Erste Group Bank Analysts Boost Earnings Estimates for COST

Key Points

• Erste Group Bank raised its FY2026 EPS estimate for Costco to $20.52 from $20.49, slightly above the current consensus estimate of $20.38. This suggests analysts see continued earnings growth ahead for the retailer.
• Costco’s latest quarterly results were mixed: EPS of $4.93 came in just below expectations, but revenue of $70.53 billion beat estimates and was well above the year-ago quarter.
• Wall Street remains broadly positive on Costco, with 22 Buy ratings and a consensus “Moderate Buy” rating. The stock was also up 3.2% in Friday trading, and the company recently announced a $1.47 quarterly dividend.

Costco Wholesale Corporation (NASDAQ:COST - Free Report) - Analysts at Erste Group Bank boosted their FY2026 earnings per share estimates for Costco Wholesale in a research note issued to investors on Wednesday, July 15th. Erste Group Bank analyst H. Engel now forecasts that the retailer will post earnings per share of $20.52 for the year, up from their prior estimate of $20.49. The consensus estimate for Costco Wholesale's current full-year earnings is $20.38 per share.

Costco Wholesale (NASDAQ:COST - Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 earnings per share for the quarter, missing analysts' consensus estimates of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The business had revenue of $70.53 billion for the quarter, compared to analysts' expectations of $70.12 billion. During the same quarter in the previous year, the firm posted $4.28 EPS.

A number of other research analysts have also recently issued reports on the stock. Deutsche Bank Aktiengesellschaft raised their price target on shares of Costco Wholesale from $1,104.00 to $1,106.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Guggenheim reissued a "neutral" rating on shares of Costco Wholesale in a research report on Monday, June 1st. Bank of America upped their target price on Costco Wholesale from $1,185.00 to $1,200.00 and gave the company a "buy" rating in a research report on Friday, May 29th. UBS Group raised their target price on Costco Wholesale from $1,205.00 to $1,275.00 and gave the stock a "buy" rating in a research note on Wednesday, May 20th. Finally, The Goldman Sachs Group lifted their price target on Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a "buy" rating in a research report on Friday, May 29th. Twenty-two analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Costco Wholesale currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,059.07.

Costco Wholesale Stock Up 3.2%

NASDAQ:COST opened at $945.57 on Friday. The company has a market cap of $419.34 billion, a PE ratio of 47.56, a P/E/G ratio of 4.44 and a beta of 0.88. Costco Wholesale has a twelve month low of $844.06 and a twelve month high of $1,096.50. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. The company's 50 day moving average is $977.09 and its two-hundred day moving average is $977.80.

Costco Wholesale Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 7th. Stockholders of record on Friday, July 24th 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 of this dividend is Friday, July 24th. Costco Wholesale's dividend payout ratio is 29.58%.

Insider Buying and Selling at Costco Wholesale

In other news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction on Tuesday, June 23rd. The shares were sold at an average price of $957.45, for a total value of $847,343.25. Following the sale, the director owned 4,779 shares in the company, valued at $4,575,653.55. This represents a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.10% of the stock is owned by insiders.

Institutional Investors Weigh In On Costco Wholesale

Hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its holdings in Costco Wholesale by 0.4% during the fourth quarter. Vanguard Group Inc. now owns 43,620,717 shares of the retailer's stock worth $37,615,889,000 after acquiring an additional 165,349 shares during the period. Geode Capital Management LLC raised its position in Costco Wholesale by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 10,388,519 shares of the retailer's stock valued at $8,919,573,000 after acquiring an additional 26,690 shares in the last quarter. Morgan Stanley lifted its holdings in Costco Wholesale by 1.1% in the fourth quarter. Morgan Stanley now owns 9,523,423 shares of the retailer's stock valued at $8,212,433,000 after acquiring an additional 107,775 shares during the period. Bank of America Corp DE lifted its holdings in 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 acquiring an additional 773,651 shares during the period. Finally, Diamant Asset Management Inc. lifted 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 during the period. 68.48% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Erste Group Bank lifted its FY2026 earnings estimate for Costco, reinforcing expectations that the retailer can deliver stronger-than-expected profit growth. Costco Wholesale Corporation analysts raise FY2026 EPS estimate
• Positive Sentiment: Costco continues to benefit from strong member demand and expanding product breadth, including third-party brands launching high-protein items through its stores, which supports traffic and sales momentum. Borealis Foods expands access to protein-rich Chef Woo noodles through Costco
• Neutral Sentiment: Several articles highlighted Costco’s upcoming July 24 ex-dividend date and August 7 payment date, which may attract income-focused investors but is not a major fundamental catalyst by itself. Costco dividend article
• Neutral Sentiment: Commentary around Costco’s valuation remains mixed, with some market coverage saying the stock still looks expensive after a strong multi-year run, which could limit upside enthusiasm. Costco stock still looks overvalued article
• Negative Sentiment: Recent coverage of a recalled Costco plant product and related recall response may weigh slightly on sentiment, though this looks more like a product-specific issue than a broad operating problem. Recalled Costco product poses big threat

Costco Wholesale Company Profile

Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company's product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco's business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.

Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.

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