Zacks Retail - Discount Stores industry, which Costco falls in, has gained 9.9%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Costco is expected to post earnings of $4.87 per share for the current quarter, representing a year-over-year change of +12.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.8%.
For the current fiscal year, the consensus earnings estimate of $22.7 points to a change of +11% from the prior year. Over the last 30 days, this estimate has changed +0.8%.
For the next fiscal year, the consensus earnings estimate of $24.92 indicates a change of +9.8% from what Costco is expected to report a year ago. Over the past month, the estimate has changed +1.7%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Costco is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Costco, the consensus sales estimate of $74.14 billion for the current quarter points to a year-over-year change of +10.2%. The $328.53 billion and $352.07 billion estimates for the current and next fiscal years indicate changes of +8.4% and +7.2%, respectively.
Last Reported Results and Surprise HistoryCostco reported revenues of $95.72 billion in the last reported quarter, representing a year-over-year change of +11.1%. EPS of $6.6 for the same period compares with $5.87 a year ago.
Compared to the Zacks Consensus Estimate of $94.82 billion, the reported revenues represent a surprise of +0.95%. The EPS surprise was +1.85%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Costco is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Costco. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Key Takeaways Walmart's global e-commerce sales rose 23%, fueled by faster delivery and marketplace growth.Target's comparable digital sales grew 8.7%, supported by same-day delivery, AI tools and personalization.Costco's digitally enabled sales rose 19.5% in fiscal Q4, driven by delivery partnerships and online traffic. Digital commerce is becoming an increasingly important growth driver for major U.S. retailers as consumers prioritize convenience, faster fulfillment and seamless shopping experiences. Walmart Inc. (WMT - Free Report) , Target Corporation (TGT - Free Report) and Costco Wholesale Corporation (COST - Free Report) are strengthening their digital capabilities through store-based fulfillment, delivery partnerships, marketplace expansion and technology investments.
Walmart: Accelerating Digital Growth Through DeliveryWalmart continues to strengthen its omnichannel ecosystem through faster delivery, marketplace expansion and complementary digital businesses. In second-quarter fiscal 2027, global e-commerce sales increased 23%, accounting for 24% of total net sales. Walmart U.S. e-commerce sales climbed 24%, while international e-commerce and Sam’s Club U.S. recorded growth of 19% and 26%, respectively.
Store-fulfilled pickup and delivery remained important growth catalysts. Walmart’s U.S. marketplace grew 52%, while fast delivery increased 48%. The retailer expanded sub-30-minute delivery services to 38 U.S. markets, improving accessibility and convenience. Meanwhile, global advertising revenues increased 38%, highlighting opportunities to monetize expanding digital engagement. Management emphasized that marketplace, advertising and membership capabilities are strengthening the broader business model and improving its economics.
Target: Expanding Digital Sales With AI and ConvenienceTarget is advancing its digital strategy by combining same-day fulfillment capabilities with personalized shopping experiences. In second-quarter fiscal 2026, comparable digital sales increased 8.7%, outperforming comparable store sales growth of 2.7%. Same-day delivery expanded more than 25%, underscoring consumers' growing preference for convenient fulfillment options.
Target is also expanding its digital ecosystem through Target Circle 360, Target+ marketplace and Roundel advertising. These businesses contributed to non-merchandise sales growth of 20.1%. The company is investing in artificial intelligence and partnerships with OpenAI and Google Gemini to enhance product discovery and personalization. Management noted that digital traffic originating from external AI platforms is growing more than 3.5 times the industry rate, suggesting opportunities for deeper digital engagement.
Costco: Boosting Digital Sales Through PartnershipsCostco is accelerating digitally enabled sales while maintaining its membership-focused retail model. Fourth-quarter fiscal 2026 digitally enabled comparable sales increased 19.5%, or 19.8% excluding foreign exchange effects. E-commerce website and app traffic rose 30%, reflecting stronger digital engagement.
Costco is expanding delivery accessibility through partnerships with Instacart, Uber Eats and DoorDash. Average delivery times across these platforms are under an hour. Management indicated that digitally enabled sales exceeded $33 billion in fiscal 2026, growing more than 20%. Momentum continued into September, with digitally enabled sales rising 19%, demonstrating sustained demand for convenient purchasing channels.
Final WordsWalmart, Target and Costco demonstrate how digital investments can complement established retail operations. Faster fulfillment, improved personalization and expanded digital access offer opportunities for incremental sales and customer engagement.
Richards Merrill and Peterson Inc. increased its position in Costco Wholesale Corporation (NASDAQ: COST) by 4.3% during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 13,361 shares of the retailer's stock after buying an additional 551 shares during the period.
Prices just accelerated again, and that's not great news if you're the one filling up the gas tank or ringing up groceries. It feels like every month, my wallet buys fewer groceries and less gas. It's hard times for all. But it's worth asking a different question than most people do when a hot inflation print hits: which companies actually get stronger while everyone else's budget gets squeezed?
Two of the biggest names in American retail, Walmart (WMT -0.09%) and Costco Wholesale (COST +0.65%), have built their entire business models around exactly this moment, and the latest numbers from both suggest it's working.
Image source: Getty Images.
What the September inflation report said
The Consumer Price Index rose 3.7% over the 12 months ending in September, up from 3.4% in August, according to the Bureau of Labor Statistics. Gasoline did most of the damage, up 9.1% for the month and 34.2% over the year, while core inflation (stripping out food and energy) ran a cooler 2.6%. Food away from home -- restaurant meals, basically -- climbed 3.5% over the year, notably faster than the 1.8% rise in food you buy to cook at home. That gap matters when discussing stocks like Costco and Walmart. When eating out gets pricier faster than groceries, people cook more and shop harder for the best price on what they put in the cart.
COST Costco Wholesale$995.53+$6.42 (+0.65%)
NASDAQ · As of 4:00 PM ET 10/19/26
The value angle of these stocks is getting real
Walmart and Costco don't market as cheap, but their business models are built so thin that there's barely any markup to cut if they wanted to. Costco caps its own markup at 14% on regular merchandise and 15% on its Kirkland Signature private label, full stop, a rule the company has stuck to for decades specifically so members never have reason to doubt they're getting the best price. Costco makes its real money on membership fees, not on what's on the shelf, so there is no incentive to overcharge on a jar of peanut butter. Walmart runs on a similar logic at even bigger scale: it would rather sell more stuff at a sliver of margin than fewer things at a fat one. When inflation hits, that structural cheapness becomes a magnet for savvy consumers looking to get the most bang for their buck. This leads to higher sales and better growth for the stock.
WMT Walmart$118.70-$0.11 (-0.09%)
NASDAQ · As of 4:00 PM ET 10/19/26
The numbers back it up
Walmart's U.S. comparable sales grew 3.4% last quarter, excluding a one-time drag from health and wellness, while total revenue climbed 5.9% to $187.9 billion and e-commerce sales jumped 23% globally, per Retail Dive. Former CEO Doug McMillon told Fox that the company has been "holding at the lower end and adding at the upper end," meaning higher-income shoppers are showing up alongside its traditional base, exactly what you'd expect when everyone's hunting for value.
Costco's fiscal fourth quarter was even sharper: sales rose 11.2% to $93.9 billion, comparable sales climbed 9.4%, and membership fee income grew 7.3% to $1.85 billion. Renewal rates hit 92.3% in the U.S. and Canada, and executive memberships, the pricier tier that pays Costco back in cash rewards, grew 9.4% to an all-time high of 42.3 million. So in other words, people aren't just shopping at Costco; they're willing to pay extra to keep shopping there.
Are the stocks actually still worth buying?
This is where it gets less clean. Both stocks already reflect much of this good news, and both have been on something of a tear recently. Both are up over 10% in the last month. Walmart trades in the mid-30s on a forward earnings valuation, well above its own five-year median in the mid-20s, a sign the market has been pricing in a lot of optimism lately. Costco trades even richer in absolute terms, in the low-40s, but that's actually close to where it's traded on average over the past several years, so the premium there is less of a new story and more just the price of admission to a business this good.
Neither is a screaming bargain today, and a slowdown in comp sales or a sentiment shift could hit these stocks harder than a typical retailer given how much optimism is already baked in. But if inflation keeps running hot into 2027, I'd rather own the two retailers whose entire model depends on being the cheapest option in town than bet against them.
Target has raised its dividend every year for over five decades, but surging capital spending and tightening free cash flow are now putting that streak in a precarious spot. Whether the 3% yield is a bargain or a warning sign…
Target (NYSE:TGT | TGT Price Prediction) pays a quarterly dividend of $1.16, or $4.64 annualized, for a forward yield of 3.01%. Shares at $153.37 are up 61.15% this year but still down 27.02% over five years. That five-year decline is why the yield sits so high.
Half a Century of Raises Is on the Line Chief Financial Officer Jim Lee laid out the priority order on the second-quarter call:
“We first look to invest fully in our business in projects that meet our strategic and financial criteria. Next, we look to support the dividend and build on our more than 50-year record of annual increases.”
Dividend records confirm a higher quarterly payout in every year from 2003 through 2026. The raises have decreased, though. June’s hike was just 1.8%, compared with 2021’s jump from $0.68 to $0.90.
Payout Ratio Math Investors Can’t Ignore In fiscal 2025, dividends of $4.54 took about 60% of adjusted EPS of $7.57. Take the $1.65 tariff refund out of 2026 guidance of $9.90 to $10.90, and the forward dividend absorbs roughly 50% to 56% of underlying earnings. Lee said Target is balancing the dividend “with our goal of moving towards a 40% payout ratio over time.”
Cash Flow Is Where the Strain Shows Free cash flow fell 25.69% to $2.835 billion in fiscal 2025. This year Target plans about $5 billion of capex for new stores and renovations, up from $3.727 billion. If operating cash flow only matches last year’s $6.562 billion, roughly $1.56 billion would be left after capex. First-half dividends alone ran “just over a billion dollars.” Target bought back no stock in the first half, leaving $8.3 billion of authorization unused, and Lee framed any buybacks as limited by its “middle-A credit ratings.”
Ad Sales and Memberships Add a Cushion Target sells everything from groceries to toys across 2,019 stores. Higher-margin side businesses now matter too: Roundel sells ads to brands, Target Circle 360 is a paid membership, and Target+ is a third-party marketplace. Non-merchandise sales grew over 20%, and Circle 360 revenue rose over 40%.
The challenges are real. SG&A rose 7%, prices were cut on over 10,000 items, and management admitted home and apparel are “not where it needs to be.” Chief Executive Michael Fiddelke said:
“Our goal isn’t one or two quarters of good results. Our goal is sustained profitable top line growth over time.”
How Walmart and Costco Raise the Bar Walmart (NASDAQ:WMT) yields only 0.79% and trades at 43x earnings, but it raised its annual dividend to $0.99 from $0.94 and bought back $5.1 billion of stock year to date. Costco (NASDAQ:COST) generated $9.39 billion of fiscal 2026 free cash flow on fourth-quarter comps of 9.4%, against Target’s 3.8%. Investors award those peers premium valuations. Target’s higher yield reflects the discount.
Verdict for Income Investors The streak looks fairly likely to survive. Underlying EPS excluding tariff refunds rose 24% year to date, payout ratios are falling toward management’s goal, and the board keeps the dividend ahead of buybacks. Expect raises near 1.8% rather than growth, with free cash flow staying tight while capex rises. The clearest sign of surplus cash will be whether Target restarts buybacks in the back half, as Lee suggested it could.
Contact [email protected] for any questions or corrections.
Donalies Financial Planning LLC purchased a new position in shares of Costco Wholesale Corporation (NASDAQ: COST) in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund purchased 700 shares of the retailer's stock, valued at approximately $637,000. Other institutional investors and hedge
For decades, Costco (COST +0.65%) has offered its customers an excellent value proposition.
*Stock prices used were the afternoon prices of Oct. 15, 2026. The video was published on Oct. 17, 2026.
Parkev Tatevosian, CFA 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. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
SteelPeak Wealth LLC trimmed its position in Costco Wholesale Corporation (NASDAQ:COST – Free Report) by 44.4% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 16,664 shares of the retailer’s stock after selling 13,311 shares during the period. SteelPeak Wealth LLC’s holdings in Costco Wholesale were worth $15,170,000 at the end of the most recent quarter.
Several other institutional investors and hedge funds also recently modified their holdings of COST. Sarasin & Partners LLP increased its stake in Costco Wholesale by 6.9% in the 2nd quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer’s stock valued at $200,372,000 after buying an additional 13,795 shares during the last quarter. Nissay Asset Management Corp Japan raised its position in Costco Wholesale by 4.1% during the second quarter. Nissay Asset Management Corp Japan now owns 158,416 shares of the retailer’s stock worth $148,193,000 after acquiring an additional 6,200 shares in the last quarter. Silvant Capital Management LLC acquired a new stake in Costco Wholesale in the second quarter valued at $16,013,000. Hyperion Asset Management Ltd lifted its stake in Costco Wholesale by 9.0% in the second quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer’s stock valued at $64,325,000 after acquiring an additional 5,656 shares during the last quarter. Finally, Concurrent Investment Advisors LLC grew its position in shares of Costco Wholesale by 15.0% in the 2nd quarter. Concurrent Investment Advisors LLC now owns 22,766 shares of the retailer’s stock valued at $21,297,000 after acquiring an additional 2,974 shares during the period. 68.48% of the stock is owned by institutional investors and hedge funds.
Costco Wholesale Price Performance Shares of COST opened at $989.11 on Monday. The company’s 50-day moving average is $933.15 and its 200-day moving average is $963.04. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.06 and a quick ratio of 0.62. The firm has a market capitalization of $438.30 billion, a PE ratio of 47.64, a PEG ratio of 4.23 and a beta of 0.88. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50.
Costco Wholesale (NASDAQ:COST – Get Free Report) last announced its earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, topping the consensus estimate of $6.54 by $0.21. The business had revenue of $95.72 billion during the quarter, compared to the consensus estimate of $94.97 billion. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. Costco Wholesale’s revenue was up 11.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $5.87 EPS. Equities analysts forecast that Costco Wholesale Corporation will post 22.70 EPS for the current year. Costco Wholesale Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 30th will be issued a $1.47 dividend. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend is Friday, October 30th. Costco Wholesale’s dividend payout ratio is currently 28.32%.
Key Costco Wholesale News Here are the key news stories impacting Costco Wholesale this week:
Positive Sentiment: September sales accelerated: Costco reported September net sales of $30.02 billion, up 13% year over year, while digitally enabled sales increased 19%. The results reinforce the strength of Costco’s membership model, e-commerce business and value-focused offering. September Sales Growth Positive Sentiment: Analyst support remains strong: Tigress Financial reiterated a Buy rating while setting a $1,065 price target after previously publicizing a higher $1,250 target. Other coverage highlights Costco’s sales growth, membership loyalty and digital gains, supporting the recent recovery above key moving averages. Tigress Financial Price Target Positive Sentiment: Dividend maintained: Costco declared a quarterly dividend of $1.47 per share, payable November 13 to shareholders of record October 30. While the approximately 0.6% yield is modest, the payment signals continued cash-flow strength. Costco Dividend Announcement Positive Sentiment: Expansion pipeline: Proposed warehouse projects in Macon and Oakland, along with a planned Merced County relocation, point to continued investment in Costco’s store network. Infrastructure financing of up to $30 million could support the Macon development. Macon Costco Project Neutral Sentiment: Costco’s fiscal 2027 executive bonus plan adds sustainability-related measures. The change may support long-term operational goals, but it is unlikely to materially affect near-term earnings. Costco Executive Bonus Update Negative Sentiment: Valuation and macro risks remain: Costco trades at a high earnings multiple, leaving the stock vulnerable if growth or membership trends slow. Persistent inflation and potentially higher interest rates could also pressure consumer spending and market valuations. Negative Sentiment: An executive sold 1,100 shares worth approximately $1.05 million. The transaction is relatively small compared with Costco’s market value, but it may add a modest cautionary signal for investors. Costco Insider Sale Insider Activity In other Costco Wholesale news, EVP William Richard Wilcox sold 1,100 shares of the firm’s stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the completion of the sale, the executive vice president directly owned 3,094 shares in the company, valued at $2,964,701.74. This trade represents a 26.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Claudine Adamo sold 2,200 shares of the business’s stock in a transaction that occurred on Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total value of $2,015,046.00. Following the sale, the executive vice president owned 7,134 shares of the company’s stock, valued at approximately $6,534,244.62. This represents a 23.57% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.10% of the stock is owned by corporate insiders.
Analysts Set New Price Targets COST has been the topic of several recent analyst reports. Guggenheim restated a “neutral” rating on shares of Costco Wholesale in a research note on Monday, September 28th. Roth Capital reaffirmed a “sell” rating and issued a $781.00 target price on shares of Costco Wholesale in a report on Friday, September 25th. Freedom Broker cut their target price on shares of Costco Wholesale from $1,030.00 to $1,010.00 and set a “buy” rating for the company in a research note on Friday, September 25th. UBS Group reiterated a “buy” rating on shares of Costco Wholesale in a research note on Thursday, September 17th. Finally, Weiss Ratings upgraded Costco Wholesale from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, October 8th. Twenty-four investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $1,087.40.
Check Out Our Latest Analysis on COST
Costco Wholesale Profile (Free Report)
Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells merchandise in bulk and at competitive prices through warehouse clubs and e-commerce platforms, serving individual consumers, businesses and other organizations.
Its product selection includes groceries and fresh foods, household supplies, appliances, electronics, furniture, apparel, health and beauty products, jewelry, automotive products and prescription drugs. Costco also provides services such as optical care, pharmacy services, hearing-aid sales, travel offerings and fuel sales, depending on location.
The company traces its roots to Price Club, which opened in San Diego in 1976.
Further Reading Five stocks we like better than Costco Wholesale These 3 Green Stocks Have a Growth Story That Goes Far Beyond Washington Meta Claims Frontier-Class AI Status With New Muse Wonder Models Berkshire Just Backed This Little-Known Stock—Should You Chase It? Broadcom’s CEO Sees Years of AI Demand But Warns of a Bigger Threat to the Boom 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.
Frank Rimerman Advisors LLC trimmed its stake in Costco Wholesale Corporation (NASDAQ:COST – Free Report) by 23.5% in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 6,231 shares of the retailer’s stock after selling 1,918 shares during the period. Frank Rimerman Advisors LLC’s holdings in Costco Wholesale were worth $5,672,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other hedge funds and other institutional investors have also made changes to their positions in the company. Encompass More Asset Management boosted its stake in Costco Wholesale by 65.2% in the 3rd quarter. Encompass More Asset Management now owns 423 shares of the retailer’s stock worth $385,000 after purchasing an additional 167 shares in the last quarter. Fiscal Wisdom Wealth Management LLC increased its stake in shares of Costco Wholesale by 2.4% during the third quarter. Fiscal Wisdom Wealth Management LLC now owns 1,128 shares of the retailer’s stock worth $1,026,000 after purchasing an additional 26 shares in the last quarter. Forbes J M & Co. LLP lifted its holdings in Costco Wholesale by 0.5% in the 3rd quarter. Forbes J M & Co. LLP now owns 2,419 shares of the retailer’s stock valued at $2,202,000 after purchasing an additional 12 shares in the last quarter. Align Financial LLC boosted its holdings in shares of Costco Wholesale by 40.2% during the 3rd quarter. Align Financial LLC now owns 387 shares of the retailer’s stock worth $352,000 after purchasing an additional 111 shares during the last quarter. Finally, AlphaStar Capital Management LLC grew its holdings in shares of Costco Wholesale by 22.8% in the third quarter. AlphaStar Capital Management LLC now owns 3,525 shares of the retailer’s stock valued at $3,209,000 after purchasing an additional 655 shares during the period. Institutional investors own 68.48% of the company’s stock.
Costco Wholesale Stock Performance Shares of COST opened at $989.11 on Monday. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.06 and a quick ratio of 0.62. Costco Wholesale Corporation has a 1-year low of $844.06 and a 1-year high of $1,096.50. The stock has a market cap of $438.30 billion, a price-to-earnings ratio of 47.64, a price-to-earnings-growth ratio of 4.23 and a beta of 0.88. The firm has a 50 day simple moving average of $933.15 and a 200-day simple moving average of $963.04.
Costco Wholesale (NASDAQ:COST – Get Free Report) last announced its quarterly earnings data on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, topping the consensus estimate of $6.54 by $0.21. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The business had revenue of $95.72 billion for the quarter, compared to analyst estimates of $94.97 billion. During the same period in the prior year, the firm posted $5.87 EPS. The company’s revenue was up 11.1% on a year-over-year basis. Equities analysts forecast that Costco Wholesale Corporation will post 22.70 EPS for the current fiscal year. Costco Wholesale Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 30th will be issued a $1.47 dividend. The ex-dividend date of this dividend is Friday, October 30th. This represents a $5.88 dividend on an annualized basis and a yield of 0.6%. Costco Wholesale’s dividend payout ratio (DPR) is currently 28.32%.
Wall Street Analyst Weigh In Several research firms have recently commented on COST. UBS Group restated a “buy” rating on shares of Costco Wholesale in a research report on Thursday, September 17th. Freedom Broker cut their price target on shares of Costco Wholesale from $1,030.00 to $1,010.00 and set a “buy” rating on the stock in a research note on Friday, September 25th. Deutsche Bank Aktiengesellschaft decreased their price objective on Costco Wholesale from $1,091.00 to $1,079.00 and set a “buy” rating for the company in a report on Monday, September 28th. Mizuho lowered their price objective on shares of Costco Wholesale from $1,100.00 to $1,065.00 and set an “outperform” rating on the stock in a research report on Friday, September 25th. Finally, BTIG Research restated a “buy” rating and issued a $1,125.00 price objective on shares of Costco Wholesale in a research report on Wednesday, September 23rd. Twenty-four investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Costco Wholesale has a consensus rating of “Moderate Buy” and a consensus price target of $1,087.40.
Get Our Latest Stock Analysis on COST
Costco Wholesale News Roundup Here are the key news stories impacting Costco Wholesale this week:
Positive Sentiment: September sales accelerated: Costco reported September net sales of $30.02 billion, up 13% year over year, while digitally enabled sales increased 19%. The results reinforce the strength of Costco’s membership model, e-commerce business and value-focused offering. September Sales Growth Positive Sentiment: Analyst support remains strong: Tigress Financial reiterated a Buy rating while setting a $1,065 price target after previously publicizing a higher $1,250 target. Other coverage highlights Costco’s sales growth, membership loyalty and digital gains, supporting the recent recovery above key moving averages. Tigress Financial Price Target Positive Sentiment: Dividend maintained: Costco declared a quarterly dividend of $1.47 per share, payable November 13 to shareholders of record October 30. While the approximately 0.6% yield is modest, the payment signals continued cash-flow strength. Costco Dividend Announcement Positive Sentiment: Expansion pipeline: Proposed warehouse projects in Macon and Oakland, along with a planned Merced County relocation, point to continued investment in Costco’s store network. Infrastructure financing of up to $30 million could support the Macon development. Macon Costco Project Neutral Sentiment: Costco’s fiscal 2027 executive bonus plan adds sustainability-related measures. The change may support long-term operational goals, but it is unlikely to materially affect near-term earnings. Costco Executive Bonus Update Negative Sentiment: Valuation and macro risks remain: Costco trades at a high earnings multiple, leaving the stock vulnerable if growth or membership trends slow. Persistent inflation and potentially higher interest rates could also pressure consumer spending and market valuations. Negative Sentiment: An executive sold 1,100 shares worth approximately $1.05 million. The transaction is relatively small compared with Costco’s market value, but it may add a modest cautionary signal for investors. Costco Insider Sale Insider Buying and Selling In related news, EVP William Richard Wilcox sold 1,100 shares of the business’s stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the completion of the transaction, the executive vice president owned 3,094 shares in the company, valued at $2,964,701.74. The trade was a 26.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Claudine Adamo sold 2,200 shares of the stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total transaction of $2,015,046.00. Following the completion of the sale, the executive vice president directly owned 7,134 shares in the company, valued at approximately $6,534,244.62. This trade represents a 23.57% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 0.10% of the company’s stock.
(Free Report)
Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells merchandise in bulk and at competitive prices through warehouse clubs and e-commerce platforms, serving individual consumers, businesses and other organizations.
Its product selection includes groceries and fresh foods, household supplies, appliances, electronics, furniture, apparel, health and beauty products, jewelry, automotive products and prescription drugs. Costco also provides services such as optical care, pharmacy services, hearing-aid sales, travel offerings and fuel sales, depending on location.
The company traces its roots to Price Club, which opened in San Diego in 1976.
Featured Articles Five stocks we like better than Costco Wholesale These 3 Green Stocks Have a Growth Story That Goes Far Beyond Washington Meta Claims Frontier-Class AI Status With New Muse Wonder Models Berkshire Just Backed This Little-Known Stock—Should You Chase It? Broadcom’s CEO Sees Years of AI Demand But Warns of a Bigger Threat to the Boom 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.
IFP Advisors Inc raised its stake in Costco Wholesale Corporation (NASDAQ:COST – Free Report) by 43.4% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 42,484 shares of the retailer’s stock after purchasing an additional 12,856 shares during the period. Costco Wholesale comprises 0.6% of IFP Advisors Inc’s investment portfolio, making the stock its 19th biggest position. IFP Advisors Inc’s holdings in Costco Wholesale were worth $38,675,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Several other hedge funds and other institutional investors have also made changes to their positions in the stock. Bank of America Corp DE purchased a new stake in shares of Costco Wholesale during the second quarter worth approximately $6,781,946,000. Diamant Asset Management Inc. raised its holdings in Costco Wholesale by 99,278.0% in the first quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock valued at $672,690,000 after acquiring an additional 6,720,130 shares in the last quarter. State Street Corp raised its holdings in Costco Wholesale by 31.7% in the second quarter. State Street Corp now owns 23,901,594 shares of the retailer’s stock valued at $22,359,224,000 after acquiring an additional 5,749,362 shares in the last quarter. Legal & General Group Plc purchased a new position in Costco Wholesale in the second quarter worth approximately $2,362,188,000. Finally, Ascentis Wealth Management LLC lifted its stake in 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 worth $2,549,616,000 after acquiring an additional 2,497,652 shares during the last quarter. Hedge funds and other institutional investors own 68.48% of the company’s stock.
More Costco Wholesale News Here are the key news stories impacting Costco Wholesale this week:
Positive Sentiment: September sales accelerated: Costco reported September net sales of $30.02 billion, up 13% year over year, while digitally enabled sales increased 19%. The results reinforce the strength of Costco’s membership model, e-commerce business and value-focused offering. September Sales Growth Positive Sentiment: Analyst support remains strong: Tigress Financial reiterated a Buy rating while setting a $1,065 price target after previously publicizing a higher $1,250 target. Other coverage highlights Costco’s sales growth, membership loyalty and digital gains, supporting the recent recovery above key moving averages. Tigress Financial Price Target Positive Sentiment: Dividend maintained: Costco declared a quarterly dividend of $1.47 per share, payable November 13 to shareholders of record October 30. While the approximately 0.6% yield is modest, the payment signals continued cash-flow strength. Costco Dividend Announcement Positive Sentiment: Expansion pipeline: Proposed warehouse projects in Macon and Oakland, along with a planned Merced County relocation, point to continued investment in Costco’s store network. Infrastructure financing of up to $30 million could support the Macon development. Macon Costco Project Neutral Sentiment: Costco’s fiscal 2027 executive bonus plan adds sustainability-related measures. The change may support long-term operational goals, but it is unlikely to materially affect near-term earnings. Costco Executive Bonus Update Negative Sentiment: Valuation and macro risks remain: Costco trades at a high earnings multiple, leaving the stock vulnerable if growth or membership trends slow. Persistent inflation and potentially higher interest rates could also pressure consumer spending and market valuations. Negative Sentiment: An executive sold 1,100 shares worth approximately $1.05 million. The transaction is relatively small compared with Costco’s market value, but it may add a modest cautionary signal for investors. Costco Insider Sale Costco Wholesale Price Performance COST stock opened at $989.11 on Monday. The business has a 50 day moving average price of $933.15 and a 200 day moving average price of $963.04. The stock has a market cap of $438.30 billion, a price-to-earnings ratio of 47.64, a PEG ratio of 4.23 and a beta of 0.88. Costco Wholesale Corporation has a fifty-two week low of $844.06 and a fifty-two week high of $1,096.50. The company has a quick ratio of 0.62, a current ratio of 1.06 and a debt-to-equity ratio of 0.11. Costco Wholesale (NASDAQ:COST – Get Free Report) last announced its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, beating the consensus estimate of $6.54 by $0.21. The company had revenue of $95.72 billion for the quarter, compared to analyst estimates of $94.97 billion. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The firm’s revenue was up 11.1% on a year-over-year basis. During the same period in the prior year, the firm posted $5.87 earnings per share. Equities research analysts anticipate that Costco Wholesale Corporation will post 22.70 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, November 13th. Stockholders of record on Friday, October 30th will be given a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Friday, October 30th. Costco Wholesale’s payout ratio is currently 28.32%.
Insider Buying and Selling at Costco Wholesale In other news, EVP Claudine Adamo sold 2,200 shares of the company’s stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total value of $2,015,046.00. Following the completion of the transaction, the executive vice president owned 7,134 shares in the company, valued at approximately $6,534,244.62. This represents a 23.57% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP William Richard Wilcox sold 1,100 shares of the stock in a transaction on Tuesday, October 13th. The shares were sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the completion of the transaction, the executive vice president directly owned 3,094 shares in the company, valued at $2,964,701.74. This trade represents a 26.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.10% of the company’s stock.
Analyst Upgrades and Downgrades COST has been the subject of several analyst reports. Roth Capital reiterated a “sell” rating and set a $781.00 price target on shares of Costco Wholesale in a report on Friday, September 25th. UBS Group reissued a “buy” rating on shares of Costco Wholesale in a research report on Thursday, September 17th. Argus restated a “buy” rating and issued a $1,230.00 price objective on shares of Costco Wholesale in a report on Monday, September 28th. Evercore reaffirmed an “outperform” rating on shares of Costco Wholesale in a research report on Tuesday, September 22nd. Finally, Raymond James Financial decreased their price objective on shares of Costco Wholesale from $1,100.00 to $1,050.00 and set an “outperform” rating for the company in a research report on Friday, September 25th. Twenty-four equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $1,087.40.
View Our Latest Stock Report on Costco Wholesale
(Free Report)
Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells merchandise in bulk and at competitive prices through warehouse clubs and e-commerce platforms, serving individual consumers, businesses and other organizations.
Its product selection includes groceries and fresh foods, household supplies, appliances, electronics, furniture, apparel, health and beauty products, jewelry, automotive products and prescription drugs. Costco also provides services such as optical care, pharmacy services, hearing-aid sales, travel offerings and fuel sales, depending on location.
The company traces its roots to Price Club, which opened in San Diego in 1976.
Featured Articles Five stocks we like better than Costco Wholesale These 3 Green Stocks Have a Growth Story That Goes Far Beyond Washington Meta Claims Frontier-Class AI Status With New Muse Wonder Models Berkshire Just Backed This Little-Known Stock—Should You Chase It? Broadcom’s CEO Sees Years of AI Demand But Warns of a Bigger Threat to the Boom 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.
On Nov. 13, Costco Wholesale (COST +1.14%) will issue a dividend payout to all of its shareholders on record as of Oct. 30. That dividend payout will be $1.47 per share.
That said, this payout in and of itself isn't enough of a reason to buy shares before October ends. The dividend payout only yields 0.6%, and there are plenty of other stocks in the consumer goods space that pay more. For instance, Coca-Cola's dividend yield is 2.3%, Procter & Gamble's is 2.7%, and PepsiCo's is 4.6%.
Still, the reason someone might want to consider taking a position in Costco sooner rather than later is that its stock price has a history of outperforming the S&P 500, and Costco can continue to reward shareholders in three distinct ways.
Image source: The Motley Fool.
Three ways to make money
As a retail chain, Costco often has a reputation for being a standard consumer goods company. It's also, however, a growth stock, with plenty of opportunities to expand domestically and internationally, building an even larger base of loyal customers and generating even more revenue.
For its fiscal 2025, Costco finished the year with 914 warehouses, expanding that to 939 by the end of fiscal 2026. For its fiscal 2027, it expects 967 warehouses to be open by year-end. With further expansion that can lead to increased revenue, investor enthusiasm can also increase, pushing the stock price higher. While Costco's stock price has returned 13.4% this year, slightly better than the S&P 500's 13.1% return over the same period, Costco has historically shown the ability to handily outperform the broader market.
Over the past five years, Costco's shares have risen 116%, while the S&P 500 has risen 73%. Of course, history is just a guidepost, but finding a stock that has demonstrated the ability to beat the broader markets over a five-year stretch can help build long-term wealth.
COST Costco Wholesale$989.11+$11.10 (+1.14%)
NASDAQ · As of 4:00 PM ET 10/16/26
Two different dividend payouts
There isn't a set schedule of when it happens, but Costco has rewarded investors over the years with a special dividend. The last time it paid one out was in 2024, at $15 per share. Before that, it paid out a $10 dividend in 2020.
Finally, that brings us back to where we started, with the quarterly dividend. As mentioned earlier, a yield of 0.6% may not seem significant. Still, over time, as you add up Costco's stock price appreciation potential, special dividends, and quarterly dividends, it can offer significant total return potential for long-term shareholders.
With all that in mind, it's worth considering starting a position sooner rather than later to be in the driver's seat to capture all that return potential over the years ahead.
When Costco Wholesale (COST +1.14%) stock falls 10% or more from its peak, like right now, history says it usually sets a new high within a year, though there are a couple of important (and recent) counterexamples to be aware of. The stock's most recent record high was in May of this year, and a recovery is already in progress; at the lows, its drawdown was just a hair over 18%.
For shareholders like yours truly, these stretches of bumpiness are annoying, but they're also great opportunities to buy more shares. Let's take a look at how Costco tends to perform in the periods after these declines to see why that's the case.
Image source: The Motley Fool.
This stock doesn't stay down for long Over the last 10 years, Costco's stock fell 10% or more seven different times before this most recent one drop. In five of those instances, it went on to set a new record within 12 months. And, in all seven cases, it eventually recovered, with the slowest recovery taking around 19 months.
The 2017 slump happened after Amazon agreed to buy the grocer Whole Foods in June, and at least one investment bank downgraded Costco's rating over fears that its members would defect. It went on to hit a fresh record high on Nov. 30, 2017 after its memberships kept growing anyway.
What's more, Costco's earnings per share (EPS) grew consistently throughout 2017 to 2026, showing significant resilience against the impacts of the pandemic and the inflation spike afterwards. Members keep renewing all the while, which is why Costco is at home among stocks with wide moats, with 92.3% of U.S. and Canadian members renewing their memberships in the fiscal fourth quarter of 2026.
The exceptions to the stock's habit of bouncing back are the two most recent data points, which suggest investors shouldn't be quite as gung-ho about its resilience as in the past.
$989.11+$11.10 (+1.14%)
NASDAQ · As of 4:00 PM ET 10/16/26
In May 2022, Costco's shares took a hit after two of its competitors, Target and Walmart, both blamed higher-than-normal inflation for their earnings misses. At that time, Costco fell by an unusually brutal 31.5% from its April 2022 high and didn't fully recover to that point until December 2023.
Similarly, a decline that began in February 2025 lasted until May 2026, a rather long stretch, given that the stock market made repeated new all-time highs during the same period.
Both of those cases are also notable because they were initiated from fairly steep valuations. Costco's trailing price-to-earnings (P/E) ratio was at 62.4 in February 2025, a 10-year high. Its EPS still rose during that year, but the valuation multiple shrank faster.
Should you buy Costco on this dip? If you're wondering whether to buy Costco while it's a bit cheaper than before, there are a few things to consider.
This most recent decline began as the company's growth slowed slightly; sales at warehouses open for one year or more climbed 8.8% in June 2026, down from 12.5% in May. The boost that the company had initially gotten from higher gas prices earlier in the year tapered off a bit.
Another factor is that the stock's valuation hasn't reset much relative to the highs. With a P/E of 47.3 on Oct. 15, Costco's valuation is still well above its 10-year average P/E of 40. While that doesn't put it into the club of most overvalued stocks, that kind of premium valuation multiple tends to not leave much room for bumps in the road without harming the share price.
So, with all of that being said, Costco's stock making a new high within the next 12 months is, unfortunately, somewhat less likely than its record implies. The stock might drift sideways while earnings catch up.
That's no impediment to buying it if you're already set on holding it for the long term, as I am, and so it's probably worth grabbing a few extra shares while they're cheaper than they were in May.
What happened Costco Wholesale Corp (NASDAQ: COST) Executive Vice President William Richard Wilcox sold 1,100 shares on 2026-10-13 at $958.21 each. The Form 4 puts the sale at about $1.05 million. After the trade, Wilcox held 3,094 shares. The filing lists the transaction code as S and shows direct ownership. Table II lists no derivative
AdvisorNet Financial Inc grew its position in shares of Costco Wholesale Corporation (NASDAQ:COST – Free Report) by 14.4% during the 3rd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 8,091 shares of the retailer’s stock after buying an additional 1,020 shares during the quarter. AdvisorNet Financial Inc’s holdings in Costco Wholesale were worth $7,223,000 as of its most recent filing with the Securities & Exchange Commission.
Other hedge funds and other institutional investors have also recently modified their holdings of the company. Sarasin & Partners LLP increased its position in Costco Wholesale by 6.9% during the 2nd quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer’s stock valued at $200,372,000 after purchasing an additional 13,795 shares during the period. Nissay Asset Management Corp Japan boosted its stake in shares of Costco Wholesale by 4.1% during the 2nd quarter. Nissay Asset Management Corp Japan now owns 158,416 shares of the retailer’s stock valued at $148,193,000 after purchasing an additional 6,200 shares in the last quarter. Silvant Capital Management LLC bought a new stake in shares of Costco Wholesale during the 2nd quarter valued at about $16,013,000. Hyperion Asset Management Ltd increased 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 buying an additional 5,656 shares during the period. Finally, Concurrent Investment Advisors LLC increased its position in shares of Costco Wholesale by 15.0% during the second quarter. Concurrent Investment Advisors LLC now owns 22,766 shares of the retailer’s stock valued at $21,297,000 after buying an additional 2,974 shares during the period. Hedge funds and other institutional investors own 68.48% of the company’s stock.
More Costco Wholesale News Here are the key news stories impacting Costco Wholesale this week:
Positive Sentiment: September sales accelerated: Costco reported September net sales of $30.02 billion, up 13% year over year, while digitally enabled sales increased 19%. The results reinforce the strength of Costco’s membership model, e-commerce business and value-focused offering. September Sales Growth Positive Sentiment: Analyst support remains strong: Tigress Financial reiterated a Buy rating while setting a $1,065 price target after previously publicizing a higher $1,250 target. Other coverage highlights Costco’s sales growth, membership loyalty and digital gains, supporting the recent recovery above key moving averages. Tigress Financial Price Target Positive Sentiment: Dividend maintained: Costco declared a quarterly dividend of $1.47 per share, payable November 13 to shareholders of record October 30. While the approximately 0.6% yield is modest, the payment signals continued cash-flow strength. Costco Dividend Announcement Positive Sentiment: Expansion pipeline: Proposed warehouse projects in Macon and Oakland, along with a planned Merced County relocation, point to continued investment in Costco’s store network. Infrastructure financing of up to $30 million could support the Macon development. Macon Costco Project Neutral Sentiment: Costco’s fiscal 2027 executive bonus plan adds sustainability-related measures. The change may support long-term operational goals, but it is unlikely to materially affect near-term earnings. Costco Executive Bonus Update Negative Sentiment: Valuation and macro risks remain: Costco trades at a high earnings multiple, leaving the stock vulnerable if growth or membership trends slow. Persistent inflation and potentially higher interest rates could also pressure consumer spending and market valuations. Negative Sentiment: An executive sold 1,100 shares worth approximately $1.05 million. The transaction is relatively small compared with Costco’s market value, but it may add a modest cautionary signal for investors. Costco Insider Sale Insider Buying and Selling In other news, EVP William Richard Wilcox sold 1,100 shares of the company’s stock in a transaction that occurred on Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the completion of the transaction, the executive vice president directly owned 3,094 shares of the company’s stock, valued at $2,964,701.74. This represents a 26.23% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, EVP Claudine Adamo sold 2,200 shares of the stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total value of $2,015,046.00. Following the transaction, the executive vice president owned 7,134 shares in the company, valued at $6,534,244.62. This trade represents a 23.57% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.10% of the stock is owned by insiders. Wall Street Analysts Forecast Growth A number of brokerages have weighed in on COST. Robert W. Baird set a $1,175.00 target price on shares of Costco Wholesale in a research note on Friday, September 25th. DA Davidson raised their price target on shares of Costco Wholesale from $1,000.00 to $1,040.00 and gave the company a “neutral” rating in a report on Friday, September 25th. Guggenheim reiterated a “neutral” rating on shares of Costco Wholesale in a research report on Monday, September 28th. UBS Group reaffirmed a “buy” rating on shares of Costco Wholesale in a research report on Thursday, September 17th. Finally, HSBC upgraded Costco Wholesale to a “buy” rating in a research note on Friday, September 25th. Twenty-four analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Costco Wholesale has a consensus rating of “Moderate Buy” and a consensus target price of $1,087.40.
Check Out Our Latest Stock Analysis on COST
Costco Wholesale Price Performance NASDAQ COST opened at $989.11 on Friday. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.06 and a quick ratio of 0.62. The company has a market cap of $438.30 billion, a price-to-earnings ratio of 47.64, a PEG ratio of 4.18 and a beta of 0.88. The stock’s fifty day moving average price is $933.15 and its 200 day moving average price is $963.28.
Costco Wholesale (NASDAQ:COST – Get Free Report) last posted its earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, beating the consensus estimate of $6.54 by $0.21. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The firm had revenue of $95.72 billion during the quarter, compared to analyst estimates of $94.97 billion. During the same period in the previous year, the firm earned $5.87 EPS. The business’s quarterly revenue was up 11.1% on a year-over-year basis. As a group, equities research analysts forecast that Costco Wholesale Corporation will post 22.70 earnings per share for the current year.
Costco Wholesale Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be given a $1.47 dividend. The ex-dividend date is Friday, October 30th. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale’s payout ratio is 28.32%.
Costco Wholesale Profile (Free Report)
Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells a broad selection of merchandise, including groceries, fresh foods, beverages, appliances, electronics, furniture, apparel, jewelry, hardware, and seasonal products. It also offers services such as gasoline, pharmacies, optical departments, hearing-aid centers, food courts, travel services, and business delivery in selected markets.
Costco markets many products under its private-label Kirkland Signature brand and sells merchandise through warehouse locations and e-commerce platforms.
Featured Articles Five stocks we like better than Costco Wholesale Bank of America Stock Sell-Off Looks Like a Buying Opportunity AST SpaceMobile Is Down 67%—Could SpaceX’s Mobile Push Deepen the Selloff? GlobalFoundries’ $21 Billion Deal Could Change the Economics of Chipmaking Fundamental and Technicals Signals Align for Costco: Is the Stock Finally Breaking Out? 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.
ACT Advisors LLC. boosted its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST – Free Report) by 908.8% during the 3rd quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 2,300 shares of the retailer’s stock after acquiring an additional 2,072 shares during the quarter. Costco Wholesale makes up approximately 0.7% of ACT Advisors LLC.’s portfolio, making the stock its 18th largest holding. ACT Advisors LLC.’s holdings in Costco Wholesale were worth $2,094,000 at the end of the most recent quarter.
A number of other institutional investors have also recently added to or reduced their stakes in the business. State Street Corp grew its stake in Costco Wholesale by 31.7% in the 2nd quarter. State Street Corp now owns 23,901,594 shares of the retailer’s stock valued at $22,359,224,000 after buying an additional 5,749,362 shares during the last quarter. Bank of America Corp DE grew its position in shares of Costco Wholesale by 11.5% in the first quarter. Bank of America Corp DE now owns 7,515,031 shares of the retailer’s stock valued at $7,488,203,000 after purchasing an additional 773,651 shares during the last quarter. Corient Private Wealth LLC grew its position in shares of Costco Wholesale by 838.9% in the fourth quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer’s stock valued at $5,282,182,000 after purchasing an additional 5,472,968 shares during the last quarter. Invesco Ltd. increased its stake in shares of Costco Wholesale by 3.4% in the fourth quarter. Invesco Ltd. now owns 4,328,729 shares of the retailer’s stock worth $3,732,836,000 after purchasing an additional 143,150 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Costco Wholesale by 5.5% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,068,312 shares of the retailer’s stock worth $2,870,314,000 after purchasing an additional 160,893 shares during the period. 68.48% of the stock is currently owned by institutional investors and hedge funds.
More Costco Wholesale News Here are the key news stories impacting Costco Wholesale this week:
Positive Sentiment: September sales accelerated: Costco reported September net sales of $30.02 billion, up 13% year over year, while digitally enabled sales increased 19%. The results reinforce the strength of Costco’s membership model, e-commerce business and value-focused offering. September Sales Growth Positive Sentiment: Analyst support remains strong: Tigress Financial reiterated a Buy rating while setting a $1,065 price target after previously publicizing a higher $1,250 target. Other coverage highlights Costco’s sales growth, membership loyalty and digital gains, supporting the recent recovery above key moving averages. Tigress Financial Price Target Positive Sentiment: Dividend maintained: Costco declared a quarterly dividend of $1.47 per share, payable November 13 to shareholders of record October 30. While the approximately 0.6% yield is modest, the payment signals continued cash-flow strength. Costco Dividend Announcement Positive Sentiment: Expansion pipeline: Proposed warehouse projects in Macon and Oakland, along with a planned Merced County relocation, point to continued investment in Costco’s store network. Infrastructure financing of up to $30 million could support the Macon development. Macon Costco Project Neutral Sentiment: Costco’s fiscal 2027 executive bonus plan adds sustainability-related measures. The change may support long-term operational goals, but it is unlikely to materially affect near-term earnings. Costco Executive Bonus Update Negative Sentiment: Valuation and macro risks remain: Costco trades at a high earnings multiple, leaving the stock vulnerable if growth or membership trends slow. Persistent inflation and potentially higher interest rates could also pressure consumer spending and market valuations. Negative Sentiment: An executive sold 1,100 shares worth approximately $1.05 million. The transaction is relatively small compared with Costco’s market value, but it may add a modest cautionary signal for investors. Costco Insider Sale Costco Wholesale Stock Performance NASDAQ COST opened at $989.11 on Friday. The firm has a market cap of $438.30 billion, a price-to-earnings ratio of 47.82, a PEG ratio of 4.18 and a beta of 0.88. The company has a 50 day moving average of $933.15 and a 200-day moving average of $963.28. The company has a current ratio of 1.06, a quick ratio of 0.62 and a debt-to-equity ratio of 0.11. Costco Wholesale Corporation has a 1-year low of $844.06 and a 1-year high of $1,096.50. Costco Wholesale (NASDAQ:COST – Get Free Report) last announced its earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, topping the consensus estimate of $6.54 by $0.21. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. The business had revenue of $95.72 billion for the quarter, compared to the consensus estimate of $94.97 billion. During the same period in the previous year, the business earned $5.87 EPS. Costco Wholesale’s revenue was up 11.1% compared to the same quarter last year. On average, equities analysts forecast that Costco Wholesale Corporation will post 22.70 earnings per share for the current fiscal year.
Costco Wholesale Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be issued a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Friday, October 30th. Costco Wholesale’s dividend payout ratio is presently 28.32%.
Analysts Set New Price Targets COST has been the subject of several research analyst reports. UBS Group reissued a “buy” rating on shares of Costco Wholesale in a research report on Thursday, September 17th. Argus reaffirmed a “buy” rating and issued a $1,230.00 price target on shares of Costco Wholesale in a research report on Monday, September 28th. Freedom Broker dropped their price target on Costco Wholesale from $1,030.00 to $1,010.00 and set a “buy” rating on the stock in a research report on Friday, September 25th. Wells Fargo & Company reduced their price objective on Costco Wholesale from $1,000.00 to $950.00 and set an “equal weight” rating for the company in a research report on Friday, September 25th. Finally, Evercore reiterated an “outperform” rating on shares of Costco Wholesale in a research note on Tuesday, September 22nd. Twenty-four analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $1,087.40.
Read Our Latest Stock Analysis on COST
Insider Buying and Selling at Costco Wholesale In other news, EVP Claudine Adamo sold 2,200 shares of the firm’s stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total value of $2,015,046.00. Following the completion of the sale, the executive vice president directly owned 7,134 shares in the company, valued at approximately $6,534,244.62. This trade represents a 23.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, EVP William Richard Wilcox sold 1,100 shares of the business’s stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the completion of the transaction, the executive vice president directly owned 3,094 shares of the company’s stock, valued at approximately $2,964,701.74. This represents a 26.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.10% of the stock is currently owned by corporate insiders.
Costco Wholesale Profile (Free Report)
Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells a broad selection of merchandise, including groceries, fresh foods, beverages, appliances, electronics, furniture, apparel, jewelry, hardware, and seasonal products. It also offers services such as gasoline, pharmacies, optical departments, hearing-aid centers, food courts, travel services, and business delivery in selected markets.
Costco markets many products under its private-label Kirkland Signature brand and sells merchandise through warehouse locations and e-commerce platforms.
Read More Five stocks we like better than Costco Wholesale Bank of America Stock Sell-Off Looks Like a Buying Opportunity AST SpaceMobile Is Down 67%—Could SpaceX’s Mobile Push Deepen the Selloff? GlobalFoundries’ $21 Billion Deal Could Change the Economics of Chipmaking Fundamental and Technicals Signals Align for Costco: Is the Stock Finally Breaking Out? 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.
Shareholders of Costco Wholesale (COST +1.14%) can look forward to some dividend payouts heading their way soon. The dividend of $1.47 per share will be paid out on Nov. 13 to shareholders of record at the close of business on Oct. 30.
When that time comes, shareholders will have a decision to make. They can either take the dividends as income, or use them in a dividend reinvestment plan (DRIP), which purchases more Costco shares. Depending on your investing goals, one may make more sense over the other.
Image source: The Motley Fool.
Why establishing a Costco DRIP makes sense The power of a DRIP is that investors can use dividends to increase their stakes in a company without using their personal funds. For a stock like Costco, having additional shares can help build a larger position that can compound into meaningful returns, given its stock price appreciation potential. For example, over the last five years, as of this writing, Costco shares are up 117%, compared with the S&P 500's 72.6% return.
When Costco pays its $1.47-per-share dividend, if an investor's account is enrolled in a DRIP, the funds will be used to purchase additional shares. Costco has also paid a special dividend every few years, with the last payout of $15 per share in 2024. When that special dividend is paid out, if an account supports a Costco DRIP, the dividend will also purchase additional shares.
Using the dividend to automatically purchase shares would make the most sense for someone with a significant number of shares, as well as for someone with many working years ahead. That type of individual may not need the income right now, and they could just use the DRIP to build a larger position. Then, when they are ready to retire, they could just turn off the DRIP and collect the dividend payouts for income.
COST Costco Wholesale$989.11+$11.10 (+1.14%)
NASDAQ · As of 4:00 PM ET 10/16/26
For shareholders at or around retirement age, as well as for those with only a small stake in the company, considering only taking the income could make more sense. When folks are considering retiring or are about to retire, they may be less worried about stock price appreciation and more focused on generating income.
For investors who may not own many shares of the company, it may make more sense to take the dividend as well. For example, if someone owned 20 shares of Costco, their dividend payout would be $29.40 on Nov. 13. Costco stock closed at $982 on Oct. 14, so reinvesting the dividend would still increase a shareholder's stake. However, it may be less meaningful to add less than $30 worth of fractional shares than it would be to keep the dividend and invest it into another stock that trades at a lower share price, or to just use it as pure income.
Raia Drogasil (OTCMKTS:RADLY – Get Free Report) and Costco Wholesale (NASDAQ:COST – Get Free Report) are both consumer staples companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Analyst Ratings This is a breakdown of recent ratings and target prices for Raia Drogasil and Costco Wholesale, as reported by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Raia Drogasil 0 1 0 0 2.00 Costco Wholesale 1 8 24 0 2.70 Costco Wholesale has a consensus price target of $1,087.40, suggesting a potential upside of 9.94%. Given Costco Wholesale’s stronger consensus rating and higher probable upside, analysts clearly believe Costco Wholesale is more favorable than Raia Drogasil.
Institutional & Insider Ownership 68.5% of Costco Wholesale shares are held by institutional investors. 0.1% of Costco Wholesale shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term. Profitability This table compares Raia Drogasil and Costco Wholesale’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Raia Drogasil 2.99% 20.12% 5.88% Costco Wholesale 3.04% 27.60% 10.63% Dividends Raia Drogasil pays an annual dividend of $0.02 per share and has a dividend yield of 0.5%. Costco Wholesale pays an annual dividend of $5.88 per share and has a dividend yield of 0.6%. Raia Drogasil pays out 13.3% of its earnings in the form of a dividend. Costco Wholesale pays out 28.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Costco Wholesale has increased its dividend for 22 consecutive years. Costco Wholesale is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation This table compares Raia Drogasil and Costco Wholesale”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Raia Drogasil $7.92 billion 0.63 $232.27 million $0.15 25.33 Costco Wholesale $303.15 billion 1.45 $9.23 billion $20.76 47.64 Costco Wholesale has higher revenue and earnings than Raia Drogasil. Raia Drogasil is trading at a lower price-to-earnings ratio than Costco Wholesale, indicating that it is currently the more affordable of the two stocks.
Summary Costco Wholesale beats Raia Drogasil on 15 of the 16 factors compared between the two stocks.
About Raia Drogasil (Get Free Report)
Raia Drogasil S.A. engages in the retail sale of medicines, perfumery, personal care and beauty products, cosmetics, dermocosmetics, and specialty medicines in Brazil. It also markets its goods through telesales and call centers in the states of São Paulo, Tocantins, and Pernambuco. The company was founded in 1905 and is headquartered in São Paulo, Brazil.
(Get Free Report)
Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories. It offers merchandise, such as sundries, dry groceries, candies, coolers, freezers, deli, liquor, and tobacco; appliances, electronics, health and beauty aids, hardware, garden and patio products, sporting goods, tires, toys and seasonal products, office supplies, automotive care products, postages, tickets, apparel, small appliances, furniture, domestics, housewares, special order kiosks, and jewelry; and meat, produce, service deli, and bakery products. The company also operates gasoline, pharmacies, optical, food courts, hearing-aid centers, and tire installation centers; and offers business delivery, travel, grocery, and various other services online. It also operates e-commerce websites. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.
Receive News & Ratings for Raia Drogasil Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Raia Drogasil and related companies with MarketBeat.com's FREE daily email newsletter.
Costco (COST - Free Report) closed the most recent trading day at $989.43, moving +1.17% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.09%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 2.15%.
Coming into today, shares of the warehouse club operator had gained 9.41% in the past month. In that same time, the Retail-Wholesale sector gained 3.71%, while the S&P 500 gained 2.44%.
Investors will be eagerly watching for the performance of Costco in its upcoming earnings disclosure. The company is expected to report EPS of $4.87, up 12.21% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $74.14 billion, reflecting a 10.16% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $22.7 per share and a revenue of $328.53 billion, representing changes of +11% and +8.37%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Costco. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.87% rise in the Zacks Consensus EPS estimate. At present, Costco boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Costco has a Forward P/E ratio of 43.09 right now. This represents a premium compared to its industry average Forward P/E of 22.48.
Investors should also note that COST has a PEG ratio of 4.18 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Retail - Discount Stores industry was having an average PEG ratio of 1.83.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 5, finds itself in the top 3% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Barlow Wealth Partners LLC lifted its stake in Costco Wholesale Corporation (NASDAQ:COST – Free Report) by 2.5% during the 3rd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 36,354 shares of the retailer’s stock after buying an additional 899 shares during the quarter. Costco Wholesale comprises 3.6% of Barlow Wealth Partners LLC’s portfolio, making the stock its 6th biggest holding. Barlow Wealth Partners LLC’s holdings in Costco Wholesale were worth $34,016,000 as of its most recent filing with the Securities & Exchange Commission.
A number of other large investors have also recently made changes to their positions in COST. Bank of America Corp DE bought a new stake in Costco Wholesale during the 2nd quarter valued at approximately $6,781,946,000. Diamant Asset Management Inc. grew its stake in shares of Costco Wholesale by 99,278.0% in the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock worth $672,690,000 after buying an additional 6,720,130 shares in the last quarter. State Street Corp grew its stake in shares of Costco Wholesale by 31.7% in the 2nd quarter. State Street Corp now owns 23,901,594 shares of the retailer’s stock worth $22,359,224,000 after buying an additional 5,749,362 shares in the last quarter. Corient Private Wealth LLC increased its holdings 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 during the last quarter. Finally, Legal & General Group Plc bought a new position in shares of Costco Wholesale in the 2nd quarter valued at about $2,362,188,000. 68.48% of the stock is owned by hedge funds and other institutional investors.
Trending Headlines about Costco Wholesale Here are the key news stories impacting Costco Wholesale this week:
Positive Sentiment: Major price-target increase: Tigress Financial raised its COST price target from $1,065 to $1,250 and assigned a “buy” rating, implying substantial potential upside. Costco analyst price target report Positive Sentiment: Strong operating momentum: Costco reported September net sales of $30.02 billion, up 13% year over year, while digitally enabled sales increased 19%. The results support the strength of its membership model and e-commerce business. Costco September sales report Positive Sentiment: Defensive positioning: Higher-than-expected inflation has encouraged investors to favor retailers selling essential goods. Costco benefited from this rotation alongside Walmart and Target. Retail defensive-sector rotation Positive Sentiment: Dividend and expansion: Costco declared a quarterly dividend of $1.47 per share, payable November 13. Proposed new warehouses in Oakland and Merced County also point to continued long-term store expansion. Costco dividend announcement Neutral Sentiment: Analysts continue to expect earnings growth, with one estimate for fiscal 2027 EPS raised to $22.80. However, commentary describing COST as a portfolio-risk amplifier suggests investors remain focused on its correlation with the broader market and premium valuation. Costco market risk analysis Negative Sentiment: Valuation and insider selling: Costco trades at a high earnings multiple, leaving the stock vulnerable to disappointment in membership, sales or consumer spending trends. Separately, EVP William Richard Wilcox sold 1,100 shares worth approximately $1.05 million, reducing his position by 26.23%. Costco insider sale report Costco Wholesale Stock Performance Shares of NASDAQ:COST opened at $978.01 on Friday. The company has a market capitalization of $433.38 billion, a price-to-earnings ratio of 47.11, a PEG ratio of 4.20 and a beta of 0.88. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50. The firm’s 50-day moving average is $932.33 and its 200 day moving average is $963.09. The company has a current ratio of 1.06, a quick ratio of 0.62 and a debt-to-equity ratio of 0.11. Costco Wholesale (NASDAQ:COST – Get Free Report) last posted its quarterly earnings data on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, topping analysts’ consensus estimates of $6.54 by $0.21. The company had revenue of $95.72 billion for the quarter, compared to analyst estimates of $94.97 billion. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The firm’s revenue for the quarter was up 11.1% on a year-over-year basis. During the same period in the prior year, the company posted $5.87 EPS. Research analysts predict that Costco Wholesale Corporation will post 22.70 EPS for the current year.
Costco Wholesale Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, October 30th will be issued a $1.47 dividend. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Friday, October 30th. Costco Wholesale’s dividend payout ratio is presently 28.32%.
Insider Buying and Selling In other Costco Wholesale news, EVP Claudine Adamo sold 2,200 shares of the company’s stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total value of $2,015,046.00. Following the transaction, the executive vice president owned 7,134 shares of the company’s stock, valued at $6,534,244.62. This represents a 23.57% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP William Richard Wilcox sold 1,100 shares of the stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total value of $1,054,031.00. Following the completion of the sale, the executive vice president owned 3,094 shares in the company, valued at approximately $2,964,701.74. The trade was a 26.23% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.10% of the stock is currently owned by company insiders.
Analyst Ratings Changes Several research firms recently commented on COST. Oppenheimer reiterated an “outperform” rating and issued a $1,160.00 price target on shares of Costco Wholesale in a research report on Wednesday, September 16th. Wells Fargo & Company lowered their price objective on Costco Wholesale from $1,000.00 to $950.00 and set an “equal weight” rating for the company in a research note on Friday, September 25th. BMO Capital Markets reiterated an “outperform” rating on shares of Costco Wholesale in a report on Friday, September 25th. JPMorgan Chase & Co. dropped their target price on Costco Wholesale from $1,100.00 to $1,015.00 and set an “overweight” rating for the company in a report on Friday, September 25th. Finally, Mizuho cut their target price on Costco Wholesale from $1,100.00 to $1,065.00 and set an “outperform” rating on the stock in a research report on Friday, September 25th. Twenty-four investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $1,087.40.
Check Out Our Latest Stock Analysis on Costco Wholesale
Costco Wholesale Profile (Free Report)
Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells a broad selection of merchandise, including groceries, fresh foods, beverages, appliances, electronics, furniture, apparel, jewelry, hardware, and seasonal products. It also offers services such as gasoline, pharmacies, optical departments, hearing-aid centers, food courts, travel services, and business delivery in selected markets.
Costco markets many products under its private-label Kirkland Signature brand and sells merchandise through warehouse locations and e-commerce platforms.
Read More Five stocks we like better than Costco Wholesale ASML Can’t Keep Up With AI Demand—Why That’s a Good Thing Enovix’s 100,000-Battery Drone Order Sets Up a Test of Its Production Plans AMD’s Support Could Help Fermi Stock Overcome Its Biggest Hurdle Beyond the GPU: Credo Paves the Next AI Data Superhighway 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.
C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors boosted its holdings in shares of Costco Wholesale Corporation (NASDAQ:COST – Free Report) by 45.5% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 4,378 shares of the retailer’s stock after buying an additional 1,369 shares during the quarter. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors’ holdings in Costco Wholesale were worth $3,985,000 as of its most recent SEC filing.
Other institutional investors and hedge funds have also made changes to their positions in the company. Contravisory Investment Management Inc. boosted its position in Costco Wholesale by 107.7% during the third quarter. Contravisory Investment Management Inc. now owns 27 shares of the retailer’s stock valued at $25,000 after purchasing an additional 14 shares in the last quarter. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in Costco Wholesale in the fourth quarter valued at about $27,000. Lifetime Wealth Management P.C. purchased a new position in Costco Wholesale in the fourth quarter valued at about $28,000. C M Bidwell & Associates Ltd. bought a new position in Costco Wholesale in the second quarter worth about $28,000. Finally, Burk Holdings LLC bought a new position in Costco Wholesale in the second quarter worth about $30,000. 68.48% of the stock is currently owned by hedge funds and other institutional investors.
Analysts Set New Price Targets COST has been the subject of several analyst reports. HSBC raised shares of Costco Wholesale to a “buy” rating in a research report on Friday, September 25th. Robert W. Baird set a $1,175.00 price objective on shares of Costco Wholesale in a research report on Friday, September 25th. TD Cowen reaffirmed a “buy” rating on shares of Costco Wholesale in a research report on Friday, September 25th. Freedom Broker reduced their price objective on shares of Costco Wholesale from $1,030.00 to $1,010.00 and set a “buy” rating for the company in a research note on Friday, September 25th. Finally, Weiss Ratings raised shares of Costco Wholesale from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, October 8th. Twenty-four investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $1,087.40.
Read Our Latest Analysis on COST Insider Buying and Selling at Costco Wholesale In other Costco Wholesale news, EVP William Richard Wilcox sold 1,100 shares of the stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total transaction of $1,054,031.00. Following the sale, the executive vice president directly owned 3,094 shares of the company’s stock, valued at approximately $2,964,701.74. This trade represents a 26.23% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Claudine Adamo sold 2,200 shares of the stock in a transaction dated Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total value of $2,015,046.00. Following the sale, the executive vice president directly owned 7,134 shares in the company, valued at $6,534,244.62. This represents a 23.57% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.10% of the stock is currently owned by corporate insiders.
Key Stories Impacting Costco Wholesale Here are the key news stories impacting Costco Wholesale this week:
Positive Sentiment: Major price-target increase: Tigress Financial raised its COST price target from $1,065 to $1,250 and assigned a “buy” rating, implying substantial potential upside. Costco analyst price target report Positive Sentiment: Strong operating momentum: Costco reported September net sales of $30.02 billion, up 13% year over year, while digitally enabled sales increased 19%. The results support the strength of its membership model and e-commerce business. Costco September sales report Positive Sentiment: Defensive positioning: Higher-than-expected inflation has encouraged investors to favor retailers selling essential goods. Costco benefited from this rotation alongside Walmart and Target. Retail defensive-sector rotation Positive Sentiment: Dividend and expansion: Costco declared a quarterly dividend of $1.47 per share, payable November 13. Proposed new warehouses in Oakland and Merced County also point to continued long-term store expansion. Costco dividend announcement Neutral Sentiment: Analysts continue to expect earnings growth, with one estimate for fiscal 2027 EPS raised to $22.80. However, commentary describing COST as a portfolio-risk amplifier suggests investors remain focused on its correlation with the broader market and premium valuation. Costco market risk analysis Negative Sentiment: Valuation and insider selling: Costco trades at a high earnings multiple, leaving the stock vulnerable to disappointment in membership, sales or consumer spending trends. Separately, EVP William Richard Wilcox sold 1,100 shares worth approximately $1.05 million, reducing his position by 26.23%. Costco insider sale report Costco Wholesale Stock Down 0.4% COST stock opened at $978.01 on Friday. The firm’s fifty day simple moving average is $932.33 and its 200-day simple moving average is $963.09. The company has a market capitalization of $433.38 billion, a P/E ratio of 47.11, a price-to-earnings-growth ratio of 4.20 and a beta of 0.88. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.06 and a quick ratio of 0.62. Costco Wholesale Corporation has a 12 month low of $844.06 and a 12 month high of $1,096.50.
Costco Wholesale (NASDAQ:COST – Get Free Report) last released its quarterly earnings data on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, topping analysts’ consensus estimates of $6.54 by $0.21. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. The firm had revenue of $95.72 billion for the quarter, compared to analyst estimates of $94.97 billion. During the same quarter in the prior year, the business earned $5.87 earnings per share. The business’s quarterly revenue was up 11.1% compared to the same quarter last year. As a group, equities research analysts forecast that Costco Wholesale Corporation will post 22.70 earnings per share for the current year.
Costco Wholesale Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Friday, October 30th will be issued a $1.47 dividend. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend is Friday, October 30th. Costco Wholesale’s dividend payout ratio is presently 28.32%.
(Free Report)
Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells a broad selection of merchandise, including groceries, fresh foods, beverages, appliances, electronics, furniture, apparel, jewelry, hardware, and seasonal products. It also offers services such as gasoline, pharmacies, optical departments, hearing-aid centers, food courts, travel services, and business delivery in selected markets.
Costco markets many products under its private-label Kirkland Signature brand and sells merchandise through warehouse locations and e-commerce platforms.
See Also Five stocks we like better than Costco Wholesale ASML Can’t Keep Up With AI Demand—Why That’s a Good Thing Enovix’s 100,000-Battery Drone Order Sets Up a Test of Its Production Plans AMD’s Support Could Help Fermi Stock Overcome Its Biggest Hurdle Beyond the GPU: Credo Paves the Next AI Data Superhighway 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.
What happened Costco Wholesale Corporation (NASDAQ: COST) said its board declared a quarterly cash dividend of $1.47 per share on common stock. The dividend is payable November 13, 2026, to shareholders of record at the close of business on October 30, 2026. The company said it currently operates 939 warehouses. Those include 647 in the United States and Puerto Rico, 115 in Canada, 43 in Mexico, 37 in Japan and 29 in the United Kingdom.
Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan, Australia and China.
Key numbers Metric Latest Change Source Quarterly cash dividend $1.47 per share SEC 8-K Warehouses currently operated 939 warehouses SEC 8-K Warehouses in the United States and Puerto Rico 647 warehouses SEC 8-K Warehouses in Canada 115 warehouses SEC 8-K Read more: Costco Wholesale (COST) stock analysis and investment case Why it matters OptimistFi's case is that Costco turns a loyal membership base and scale buying power into steady, high-cash, low-margin retail earnings. This dividend declaration supports that view because it shows another board-approved cash return. It also gives investors a fresh payout baseline to watch.
The warehouse count adds useful context. Costco said it currently operates 939 warehouses, including 647 in the United States and Puerto Rico, 115 in Canada, 43 in Mexico, 37 in Japan and 29 in the United Kingdom. By location count, 647 of 939 warehouses are in the United States and Puerto Rico, or 68.9% of the total. That shows where the footprint is concentrated. It also shows the scale behind the payout.
The filing also names e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan, Australia and China. That matters because it shows the business spans physical warehouses and online sites. But the dividend does not prove earnings durability or future growth. The filing is still a snapshot of cash return and store count, not a full operating update.
Browse: stock research on every company OptimistFi covers
What's next The dividend is payable November 13, 2026, to shareholders of record on October 30, 2026. Those two dates are the near-term test for the announcement. Payment on schedule would confirm the announced cash return and support the capital-allocation reading.
A timely payment would strengthen the case that Costco is continuing the same payout pattern reflected in this filing. Any break from the schedule would weaken that reading. A normal payment would leave the filing as a clean baseline for later results.
More from OptimistFi COST stock: the Costco Wholesale thesis, its status and the next test to watch Stock research on every company OptimistFi covers Latest stock research and investment-case updates OptimistFi: evidence-first equity research Sources SEC 8-K press release — Press release announcing the quarterly cash dividend and warehouse count. Form 8-K — Current report with the dividend declaration and payment dates. Read the full OptimistFi thesis on Costco Wholesale Corporation: https://optimistfi.com/stocks/COST
See what would break the Costco Wholesale Corporation thesis and track it live on the OptimistFi Thesis-Break Engine.
Browse every company OptimistFi covers at optimistfi.com/stocks, or read the latest evidence-first research.
The full Costco Wholesale Corporation investment case, its status and the next test to watch live on the Costco Wholesale Corporation thesis page.
Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
Before Medicare kicks in at 65, three years of unsubsidized health insurance can quietly drain a retirement account faster than almost any other expense. One unexpected job choice changes the math entirely.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Imagine a 62-year-old single woman with $280,000 in a traditional IRA who plans to claim Social Security at 67. She needs about $42,000 a year from the IRA to cover her bills. Her biggest problem is the three years before Medicare, as an unsubsidized silver plan on the Affordable Care Act (ACA) marketplace costs about $1,100 a month where she lives. Her answer is a part-time job at Costco (NASDAQ:COST | COST Price Prediction) so she can get on its health plan. On paper, it can look like a step backward, but it is the best financial move available to most people in her position.
The reality is that plenty of people in similar situations are making the same choice. A recent Yahoo Finance story about a 62-year-old who took a school bus driving job noted that a 62-year-old buying a silver ACA plan without a large subsidy “can easily face premiums of $700 to $1,200 a month.”
Why Premiums Before 65 Eat Into Retirement Savings
Under ACA rules, insurers can charge a 62-year-old up to three times what a 21-year-old pays for the same plan. The enhanced premium tax credits that held costs down expired at the end of 2025. With $42,000 in IRA withdrawals, she still gets a partial credit because she stays below the roughly $62,600 cutoff for a single person. That credit is smaller than it used to be.
However, there is a core problem as every IRA dollar she takes counts as gross income under 26 U.S.C. § 408(d)(1), and the premium credit is based on household income under 26 U.S.C. § 36B(b). She is paying premiums from the one account that must last her another 30 years.
How Costco Cuts a $42,000 IRA Withdrawal to About $10,000
Costco’s lowest-paid employees earn $20 per hour under its current pay agreement. This means that at 24 hours a week for 52 weeks, she earns $24,960 a year, while the health plan covers up to $13,200 of yearly marketplace premiums.
On paper, that would cut her IRA withdrawal to $3,840. In practice, she still pays payroll taxes at the 7.65% employee rate, her share of Costco’s premium, and income tax. A realistic withdrawal is about $10,000 a year. Over three years, the difference adds up: if she keeps taking $42,000 a year, about $154,000 remains at 65, before investment growth. If she takes $10,000 a year, about $250,000 is left. That is roughly $100,000 more in her IRA as Medicare starts, and that money keeps compounding.
Because she hasn’t claimed Social Security, the earnings test doesn’t apply. If she claimed at 62 while working, the 2026 earnings limit for people under full retirement age is $24,480, rising to $25,560 in 2027. Her wages would hit that limit, causing another set of issues.
Costs of the Costco Route
Three drawbacks matter here:
Waiting period. Costco has required part-time workers to log 450 eligible paid hours before benefits begin, with coverage starting the first day of the second month after that. At 24 hours a week, it takes about 19 weeks to reach 450 hours. Plan to cover roughly six months with COBRA or an ACA plan. Costco does not publish an hours threshold or waiting period, so confirm the current rules at the warehouse during hiring.
Physical work. Pushing carts, stocking pallets, and working the registers means you’ll be on your feet for hours. If you have joint or back problems, this plan may not hold up for three years.
Weekend schedules. Warehouse schedules include weekends. That is a real lifestyle cost for someone who expected to be retired.
Staying Retired Costs About $100,000
The other path is to stay retired, which costs $42,000 a year and covers marketplace coverage. That only makes sense if her health rules out physical work. Some people try to close the gap by claiming Social Security at 62. That permanently locks in a smaller check, and any job would run into the earnings test. For most people, the Costco path wins.
The job has a second benefit. Once she is on Costco’s plan, her income no longer affects her health premium. Wages plus a $10,000 withdrawal, minus the $16,100 standard deduction, leave her taxable income well inside the 12% bracket. For a single filer in 2026, that bracket runs to $50,400. That makes these years a good time to convert some IRA money to a Roth at a low tax rate (the low-tax stretch between your last paycheck and your first required withdrawal is the whole subject of our free Roth window guide). Roth money comes out tax-free later, which reduces the IRA balance that will face required withdrawals starting at 73.
Your First Moves Before Applying
The timeline comes first. Find out when your coverage would actually begin, then make sure COBRA or a marketplace plan covers every month until then. While you are on marketplace coverage, keep IRA withdrawals small, so you keep as much of the premium credit as you can.
A big consideration is not claiming Social Security at 62 just because you are working anyway. Earning wages above the limit can cause benefits to be withheld, and claiming early cuts your benefit for life.
One meeting with a fee-only planner can pay for itself here. The plan depends on getting three things right: when you take IRA withdrawals during the months before Costco coverage starts, how much you convert to a Roth once you are on the Costco plan, and when you claim Social Security. A single badly timed withdrawal can reduce your premium credit, so the timing matters as much as the job.
Contact [email protected] for any questions or corrections.
Key Takeaways Costco's fiscal 2027 revenues are projected to grow 8.4% to $328.53 billion, with earnings rising 11%Memberships reached 84.1 million, while digital sales surged more than 20% in fiscal 2026, fueling growth.COST trades at 42.3X forward earnings, while margin pressures and rising costs add to valuation concerns.
Costco Wholesale Corporation (COST - Free Report) pairs durable membership economics with steady sales growth and expanding digital reach. Fourth-quarter fiscal 2026 revenues reached $95.72 billion, while earnings came in at $6.60 per share, excluding a 15-cent nonrecurring benefit related to tariff refunds.
The growth case remains attractive, but the stock already reflects much of that quality. Investors must weigh Costco’s operating consistency against a forward earnings multiple that sits well above its industry and the broader market.
Costco’s Growth Engine Remains StrongThe Zacks Consensus Estimate calls for fiscal 2027 revenues of $328.53 billion, up 8.4% from fiscal 2026. Earnings are projected to rise 11% to $22.70 per share, extending Costco’s multiyear earnings compounding.
Fourth-quarter comparable sales increased 9.4%, or 6.7% after excluding gasoline-price and foreign-exchange effects. Shopping frequency rose 3.3%, supporting the view that growth is being driven by continued member engagement rather than price alone.
Image Source: Zacks Investment Research
COST’s Membership Economics Add DurabilityPaid memberships increased 3.8% to 84.1 million in fiscal 2026, while Executive memberships climbed 9.4% to 42.3 million. Executive members accounted for 75.2% of worldwide sales, giving Costco a large base of higher-spending customers.
Renewal rates reached 92.3% in the United States and Canada and 89.8% worldwide. Membership fee income also grew 7.3% in the fourth quarter, reinforcing the recurring-revenue foundation of the warehouse model.
Costco’s Digital Gains Broaden the OpportunityDigitally enabled sales exceeded $33 billion in fiscal 2026 and increased more than 20%. Fourth-quarter digitally enabled comparable sales rose 19.5%, while website and app traffic advanced 30% as Costco expanded delivery partnerships and personalization efforts.
The competitive benchmark remains demanding. Walmart Inc. (WMT - Free Report) reported 23% global e-commerce growth in its fiscal 2027 second quarter, while Target Corporation (TGT - Free Report) posted 8.7% digital comparable-sales growth in second-quarter fiscal 2026. Costco’s digital momentum therefore adds another growth channel without replacing its warehouse-led model.
COST’s Premium Valuation Raises the HurdleCOST trades at 42.3X forward 12-month earnings, compared with 28.7X for the Zacks sub-industry and 19.6X for the S&P 500. The stock’s five-year median multiple is 42.7X, indicating that investors have long assigned Costco a premium valuation.
That premium still reduces the margin for error. Slower earnings growth, softer comparable sales or a reassessment of premium retail valuations could pressure the shares even if the underlying business remains healthy.
Image Source: Zacks Investment Research
Costco Faces Margin and Tariff PressureFourth-quarter gross margin fell 11 basis points to 11.02%. Although gross margin improved 20 basis points excluding gasoline inflation, a $152 million LIFO charge and higher costs in electronics, fuel-related products and other commodities weighed on reported profitability.
Selling, general and administrative expenses improved 27 basis points as a percentage of sales, but only two basis points excluding gasoline inflation. Higher labor, health-care and liability costs, merchandise inflation and tariff uncertainty could limit operating leverage if sales growth moderates.
COST’s Signals Favor Quality Over ValueCostco’s growth profile remains attractive, but its valuation sets a high bar for execution. The current setup supports a measured stance rather than treating operating strength alone as sufficient reason to chase the stock.
COST carries a Zacks Rank #3 (Hold). Its Growth Score of A and VGM Score of B support the quality of its growth characteristics, while a Momentum Score of C is neutral and a Value Score of D underscores the valuation concern. For now, the combination points to patience unless earnings growth or valuation becomes more favorable. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This is a fair market value price provided by Massive. Learn more.
$844.06▼
$1,096.500.59%
47.62
$1,087.40
Despite soaring gas prices, high rates, and weak consumer sentiment, Americans continue to spend. While recent retail earnings have been mixed, reports from major banks have highlighted resilient consumer strength across both high- and low-income cohorts. Yes, consumers feel pinched by high prices (and slowing wage growth).
Still, spending continues, and cost-conscious consumers are the perfect clientele for warehouse-club retailers like Costco Wholesale Corp. NASDAQ: COST. COST stock hasn’t hit a new all-time high in nearly five months, but the fundamentals are accelerating just as the stock tests the 200-day moving average. Is Costco’s lackluster year finally about to pick up?
Get Costco Wholesale alerts:
Costco September Sales Snap 3 Months of DeclineCostco hit the market with a double blast of encouraging news in the last few weeks. First, the company reported its fiscal Q4 2026 results on Sept. 24, beating expectations on both the top and bottom lines with 6.7% year-over-year (YOY) comparable-sales growth after adjusting for currency and fuel. Earnings beat expectations even after removing 15 cents per share for one-time tariff refunds, and revenue of $95.72 billion beat expectations by more than $750 million. Membership metrics were also strong, with paid Executive members reaching 42.3 million and U.S./Canada renewal rates at 92.3%, up 10 basis points from fiscal Q3.
On Oct. 7, Costco reported its September sales brief, covering the five weeks ending Oct. 4. Adjusted comparable sales grew 7.6% YOY, the fastest pace since May’s 8% increase at the height of the Hormuz crisis. August adjusted comps came in at just 5.4%, so September marked a notable acceleration, even after removing 50 basis points for Labor Day tailwinds.
Canada was the lone sour spot with 4.9% adjusted comps, but Other International adjusted comps grew 7.7%. Gas is doing much of the heavy lifting in reported sales, with gasoline comps rising more than 30%. However, the adjusted figures exclude the effects of gasoline price changes and currency fluctuations, offering a clearer picture of underlying growth. Gas also drives foot traffic, and CFO Gary Millerchip said members who pump gas also visit stores more often.
Continued Sales Growth Could Reverse Analyst Price Target TrimmingCostco Wholesale MarketRank™ Stock Analysis4.418086500655 of 5 stars
88th Percentile
Moderate Buy
10.4% Upside
Healthy
Strong
1.01 Selling Shares
9.78%
See Full Analysis
Despite the double fiscal Q4 earnings beat on Sept. 24, analysts were in no hurry to raise their price targets. In fact, several firms lowered their price targets the day after the conference call, and Costco bear Bill Kirk at Roth Capital reiterated his Sell rating and $781 price target. Overall, MarketBeat tracks 32 analysts covering COST shares, with 23 Buys, eight Holds, and one Sell from Roth. The average price target is $1081.79, representing roughly 10% upside from recent trading levels.
Those price-target cuts came before Costco released its stronger September sales figures. A retailer trading at roughly 47 times earnings with slowing revenue growth is hard to keep boosting, even with solid revenue growth, so many analysts kept their rating at Buy while lowering their price targets. But now that September comps are above 7% again, the latest data suggest sales growth is accelerating, and elevated gas prices should continue to drive new memberships and more foot traffic. Analysts may wait for October sales data to confirm or deny the growth trend, but it wouldn’t be surprising to see some price-target reversals over the next few weeks if the stock continues to rally.
Daily Chart Shows COST Shares Approaching Key Technical LevelsCOST shares dipped below $900 in late September, the first time they fell below this key level since the first week of 2026. The stock is still up more than 13% year-to-date, but the drawdown since the May all-time high of approximately $1,095 was nearly 20% from peak to trough. After serving as strong support for the first half of the year, the 50-day moving average flipped to resistance during the decline, and the stock struggled to break above it until early October. But COST shares are now back above the 50-day and 200-day moving averages for the first time since May, and other technical signals are starting to turn positive.
The moving average convergence divergence (MACD) also shows an uptick in buying momentum, and the reversal began with a bullish MACD cross in late September. Now both the MACD and signal lines have crossed over the histogram, a common bullish signal that often triggers a broader rally. The stock is up more than 6% in the last month, which may not sound like a raucous rally, but it pushed the price over $980 for the first time in four months. Technical and fundamental signals are beginning to align, but we may still need one more month of sales data before we can say the COST rally is back in action.
Should You Invest $1,000 in Costco Wholesale Right Now?Before you consider Costco Wholesale, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Costco Wholesale wasn't on the list.
While Costco Wholesale currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Learn the basics of options trading and how to use them to boost returns and manage risk with this free report from MarketBeat. Click the link below to get your free copy.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
After halting its decline by mid-September, Costco (NASDAQ: COST) stock has been gaining momentum and, judging by the latest Wall Street analyst notes, the equity is likely to accelerate its rally in the coming 12 months.
Specifically, Tigress Financial’s Ivan Feinseth revised his outlook for COST shares on October 15 when he replaced the previous $1,065 forecast with the new $1,250 prediction, while retaining the previous ‘Buy’ rating.
According to the analyst, the estimated 27.81% upside from $978.01 at the latest close is justified by a veritable laundry list of bullish catalysts.
Costco has been benefiting from strong sales, membership growth, rising traffic, general infrastructure expansion, artificial intelligence (AI)-enhanced shopping, and strengthening earnings.
Analysts predict Costco stock price in late 2027
Meanwhile, the Tigress Financial assessment came in as noticeably more bullish than the already-optimistic Wall Street average.
Indeed, Costco stock is, overall, regarded as a ‘Moderate Buy’ by institutional analysts with twenty positive, six ‘Hold’, and one ‘Sell’ recommendation, per the data Finbold retrieved from TipRanks on October 16.
Simultaneously, the average price target for the next 12 months forecasts that COST shares will rise 11.91% to $1,094.48 by late 2027.
Wall Street sets Costco stock price target for the next 12 months. Source: TipRanks
Notably, Feinseth is not the most optimistic analyst to offer a rating revision since the start of October, as Kelly Bania from BMO Capital estimated the equity would rally to $1,315 and UBS’ Michael Lasser predicted a rise to $1,275.
Additionally, Costco shares’ only ‘Sell’ rating was confirmed after the bullish reversal late in the previous month, since Bill Kirk, an analyst at Roth MKM, estimated COST would suffer a 20.14% decline to $781 on September 25.
Costco stock rallies on double earnings beat
Lastly, the retail giant’s equity was 14.45% in the green year-to-date (YTD) and at $978.01 at the latest – October 15 – close thanks to the 8% three-month rally that resulted from a strong quarterly earnings report.
Costco stock price YTD chart. Source: Google
Specifically, along with disclosing strong earnings per share (EPS) growth and revenue of $95.72 billion – 11% higher than in the same quarter in the previous year – and nearly $1 billion above the consensus forecast of $94.86 billion.
When interest rates go up, that tends to be bad news for stocks. But not all stocks are affected the same way by rising rates. At their most recent meeting of the Federal Open Market Committee (FOMC) on Sept. 16, the central bankers hiked the benchmark federal funds rate by 0.25 percentage points. Inflation in September came in slightly hotter than expected, with a year-over-year CPI increase of 3.7%. That suggests that the Fed might hike rates again in 2026, as the FOMC will meet two more times this year, on Oct. 28 and Dec. 9.
When the Fed hikes interest rates, its goal is often to slow inflation -- and tap the brakes on economic growth. This can have negative effects on job growth, borrowing costs, and consumer spending. Some retail stocks might suffer more from a consumer spending slowdown than others. A few important retail stocks to watch right now are Costco (COST -0.41%), Home Depot (HD +4.31%), Target (TGT +0.85%), and Walmart (WMT +1.47%).
Here's how these four retail stocks have performed since the federal funds rate hike on Sept. 16:
COST Total Return Level data by YCharts.
A 25-basis-point rate hike is unlikely to be a game changer for any stock. But some companies are more rate-sensitive than others. All four of these retailers have distinct strengths and vulnerabilities that would come into play in a rising interest-rate environment.
Let's look at which of these retail stocks are more likely to be winners if the Fed hikes interest rates again in 2026, and which might be losers.
Image source: Getty Images.
Costco: Affluent consumers unfazed by higher gas prices Costco might be better positioned than most retailers to thrive in an environment of higher inflation and rising interest rates. That's because Costco's membership model creates a high level of customer loyalty, and the retailer tends to be popular with higher-income customers. According to a June YouGov survey, 11% of Americans in households with gross incomes of $150,000 or more do most of their food and other grocery shopping at Costco. These more affluent households are likely to be less bothered by high inflation.
A major factor in the Fed hiking interest rates is inflation driven by higher gas prices. The latest CPI index for gasoline was up 9.1% year over year in September 2026. Higher gas prices could hurt some retailers more than others, as consumers are compelled to dedicate more of their take-home pay to filling their tanks.
But Costco might be relatively safe from the effects of high gas prices. As of 2025, about 10% of its total net sales came from gasoline. In the company's September quarterly earnings report, CEO Ron Vachris said Costco's gasoline business had a "record year" and that in its fiscal year 2026, it achieved an all-time high rate of "penetration of U.S. member households that purchased gas."
Costco stock has gained about 118% in the past five years, but over the past year, it underperformed the S&P 500 index (^GSPC +0.33%), rising only 3.75%.
COST Costco Wholesale$978.01-$3.99 (-0.41%)
NASDAQ · As of 4:00 PM ET 10/15/26
Verdict: Bullish. Costco is likely to be a relatively strong retail performer, even with additional Fed rate hikes.
Home Depot: Vulnerable to a sluggish housing market and consumer credit Fed rate hikes don't directly affect mortgage rates, which are tied to the yield on the 10-year Treasury bond. But the fact that the Fed is hiking short-term interest rates will likely be reflected in higher bond yields on longer-term debt as well. That means more expensive mortgages, more expensive consumer credit, fewer people taking out home loans and home equity loans -- and less money being spent at home improvement stores like Home Depot.
Home Depot's stock price has declined by about 14.1% over the past five years and by about 24% over the past year. And if interest rates stay high or rise, it is probably going to stay in a slump. With higher mortgage rates and a struggling housing market, fewer people are going to spend big on new kitchens and bathrooms.
$308.24+$12.73 (+4.31%)
NYSE · As of 4:00 PM ET 10/15/26
Verdict: Bearish. Until interest rates decline and the housing market gets unstuck, Home Depot shares are likely to keep going sideways -- or worse.
Target: Price-sensitive consumers could threaten this company's turnaround Target CEO Michael Fiddelke started his job on Feb. 1, and he's tasked with turning the chain around after years of sluggish sales and declining share prices. Fiddelke's plan focuses on refreshing Target's stores and improving its merchandise. So far, it seems to be working: The company's stock is up about 59% year to date.
TGT Target$156.63+$1.32 (+0.85%)
NYSE · As of 4:00 PM ET 10/15/26
But continued high inflation could be a bigger threat to Target than to Costco. Although Target cut prices on thousands of items in 2026, its customer base could be less loyal than Costco's and more prone to trade down to lower-priced merchandise -- or switch to competitors like Walmart that might be perceived as lower cost.
Verdict: Bearish. One or two Fed rate hikes won't unravel Target's turnaround. But if inflation-weary consumers get more aggressive about bargain hunting, that could be bad news for this "cheap chic" retailer.
Walmart: Opportunity to attract more high-income customers America's largest retailer is known for low prices. Walmart's customer base tends to be middle-income and lower-income shoppers who want value for their money. Unfortunately, those customers seem to be struggling due to high inflation.
On its most recent quarterly earnings call on Aug. 20, Walmart reported U.S. comparable sales growth of 2.6%, which was weaker than analysts had expected. The company's shares gained an impressive 149% over the past five years, but only 8.4% in the past year -- less than the S&P 500.
But if the Fed keeps hiking interest rates in its bid to bring inflation back in check, there could also be an opportunity for Walmart to expand its market share among more affluent households. On the Aug. 20 earnings call, Walmart CEO John Furner said that "we continue to see growth from higher-income households." If more affluent consumers get fed up with high prices at their usual stores and start to "trade down" to Walmart, that could be good news for this company's investors.
Verdict: Bullish. But only if Walmart can attract more sales from price-sensitive affluent shoppers "trading down" than it loses from lower-income customers who cut back on shopping altogether.
Deutsche Bank just handed Walmart a rare upgrade while the broader retail sector slid lower, and the reason behind that split tells you something important about where defensive money is quietly moving.
In morning trading, Walmart (NASDAQ:WMT | WMT Price Prediction) stock is up 3% to $119.39 after Deutsche Bank upgraded the retailer to Buy and lifted its price target. The gain looks like a defensive bid rather than a broad retail rally. That climb is happening even as both the large-cap benchmark and the retail sector fund trade lower.
For a read on large-cap stocks, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.3% to $767.54. On the sector side, the SPDR S&P Retail ETF (NYSEARCA:XRT) is slipping 0.5% to $84.27. Its holdings are modified equal weighted, so no single stock holds back the fund, and its move reflects how retail is trading as a whole.
Meanwhile, Target (NYSE:TGT) stock is up 1% to $156.87, a smaller advance than Walmart’s. Additionally, Costco Wholesale (NASDAQ:COST) shares are up 1% to $993.75, matching Target’s gain. Both trail Walmart stock, and gains across all three while the retail fund falls support that defensive read.
Deutsche Bank Upgrade Leans on Pricing Power Analyst Krisztina Katai’s case rests on two points: pricing tailwinds are building, and market share is accelerating. She sees the current inflationary environment strengthening Walmart’s value proposition and supporting faster share gains as shoppers hunt for lower prices. Katai also argues investors are starting to look beyond headline pressure on Walmart’s U.S. comparable sales and toward the share story underneath.
The upgrade followed investor meetings in New York with Chief Financial Officer John David Rainey. It centered on some of Walmart’s strongest food market share gains in recent years, alongside momentum in e-commerce, marketplace, advertising and membership. Grocery leadership is feeding faster-growing digital businesses.
Why Walmart Gets More Lift Than Costco and Target Walmart’s scale lets it hold price on food. That category brings shoppers back most often, while marketplace, advertising and membership layer higher-margin revenue on top of that grocery traffic. Costco draws much of its profit from membership fees, and Target’s larger discretionary mix ties it more closely to spending on nonessentials. A value-and-share argument therefore reaches Walmart more directly.
Gains of 1% in Target and Costco shares trail the 3% climb in Walmart stock by a wide margin, a gap that looks even sharper against the large-cap benchmark’s decline. The SPDR S&P Retail ETF’s slide matters, because a genuine sector rally would lift it. With the broad market also slipping, the climb in Walmart stock fits a rotation toward perceived safety, where steady grocery demand tends to draw buyers.
Food Share Gains Face Their Next Test Katai’s bull case is that inflation broadens Walmart’s price advantage and pulls share toward it, and that plays out over several quarters, where steady conversion of grocery traffic into richer-margin marketplace, advertising and membership revenue would give the argument more weight.
The bear case is that Walmart stock, already bid up as a haven, has less room to run if the rotation reverses. The test is whether Walmart’s food share gains hold once the pricing environment eases, and whether the SPDR S&P Retail ETF turns higher, which would change the defensive read. Until then, investors may want to keep their positions sized for that risk.
Contact [email protected] for any questions or corrections.
Costco trades at a valuation that would make most investors flinch, yet buyers keep stepping in and analysts keep raising targets. The reason comes down to one membership metric that changes the math entirely.
Costco (NASDAQ:COST | COST Price Prediction) closed its latest full session at $954.63. The 24/7 Wall St. price target for Costco is $1,057.74 over the next 12 months, which implies 10.8% upside. The stock earns a buy rating with high confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $954.63 Price Target from 24/7 Wall St. $1,057.74 Upside/Downside 10.8% Recommendation BUY Confidence Level 90% Valuation is the main point. Costco trades at roughly 46x trailing earnings and 42x forward EPS of $22.7822. Our model still sees upside because membership loyalty, steady traffic gains and a six-quarter EPS beat run keep justifying that premium.
A Strong Fiscal Year Finish Revived the Rally Shares rose 1.32% to $967.21 in Wednesday trading and are up 3.37% over the past week, 6.9% over the past month and 12.66% year to date. At its latest close, Costco sat 12.8% below its 52-week high of $1,094.76 and 13.6% higher than its low of $840.35.
The fiscal fourth quarter, reported September 24, delivered EPS of $6.75 versus the $6.53 estimate, including a $0.15 one-time tariff refund benefit.
Revenue of $95.72 billion beat expectations and grew 11.1%. Comparable sales rose 9.4%, or 6.7% excluding gas and currency. That resilience recently gave CNBC’s Jim Cramer a reason to feel better about the stock.
Why Bulls See $1,147 Within Reach Membership quality keeps improving. Paid executive members reached 42.3 million, up 9.4%, and U.S. and Canada renewals hit 92.3%. CEO Ron Vachris noted that “our member base under 40 has grown nearly 60% since COVID,” which builds a pipeline of future high spenders.
Costco plans 33 openings in fiscal 2027, and online enabled sales exceeded $33 billion. With 24 Buy or Strong Buy ratings on the stock, the bull case reaches $1,147.89.
What Could Keep Costco Stuck in Its Range A 46x multiple leaves little room for error. Analysts also noted that membership growth has slowed for eight consecutive quarters, and fee income growth cooled to 7.3% from 14.0% in fiscal Q1.
As a counterpoint, much of that deceleration reflects lapping the 2024 fee increase. Excluding the increase and currency, fee income still grew 6.8%. With 13 Holds and two Sell-side ratings, our bear case stands at $967.31.
Costco’s Premium Over Walmart and BJ’s Looks Earned Walmart (NASDAQ:WMT) is the closest big-box rival and has Sam’s Club. It trades at about 41x earnings, yet Walmart U.S. comps grew just 2.6% last quarter. Costco’s small premium buys far faster comp growth, which makes our target look reasonable.
BJ’s Wholesale Club (NYSE:BJ) is the pure-play warehouse peer. BJ’s grew fee income 9.9% to a record 8.5 million members, but comps excluding gas rose only 3.1%. Costco’s ex-gas growth more than doubles that, supporting a conservative read on our target.
Company P/E Latest Comp Sales Costco 46x 9.4% Walmart (U.S.) 41x 2.6% BJ’s (ex-gas) Not available 3.1% Premium Price, Premium Business: BUY The 24/7 Wall St. price target of $1,057.74 supports a buy rating with 90% confidence. Renewal strength tips the scale.
I’d view the stock even more favorably if executive penetration keeps climbing and renewals improve further. I’d turn conservative if membership growth keeps slowing without offsetting spend gains. Costco is expensive, and I think the business keeps earning that premium.
Here is where the 24/7 Wall St. price target model projects Costco could trade, assuming current trends hold.
Year Price Target from 24/7 Wall St. 2026 (December) $954.59 2027 $1,061.05 2028 $1,156.13 2029 $1,219.90 2030 $1,312.05 These estimates assume Costco keeps executing on warehouse expansion and membership growth. Multiple compression or a faster international rollout could move results meaningfully in either direction.
Contact [email protected] for any questions or corrections.
ISSAQUAH, Wash., Oct. 14, 2026 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today announced that its Board of Directors has declared a quarterly cash dividend on Costco common stock of $1.47 per share. The quarterly dividend is payable November 13, 2026, to shareholders of record at the close of business on October 30, 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 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.
State Street Investment Management launched four sector ETFs on Wednesday, built to give each sector’s largest companies their full weight.
Key Takeaways:
XLKM aims to give Nvidia 20.93%, compared with 15.41% in its Select Sector counterpart, XLK.
Each Market Sector fund holds its Select Sector counterpart, then buys extra shares of the biggest companies.
Amazon makes up 23.54% of XLY, while XLYM aims to hold it at 43.23%.
Called the State Street S&P 500 Market Sector SPDR ETFs, they cover tech, consumer discretionary, consumer staples and energy. Each charges an annual fee of 0.12%, according to State Street.
Sector ETFs hold companies from one slice of the stock market, such as tech or energy. State Street launched the first suite of them in 1998, with its Select Sector SPDR ETFs, according to the firm.
The Market Sector funds track S&P 500 sector indexes that don’t cap any one company’s weight. The goal is “reflecting the full weight of the largest companies in each sector,” according to the press release. Their Select Sector counterparts follow indexes that can trim those giants.
“Today, sectors are increasingly used as building blocks in asset allocation and model portfolios,” said Anna Paglia, chief business officer at State Street Investment Management. “These new ETFs give investors another way to put their views into practice, with exposure designed to more closely reflect the market cap weighting of the S&P 500 sector indexes.”
Select Sector ETFs Form the Core of Each New Fund
The Select Sector funds trim their giants to meet IRS diversification rules, the prospectuses note. To give those companies more room, each Market Sector fund holds its Select Sector counterpart as a base. It then buys shares of the biggest companies on its own to make up the difference.
Take the State Street S&P 500 Technology Market Sector SPDR ETF (XLKM). Its base, the State Street Technology Select Sector SPDR ETF (XLK), made up 66.59% of assets on October 13, according to State Street’s website.
See more: XLK Hits New All-Time High as Tech Triumphs
Nvidia Corp. (NVDA) made up 15.41% of XLK but 20.93% of XLKM’s index. XLKM gets Nvidia two ways, State Street data show. Its XLK stake works out to about 10.3% in Nvidia. XLKM also buys Nvidia shares on its own, adding another 10.66%. Together, that comes to roughly 20.9%, matching the index.
Apple Inc. (AAPL) and Microsoft Corp. (MSFT) work the same way, according to State Street. They made up 18.85% and 15.27% of XLKM’s index, compared with 13.88% and 11.25% of XLK.
Amazon, Walmart and Exxon Show the Sector Gap
The other three Market Sector funds use the same approach. The gap is widest in consumer discretionary. There, the State Street S&P 500 Consumer Discretionary Market Sector SPDR ETF (XLYM) aims to hold Amazon.com Inc. (AMZN) at 43.23%.
Amazon was just 23.54% of its Select Sector counterpart, the State Street Consumer Discretionary Select Sector SPDR ETF (XLY), according to State Street. To close the gap, XLYM held 63.82% of its assets in XLY. It also bought Amazon shares on its own, adding 17.81%, plus Amazon options contracts.
In staples, the State Street S&P 500 Consumer Staples Market Sector SPDR ETF (XLPM) faces a similar gap. It aims to hold Walmart Inc. (WMT) and Costco Wholesale Corp. (COST) at 16.31% and 13.8%, according to State Street.
That compares with 10.75% and 9.1% in the State Street Consumer Staples Select Sector SPDR ETF (XLP). XLPM leaned least on its base, with XLP making up just 51.92% of its assets.
Finally, the State Street S&P 500 Energy Market Sector SPDR ETF (XLEM) leaned most on its base. That fund, the State Street Energy Select Sector SPDR ETF (XLE), made up 84.81% of assets, according to State Street.
Still, the top of the energy sector shows a gap. XLEM targets 29.26% for ExxonMobil Holdings Corp. (XOM), compared with 23.56% in XLE.
See more: Energy Leads State Street Premium Income ETF Returns, Flows
A Third Option in State Street’s Sector Lineup
The Market Sector funds join two other State Street sector lineups, according to the release. Select Sector SPDR ETFs focus on liquidity and diversified exposure, while Sector Premium Income ETFs aim to generate income.
Combined, those two lineups held $393.6 billion as of August 31, according to the release. The four Market Sector funds started much smaller, with about $500,000 each on October 13, according to State Street’s website.
For more news, information, and analysis, visit our Sector Investing Content Hub.
A surprise inflation report is reshuffling money across the retail sector, and not every big-box name is catching the same tailwind. Here is why Walmart is pulling away while Target and Costco are taking different roads on the same rocky…
A hotter-than-expected September inflation report is pushing money toward the retailers that sell everyday necessities, and one discount giant is out in front. Walmart (NASDAQ:WMT | WMT Price Prediction) stock is trading at $115.10, up 3% and leaving WMT shares up 4% year to date (YTD).
Similarly, Costco Wholesale (NASDAQ:COST) stock is at $976.30, up 2%, riding the same defensive bid. Meanwhile, Target (NYSE:TGT) stock is at $153.43, up 0.9%, a softer gain given its discretionary mix.
Those gains stand out on a down day for stocks. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is declining by 1.33%. Retail as a whole is also under pressure, with the SPDR S&P Retail ETF (NYSEARCA:XRT) down 0.5%.
Hot Inflation Report Sends Money Into Staples
September inflation came in above forecasts, and consumer staples held up while the broad market traded lower on the hotter reading. Shoppers were already uneasy heading into the report, with the University of Michigan consumer sentiment index at 51.7 in August. Market swings stayed measured, as the Cboe Volatility Index (VIX) sat at 15.27 on October 13, inside its normal range.
Walmart also has company-specific news in the mix. On October 13, the retailer told its U.S. associates it’s adding benefits for the coming plan year, including a zero-dollar prescription tier, a rare conditions center of excellence and dedicated paid leave for parents whose newborns need intensive care.
Inflation Cuts Both Ways for Walmart
That inflation reading raises what Walmart pays for goods and labor, and the benefits expansion adds to that cost base, though Walmart enters this stretch with momentum. In Q2 FY2027, its adjusted earnings per share (EPS) of $0.81 beat expectations and revenue rose 5.9% to $187.94 billion. Management then lifted its full-year adjusted EPS guidance to $2.80 to $2.87.
The retailer’s digital and subscription businesses add support, with global eCommerce up 23% and membership fee revenue up 17% in the quarter. CEO John Furner stated in that release that “customers are choosing Walmart because we deliver price, speed, and convenience across a broad assortment.”
Priced at a P/E ratio of 41x, Walmart stock leaves less room for error if margins tighten. Even the company’s own Q3 FY2027 outlook calls for adjusted EPS of $0.62 to $0.64 and operating income growth of 2% to 4% in constant currency, as management reinvests tariff refunds into pricing and customer experience.
Costco and Target Take Different Paths
Walmart and Costco sell groceries and household essentials that customers buy whatever the economy does, while Target carries a heavier mix of discretionary general merchandise. In Q4 FY2026, Costco’s comparable sales rose 9.4%, membership fee income grew 7.3% to $1.85 billion and the worldwide renewal rate reached 89.8%.
Costco shares are up 14% YTD, well ahead of Walmart stock. A CNBC Halftime Report panelist flagged the catch in August, arguing that for Walmart stock and Costco stock, “in the near term you have this valuation obstacle in front of you.”
Target stock has run furthest, up 61% YTD. Leadership at Target lifted its full-year adjusted EPS guidance to $9.90 to $10.90 alongside its Q2 FY2026 results, though that range includes $1.65 per share from tariff refunds. Separately, the retailer cut prices on more than 10,000 items to sharpen its value pitch.
Walmart’s Price Gap Decides What Comes Next
The next test is whether Walmart can hold its low-price position as costs rise. The company’s Q3 FY2027 report could show whether reinvesting tariff refunds into pricing protects that gap without squeezing margins too far.
Costco leans on membership fees, while Target’s discretionary mix leaves it more exposed to cautious shoppers. Staples leadership on a down day can fade quickly if the next inflation reading cools.
Defensive appeal and a rising cost base can both hold true for Walmart. It’s still wise, though, for cautious investors to keep their WMT stock position sizes modest.
Contact [email protected] for any questions or corrections.
Sax Wealth Advisors LLC boosted its stake in Costco Wholesale Corporation (NASDAQ:COST – Free Report) by 42.0% during the 3rd quarter, according to the company in its most recent disclosure with the SEC. The firm owned 4,377 shares of the retailer’s stock after acquiring an additional 1,294 shares during the period. Sax Wealth Advisors LLC’s holdings in Costco Wholesale were worth $3,985,000 as of its most recent filing with the SEC.
Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. C M Bidwell & Associates Ltd. purchased a new stake in shares of Costco Wholesale during the 2nd quarter worth approximately $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in Costco Wholesale in the fourth quarter valued at approximately $27,000. Burk Holdings LLC purchased a new position in Costco Wholesale in the second quarter valued at approximately $30,000. Manning & Napier Advisors LLC purchased a new position in Costco Wholesale in the second quarter valued at approximately $30,000. Finally, Lifetime Wealth Management P.C. bought a new position in Costco Wholesale during the fourth quarter valued at $28,000. 68.48% of the stock is currently owned by hedge funds and other institutional investors.
Insiders Place Their Bets In other Costco Wholesale news, EVP Claudine Adamo sold 2,200 shares of the business’s stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total transaction of $2,015,046.00. Following the sale, the executive vice president owned 7,134 shares of the company’s stock, valued at $6,534,244.62. The trade was a 23.57% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Corporate 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: Strong sales momentum: Costco reported September net sales of approximately $30.02 billion, up 13% year over year. Digital sales increased 19%, supported by expanded delivery options and personalization, indicating continued customer engagement beyond physical warehouses. Costco Wholesale Posts 13% September Sales Growth Positive Sentiment: Balance-sheet strength: Costco’s reported $21.3 billion liquidity cushion, manageable debt and robust cash generation give it flexibility to expand its warehouse network and invest in e-commerce. This provides an advantage over more financially constrained retail competitors. How Costco’s Balance Sheet Gives It an Edge Positive Sentiment: Constructive earnings outlook: Erste Group raised its FY2027 EPS forecast to $22.80 from $22.67 and projects FY2028 EPS of $25.01, reinforcing expectations for continued earnings growth. Costco analyst earnings estimates Neutral Sentiment: Competitive and consumer considerations: Costco continues to outperform or pressure traditional grocery rivals such as Albertsons, while its bulk-pack format and $65 membership fee may not be equally attractive for every household. A potential West Oakland warehouse could support employment and local growth but is not an immediate earnings catalyst. Negative Sentiment: Premium valuation and income competition: COST trades at roughly 46 times earnings, well above the broader market. The 10-year Treasury yield near 5.2% significantly exceeds Costco’s dividend yield, which can reduce the stock’s appeal to income-focused investors and increase valuation pressure. Costco Stock Versus 10-Year Treasury Notes Negative Sentiment: Questions about sales quality: Higher gasoline prices contributed to reported sales growth at Costco’s fuel business. If gas prices decline, some of that revenue boost could fade, making the premium valuation harder to justify despite solid underlying membership and digital trends. What Cheaper Gas Would Mean for Costco Sales and Margins Costco Wholesale Stock Performance NASDAQ COST opened at $954.63 on Wednesday. The company’s 50 day moving average is $930.95 and its 200-day moving average is $963.12. Costco Wholesale Corporation has a 12-month low of $844.06 and a 12-month high of $1,096.50. The company has a quick ratio of 0.62, a current ratio of 1.06 and a debt-to-equity ratio of 0.11. The firm has a market cap of $423.03 billion, a P/E ratio of 45.98, a price-to-earnings-growth ratio of 4.07 and a beta of 0.88.
Costco Wholesale (NASDAQ:COST – Get Free Report) last announced its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, beating analysts’ consensus estimates of $6.54 by $0.21. The company had revenue of $95.72 billion for the quarter, compared to analysts’ expectations of $94.97 billion. Costco Wholesale had a net margin of 3.04% and a return on equity of 27.60%. Costco Wholesale’s revenue was up 11.1% compared to the same quarter last year. During the same period in the prior year, the company posted $5.87 EPS. Sell-side analysts predict that Costco Wholesale Corporation will post 22.85 earnings per share for the current year.
Analyst Ratings Changes COST has been the subject of a number of recent research reports. Royal Bank Of Canada reissued a “sector perform” rating and issued a $1,000.00 target price on shares of Costco Wholesale in a research report on Friday, October 9th. Deutsche Bank Aktiengesellschaft lowered their target price on Costco Wholesale from $1,091.00 to $1,079.00 and set a “buy” rating on the stock in a research note on Monday, September 28th. DA Davidson upped their price target on Costco Wholesale from $1,000.00 to $1,040.00 and gave the company a “neutral” rating in a research report on Friday, September 25th. Guggenheim reiterated a “neutral” rating on shares of Costco Wholesale in a research note on Monday, September 28th. Finally, Truist Financial cut their price target on Costco Wholesale from $1,011.00 to $955.00 and set a “hold” rating for the company in a research note on Friday, September 25th. Twenty-three analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $1,046.27.
Read Our Latest Research Report on COST
Costco Wholesale Profile (Free Report)
Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells a broad selection of merchandise, including groceries, fresh foods, beverages, appliances, electronics, furniture, apparel, jewelry, hardware, and seasonal products. It also offers services such as gasoline, pharmacies, optical departments, hearing-aid centers, food courts, travel services, and business delivery in selected markets.
Costco markets many products under its private-label Kirkland Signature brand and sells merchandise through warehouse locations and e-commerce platforms.
Featured Stories Five stocks we like better than Costco Wholesale A Chinese Rival Just Spooked Memory Stocks—How Worried Should Micron Investors Be? Could T-Mobile’s Satellite Competition Fears Create a Buying Opportunity? Surgical Precision, Sustainable Returns: Johnson & Johnson Secures Its Cash Flow Runway Tesla’s Robotaxi Lands in Paris—But Europe’s Real Fight Is Over Cheap EVs
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.
Woodstock Corp grew its holdings in Costco Wholesale Corporation (NASDAQ: COST) by 8.6% in the third quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 23,711 shares of the retailer's stock after buying an additional 1,874 shares during the quarter. Costco Wholesale makes
NorthCrest Asset Manangement LLC boosted its position in shares of Costco Wholesale Corporation (NASDAQ:COST – Free Report) by 11.6% in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 38,038 shares of the retailer’s stock after acquiring an additional 3,958 shares during the period. Costco Wholesale accounts for 0.8% of NorthCrest Asset Manangement LLC’s holdings, making the stock its 22nd biggest position. NorthCrest Asset Manangement LLC’s holdings in Costco Wholesale were worth $34,490,000 at the end of the most recent quarter.
A number of other hedge funds and other institutional investors also recently bought and sold shares of COST. Palisade Asset Management LLC increased its position in shares of Costco Wholesale by 1.4% during the fourth quarter. Palisade Asset Management LLC now owns 702 shares of the retailer’s stock worth $605,000 after purchasing an additional 10 shares in the last quarter. Graybill Wealth Management LTD. lifted its holdings in shares of Costco Wholesale by 0.3% during the 4th 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 boosted its position in shares of Costco Wholesale by 1.2% in 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. boosted its position in shares of Costco Wholesale by 1.8% in 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 in the last quarter. Finally, First National Bank of Hutchinson grew its stake in 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 buying an additional 10 shares during the last quarter. Hedge funds and other institutional investors own 68.48% of the company’s stock.
Analysts Set New Price Targets
Several research analysts recently issued reports on the company. Freedom Broker reduced their target price on Costco Wholesale from $1,030.00 to $1,010.00 and set a “buy” rating on the stock in a research report on Friday, September 25th. UBS Group reissued a “buy” rating on shares of Costco Wholesale in a report on Thursday, September 17th. Evercore restated an “outperform” rating on shares of Costco Wholesale in a research note on Tuesday, September 22nd. Bank of America cut their price objective on shares of Costco Wholesale from $1,200.00 to $1,095.00 and set a “buy” rating on the stock in a report on Wednesday, September 16th. Finally, Wells Fargo & Company decreased their price objective on shares of Costco Wholesale from $1,000.00 to $950.00 and set an “equal weight” rating for the company in a research report on Friday, September 25th. Twenty-three research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Costco Wholesale has an average rating of “Moderate Buy” and an average price target of $1,046.27.
Check Out Our Latest Research Report on Costco Wholesale
Insider Buying and Selling
In related news, EVP Claudine Adamo sold 2,200 shares of the stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total value of $2,015,046.00. Following the transaction, the executive vice president owned 7,134 shares in the company, valued at approximately $6,534,244.62. This represents a 23.57% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.10% of the stock is currently owned by corporate insiders.
Trending Headlines about Costco Wholesale
Here are the key news stories impacting Costco Wholesale this week:
Positive Sentiment: September sales accelerated: Costco reported September net sales of approximately $30.02 billion, up 13.0% year over year. The result reinforces expectations for resilient consumer demand and was a key catalyst for renewed investor interest. Costco Wholesale Posts 13% September Sales Growth
Positive Sentiment: Digital momentum remains strong: September digital sales increased 19%, aided by expanded delivery options and personalization. Continued e-commerce growth provides an additional avenue for Costco to increase sales beyond its warehouse base. Costco’s September Digital Sales Growth
Positive Sentiment: Long-term shareholder appeal: Commentary highlights Costco’s history of share-price appreciation and dividend growth. Its dividend increased substantially over the past five years, while investors continue to anticipate potential special dividends. Costco Dividend Income Outlook
Positive Sentiment: Potential warehouse expansion: Filings indicate a proposed West Oakland Costco could employ hundreds, suggesting continued investment in the company’s physical-store footprint. West Oakland Costco Employment Plans
Neutral Sentiment: Membership value is mixed: Costco’s bulk pricing can provide low per-unit costs, but the $65 annual membership and large package sizes may not benefit every household. This supports the value proposition for high-volume shoppers but offers limited evidence of a broad sales catalyst. Costco Grocery Staple Pricing Analysis
Negative Sentiment: Valuation and yield risks: COST trades at roughly 45–46 times earnings, while the 10-year Treasury yield has reached 5.2%, far above Costco’s dividend yield. Higher bond yields can make the stock less attractive to income-focused investors and increase pressure on its premium valuation. Costco Stock Versus 10-Year Treasury Yields
Negative Sentiment: Fuel-related growth may be less durable: Higher gasoline prices have boosted reported sales at Costco’s fuel operations. If prices decline, some of the recent sales growth could fade, though cheaper gasoline could benefit household budgets and merchandise spending. Impact of Cheaper Gas on Costco Sales and Margins
Costco Wholesale Stock Performance
Shares of COST stock opened at $959.44 on Tuesday. The business has a fifty day moving average of $930.81 and a 200 day moving average of $963.26. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.06 and a quick ratio of 0.62. The firm has a market capitalization of $425.16 billion, a price-to-earnings ratio of 46.22, a price-to-earnings-growth ratio of 4.05 and a beta of 0.88.
Costco Wholesale (NASDAQ:COST – Get Free Report) last posted its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, beating the consensus estimate of $6.54 by $0.21. The business had revenue of $95.72 billion for the quarter, compared to the consensus estimate of $94.97 billion. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. The company’s quarterly revenue was up 11.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $5.87 EPS. As a group, research analysts expect that Costco Wholesale Corporation will post 22.85 earnings per share for the current year.
Costco Wholesale Profile
(Free Report)
Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells a broad selection of merchandise, including groceries, fresh foods, beverages, appliances, electronics, furniture, apparel, jewelry, hardware, and seasonal products. It also offers services such as gasoline, pharmacies, optical departments, hearing-aid centers, food courts, travel services, and business delivery in selected markets.
Costco markets many products under its private-label Kirkland Signature brand and sells merchandise through warehouse locations and e-commerce platforms.
Featured Articles
Five stocks we like better than Costco Wholesale
Salesforce Just Got a Rare Double Upgrade—What Changed?
OpenAI’s Revenue Scare Could Be a Big Opportunity for Investors
China Still Dominates Rare Earths—These 3 U.S. Companies Could Benefit
3 REITs That May Win in a Higher Interest Rate Environment
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.
Terra Nova Asset Management LLC decreased its position in shares of Costco Wholesale Corporation (NASDAQ: COST) by 18.7% during the undefined quarter, according to its most recent disclosure with the SEC. The firm owned 2,967 shares of the retailer's stock after selling 682 shares during the period. Costco Wholesale accounts for approximately 1.9%
JGP Wealth Management LLC raised its stake in shares of Costco Wholesale Corporation (NASDAQ:COST – Free Report) by 1,574.4% in the 3rd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 71,147 shares of the retailer’s stock after purchasing an additional 66,898 shares during the period. Costco Wholesale accounts for approximately 5.6% of JGP Wealth Management LLC’s holdings, making the stock its 4th biggest position. JGP Wealth Management LLC’s holdings in Costco Wholesale were worth $64,768,000 at the end of the most recent reporting period.
A number of other institutional investors have also recently made changes to their positions in the company. C M Bidwell & Associates Ltd. purchased a new stake in shares of Costco Wholesale in the second quarter worth about $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in Costco Wholesale during the fourth quarter valued at approximately $27,000. Burk Holdings LLC purchased a new position in Costco Wholesale during the 2nd quarter valued at approximately $30,000. Manning & Napier Advisors LLC purchased a new position in Costco Wholesale during the 2nd quarter valued at approximately $30,000. Finally, Lifetime Wealth Management P.C. bought a new stake in Costco Wholesale in the 4th quarter worth approximately $28,000. Hedge funds and other institutional investors own 68.48% of the company’s stock.
Analyst Ratings Changes Several analysts have recently issued reports on the company. HSBC raised Costco Wholesale to a “buy” rating in a report on Friday, September 25th. Sanford C. Bernstein cut their target price on shares of Costco Wholesale from $1,144.00 to $1,143.00 and set an “outperform” rating for the company in a report on Friday, September 25th. BTIG Research restated a “buy” rating and issued a $1,125.00 price target on shares of Costco Wholesale in a research report on Wednesday, September 23rd. Oppenheimer restated an “outperform” rating and issued a $1,160.00 price target on shares of Costco Wholesale in a research report on Wednesday, September 16th. Finally, JPMorgan Chase & Co. dropped their price objective on shares of Costco Wholesale from $1,100.00 to $1,015.00 and set an “overweight” rating for the company in a research note on Friday, September 25th. Twenty-three research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Costco Wholesale currently has an average rating of “Moderate Buy” and an average price target of $1,046.27.
View Our Latest Report on COST Costco Wholesale Price Performance Shares of COST stock opened at $959.44 on Tuesday. 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 0.11, a quick ratio of 0.62 and a current ratio of 1.06. The firm has a market capitalization of $425.16 billion, a P/E ratio of 46.22, a P/E/G ratio of 4.05 and a beta of 0.88. The stock has a 50 day moving average price of $930.81 and a 200 day moving average price of $963.26.
Costco Wholesale (NASDAQ:COST – Get Free Report) last announced its quarterly earnings data on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, beating the consensus estimate of $6.54 by $0.21. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. The company had revenue of $95.72 billion for the quarter, compared to the consensus estimate of $94.97 billion. During the same quarter in the prior year, the company posted $5.87 EPS. Costco Wholesale’s quarterly revenue was up 11.1% on a year-over-year basis. As a group, sell-side analysts predict that Costco Wholesale Corporation will post 22.85 earnings per share for the current year.
Insider Buying and Selling at Costco Wholesale In other news, EVP Claudine Adamo sold 2,200 shares of the business’s stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total transaction of $2,015,046.00. Following the completion of the sale, the executive vice president directly owned 7,134 shares of the company’s stock, valued at approximately $6,534,244.62. The trade was a 23.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.10% of the company’s stock.
Key Costco Wholesale News Here are the key news stories impacting Costco Wholesale this week:
Positive Sentiment: Strong September sales: Costco reported September net sales of $30.02 billion, a 13.0% year-over-year increase. Comparable sales excluding gasoline and currency effects rose 7.6%, accelerating from August’s 5.4%, suggesting resilient consumer demand. Costco Wholesale Posts 13% September Sales Growth Positive Sentiment: Digital business remains a growth driver: September digital sales increased 19%, supported by expanded delivery options and more personalized shopping, extending Costco’s broader fiscal 2026 momentum. Costco’s 19% September Digital Sales Growth Positive Sentiment: Historical performance supports dip-buying: Costco stock has historically recovered after sizable pullbacks; it was higher one year later in seven of nine instances since 2010 when it fell at least 14% from a record close. Costco Stock Is 14% Below Its Record Positive Sentiment: Dividend growth adds shareholder appeal: Costco’s dividend has risen 86% over five years, while investors continue to anticipate the possibility of another special dividend. Costco Dividend Income Outlook Neutral Sentiment: Membership value is mixed: A comparison of 27 grocery staples found Costco often offers lower unit prices, but bulk packaging and the annual membership fee can make total spending less attractive for smaller households. Is a $65 Costco Membership Worth It for Groceries? Neutral Sentiment: Royal Bank of Canada reaffirmed its “Sector Perform” rating, indicating no significant change in its near-term view. Royal Bank of Canada Reaffirms Sector Perform Rating Negative Sentiment: Valuation and yield risks remain: Costco trades at roughly 45–46 times earnings, a substantial premium to the broader market. With the 10-year Treasury yield near 5.2%, the company’s relatively small dividend is less attractive to income-focused investors. Costco Stock Versus 10-Year Treasury Notes Negative Sentiment: Some September sales growth benefited from elevated gasoline prices; cheaper fuel could reduce reported revenue and fuel-related traffic, increasing pressure on Costco to sustain growth through merchandise and membership gains. What Cheaper Gas Would Mean for Costco’s Sales and Margins (Free Report)
Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells a broad selection of merchandise, including groceries, fresh foods, beverages, appliances, electronics, furniture, apparel, jewelry, hardware, and seasonal products. It also offers services such as gasoline, pharmacies, optical departments, hearing-aid centers, food courts, travel services, and business delivery in selected markets.
Costco markets many products under its private-label Kirkland Signature brand and sells merchandise through warehouse locations and e-commerce platforms.
Featured Articles Five stocks we like better than Costco Wholesale Salesforce Just Got a Rare Double Upgrade—What Changed? OpenAI’s Revenue Scare Could Be a Big Opportunity for Investors China Still Dominates Rare Earths—These 3 U.S. Companies Could Benefit 3 REITs That May Win in a Higher Interest Rate Environment
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's September net sales surged 13% to $30.02 billion, with comparable sales rising 11.4%.Costco's membership growth, digital expansion and plans for 33 warehouse openings support its outlook.COST's forward P/E of 41.55 exceeds the industry's 27.76, suggesting investors wait for a better entry point.
Costco Wholesale Corporation’s (COST - Free Report) September sales update offers fresh insight into the retail giant’s momentum. A dominant force in the warehouse club space with a long track record of growth, Costco has remained an investor favorite. However, the latest sales figures raise a key question: Should investors buy the stock now, hold their positions or book profits?
The September report showed solid comparable sales growth across regions, along with accelerating e-commerce sales. This reinforces the view that Costco’s operational execution and customer loyalty remain strong despite a challenging retail backdrop.
Breaking Down Costco’s September Sales ReportCostco reported net sales of $30.02 billion for the five weeks ended Oct. 4, 2026, representing a 13% increase from $26.58 billion in the year-ago period. Total comparable sales rose 11.4%, reflecting healthy demand across its operating regions. Comparable sales increased 12.5% in the United States, 6.3% in Canada and 10.8% in Other International markets. Excluding the impacts of gasoline price fluctuations and foreign exchange movements, total comparable sales advanced 7.6%.
Costco’s membership-driven business model remains a key competitive strength, with high renewal rates providing a steady revenue stream and reinforcing customer loyalty. Its bulk purchasing power, strong supplier relationships and efficient inventory management enable the retailer to maintain competitive pricing. This value-focused approach resonates with budget-conscious consumers seeking affordability and quality, supporting consistent demand and strengthening Costco’s position in a competitive retail environment. (Read: Costco's September Sales Rise 13% on Strong Comps, Digital Growth)
Unlocking Costco’s Growth DriversCostco continues to stand out as a compelling long-term investment opportunity, supported by its resilient business model, strong customer loyalty and continued market-share gains. The warehouse retailer’s focus on offering quality merchandise at competitive prices continues to attract shoppers and encourage higher spending, even in an uncertain consumer environment. Its ability to cater to both value-conscious households and consumers seeking premium products strengthens its competitive positioning. The continued expansion of its Kirkland Signature private-label portfolio, which offers meaningful savings over national brands without compromising quality, reinforces Costco’s pricing advantage.
The company’s membership-driven business model remains a cornerstone of its long-term investment appeal, providing a dependable recurring revenue stream and supporting sustained customer engagement. Costco ended fiscal 2026 with 84.1 million paid memberships, representing 3.8% growth, while total cardholders increased 3.6% to 150.4 million. Fourth-quarter membership fee income advanced 7.3% to approximately $1,850 million. Worldwide renewal rates improved 10 basis points sequentially to 89.8%, while U.S. and Canadian renewal rates reached 92.3%. The company is also attracting younger consumers, with members under 40 now representing more than a quarter of its membership base.
Growing adoption of Costco’s premium Executive membership tier provides a meaningful opportunity to strengthen customer engagement and increase spending per member. Executive members generally spend more and renew at higher rates than Gold Star members. Costco ended fiscal 2026 with 42.3 million paid Executive members, up 9.4% year over year. These members accounted for 75.6% of total sales. Management believes the combination of membership expansion, stronger Executive penetration and greater spending per member can sustain revenue growth. Targeted digital communications, enhanced membership benefits and personalized engagement initiatives should further reinforce customer loyalty and strengthen Costco’s ability to capture a larger share of household spending.
Costco’s expanding digital capabilities provide another compelling growth avenue as consumers increasingly prioritize convenience, faster fulfillment and seamless shopping experiences. The retailer is strengthening its omnichannel ecosystem through website and mobile application improvements, personalized product recommendations, and expanded delivery partnerships with Instacart, DoorDash and Uber Eats. These initiatives are helping attract younger shoppers and capture additional purchasing occasions beyond traditional warehouse visits. Digitally enabled sales exceeded $33 billion in fiscal 2026, growing more than 20%. Management indicated that third-party delivery sales are largely incremental, complementing rather than replacing warehouse purchases. Costco is also exploring opportunities in artificial intelligence-driven product discovery while improving online product visibility and customer engagement.
Costco’s expanding warehouse network and diversified ancillary businesses further strengthen its long-term growth prospects. The company ended fiscal 2026 with 939 warehouses worldwide and plans to open 33 locations in fiscal 2027, including five relocations. Its longer-term ambition of reaching approximately 30 net new warehouses annually highlights substantial opportunities across underserved U.S. markets and international regions. Alongside physical expansion, Costco continues to broaden its appeal through gasoline, pharmacy and travel services, which provide compelling reasons for members to engage more frequently with the brand. Management plans roughly $7.5 billion in fiscal 2027 capital expenditures, primarily supporting warehouse expansion and supply-chain improvements. These investments should strengthen Costco’s operating capabilities and support sustainable growth over the long term.
Costco Navigates Competitive Landscape as Peers Scale UpCostco's impressive sales figures are part of a larger retail picture where competition is intensifying. Rivals like Dollar General Corporation (DG - Free Report) and Target Corporation (TGT - Free Report) are investing in expanding their product assortments, enhancing supply-chain efficiency and upgrading in-store and digital experiences to capture greater market share. These retailers are also sharpening their value propositions through competitive pricing, private-label expansion and targeted promotional strategies.
Margins remain an area to monitor, as Costco continues to navigate rising costs related to healthcare, general liability, commodities, freight and tariffs. While the company has leveraged productivity initiatives and supply-chain efficiencies to mitigate some pressures, uncertainty around oil prices, tariffs and other input costs could weigh on margin performance.
Does Costco Tick the Boxes for Value Investing?Costco stock has climbed 11.2% year to date compared with the industry’s rise of 8.4%. A sneak peek into key retail peers' performance reveals that shares of Dollar General have tumbled 4.7% during the same time frame, while Target has surged 57.1%.
Image Source: Zacks Investment Research
Despite Costco’s strong fundamentals, its premium valuation remains a key consideration for investors. The stock has commanded a premium multiple due to its consistency, brand strength and membership economics.
Costco's forward 12-month price-to-earnings ratio stands at 41.55, higher than the industry’s ratio of 27.76. However, it is trading below its 12-month median level of 44.79, indicating some moderation in valuation. Costco is trading at a premium to Target (with a forward 12-month P/E ratio of 15.78) and Dollar General (15.32).
Image Source: Zacks Investment Research
How Consensus Estimates Stack Up for CostcoThe Zacks Consensus Estimate for Costco’s current fiscal-year sales and earnings per share implies year-over-year growth of 8.2% and 11.7%, respectively. For the next fiscal year, the consensus estimate indicates a 7.1% rise in sales and 9.1% growth in earnings.
Image Source: Zacks Investment Research
How to Play Costco Stock: Buy, Hold or Sell?Costco’s strong September sales, loyal membership base, expanding digital capabilities and warehouse growth plans reinforce its long-term investment appeal. However, its premium valuation, intensifying competition and lingering cost pressures warrant a measured approach despite encouraging earnings growth expectations. Existing investors may consider holding their positions to benefit from Costco’s long-term growth prospects, while prospective investors should wait for a more attractive entry point before initiating positions.
Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways COST's fiscal 2026 cash and short-term investments reached $21.3 billion, far exceeding its $6.2 billion debt.Operating cash flow rose to $15.8 billion, generating $9.4 billion in free cash flow after capex.Costco plans $7.5 billion in fiscal 2027 capital spending for new warehouses and supply-chain investments. Costco Wholesale Corporation (COST - Free Report) continues to demonstrate solid financial strength, supported by substantial cash reserves, manageable debt and robust operating cash flows that provide it with a competitive edge in the retail landscape characterized by evolving consumer spending patterns, inflationary pressures and rising operating costs. Its fiscal 2026 balance sheet highlights a healthy liquidity position and an expanding equity base, providing the warehouse retailer with considerable financial flexibility.
Costco ended fiscal 2026 with cash and cash equivalents of $20,207 million, up from $14,161 million a year earlier. Including short-term investments of $1,094 million, its combined cash and short-term investments reached approximately $21,301 million. Current assets increased to $46,582 million from $38,380 million in the last fiscal year and exceeded current liabilities of $43,952 million.
Total debt stood at approximately $6,162 million, significantly below its cash holdings. While long-term debt, excluding current maturities, declined to $3,914 million from $5,713 million, the current portion of long-term debt increased to $2,248 million from $75 million. Nevertheless, Costco's substantial net cash position provides a cushion, enabling it to meet operating requirements and manage debt obligations.
The company's financial resilience is further reinforced by healthy cash generation. Net cash provided by operating activities increased to $15,825 million in fiscal 2026 from $13,335 million last year. With capital expenditures totaling $6,435 million, Costco generated approximately $9,390 million in free cash flow, demonstrating its ability to fund substantial investments through internally generated resources.
This financial capacity is particularly important as the company plans approximately $7.5 billion in capital expenditures for fiscal 2027, primarily to support new warehouse openings and supply-chain investments. Its strong cash generation provides the flexibility to pursue these growth initiatives while limiting dependence on external financing.
Costco's total assets also increased to $89,045 million from $77,099 million, while stockholders' equity climbed to $35,803 million from $29,164 million. Retained earnings rose to $28,591 million from $22,650 million, strengthening its capital base.
That said, Costco's sizable cash reserves, manageable debt, robust operating cash flows and expanding equity underscore its solid financial foundation. These strengths provide meaningful flexibility to withstand industry challenges, invest in operational improvements and support long-term expansion. While competitors must also balance growth investments with financial obligations, Costco's substantial liquidity and internally generated cash flow reinforce its ability to pursue strategic priorities without placing undue strain on its balance sheet.
Does Costco Have a Balance Sheet Edge Over TGT & BJ?Target Corporation (TGT - Free Report) maintains substantial liquidity, although its debt obligations remain significant. Target ended second-quarter fiscal 2026 with cash and cash equivalents of $5,411 million and total debt of approximately $15,357 million. Target generated $4,519 million in operating cash flow during the first six months, supporting capital investments and shareholder returns. With capital expenditures rising, Target continues to balance liquidity management, debt obligations and strategic investments to strengthen its competitive positioning.
BJ’s Wholesale Club Holdings, Inc. (BJ - Free Report) continues to demonstrate disciplined financial management, supported by healthy cash generation and manageable leverage. BJ’s Wholesale generated $265.5 million in adjusted free cash flow during second-quarter fiscal 2026, while its net leverage remained at 0.5 times. Although BJ’s Wholesale held approximately $30 million in cash against $629.2 million in debt, its improving cash generation supports club expansion and digital investments. BJ’s Wholesale remains focused on balancing growth investments with shareholder returns.
How Does Costco Stack Up Against Its Industry?Costco stock has climbed 11.3% year to date compared with the industry’s rise of 9.8%.
Image Source: Zacks Investment Research
What Does Costco’s Current Valuation Suggest?Costco's forward 12-month price-to-earnings ratio stands at 41.55, higher than the industry’s ratio of 27.76. However, it is trading below its 12-month median level of 44.79, indicating some moderation in valuation.
Image Source: Zacks Investment Research
What Do Earnings Estimates Signal for Costco?The Zacks Consensus Estimate for Costco’s current fiscal-year sales and earnings per share implies year-over-year growth of 8.2% and 11.7%, respectively. For the next fiscal year, the consensus estimate indicates a 7.1% rise in sales and 9.1% growth in earnings.
Image Source: Zacks Investment Research
Costco’s Investment CaseCostco's strong balance sheet, substantial liquidity and robust cash generation reinforce its ability to navigate industry challenges while funding expansion and strategic investments. Its financial flexibility and resilient membership-driven business model support long-term growth prospects. However, inflationary pressures and lingering tariff-related uncertainties warrant caution. Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The 10-year U.S. Treasury note rarely looks this appealing. Its yield reached 5.22% on Oct. 8, according to Federal Reserve data, the highest reading since March 2002. Costco Wholesale (COST +1.32%) offers a forward dividend yield of 0.6%.
Put $10,000 into each, and the Treasury hands you payouts of about $520 a year while Costco sends you around $60. Why bother?
But income is only one piece of an investment's return, and for long-term investors, it's often a small part.
Premium Feature
Moneyball Superscore
83/100
Today's Change
(
1.32
%) $
12.52
Current Price
$
959.44
The hot dog doesn't get bigger Like Costco's famous hot dog and soda combo (still $1.50 after 41 years), Treasury coupons have a fixed value. A 10-year note's coupon rate is locked for 10 years. The interest you receive in 2036 will match next spring's payment to the penny, even after a decade of inflation.
Hold to maturity, and you get your original $10,000 back; it'll just buy less stuff than it does today. The coupon payouts you receive along the way will help, assuming the rate you locked in remains ahead of average inflation.
Rate changes only matter if you sell your Treasuries before maturity. No one will pay full price for your note if new Treasuries offer better rates, but your note will gain value when rates go down.
But Costco's dividend has grown 13.2% per year over the last five years. The company also has a habit of surprising shareholders with special dividends, such as the $15-per-share dividend it paid in January 2024. That one-time payment was roughly equivalent to 15 of the regular quarterly payouts at the time.
The business behind the stock Stocks let you own a small piece of an actual business. People work hard to increase the corporation's value, which over time lifts the stock price. No empire lasts forever, but Costco's story started decades ago, and it's still a market-beating growth stock.
Costco generated $303.2 billion in sales over the past 12 months, up 10.1% year over year. Earnings per share rose 13.9% over the same period. The company keeps markups low, with a gross margin of just 12.8%, and earns a large share of its operating profit from membership fees.
As a result, $10,000 invested in Costco stock 10 years ago would be worth $63,340 today. With reinvested dividends, you're looking at $74,980 instead:
COST data by YCharts
10-year Treasury notes yielded about 1.8% in October 2016. A $10,000 investment would pay out $11,800 in total over the same decade. That's your original $10,000 plus $1,800 in coupon payouts. Treasuries bought today will pay out roughly $5,200 over the next 10 years (plus the $10,000 return of principal), but that's still a forgettable gain next to Costco's long-term returns.
The catch Costco's stock isn't cheap, exposing investors to valuation risk. It trades at 46 times trailing earnings and 38.2 times forward estimates, which is a rich price for a company expected to grow earnings about 9.7% annually.
The stock gained just 2.8% over the past year, trailing the Treasury's yield, and sits 12.8% below its 52-week high as of Oct. 12.
Image source: The Motley Fool.
Pick your cart If you need reliable income soon, the Treasury is a fine choice at 5.2%. But if you don't need the money for the next 10 years, Costco offers a few things that the Treasury note can't: a business that keeps growing, a dividend that keeps rising, and a long record of turning patient money into a much bigger pile.
Key Takeaways Costco's digitally enabled sales rose 19% in September 2026, or 19.1% excluding currency fluctuations.Digital comparable sales grew 19.5% in fiscal Q4 and 20.9% for the full year, reflecting sustained demand.Costco's website and app traffic jumped 30% in the final quarter of fiscal 2026.
Costco Wholesale Corporation (COST - Free Report) continued to demonstrate solid momentum across its digital operations in September 2026, reinforcing the strength of its online shopping ecosystem. The warehouse retailer reported a 19% year-over-year increase in digitally enabled sales for the five weeks ended Oct. 4, 2026. Excluding foreign exchange fluctuations, growth stood at 19.1%, suggesting that the reported jump was largely driven by underlying business activity rather than currency fluctuations.
The September results extend the healthy digital trends witnessed in the fourth quarter of fiscal 2026, when digitally enabled comparable sales advanced 19.5%, or 19.8% on an adjusted basis. For the full fiscal year, digitally enabled comparable sales increased 20.9%, highlighting sustained demand for Costco's digital offerings.
Costco defines digitally enabled sales as transactions initiated through digital devices, regardless of whether orders are fulfilled through warehouses, distribution centers or Costco Travel.
Costco's ongoing digital improvements provide additional context for this momentum. During the fourth quarter, e-commerce website and app traffic increased 30%, while personalized initiatives generated triple-digit sales growth. Costco expanded its same-day delivery options through partnerships with Uber Eats and DoorDash, alongside its established Instacart relationship.
September's performance reflects the continuation of an established digital growth trend, supported by broader shopping access, improving personalization and stronger engagement across Costco's digital channels.
How Walmart & Target Are Scaling Digital SalesWalmart Inc.’s (WMT - Free Report) digital momentum remains strong, with global e-commerce sales rising 23% in second-quarter fiscal 2027 and accounting for 24% of total net sales. Walmart U.S. e-commerce grew 24%, supported by store-fulfilled delivery and marketplace expansion. Walmart also reported more than 40% growth in store-fulfilled deliveries, while fast delivery grew 48%, underscoring how Walmart is using speed, assortment and fulfillment density to deepen digital engagement.
Target Corporation (TGT - Free Report) also posted healthy digital growth, with second-quarter fiscal 2026 comparable digital sales increasing 8.7%, led by more than 25% growth in same-day delivery. Target is supporting this momentum through digital personalization, AI-powered shopping tools and enhanced app experiences. Target’s digital traffic from external AI platforms is also rising more than 3.5 times the industry rate, suggesting Target is increasingly using technology and convenience to strengthen online discovery and engagement.
How Does Costco Stack Up Against Its Industry?Costco has seen its shares jump 2.2% over the past three months compared with the industry’s rise of 0.3%.
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 41.03, higher than the industry’s ratio of 27.78. However, it is trading below its 12-month median level of 44.82, indicating some moderation in valuation.
Image Source: Zacks Investment Research
What Do Earnings Estimates Signal for Costco?The Zacks Consensus Estimate for Costco’s current fiscal-year sales and earnings per share implies year-over-year growth of 8.2% and 11.7%, respectively. For the next fiscal year, the consensus estimate indicates a 7.1% rise in sales and 9.1% growth in earnings.
Image Source: Zacks Investment Research
Costco remains well-positioned for steady growth, supported by robust comparable sales, strong membership loyalty, accelerating digital engagement and warehouse expansion. However, inflationary pressures and lingering tariff-related uncertainties warrant caution. While its resilient business model and value-driven strategy support long-term prospects, these near-term challenges justify a balanced outlook. 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 (COST -0.10%) has been a winning stock for investors mainly due to capital appreciation. In the past five years, the share price has soared 110% (as of Oct. 8). The market certainly appreciates the company's steady performance, regardless of macro or industry conditions.
Investors should also pay attention to the passive income stream. The dividend yield of 0.62% isn't exciting on its own. But history says that a $10,000 investment in this retail stock could generate this much income by 2031.
Image source: The Motley Fool.
The payouts have increased over time Costco currently pays a quarterly dividend of $1.47 per share, translating to an annualized total of $5.88. That $10,000 investment would bring in just $62 in yearly income now.
The dividend payout has historically grown. In the past five years, it has risen by 86%. This is extremely encouraging. Over the last half-decade, the macroeconomic layout has been anything but stable. The COVID-19 pandemic, supply chain bottlenecks, inflationary pressure, rising interest rates, geopolitical turmoil, and the current uncertain backdrop have been no match for Costco's ability to return capital to shareholders.
No one knows what the future will bring. But let's assume that Costco's historical dividend growth rate keeps pace in the coming five years. This means that in 2031, the business would be paying $10.94 per share in annualized dividends. That same $10,000 would then yield 1.15%.
Premium Feature
Moneyball Superscore
83/100
Today's Change
(
-0.10
%) $
-1.00
Current Price
$
946.92
Adding potential upside to the equation There is no guarantee that the business will keep increasing its dividend payout at the historical rate, of course. Additionally, there's no guarantee that the payout will rise at all in the future. Investors must keep this in mind before making any decisions.
Costco's fundamentals, however, support an optimistic point of view. This is a high-quality company, no doubt. It seems that not a fiscal quarter goes by that same-store sales aren't rising, demonstrating how durable demand is from loyal customers who want to shop for quality merchandise at extremely low prices. This will never go out of favor.
Profits have consistently increased. From fiscal 2021 to fiscal 2026, diluted earnings per share climbed 84%. There was not a single down year during this stretch.
Upside can also come from Costco's sizable special dividends. The last one was a $15 payout in January 2024. Before that, there was a $10 distribution in December 2020. There is no strict policy on when these special dividends are approved or how much they will be, but they do happen roughly every two or three years.
For what it's worth, though, the company's cash and cash equivalents now total $20.2 billion. That's up from $14.2 billion a year ago. A special dividend would provide a meaningful boost to that initial $10,000 investment.
Shares of membership-based retailer Costco Wholesale (COST -0.10%) closed at a record $1,094.32 on May 19. As I write, they trade near $942, about 14% below that peak.
Drops like this aren't new to Costco, and they've usually worked out for buyers. Counting from 2010 and using closing prices adjusted for dividends, Costco shares had fallen at least 14% from a record close nine times before this latest slide. A year after each drop first hit 14%, the stock was higher in seven of those.
Costco's latest sales update might give buyers a new reason to look, too. On Wednesday, Oct. 7, the retailer said that its comparable sales excluding gas and currency climbed 7.6% in September, up from 5.4% in August. And this eases the main worry I had about the business a week ago.
Image source: The Motley Fool. Image source: The Motley Fool.
Past dips have mostly paid offFor all nine drops, the median return a year after the stock first stood 14% below its record was around 21%, and the best, in 2021, was about 58%.
The two exceptions both came in 2022. A year after the stock's January and May drops, shares were down around 1% and 3%, respectively.
And it wasn't because the company stumbled. In fiscal 2022, which ended Aug. 28, 2022, Costco's comparable sales excluding gas and currency climbed around 11%, and its earnings per share grew about 17%. The stock fell anyway. In other words, its price-to-earnings ratio shrank.
It's worth noting that the record before 2010 is weaker. From 2000 through 2009, seven drops this big left the stock higher a year later just twice, in a stretch that included the dot-com bust and the 2008 financial crisis.
Did September stop the slowdown?Costco's September report covered the five weeks ending Oct. 4, 2026, which started its fiscal 2027. Net sales climbed 13% year over year to around $30 billion.
But the number I follow most closely is comparable sales excluding gas and currency. It covers sales at warehouses and online businesses operating for over a year and removes swings in fuel prices and exchange rates, giving a clearer idea of how much more members are buying. That measure rose 7.6% in September, its fastest rate since May's 8% gain. In between, it slowed every month, slipping to 5.4% in August after 7% in June and 6.6% in July.
Some of the pickup comes from Labor Day, which was a week later than in 2025. Costco said the timing added a bit over 0.5 percentage points to September's comparable sales, after costing August a little less than 0.75 points. But even with both months adjusted for the holiday, the underlying rate rose from around 6% to about 7%.
The U.S. business did even better, with adjusted comparable sales up 8% in September against 5.6% in August. And the U.S. rise came on top of 5% adjusted growth in September 2025, so this wasn't just an easy comparison.
In my Oct. 4 piece, I wrote a September result around 7% might mean the slowdown had leveled off. It beat that.
Today's price looks more like 2022Costco's earnings per share grew 14% in fiscal 2026 (ended Aug. 30, 2026) to $20.76. At roughly $942, shares cost about 45 times those earnings.
The starting valuation differed a lot among those nine past drops, and it seems to have mattered. Based on the previous fiscal year's earnings per share, the six drops that began under 40 times earnings were all followed by gains a year later, running from about 19% to 58%. The three that started over 40 times earnings (the two in 2022 and one in 2025) saw one gain of about 14% and two small losses.
Premium Feature
Moneyball Superscore
83/100
Today's Change
(
-0.10
%) $
-1.00
Current Price
$
946.92
Sure, nine drops is a small sample, so I wouldn't read too much into that split. But today's price-to-earnings ratio of around 45 looks far more like the 2022 starting points, at about 43 and 46 times earnings, than the cheaper ones before them.
The sales slowdown I worried about a week ago reversed in September, which makes the case for the business stronger. The stock's valuation, though, is around where it was.
In the end, I think Costco's track record after big drops and its improving sales trend make the stock worth a look today. But because shares still cost around 45 times earnings, I'd buy gradually over the coming months rather than all at once. And I wouldn't count on a gain as big as the ones that followed the cheaper drops.
