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Costco Performance Overview
Costco Wholesale (NASDAQ: COST) reported an 8% year-over-year sales increase for its fiscal fourth quarter ended August 31, 2025, totaling $84.4 billion. Comparable sales rose by 5.7%, while e-commerce sales surged 13.6%. Earnings per share rose to $5.87 from $5.29, surpassing analyst expectations.
Despite these positive results, Costco’s stock has only risen 3% this year, underperforming the S&P 500’s 13% increase. The retailer has 914 locations globally, with plans to expand by opening 35 new stores in 2026. Currently, it is dealing with challenges such as tariffs affecting imported goods, which account for a third of their merchandise.
Analysts estimate an average target price for Costco’s stock that is 15% higher than its current price. However, the stock currently has a high price-to-earnings ratio of 53, indicating that it might be overvalued in the current market environment, which could contribute to its recent stock performance issues.
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