Costco Wholesale Corporation (COST), headquartered in Issaquah, Washington, operates membership warehouses globally. Valued at $437.7 billion by market cap, the company offers a diverse range of branded and private-label products, including groceries, electronics, appliances, and automotive supplies, along with pharmacies, optical centers, fuel stations, and travel services.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and COST definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the discount stores industry. Costco differentiated itself in the crowded retail space through its membership-only model, offering bulk purchases at discounted prices and exclusive private-label products, fostering customer loyalty and driving business success.
Despite its notable strength, Costco has slipped 7.6% from its 52-week high of $1,067.08, achieved on Jun. 3, 2025. Over the past three months, COST stock gained 9.7%, outperforming the S&P 500 Index’s ($SPX) 3.6% gains during the same time frame.
Shares of Costco rose 14.3% on a YTD basis, outperforming SPX’s marginal dip in 2026. However, the stock dipped 4.7% over the past 52 weeks, underperforming SPX’s 13.7% returns over the last year.
To confirm the bullish trend, COST has been trading above its 50-day and 200-day moving averages since early January, with slight fluctuations.
On Dec. 11, 2025, COST shares closed up more than 1% after reporting its Q1 results. Its revenue was $67.3 billion, surpassing analyst estimates of $67 billion. The company’s EPS of $4.50 beat analyst estimates by 5.4%.
In the competitive arena of discount stores, Walmart Inc. (WMT) has taken the lead over Costco, showing resilience with a solid 34.3% gain over the past 52 weeks, but lagged behind the stock with a 12.9% uptick on a YTD basis.
Wall Street analysts are reasonably bullish on COST’s prospects. The stock has a consensus “Moderate Buy” rating from the 35 analysts covering it, and the mean price target of $1,064.58 suggests a potential upside of 8% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
finance.yahoo.com
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