Costco Wholesale Corporation (COST) Sees Price Target Increases
On February 10, Evercore ISI analyst Greg Melich raised his price recommendation on Costco Wholesale Corporation (NASDAQ:COST) to $1,050 from $1,025, maintaining an Outperform rating on the shares.
Following this, on February 20, Citi analyst Steven Zaccone also raised his price target on COST to $1,000 from $990, while keeping a Neutral rating. Zaccone highlighted that Costco demonstrated a modest beat in same-store sales and earnings for fiscal Q2.
Impressive Sales Figures
Costco reported robust sales momentum, with net sales for January 2026 reaching $21.33 billion, reflecting a 9.3% increase year-over-year. Comparable sales increased by 7.5% when adjusted for gas prices and currency fluctuations. Notably, e-commerce sales soared more than 34% during the holiday season, a significant achievement for a retailer predominantly reliant on physical warehouse sales.
Membership Growth Driving Revenue
The membership model remains central to Costco's success. For the first quarter of fiscal 2026, membership fee income rose by 14% to $1.329 billion. The number of paid members climbed to 81.4 million, marking a 5.2% increase. Executive memberships, which represent the company’s highest-value tier, grew by 9.1% to 39.7 million.
Costco operates membership-based warehouse stores and e-commerce platforms, offering a wide array of branded and private-label products. The company sources most merchandise directly from suppliers, distributing it through consolidation depots or directly to its warehouses.
While Costco presents a compelling investment opportunity, some analysts suggest that certain AI stocks may offer greater upside potential with lower downside risk. For insights into undervalued AI stocks benefiting from current market trends, visit Inside Ticker.