Costco Wholesale (NASDAQ:COST) Shares Climb 2.9% – Time to Buy?

Shares of Costco Wholesale Corporation (NASDAQ:COST) traded up 2.9% during trading on Wednesday. The stock traded as high as $982.64 and last traded at $982.00. 3,040,031 shares traded hands during trading, an increase of 39% from the average daily volume of 2,189,120 shares. The stock had previously closed at $954.63.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Costco reported strong September operating momentum, with net sales rising 13% year over year to $30.02 billion and digitally enabled sales increasing 19%. The results reinforce expectations that membership growth, value-focused pricing and e-commerce expansion can support revenue growth. Should Costco’s September Sales Jump and Faster Digital Growth Require Action From Costco Wholesale Investors?
• Positive Sentiment: An investment thesis highlighted potential upside from new warehouse openings and continued digital growth. Costco’s strong balance sheet—including approximately $21.3 billion of liquidity, manageable debt and robust cash flow—could help fund expansion while limiting financial risk. How Costco’s Balance Sheet Gives It an Edge Over Retail Competitors
• Positive Sentiment: Erste Group raised its FY2027 earnings forecast to $22.80 per share from $22.67 and projects FY2028 earnings of $25.01 per share, supporting the view that Costco’s earnings trajectory remains favorable.
• Positive Sentiment: Costco received early approval for a new Florida warehouse, adding to its long-term store expansion opportunity. The company is also attracting younger members, potentially broadening its customer base.
• Neutral Sentiment: Limited-time merchandise, including an exclusive Häagen-Dazs holiday offering, may support customer engagement but is unlikely to materially affect valuation or earnings.
• Negative Sentiment: Costco trades at a premium valuation, with a price-to-earnings ratio near 47 and a price-to-earnings-growth ratio above 4. Higher Treasury yields also make the company’s low dividend less competitive, leaving the stock vulnerable if growth expectations weaken. Costco Wholesale Stock Loses to 10-Year U.S. Treasury Notes on Yield

Wall Street Analysts Forecast Growth

COST has been the topic of a number of analyst reports. Raymond James Financial decreased their price target on Costco Wholesale from $1,100.00 to $1,050.00 and set an “outperform” rating on the stock in a research note on Friday, September 25th. Argus reissued a “buy” rating and set a $1,230.00 price objective on shares of Costco Wholesale in a research note on Monday, September 28th. Sanford C. Bernstein lowered 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. Citigroup began coverage on Costco Wholesale in a report on Thursday, June 18th. They set a “neutral” rating and a $1,020.00 price target for the company. Finally, Truist Financial lowered their price target on Costco Wholesale from $1,011.00 to $955.00 and set a “hold” rating for the company in a research report on Friday, September 25th. Twenty-three research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $1,081.79.

Costco Wholesale Trading Up 2.9%

The firm has a market cap of $435.15 billion, a PE ratio of 47.30, a price-to-earnings-growth ratio of 4.07 and a beta of 0.88. The stock has a 50-day simple moving average of $930.95 and a two-hundred day simple moving average of $963.12. The company has a debt-to-equity ratio of 0.11, a quick ratio of 0.62 and a current ratio of 1.06.

Costco Wholesale (NASDAQ:COST) last released its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $6.54 by $0.21. The firm 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 revenue for the quarter was up 11.1% on a year-over-year basis. During the same period last year, the business posted $5.87 EPS. As a group, sell-side analysts anticipate that Costco Wholesale Corporation will post 22.85 EPS for the current year.

Insider Buying and Selling

In other news, EVP Claudine Adamo sold 2,200 shares of the firm’s 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 transaction, the executive vice president owned 7,134 shares of the company’s stock, valued at $6,534,244.62. This trade represents a 23.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Costco Wholesale

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. State Street Corp boosted its position in shares of 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 purchasing an additional 5,749,362 shares during the period. Bank of America Corp DE raised its position in shares of 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 buying an additional 773,651 shares during the last quarter. Corient Private Wealth LLC grew its position in shares of Costco Wholesale by 838.9% during 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 in the last quarter. Invesco Ltd. lifted its position 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 buying an additional 143,150 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in Costco Wholesale by 5.5% during the 2nd 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 buying an additional 160,893 shares in the last quarter. 68.48% of the stock is owned by hedge funds and other institutional investors.

About Costco Wholesale

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.