Costco Wholesale’s (COST) “Sector Perform” Rating Reaffirmed at Royal Bank Of Canada

Costco Wholesale (NASDAQ:COST)‘s stock had its “sector perform” rating reissued by equities researchers at Royal Bank Of Canada in a research note issued to investors on Friday, Benzinga reports. They currently have a $1,000.00 target price on the retailer’s stock. Royal Bank Of Canada’s price target points to a potential upside of 8.37% from the company’s current price.

Other equities analysts also recently issued research reports about the stock. TD Cowen reissued a “buy” rating on shares of Costco Wholesale in a research note on Friday. Freedom Broker raised shares of Costco Wholesale from a “hold” rating to a “buy” rating and set a $1,030.00 target price on the stock in a research note on Tuesday, September 8th. Bank of America cut their target price on shares of Costco Wholesale from $1,200.00 to $1,095.00 and set a “buy” rating on the stock in a research note on Wednesday, September 16th. 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 on the stock in a research note on Friday. Finally, Citigroup started coverage on shares of Costco Wholesale in a research note on Thursday, June 18th. They issued a “neutral” rating and a $1,020.00 target price on the stock. Twenty-three equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $1,046.77.

Costco Wholesale Trading Up 2.9%

Shares of COST traded up $26.29 on Friday, hitting $922.77. 4,627,900 shares of the stock traded hands, compared to its average volume of 2,199,807. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.17. The firm has a market capitalization of $409.23 billion, a P/E ratio of 46.42, a P/E/G ratio of 3.78 and a beta of 0.86. The stock’s 50 day moving average is $933.96 and its two-hundred day moving average is $967.86. Costco Wholesale has a 1 year low of $844.06 and a 1 year high of $1,096.50.

Costco Wholesale (NASDAQ:COST) last announced its quarterly earnings data on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) 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 net margin of 3.01% and a return on equity of 28.04%. As a group, sell-side analysts predict that Costco Wholesale will post 20.42 earnings per share for the current year.

Institutional Investors Weigh In On Costco Wholesale

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Sarasin & Partners LLP increased its position in shares of Costco Wholesale by 6.9% in the 2nd quarter. Sarasin & Partners LLP now owns 214,194 shares of the retailer’s stock worth $200,372,000 after purchasing an additional 13,795 shares during the last quarter. Perryman Financial Advisory Inc. AD bought a new stake in shares of Costco Wholesale in the 4th quarter worth about $9,300,000. Nissay Asset Management Corp Japan increased its position in shares of Costco Wholesale by 4.1% in the 2nd quarter. Nissay Asset Management Corp Japan now owns 158,416 shares of the retailer’s stock worth $148,193,000 after purchasing an additional 6,200 shares during the last quarter. Hyperion Asset Management Ltd increased its position in shares of Costco Wholesale by 9.0% in the 2nd quarter. Hyperion Asset Management Ltd now owns 68,762 shares of the retailer’s stock worth $64,325,000 after purchasing an additional 5,656 shares during the last quarter. Finally, R Squared Ltd bought a new stake in shares of Costco Wholesale in the 2nd quarter worth about $1,413,000. Hedge funds and other institutional investors own 68.48% of the company’s stock.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Quarterly beat and resilient demand: Costco reported $6.75 in adjusted EPS versus a $6.54 consensus estimate and revenue of $95.72 billion versus expectations of $94.97 billion. Net income rose 14.9% year over year, while comparable sales increased 9.4%, reflecting continued demand for essential goods amid economic uncertainty. Costco fourth-quarter earnings
• Positive Sentiment: Digital and membership engagement remain healthy: Digitally enabled comparable sales surged 19.5%, supported by broad-based gains across categories. Costco also highlighted younger members, strong renewal rates and plans to accelerate digital investment. Costco Q4 earnings call highlights
• Positive Sentiment: Expansion supports the long-term growth story: Management plans to open 33 new warehouses in fiscal 2027, while pharmacy, gasoline and international operations contributed to the latest results. Analysts including Goldman Sachs, UBS and Bernstein remain constructive, despite adjusting some price targets. Costco expansion plans
• Neutral Sentiment: Tariff refunds boosted earnings: A $184 million tariff refund contributed approximately $0.15 per share to fourth-quarter EPS. Costco said most of the money will be reinvested in lower prices for produce, meat, beverages and other merchandise, which may support customer loyalty but makes the earnings beat less reflective of recurring profitability. Costco tariff refunds
• Negative Sentiment: Membership growth is the key concern: Analysts noted that membership-fee growth has slowed significantly. Because recurring membership income is central to Costco’s valuation and future guidance, investors may require continued gains in members and renewal rates to justify the stock’s elevated earnings multiple.
• Negative Sentiment: Valuation and cost pressures temper enthusiasm: With a price-to-earnings ratio above 46, some analysts argue that much of Costco’s execution is already priced in. Rising memory-component costs also led to a $152 million electronics-related charge, while several firms lowered price targets following the report. Costco valuation analysis

About Costco Wholesale

Costco Wholesale Corporation operates membership-based warehouse clubs that offer a broad selection of merchandise at generally competitive prices. Its product range includes groceries, fresh foods, apparel, appliances, electronics, furniture, jewelry, hardware, and seasonal goods, along with private-label products sold under the Kirkland Signature brand.

The company also provides a variety of ancillary services, including gasoline stations, pharmacies, optical centers, hearing-aid centers, food courts, tire centers, and travel services.