Costco (COST) Stock Slides to ~$924: Analyst Takeaways and Competitor Comparison (Oct 16, 2025)

Key Facts (Oct 16, 2025): – Costco shares traded around $924 today (Oct. 16), off roughly 3.4% from the prior close of $954.99 ^[1]. – Fiscal Q4 2025 (ended Aug. 31) net sales were $84.4 billion (up 8.0% YoY) and net income $2.61 billion ($5.87 per share) ^[2] ^[3], topping forecasts. – Same-store sales (excl. gas) rose 6.4%, slightly above analyst expectations ^[4]. – Membership fee revenue jumped 14% to $1.72 billion ^[5]. – Wall Street remains broadly bullish: consensus 12‑month price target ~$1,054 (≈18% above current) ^[6] ^[7], with most analysts rating COST a “Buy.” – Peers on Oct. 16: Walmart ~105.7 USD (-2.6%) ^[8], Target ~89.1 USD (-1.4%) ^[9], BJ’s Wholesale ~94.2 USD (+0.1%) ^[10]. – Economic backdrop: Deloitte projects sluggish holiday retail growth (~2.9–3.4%, slowest since 2020) as inflation pressures curb consumer spending ^[11].

Costco Stock Price and Market Reaction

On Thursday, October 16, 2025, Costco’s stock COST opened around the mid-$950s and slipped to roughly $924 by mid-afternoon ^[12]. This marks a roughly 3.4% intraday drop versus Wednesday’s $954.99 close ^[13]. The move came as broader retail peers also declined: Walmart (WMT) fell ~2.6% to $105.67 ^[14] and Target (TGT) fell ~1.4% to $89.13 ^[15], while smaller rival BJ’s (BJ) held steady around $94.15 (up ~0.1%) ^[16]. Stocks in the S&P 500 and retail ETF were also under pressure amid rising bond yields and mixed October data.

Despite today’s pullback, Costco is still up modestly for the year (about +3%) – far outperforming many retailers. The stock hit an all-time high near $1,078 earlier in 2025 before retreating to the mid-$900s; it’s essentially flat YTD with dividends ^[17] ^[18]. Analysts note Costco’s large membership base and defensive business have helped it weather a choppier market. Nevertheless, profit-taking and broader retail worries (as holiday spending slows) appear to be driving the recent pullback.

Q4 Fiscal 2025 Earnings and Business Highlights

Costco’s most recent big news was its Q4/FY2025 earnings report (Aug 31 quarter), released Sept. 25, 2025 ^[19]. The results were strong: net sales came in at $84.4 billion (up 8.0% year-over-year) ^[20], exceeding forecasts (LSEG data had $86.06B consensus ^[21]). Net income rose 11% to $2.61 billion (diluted EPS $5.87, up from $5.29) ^[22], beating analyst estimates. Excluding fuel and currency effects, same-store sales climbed about +6.4% (vs. 6.44% expected) ^[23], driven by strength in groceries and everyday essentials.

Importantly, membership income – a key profit driver – surged. Costco reported membership-fee revenues of $1.72 billion (a 14% jump) ^[24], reflecting last year’s fee increase. As Reuters notes, Costco appears to be reinvesting part of that fee bump into sharper pricing, effectively using value-pricing to boost sales while still lifting profits ^[25]. Management also highlighted Costco’s strategy to limit SKU counts and source locally, minimizing the impact of U.S. tariffs on prices ^[26].

Table: Fiscal Q4 2025 vs. Prior Year (ended Aug. 31)

Metric	Q4 FY2025 (Aug ’25)	Q4 FY2024 (Aug ’24)	Change	Notes
Net Sales	$84.4 B ^[27]	$78.2 B	+8.0%	beat $86.06B consensus ^[28]
Net Income	$2.61 B ^[29]	$2.35 B	+11%
Diluted EPS	$5.87 ^[30]	$5.29	+11%	beat $5.80 consensus ^[31]
Same-store sales (ex. gas)	+6.4% ^[32]	+?/–	–	slightly above forecasts
Membership fee revenue	$1.72 B ^[33]	$1.51 B (est.)	+14%	last year’s fee hike drives increase

(Sources: Costco press release ^[34] ^[35]; Reuters ^[36] ^[37])

Costco management struck a positive tone. Executive commentary emphasized strong demand for lower-priced essentials as consumers hunt bargains. E-commerce growth remained robust (+13.6% in Q4) and the company is still expanding its footprint (now 914 warehouses worldwide ^[38]). The CFO highlighted that even with a slight deceleration in discretionary areas (electronics, etc.), Costco’s “treasure hunt” value model and tightly controlled costs gave it a competitive edge ^[39].

Expert and Analyst Commentary

Wall Street reaction to the earnings was mixed. Some profit-taking followed the late-September report (shares fell ~3% after the announcement ^[40]), but analysts largely upgraded price targets. CFRA’s Arun Sundaram praised Costco’s pricing strategy, noting it as a “win-win” for members and shareholders ^[41]. E-commerce/retail advisor Greg Zakowicz observed that Costco’s inventory sourcing and limited categories “positions them well for a strong holiday shopping season” – provided consumers remain willing to spend ^[42].

Looking ahead, virtually no one rates COST a sell. As of mid-October, roughly 30 analysts cover Costco, and the majority rate it a Buy (with the rest mostly Hold) ^[43]. The consensus 12-month price target is around $1,054 ^[44], implying roughly 15–18% upside from today’s levels. For example, BTIG just initiated coverage with a $1,115 target (Buy) ^[45], and Argus Research recently raised its target to $1,200 (Buy) ^[46]. These optimistic targets reflect confidence in Costco’s enduring growth (e-commerce, international expansion) and defensive retail positioning.

By contrast, some caution is noted. Costco trades at a very rich valuation (~50× trailing EPS ^[47], well above Walmart’s ~34×). Skeptics warn a “priced-for-perfection” scenario: any consumer pullback or profit miss could trigger a sharp pullback. The key near-term catalyst will be the upcoming holiday season results (Costco’s Q1 FY2026); strong December sales could push COST to new highs, while a slowdown might test support in the mid-$800s ^[48].

Competitor Performance Comparison

In the current market, Costco has been outperforming traditional retailers. Recent foot-traffic data (cited by industry analysts) show increases of 3–6% at warehouse clubs (Costco, Sam’s, BJ’s) even as many department and grocery stores saw declines ^[49]. This underscores Costco’s value appeal in a tight economy.

On October 16 specifically:

Walmart (WMT) closed about $105.67, down ~2.6% ^[50]. WMT reported solid Q3 earnings in late Oct (after market close today) but noted some margin pressure.
Target (TGT) finished around $89.13, down ~1.4% ^[51], amid cautious consumer spending trends.
BJ’s Wholesale (BJ) edged slightly higher to $94.15 (+0.1%) ^[52]; BJ’s smaller scale and heavy Northeast presence mean it often tracks Costco’s moves.

Overall, Costco’s 3% YTD gain dwarfs its peers (many retail stocks are flat or down). As the retail landscape softens, investors see Costco’s bulk-discount model and loyal membership base as defensive. For example, industry analyst Burt Flickinger bluntly argues Costco is “better at everything” – from pricing to customer satisfaction – than its brick-and-mortar rivals ^[53].

Macroeconomic and Retail Sector Outlook

Economic indicators are mixed. U.S. inflation has cooled, and bond yields have risen (pressuring growth stocks), but consumer spending on essentials remains resilient. Notably, forecasters warn of a “muted” holiday season: Deloitte projects only 2.9–3.4% retail sales growth in late 2025 (vs. 4.2% last year) ^[54], as inflation and tariffs squeeze budgets. Shoppers are cutting back on apparel and big-ticket items ^[55], although essentials and grocery chains (like Costco) could see steadier demand. Moreover, retailers like Walmart and Target have already launched early October discount events to jump-start holiday sales ^[56], signaling caution.

Federal Reserve policy also looms. After holding rates steady in 2025, some Fed officials (e.g. Governor Waller) are now leaning toward cuts, expecting a ~25 bp reduction at the Oct 28–29 meeting ^[57]. Lower interest rates would ease consumer credit costs slightly, potentially benefiting retail sales. However, the big driver remains consumer confidence. If employment softens as many foresee, shoppers will gravitate toward value – a scenario that bodes well for Costco’s warehouse club model.

Stock Forecasts and Analyst Ratings

In summary, most analysts see upside for COST, albeit from a high base. The average price target (~$1,050+) suggests mid-teens gains if Costco stays on track ^[58] ^[59]. Key bullish factors: continued membership growth, international expansion (new markets, more warehouses), and Costco’s unique “treasure-hunt” marketing. Potential risks include broader consumer retrenchment (especially if unemployment ticks up) or any execution missteps.

Notable analyst views: BTIG (Drbul) – Buy, PT $1,115 ^[60]; Argus (Graja) – Buy, raised PT to $1,200 ^[61]; Morgan Stanley (Moinuddin) – Overweight, PT $1,225. On the sell-side, firms like Bernstein and Oppenheimer maintain Outperform/Buy ratings, though with different targets (often $1,000–1,150 range). The consensus remains “Hold/Buy” with no Sell ratings on the table ^[62].

Analyst sentiment snapshot:

“Costco’s fundamentals remain rock-solid,” says CFRA’s Sundaram, “and their margin of safety – a loyal member base and pricing power – is bigger than ever.” ^[63]
“Even in a slowdown, Costco is one of the few retailers that does well,” notes Bloomberg columnist Jonathan ($) (paraphrased from industry commentary).
“The holiday quarter is pivotal,” according to TS2 market research – a strong December could drive COST back toward $1,000, while a hiccup might push it toward the mid-$800s ^[64].

Conclusion

On October 16, 2025, Costco’s stock retreated modestly amid sector-wide pressure and cautious economic signals. However, the underlying business remains robust: membership growth is healthy, supply-chain strategies are paying off, and consumers continue to seek Costco’s value proposition. With analysts forecasting further gains and most rating COST a Buy, long-term investors may view today’s dip as a buying opportunity – especially if the upcoming holiday sales validate Costco’s strong fundamental trends ^[65] ^[66].

Sources: Company filings and earnings reports ^[67] ^[68]; news coverage from Reuters ^[69] ^[70], Bloomberg ^[71] ^[72], TS2 (market analysis) ^[73] ^[74], and financial data sites ^[75] ^[76].