Erste Group Bank Issues Optimistic Outlook for COST Earnings

Costco Wholesale Corporation (NASDAQ:COST) – Analysts at Erste Group Bank increased their FY2027 earnings per share (EPS) estimates for Costco Wholesale in a research note issued 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) last issued 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 business had revenue of $70.53 billion for the quarter, compared to the consensus estimate of $70.12 billion. During the same quarter last year, the business posted $4.28 earnings per share.

A number of other brokerages also recently weighed in on COST. BTIG Research reissued a “buy” rating and issued a $1,125.00 price target on shares of Costco Wholesale in a report on Friday, May 29th. The Goldman Sachs Group raised their price objective on shares of Costco Wholesale from $1,088.00 to $1,159.00 and gave the stock a “buy” rating in a report on Friday, May 29th. Roth Mkm lifted their price objective on shares of Costco Wholesale from $769.00 to $781.00 and gave the stock a “sell” rating in a research report on Friday, May 29th. Sanford C. Bernstein boosted their target price on shares of Costco Wholesale from $1,192.00 to $1,194.00 and gave the company an “outperform” rating in a research note on Friday, May 29th. Finally, Deutsche Bank Aktiengesellschaft increased their target price on shares of Costco Wholesale from $1,104.00 to $1,106.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Twenty-two research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,061.45.

Costco Wholesale Stock Down 1.2%

Shares of NASDAQ:COST opened at $935.47 on Wednesday. The company 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 has a debt-to-equity ratio of 0.17, a current ratio of 1.07 and a quick ratio of 0.61. The business has a fifty day moving average price of $993.97 and a two-hundred day moving average price of $971.96. Costco Wholesale has a 1 year low of $844.06 and a 1 year high of $1,096.50.

Hedge Funds Weigh In On Costco Wholesale

Several large investors have recently modified their holdings of COST. Diamant Asset Management Inc. boosted its holdings in Costco Wholesale by 99,278.0% in the 1st quarter. Diamant Asset Management Inc. now owns 6,726,899 shares of the retailer’s stock worth $672,690,000 after buying an additional 6,720,130 shares during the period. Norges Bank purchased a new position in Costco Wholesale in the 4th quarter valued at approximately $5,195,415,000. Corient Private Wealth LLC raised its holdings in Costco Wholesale by 838.9% during the 4th quarter. Corient Private Wealth LLC now owns 6,125,405 shares of the retailer’s stock valued at $5,282,182,000 after acquiring an additional 5,472,968 shares during the period. Cardano Risk Management B.V. raised its holdings in Costco Wholesale by 907.1% during the 4th quarter. Cardano Risk Management B.V. now owns 1,785,080 shares of the retailer’s stock valued at $1,539,346,000 after acquiring an additional 1,607,833 shares during the period. Finally, Assenagon Asset Management S.A. lifted its position in shares of Costco Wholesale by 1,586.8% during the fourth quarter. Assenagon Asset Management S.A. now owns 1,137,436 shares of the retailer’s stock worth $980,857,000 after acquiring an additional 1,070,005 shares in the last quarter. Hedge funds and other institutional investors own 68.48% of the company’s stock.

Insiders Place Their Bets

In related news, Director Kenneth D. Denman sold 885 shares of the business’s stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total value of $847,343.25. Following the sale, the director directly 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 sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 0.10% of the company’s stock.

Costco Wholesale Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 1st were issued a $1.47 dividend. This is an increase from Costco Wholesale’s previous quarterly dividend of $1.30. The ex-dividend date of this dividend was Friday, May 1st. This represents a $5.88 annualized dividend and a yield of 0.6%. Costco Wholesale’s payout ratio is 29.58%.

Costco Wholesale News Summary

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

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.