JCPenney store closings push spotlight onto mall landlords

Costco Wholesale stock slipped Tuesday, with traders looking at the warehouse giant’s strong run in sales but balking at its high valuation ahead of fiscal Q3 earnings due in two days.

Costco Wholesale topped analysts’ forecasts for both sales and profit in its holiday quarter, reporting on Thursday. The retailer logged $69.60 billion in second-quarter revenue and $2.04 billion in net income for the stretch ending Feb. 15. Costco also said it plans to pass along any tariff refunds by cutting prices for members.

Evercore ISI bumped its price target for Costco Wholesale up to $1,100 from $1,050, sticking with an Outperform call just before the retailer’s results expected later this week. The stock slipped roughly 0.6% to $1,004.42 during afternoon trading. Analysts at Evercore are looking for global comparable sales growth above 6%, plus earnings per share of $4.55. They also pointed out that with the current valuation, there isn't much margin for error.

Costco Wholesale could see some action at the open Monday. Bank of America has resumed its coverage of the warehouse retailer. COST finished Friday’s session at $1,010.79, up 2.44%.

Costco Wholesale Corporation shares gained 2.44% Friday, closing at $1,010.79 and bucking the broader market’s decline. COST ended roughly 5% shy of its 52-week high, with volume running heavier than normal.