Costco Wholesale Corporation (NASDAQ:COST) is included among the 16 Best Dividend Stocks with Rising Payouts.
Niloo / Shutterstock.com
On February 10, Evercore ISI analyst Greg Melich raised his price recommendation on Costco Wholesale Corporation (NASDAQ:COST) to $1,050 from $1,025. The analyst reiterated an Outperform rating on the shares.
More recently, on February 20, Citi analyst Steven Zaccone increased his price objective on COST to $1,000 from $990 while keeping a Neutral rating. He noted that Costco delivered a modest beat in same-store sales and earnings during fiscal Q2.
The company also reported strong sales momentum. Net sales for January 2026 reached $21.33 billion, up 9.3% from a year earlier. Comparable sales rose 7.5% after adjusting for gas prices and currency changes. One standout was e-commerce. Online sales jumped more than 34% during the holiday period. That kind of growth is notable for a retailer that still generates most of its revenue through physical warehouse locations.
Costco’s membership model continues to play a central role in its performance. In the first quarter of fiscal 2026, membership fee income increased 14% to $1.329 billion. The total number of paid members reached 81.4 million, up 5.2%. Executive memberships, which represent the company’s highest-value tier, grew 9.1% to 39.7 million.
Costco Wholesale Corporation (NASDAQ:COST) operates membership-based warehouse stores and e-commerce platforms. It offers a range of branded and private-label products across multiple categories. The company sources most of its merchandise directly from suppliers and distributes it through consolidation depots or directly to its warehouse locations.
While we acknowledge the potential of COST as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 13 Best Roth IRA Stocks to Buy Now and 13 Cheapest Dividend Aristocrats to Invest in
Disclosure: None.
-1024x683.jpg "Judge Who Helped Violent Illegal Alien Evade ICE Faces New Test")
-1024x683.jpg "Montana Puts Democrats in a Bind as Senate Hopes Fade")
