Costco Faces $1,000 Resistance with 55× P/E Despite 12.9% EPS Growth Forecast
Costco’s fiscal Q2 revenue is forecast at $69.22 billion, up 8.6% year-over-year, with EPS of $4.54 (+12.9%), backed by an Earnings ESP of +0.68% and a trailing four-quarter surprise of 0.5%. Shares trade at a 55× forward P/E—80% above the retail median—testing the $1,000 resistance level.
1. Q2 Fiscal 2026 Forecasts
Analysts forecast Costco’s fiscal second-quarter sales at $69.22 billion, representing an 8.6% year-over-year increase, with earnings per share projected at $4.54, up 12.9% from a year earlier.
2. Valuation Metrics and Price Resistance
Costco trades at a forward price-to-earnings ratio of 55×—approximately 80% above the retail sector median—pushing shares toward the $1,000 technical resistance level and raising valuation concerns among investors.
3. Earnings Surprise and Zacks Ratings
The company’s Earnings ESP stands at +0.68% while carrying a Zacks Rank of 3 (Hold), and its trailing four-quarter earnings surprise averages 0.5%, suggesting a moderate likelihood of surpassing consensus estimates.