ISSAQUAH, Washington, September 1, 2026, 05:50 EDT — Costco shares gained 0.1% in premarket trade as its 47x price-to-earnings ratio tests the strength of the $1,135 bullish target.
- Costco stock traded at $944.70 at 05:50 EDT, rising 0.1% from its close on Monday.
- The stock’s trailing price-to-earnings ratio of 47.5 adds further scrutiny to its sales and margin results.
- Telsey reiterated its Buy rating and set a price target at $1,135, indicating a possible 20.2% gain from Monday’s closing price.
Costco Wholesale Corporation NASDAQ:COST edged up 0.1% to $944.70 in premarket trade on Tuesday. The stock gained following Telsey Advisory’s reaffirmation of its Buy rating and $1,135 price target on Monday.
The target equates to a possible 20.2% increase over the $943.89 closing price. Currently, Costco is valued at 47.5 times its trailing earnings per share of $19.88. At a share price of $1,135 and with the same price-to-earnings ratio, earnings would need to reach about $23.91 per share. This indicates a 20.3% rise, which is not a forecast from analysts.
Backing the valuation is robust, consistent growth. Net sales in July rose 10.7% to $23.12 billion. Adjusted comparable sales increased 6.6%, while sales through digital channels grew 18.2% Costco’s July release.
Costco shares lost 2.8% across six sessions
Daily closes through August 31, plus the September 1 premarket quote. U.S. dollars.
Movements in price have been more challenging. Between August 24 and Monday, Costco declined by 2.8%. The stock ended the session 13.9% below its 52-week high, yet remained 11.8% higher than its 52-week low, based on data from Google Finance.
Operational support remains steady. Third-quarter sales rose 11.6% to $69.15 billion. Net income gained 15.2% to reach $2.19 billion, and diluted earnings were $4.93 per share company results.
Growth engine, narrow margin
Recent operating measures show why investors pay a premium—and what must hold.
Sources: Costco July sales and fiscal Q3 Form 10-Q.
Membership fees delivered steadier income for Costco. Revenue from these fees rose 11% to $1.37 billion for the quarter. The retailer announced 82.9 million members with paid subscriptions. Renewal rates stood at 92.2% in the United States and Canada, and at 89.7% on a global basis Form 10-Q.
Merchandise economics remain under pressure. Gross margin declined by 21 basis points to 11.04%. Excluding gasoline inflation, gross margin rose by one basis point. Core merchandise margin fell 29 basis points, primarily driven by lower performance in the food category.
Wall Street leans bullish, but the range is wide
Ratings from 17 analysts over the past three months; targets versus the $943.89 close.
As of September 1, 2026, 05:50 EDT. Source: Google Finance analyst aggregation.
Most analysts are still positive, but views are divided. According to Google Finance, there are 10 Buys, six Holds, and one Sell. The average price target stands at $1,087.20, indicating a possible 15.2% upside. Price estimates span from $781 to $1,275.
Telsey projects a $1,135 target, which surpasses the consensus estimate. The implied 20.2% upside matches the level of earnings growth needed to sustain the present valuation multiple. This indicates that investors are factoring in future growth potential while also expecting the current valuation to remain steady.
Costco’s next major event is set for September 24, when the company is due to announce its fiscal fourth-quarter earnings and conduct a conference call investor calendar. The latest available monthly sales data is from July.
Risks: A decline in comparable sales could compress the premium multiple. Membership renewal rates for users obtained via online channels are slightly lower. Difficulties in the food segment could also affect gross margin.
The slight pre-market increase leaves the central discussion unchanged. Costco maintains steady growth. With shares trading at 47 times earnings, continued strong results remain essential.
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