Erste Group Bank Issues Positive Forecast for COST Earnings

Key Points

• Erste Group Bank slightly raised its FY2027 earnings estimate for Costco to $22.65 per share, above the current consensus forecast of $20.38.
• Costco’s latest quarterly results were mixed: it missed EPS by $0.01 but beat revenue expectations with $70.53 billion in sales and continued strong profitability metrics.
• Wall Street remains broadly upbeat on Costco, with 22 Buy ratings and a Moderate Buy consensus price target of about $1,061.45, even as the stock trades below recent highs and some analysts warn about valuation.

Costco Wholesale Corporation (NASDAQ:COST - Free Report) - Investment analysts at Erste Group Bank upped their FY2027 earnings estimates for Costco Wholesale in a research report issued to clients and investors on Thursday, June 25th. Erste Group Bank analyst H. Engel now forecasts that the retailer will earn $22.65 per share for the year, up from their previous forecast of $22.61. The consensus estimate for Costco Wholesale's current full-year earnings is $20.38 per share.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The retailer reported $4.93 EPS 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 company had revenue of $70.53 billion during the quarter, compared to analyst estimates of $70.12 billion. During the same quarter in the previous year, the business posted $4.28 earnings per share.

A number of other analysts have also commented on COST. Raymond James Financial boosted their target price on Costco Wholesale from $1,000.00 to $1,100.00 and gave the company an "outperform" rating in a research report on Friday, March 6th. Mizuho set a $1,100.00 price target on Costco Wholesale in a report on Monday, June 1st. Roth Mkm raised their price objective on Costco Wholesale from $769.00 to $781.00 and gave the company a "sell" rating in a research note on Friday, May 29th. BMO Capital Markets boosted their price objective on Costco Wholesale from $1,175.00 to $1,315.00 and gave the company an "outperform" rating in a report on Friday, March 6th. Finally, Jefferies Financial Group reaffirmed a "buy" rating and set a $1,050.00 target price on shares of Costco Wholesale in a research report on Thursday, March 5th. Twenty-two investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $1,061.45.

Costco Wholesale Price Performance

COST stock opened at $935.47 on Wednesday. The stock has a market capitalization of $414.86 billion, a PE ratio of 47.06, a price-to-earnings-growth ratio of 4.59 and a beta of 0.88. The company's 50-day moving average is $993.97 and its 200-day moving average is $971.96. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. Costco Wholesale has a 1 year low of $844.06 and a 1 year high of $1,096.50.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the stock. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in Costco Wholesale during the 4th quarter worth $27,000. Mcguire Capital Advisors Inc. bought a new stake in shares of Costco Wholesale in the 4th quarter worth $28,000. Lifetime Wealth Management P.C. purchased a new stake in shares of Costco Wholesale in the fourth quarter valued at about $28,000. Manning & Napier Advisors LLC lifted its position in shares of Costco Wholesale by 750.0% during the first quarter. Manning & Napier Advisors LLC now owns 34 shares of the retailer's stock valued at $34,000 after purchasing an additional 30 shares in the last quarter. Finally, Entrust Financial LLC bought a new position in shares of Costco Wholesale during the fourth quarter valued at about $31,000. Institutional investors own 68.48% of the company's stock.

Insider Transactions at Costco Wholesale

In other Costco Wholesale news, Director Kenneth D. Denman sold 885 shares of Costco Wholesale stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the completion of the transaction, the director owned 4,779 shares in the company, valued at approximately $4,575,653.55. The trade was a 15.62% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.10% of the company's stock.

Costco Wholesale Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were given a $1.47 dividend. This represents a $5.88 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Friday, May 1st. This is a positive change from Costco Wholesale's previous quarterly dividend of $1.30. Costco Wholesale's payout ratio is 29.58%.

Costco Wholesale News Roundup

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

• Positive Sentiment: Analysts highlighted Costco’s executive membership growth as a key earnings driver, saying richer fee income and a better sales mix could unlock more profit, with a China expansion opportunity adding longer-term upside. Costco's Executive Penetration Could Unlock More Earnings
• Positive Sentiment: Several articles pointed to Costco’s strong post-earnings setup versus peers, noting robust revenue growth, sticky membership cash flow, and a resilient value proposition as households remain squeezed by inflation. Costco vs. Target: One Retailer Is A Much Stronger Buy In 2026
• Positive Sentiment: Costco is using AI to improve online search and product listings, and early results suggest digital traffic has roughly tripled, with strong conversion rates that could support e-commerce growth. Costco (COST) Is Using AI To Triple Digital Traffic And Lift Conversions
• Positive Sentiment: Costco was also named a top retail pick by Bernstein and described as a better buy than some peers because of its membership model and consistent execution. Costco Stock (COST) Crowned Top Retail Pick for the Rest of 2026 — Here’s Why
• Neutral Sentiment: Additional coverage discussed Costco’s ability to benefit from inflation and geopolitical supply pressures, but also warned that the stock’s valuation is already rich versus expected growth. Costco: Hormuz And Inflation Provide Momentum But Be Mindful Of The Valuation
• Negative Sentiment: Bearish commentary argued Costco’s slower growth profile may not justify its high earnings multiple, which is likely contributing to selling pressure. Costco Stock: Future 10 Percent And Decelerating Growth Rate Not Worth 50x Earnings
• Negative Sentiment: Another article was explicitly titled “More Pain To Come,” reinforcing concerns that investors may be rotating away from Costco despite its operational strengths. Costco Stock: More Pain To Come

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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