Positive

From Nasdaq: 2025-05-30 15:46:00

Costco Wholesale (COST) exceeded expectations for Q3, with a 8% increase in sales to $63.2 billion and a 6% rise in comparable sales. The company plans to open 10 new warehouses in Q4 and has seen a 15% growth in e-commerce sales. Despite tariff uncertainties, Costco remains confident in its ability to navigate challenges.

Costco stock surged 4% after the Q3 report, now up 14% for the year and 120% in the last three years. With a share price over $1,000, it’s a topic of debate on whether it’s a good time to buy. Costco’s Q3 EPS of $4.28 beat estimates, showing strong financial performance amid market volatility.

Costco CEO Ron Vachris remains optimistic despite potential tariff impacts, with a third of U.S. sales being imported. The company is taking steps to mitigate tariff impacts by sourcing locally and pulling forward needed items. Zacks projects an 8% increase in total sales for fiscal 2025 and a 11% rise in annual earnings this year.

Following the positive Q3 report, Costco stock has a Zacks Rank #2 (Buy) with upward revisions in EPS estimates for FY25 and FY26. The stock is showing an attractive growth trajectory, with potential for more upside. Costco’s focus on expansion, e-commerce growth, and navigating economic uncertainties bodes well for its outlook.



Read more at Nasdaq: Buy the Spike in Costco Stock After Earnings?