Costco Shares Show Strong Performance Amid Mixed Analyst Ratings

Costco Wholesale Corporation (COST), carrying a market cap of $443.3 billion, operates membership warehouses that offer a variety of branded and private-label products. Headquartered in Issaquah, Washington, the company currently manages 897 warehouses worldwide.

In the past 52 weeks, Costco’s stock has significantly outperformed the broader market. Shares of COST climbed 28.9%, whereas the S&P 500 Index ($SPX) rose by 12.7%. Year-to-date, Costco’s shares have increased by 9%, compared to a modest return from the SPX.

Further analysis shows that COST also exceeded the Consumer Staples Select Sector SPDR Fund’s (XLP) 3.3% return over the same period, alongside a 1.7% growth on a year-to-date basis.

However, shares of Costco saw a decline of 6.1% following its Q2 2025 results released on March 6. The company’s quarterly revenue reached $62.5 billion, reflecting a year-over-year increase of 9.1%. Earnings per share (EPS) rose by 2.6% to $4.02. Conversely, on April 17, the stock rallied by 2.8% after announcing a 12% increase in its quarterly dividend to $1.30 per share, which bolstered investor confidence.

For the fiscal year ending in August 2025, analysts anticipate an 11.5% year-over-year increase in COST’s EPS to $17.96. Considerable variability exists in the company’s earnings surprise history—it beat consensus estimates in two of the last three quarters but missed once.

A review of 34 analysts covering COST shows a consensus rating of “Moderate Buy.” This assessment is based on 17 “Strong Buy” ratings, four “Moderate Buys,” and 13 “Holds.”

This rating is slightly less optimistic compared to three months ago when there were 18 “Strong Buy” ratings on the stock.

On May 8, UBS Group AG analyst Michael Lasser reiterated a price target of $1,205 for COST with a “Buy” rating.

Currently, Costco shares are trading below the average price target of $1,065.59. The highest price target of $1,205 suggests a potential upside of 20.6% from prevailing levels.

On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

The views expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.