FY2028 EPS Forecast for Costco Wholesale Boosted by Analyst

Key Points

• Erste Group Bank raised Costco’s FY2028 EPS forecast to $25.07 from $25.01, above the current full-year consensus estimate of $22.70.
• Analyst sentiment remains favorable, with 25 Buy ratings, eight Holds and one Sell; Costco has a “Moderate Buy” consensus rating and a $1,086.19 average price target.
• Costco recently exceeded quarterly expectations, reporting $6.75 in EPS and $95.72 billion in revenue, while sales increased 11.1% year over year. The company also declared a $1.47 quarterly dividend, implying a 0.6% yield.

Costco Wholesale Corporation (NASDAQ:COST - Free Report) - Equities research analysts at Erste Group Bank upped their FY2028 earnings per share estimates for Costco Wholesale in a note issued to investors on Wednesday, October 21st. Erste Group Bank analyst H. Engel now forecasts that the retailer will earn $25.07 per share for the year, up from their previous estimate of $25.01. The consensus estimate for Costco Wholesale's current full-year earnings is $22.70 per share.

Several other equities analysts have also recently weighed in on COST. Mizuho decreased their target price on shares of Costco Wholesale from $1,100.00 to $1,065.00 and set an "outperform" rating for the company in a research note on Friday, September 25th. Robert W. Baird set a $1,175.00 price target on shares of Costco Wholesale in a research report on Friday, September 25th. HSBC upgraded shares of Costco Wholesale to a "buy" rating in a research note on Friday, September 25th. Oppenheimer reissued an "outperform" rating and issued a $1,160.00 price objective on shares of Costco Wholesale in a research report on Wednesday, September 16th. Finally, Jefferies Financial Group lowered their price objective on shares of Costco Wholesale from $1,130.00 to $1,100.00 in a research note on Friday, September 25th. Twenty-five equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $1,086.19.

Costco Wholesale Trading Up 2.0%

Shares of Costco Wholesale stock opened at $1,018.21 on Friday. The stock has a market cap of $451.20 billion, a P/E ratio of 49.05, a P/E/G ratio of 4.27 and a beta of 0.88. The company has a quick ratio of 0.62, a current ratio of 1.06 and a debt-to-equity ratio of 0.11. Costco Wholesale has a 12-month low of $844.06 and a 12-month high of $1,096.50. The business's 50 day moving average is $937.12 and its 200-day moving average is $962.93.

Costco Wholesale (NASDAQ:COST - Get Free Report) last posted its quarterly earnings results on Thursday, September 24th. The retailer reported $6.75 earnings per share for the quarter, beating analysts' consensus estimates of $6.54 by $0.21. The firm had revenue of $95.72 billion during the quarter, compared to the consensus estimate of $94.97 billion. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%. The business's revenue was up 11.1% compared to the same quarter last year. During the same period last year, the company earned $5.87 earnings per share.

Hedge Funds Weigh In On Costco Wholesale

Several large investors have recently modified their holdings of the stock. Contravisory Investment Management Inc. raised its holdings in Costco Wholesale by 107.7% in the 3rd quarter. Contravisory Investment Management Inc. now owns 27 shares of the retailer's stock valued at $25,000 after acquiring an additional 14 shares during the period. C M Bidwell & Associates Ltd. bought a new stake in shares of Costco Wholesale during the second quarter worth approximately $28,000. Burk Holdings LLC bought a new stake in shares of Costco Wholesale during the second quarter worth approximately $30,000. Manning & Napier Advisors LLC acquired a new position in shares of Costco Wholesale in the second quarter valued at approximately $30,000. Finally, Bullseye Investment Management LLC acquired a new position in shares of Costco Wholesale in the second quarter valued at approximately $35,000. 68.48% of the stock is owned by institutional investors.

Insiders Place Their Bets

In related news, EVP William Richard Wilcox sold 1,100 shares of the stock in a transaction on Tuesday, October 13th. The stock was sold at an average price of $958.21, for a total value of $1,054,031.00. Following the sale, the executive vice president owned 3,094 shares in the company, valued at approximately $2,964,701.74. This represents a 26.23% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Claudine Adamo sold 2,200 shares of the firm's stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $915.93, for a total value of $2,015,046.00. Following the sale, the executive vice president directly owned 7,134 shares of the company's stock, valued at $6,534,244.62. This represents a 23.57% decrease in their position. The SEC filing for this sale provides additional information. 0.10% of the stock is currently owned by corporate insiders.

Costco Wholesale Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Friday, October 30th will be issued a dividend of $1.47 per share. The ex-dividend date of this dividend is Friday, October 30th. This represents a $5.88 dividend on an annualized basis and a dividend yield of 0.6%. Costco Wholesale's payout ratio is presently 28.32%.

More Costco Wholesale News

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

• Positive Sentiment: Analyst optimism supports the stock. Tigress Financial raised its price target to $1,250, while CICC initiated coverage with an “outperform” rating. The recommendations reinforce the bullish view that Costco can continue gaining from its resilient sales and membership economics. Tigress Financial raises target CICC initiates coverage
• Positive Sentiment: Costco is expanding its physical footprint. Reports of a planned Rhode Island warehouse and a new South Meridian location point to continued store growth, which could increase membership, sales, and local market penetration over time. Costco to open in Rhode Island
• Positive Sentiment: Membership engagement remains a key strength. Costco’s analysis of which members spend the most could help it better target high-value customers and lift sales and profitability. Its long-term returns and recurring membership model continue to attract investor interest. Costco reveals which members spend the most money
• Neutral Sentiment: A stock split remains speculative. Costco’s CEO said the possibility is discussed regularly by the board, but no split was announced. A split could improve accessibility for employees and smaller investors, although it would not change the company’s underlying value or fundamentals. Costco stock split discussion
• Negative Sentiment: Competition could intensify. Kroger plans to invest heavily in lower prices after acknowledging market-share losses to Walmart and Costco. Greater grocery price competition could pressure Costco’s margins or slow market-share gains. Kroger targets Walmart and Costco

Costco Wholesale Company Profile

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells merchandise in bulk and at competitive prices through warehouse clubs and e-commerce platforms, serving individual consumers, businesses and other organizations.

Its product selection includes groceries and fresh foods, household supplies, appliances, electronics, furniture, apparel, health and beauty products, jewelry, automotive products and prescription drugs. Costco also provides services such as optical care, pharmacy services, hearing-aid sales, travel offerings and fuel sales, depending on location.

The company traces its roots to Price Club, which opened in San Diego in 1976.

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