2025 has been a challenging year for retail companies in the consumer staples sector. While Target (NYSE: TGT) experienced a significant YTD loss of over 34%, Walmart (NYSE: WMT) managed to adapt to tariff policies and consumer sentiment shifts, resulting in a YTD gain of nearly 25%. Costco Wholesale (NASDAQ: COST) saw a modest 1.34% YTD gain.

Costco has taken legal action against the Trump administration over “illegal” import taxes due to tariffs, showcasing the company’s ability to navigate challenges. Costco’s Kirkland Signature brand has been expanded to provide high-quality, tariff-impacted alternatives to customers. The company’s strategic initiatives have allowed for growth and expansion, with plans for new warehouses and increased e-commerce sales.

Costco’s strong fundamentals remain intact, with a high renewal rate for memberships contributing to consistent revenue and income growth. Despite a temporary stock slide post-earnings call, Costco is expected to see earnings grow by 9.21% in FY 2026. Financial metrics show steady growth in net income, earnings per share, and operating cash flow from 2022 to 2025.

Analysts hold a consensus Moderate Buy rating on Costco, with an average 12-month price target of $1,027.75, representing 11.47% potential upside. Institutional ownership remains strong, with bullish sentiment and minimal short interest in the stock. Costco’s financial stability and growth prospects make it an attractive investment opportunity for investors.

Read more at Nasdaq: Will 2026 Mark a Turnaround for Costco?