Costco Wholesale (NASDAQ:COST) Stock Rating Reaffirmed as “Sector Perform” by Royal Bank Of Canada

Costco Wholesale (NASDAQ:COST)‘s stock had its “sector perform” rating reaffirmed by investment analysts at Royal Bank Of Canada in a research report issued on Friday, Benzinga reports. They currently have a $1,000.00 price objective on the retailer’s stock. Royal Bank Of Canada’s price objective points to a potential upside of 5.65% from the stock’s previous close.

A number of other research analysts have also recently weighed in on the stock. Sanford C. Bernstein dropped their price objective on shares of Costco Wholesale from $1,144.00 to $1,143.00 and set an “outperform” rating for the company in a research note on Friday, September 25th. Truist Financial reduced their target price on Costco Wholesale from $1,011.00 to $955.00 and set a “hold” rating on the stock in a research note on Friday, September 25th. Bank of America lowered their target price on Costco Wholesale from $1,200.00 to $1,095.00 and set a “buy” rating on the stock in a report on Wednesday, September 16th. Argus reissued a “buy” rating and set a $1,230.00 price target on shares of Costco Wholesale in a research report on Monday, September 28th. Finally, Mizuho cut their price target on Costco Wholesale from $1,100.00 to $1,065.00 and set an “outperform” rating for the company in a report on Friday, September 25th. Twenty-two research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $1,046.27.

Costco Wholesale Price Performance

Shares of COST traded down $1.39 on Friday, reaching $946.53. The stock had a trading volume of 282,190 shares, compared to its average volume of 2,185,548. Costco Wholesale has a twelve month low of $844.06 and a twelve month high of $1,096.50. The firm has a market capitalization of $419.77 billion, a PE ratio of 45.61, a PEG ratio of 4.03 and a beta of 0.88. The firm has a 50-day moving average of $930.81 and a 200 day moving average of $963.49. 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 (NASDAQ:COST) last posted its earnings results on Thursday, September 24th. The retailer reported $6.75 EPS for the quarter, topping analysts’ consensus estimates of $6.54 by $0.21. Costco Wholesale had a return on equity of 27.60% and a net margin of 3.04%.The company had revenue of $95.72 billion for the quarter, compared to the consensus estimate of $94.97 billion. During the same period in the previous year, the business earned $5.87 earnings per share. Costco Wholesale’s quarterly revenue was up 11.1% compared to the same quarter last year. Sell-side analysts expect that Costco Wholesale will post 22.86 EPS for the current year.

Insiders Place Their Bets

In other Costco Wholesale news, EVP Claudine Adamo sold 2,200 shares of the business’s stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $915.93, for a total value of $2,015,046.00. Following the completion of the transaction, the executive vice president directly owned 7,134 shares in the company, valued at approximately $6,534,244.62. The trade was a 23.57% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Costco Wholesale

Hedge funds have recently made changes to their positions in the business. C M Bidwell & Associates Ltd. acquired a new position in shares of Costco Wholesale during the 2nd quarter valued at about $28,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in shares of Costco Wholesale in the fourth quarter worth approximately $27,000. Burk Holdings LLC purchased a new stake in Costco Wholesale in the second quarter valued at approximately $30,000. Manning & Napier Advisors LLC purchased a new stake in Costco Wholesale in the second quarter valued at approximately $30,000. Finally, Lifetime Wealth Management P.C. acquired a new position in Costco Wholesale during the fourth quarter worth approximately $28,000. Institutional investors and hedge funds own 68.48% of the company’s stock.

Key Headlines Impacting Costco Wholesale

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

• Positive Sentiment: Costco reported September net sales of $30.02 billion, up 13% year over year. Total comparable sales increased 11.4%, while comparable sales excluding gasoline and foreign-exchange effects rose 7.6%. U.S. comparable sales gained 12.5%, and digital sales grew approximately 19%, signaling broad-based demand and a strong start to fiscal 2027. Costco Wholesale Corporation Reports September Sales Results
• Positive Sentiment: UBS characterized Costco’s September performance as evidence of accelerating trends, while analysts highlighted strong store traffic and transaction growth. These metrics are important because they suggest the sales increase reflects customer demand rather than only higher prices. Costco September Sales Point to Accelerating Trends, UBS Says
• Neutral Sentiment: DA Davidson analyst Michael Baker maintained a Hold rating after a Costco warehouse tour. The company’s operating momentum remains favorable, but the unchanged stance indicates that current valuation and execution risks may already be reflected in the shares. Costco Warehouse Club Tour
• Negative Sentiment: Some analysts caution that part of September’s comparable-sales surge was helped by gasoline prices and other potentially temporary or lower-margin factors. This could make it harder for Costco to sustain the headline growth rate and expand profits.
• Negative Sentiment: At roughly 45 times trailing earnings, Costco remains expensive for a retailer with net margins near 3%. Investors are therefore pricing in continued strong growth, leaving the stock vulnerable if traffic, margins, tariffs, or international performance disappoint. A lawsuit alleging misleading “sugar-free” labeling on a Kirkland drink mix is a minor additional risk, though its financial impact is currently unclear.

About Costco Wholesale

Costco Wholesale Corporation operates a membership-based warehouse retail business under the Costco name. The company sells a broad selection of merchandise, including groceries, fresh foods, beverages, appliances, electronics, furniture, apparel, jewelry, hardware, and seasonal products. It also offers services such as gasoline, pharmacies, optical departments, hearing-aid centers, food courts, travel services, and business delivery in selected markets.

Costco markets many products under its private-label Kirkland Signature brand and sells merchandise through warehouse locations and e-commerce platforms.