Erste Group Bank Issues Positive Estimate for COST Earnings

Key Points

• Erste Group Bank raised its FY2027 EPS estimate for Costco to $22.52 (from $22.47), which sits above the consensus estimate of $20.31 per share.
• Costco recently beat quarterly expectations (EPS $4.58 vs. $4.55; revenue $69.6B, up 9.2% YoY) and boosted its quarterly dividend to $1.47 (a >10% increase).
• Analysts remain broadly positive — consensus rating is "Moderate Buy" with a $1,045.97 target and several price-target raises — but the stock carries a rich valuation (P/E ~51.7), which could temper near-term upside.

Costco Wholesale Corporation (NASDAQ:COST - Free Report) - Investment analysts at Erste Group Bank lifted their FY2027 earnings estimates for Costco Wholesale in a report issued on Monday, April 27th. Erste Group Bank analyst H. Engel now forecasts that the retailer will post earnings of $22.52 per share for the year, up from their previous estimate of $22.47. The consensus estimate for Costco Wholesale's current full-year earnings is $20.31 per share.

Other research analysts have also issued reports about the stock. Rothschild & Co Redburn lifted their price objective on shares of Costco Wholesale from $890.00 to $1,000.00 and gave the stock a "neutral" rating in a research note on Tuesday, February 17th. BTIG Research reaffirmed a "buy" rating and set a $1,115.00 price objective on shares of Costco Wholesale in a research note on Thursday, March 5th. TD Cowen reaffirmed a "buy" rating on shares of Costco Wholesale in a research note on Friday, March 6th. Weiss Ratings upgraded shares of Costco Wholesale from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday, March 17th. Finally, Wells Fargo & Company upped their price target on shares of Costco Wholesale from $950.00 to $1,000.00 and gave the stock an "equal weight" rating in a report on Thursday, April 9th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $1,045.97.

Costco Wholesale Stock Down 0.4%

NASDAQ COST opened at $994.00 on Wednesday. The company has a quick ratio of 0.59, a current ratio of 1.06 and a debt-to-equity ratio of 0.18. The company has a fifty day moving average of $996.35 and a two-hundred day moving average of $949.11. The firm has a market capitalization of $440.99 billion, a price-to-earnings ratio of 51.69, a PEG ratio of 4.92 and a beta of 0.99. Costco Wholesale has a 52 week low of $844.06 and a 52 week high of $1,067.08.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings data on Wednesday, March 11th. The retailer reported $4.58 EPS for the quarter, topping the consensus estimate of $4.55 by $0.03. The company had revenue of $69.60 billion during the quarter, compared to analyst estimates of $68.96 billion. Costco Wholesale had a net margin of 2.99% and a return on equity of 28.57%. Costco Wholesale's quarterly revenue was up 9.2% compared to the same quarter last year. During the same period in the previous year, the firm earned $4.02 earnings per share.

Costco Wholesale Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, May 15th. Stockholders of record on Friday, May 1st will be issued a $1.47 dividend. The ex-dividend date is Friday, May 1st. This is a boost from Costco Wholesale's previous quarterly dividend of $1.30. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale's dividend payout ratio (DPR) is currently 27.04%.

Insider Activity at Costco Wholesale

In other news, EVP Claudine Adamo sold 730 shares of the company's stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $1,003.02, for a total value of $732,204.60. Following the transaction, the executive vice president directly owned 6,121 shares in the company, valued at approximately $6,139,485.42. This represents a 10.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 0.10% of the company's stock.

Institutional Trading of Costco Wholesale

Hedge funds have recently added to or reduced their stakes in the business. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new stake in Costco Wholesale in the fourth quarter worth about $27,000. Lifetime Wealth Management P.C. purchased a new stake in Costco Wholesale in the fourth quarter worth about $28,000. Mcguire Capital Advisors Inc. purchased a new stake in Costco Wholesale in the fourth quarter worth about $28,000. Hurley Capital LLC lifted its stake in Costco Wholesale by 120.0% in the third quarter. Hurley Capital LLC now owns 33 shares of the retailer's stock worth $31,000 after acquiring an additional 18 shares during the period. Finally, Entrust Financial LLC purchased a new stake in Costco Wholesale in the fourth quarter worth about $31,000. 68.48% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Costco Wholesale

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

• Positive Sentiment: Membership renewal rates remain near record highs and management is working to grow digital renewals (targeted outreach, auto‑renew). Strong renewals support recurring revenue and cash flow. Costco's Renewal Rates Hold Strong
• Positive Sentiment: Costco raised its dividend by more than 10%, signaling strong free cash flow and shareholder returns that can underpin multiple expansion or support the stock during volatility. Giants Costco, Sanofi, and SAP Raise Dividends
• Positive Sentiment: Analysts note growth initiatives — Kirkland brand expansion, rising digital sales, and plans for ~28 new warehouses in fiscal 2026 — which support mid‑to‑long‑term revenue growth. Costco vs. Dollar General
• Positive Sentiment: Recent earnings commentary and sector comparisons emphasize Costco’s resilience versus traditional discounters (traffic gains, comp strength), reinforcing its premium membership “flywheel.” Costco vs. Target: One Stock Is Near Its All-Time High
• Neutral Sentiment: Several outlets flag that COST is a “trending” stock with heavy investor attention — that can amplify moves (both up and down) but is not a directional fundamental catalyst by itself. Costco Is a Trending Stock
• Negative Sentiment: Prominent commentators note Costco’s rich valuation (roughly ~49x reported earnings in recent commentary), which raises concerns about near‑term upside and makes the stock sensitive to any slowdown in growth. Jim Cramer on Costco

About Costco Wholesale

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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