Costco (COST) Stock Gains as Analysts Raise Price Targets Before Quarterly Report

Key Highlights

• Oppenheimer boosted Costco’s price target to $1,160 from $1,100, maintaining its Outperform rating and designating it as a top pick before the May 28 earnings announcement.
• Shares of COST opened at $1,076.47, gaining 2.6% and trading less than 1% below the 52-week peak of $1,079.83, with market capitalization reaching $477.58 billion.
• The retailer increased its quarterly dividend payment by 13% to $1.47 per share from $1.30, distributed on May 15.
• Net sales in April jumped 13% compared to the prior year, while comparable store sales grew 11.6% and e-commerce sales surged 18.8%.
• ProShare Advisors boosted its Costco holdings by 38.6% during Q4, purchasing an additional 214,466 shares valued at approximately $663.7 million.

Oppenheimer has elevated its price projection for Costco Wholesale (COST) to $1,160 from the previous $1,100 mark, continuing to designate the membership-based retailer as its premier selection before the scheduled May 28 quarterly results.

The investment firm retained its Outperform designation while acknowledging possible temporary margin headwinds connected to fluctuating fuel expenses. This dynamic could result in a slight earnings per share shortfall for the forthcoming quarter.

Costco Wholesale Corporation, COST

Shares of COST began Tuesday’s session at $1,076.47, registering a 2.6% increase. The stock trades less than 1% beneath its annual peak of $1,079.83 and commands a market valuation of $477.58 billion.

The price-to-earnings multiple currently stands at 55.98. According to InvestingPro analysis, the shares trade at elevated valuations based on current metrics, though this hasn’t deterred institutional accumulation.

Wall Street Outlook and Institutional Activity

Analyst sentiment remains predominantly positive. UBS maintains a $1,175 price objective. Bank of America assigns a Buy recommendation with a $1,185 target. Goldman Sachs reduced its forecast from $1,171 to $1,088 while preserving its Buy rating. DA Davidson holds at $1,000 with a Neutral stance.

Among 34 analysts monitored by MarketBeat, 22 assign Buy ratings, 11 recommend Hold positions, and only one suggests selling. The mean price objective across all analysts stands at $1,047.27.

Regarding institutional ownership, ProShare Advisors LLC expanded its Costco stake by 38.6% during the fourth quarter, acquiring 214,466 additional shares to reach a total of 769,624 shares valued near $663.7 million. Institutional holders collectively control 68.48% of outstanding shares.

Multiple other investment firms expanded their positions in Q4, including Envestnet Portfolio Solutions with a 31.3% increase, and Verde Capital Management, which added 15.6% to its holdings.

Oppenheimer additionally suggested that a special dividend distribution or stock split announcement could provide further upside catalysts. Twelve Wall Street analysts have recently raised their earnings projections for the coming period.

Robust Sales Momentum and Enhanced Shareholder Returns

April performance metrics demonstrated solid momentum. Net revenue advanced 13% on a year-over-year basis. Comparable store sales increased 11.6%, while digital channel revenue climbed 18.8%.

The company simultaneously announced a 13% enhancement to its quarterly dividend, elevating the payout from $1.30 to $1.47 per share. This distribution was made on May 15 to shareholders registered as of May 1. On an annual basis, this equates to $5.88 per share, translating to a dividend yield of approximately 0.5%.

In its most recent quarterly disclosure on March 11, Costco delivered earnings per share of $4.58, surpassing analyst expectations of $4.55. Total revenue reached $69.60 billion against projections of $68.96 billion, representing 9.2% year-over-year growth.

For the 2026 fiscal year, Wall Street analysts project Costco will generate earnings per share of $20.31.

Costco’s 50-day simple moving average currently registers at $1,002.78. The 200-day moving average stands at $956.31. The trailing 12-month low was recorded at $844.06.

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