Valued at a market cap of $434.2 billion, Costco Wholesale Corporation (COST) is a leading American multinational retailer operating a chain of membership-only warehouse clubs. Founded in 1983, Costco has grown into one of the world's largest retailers and is headquartered in Issaquah, Washington.
The retail behemoth is set to unveil its fiscal Q3 earnings results on Thursday, May 29. Ahead of this event, analysts project the retail giant to report a profit of $4.25 per share, up 12.4% from $3.78 per share in the year-ago quarter. The company has beaten Wall Street's bottom-line estimates in two of the past three quarters, while missing on another ocassion.
For fiscal 2025, analysts expect COST to report an EPS of $17.96, up 11.5% from a profit of $16.11 in fiscal 2024.
Shares of Costco have soared 36.5% over the past 52 weeks, considerably outpacing both the S&P 500 Index's ($SPX) 8.7% rise and the Consumer Staples Select Sector SPDR Fund’s (XLP) 7.1% return over the same time frame.
Costco has outperformed the broader market over the past year due to its resilient business model, consistent revenue growth, and ability to offer strong value to consumers even amid economic pressures like tariffs.
On April 17, COST shares rose nearly 3%, outperforming the broader market, after the company announced a 12% increase in its quarterly dividend, boosting it from $1.16 to $1.30 per share. While the hike wasn’t a surprise, it reignited bullish sentiment among investors, reinforcing confidence in the retailer’s continued financial strength and shareholder-friendly approach. The dividend will be paid on May 16 to shareholders of record as of May 2 and at the time of the announcement.
Wall Street analysts are fairly optimistic about Costco’s stock, with a "Moderate Buy" rating overall. Among 34 analysts covering the stock, 17 recommend "Strong Buy," four indicate “Moderate Buy,” and 13 suggest “Hold.”
The average price target for COST is $1,063.66, which indicates a 7.3% potential upside from the current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
