Member loyalty, store expansion seen underpinning Costco's growth
COST•Costco beat quarterly estimates on strong comparable sales as consumers sought cheaper fuel and value at its warehouses. The median price target from 39 brokerages covering the stock is $1,095.
1. Sales and growth drivers
Costco's quarterly results beat estimates, helped by strong comparable sales. Morgan Stanley said the company continues to deliver solid earnings growth despite slower membership gains, and that new store openings could help membership growth accelerate in fiscal 2028.
2. Analyst views
Jefferies said consumer spending will be an important factor for Costco and described the company as well-positioned to gain share with gas prices elevated and household budgets under pressure. RBC Capital Markets said future performance will hinge on transaction trends, including the impact of reinvested tariff refunds, and membership growth. TD Cowen cited comparable-sales momentum and growing adoption of personalization, AI-driven discovery and delivery as supports for longer-term customer engagement and spending.
