Costco Stock Forecast: Trending StrongBuy Among Analysts

Costco (COST) stock has risen 5.2% over the past week and 12.2% over the past month, even though it is still down 5.3% over the last 12 months. Wall Street’s analysts are strongly bullish, with a “StrongBuy” consensus and an average 12‑month price target of $1,075.47, suggesting meaningful upside from the last closing price of $989.29. For investors, the recent rebound in the share price sits against a backdrop of improving fundamentals and renewed optimism about Costco’s growth path.

Among the key voices backing Costco is analyst Robert Drbul of BTIG, who reiterated his Buy rating on COST on 2/5/2026 and set a price target of $1,115.00, above the Street average. This target implies additional upside from current levels, reflecting his confidence that the company can continue to justify a premium valuation. Drbul bases his optimism on strong recent sales data and the belief that Costco still has “room to grow” despite an already rich earnings multiple.

Drbul points to Costco’s January performance as a major support for his view. The company reported net sales of $21.3 billion, up 9.3% year over year, with comparable sales rising 7.1% for the total company—the best comp performance since January 2025. Canada led the way with comp sales up 11.4%, followed by Other International at 9.5% and the U.S. at 5.8%. Even after adjusting for gas price deflation and foreign exchange, comps remained strong at 6.4%, supported by higher traffic and a near 4% increase in average transaction size.

The strength was broad-based across categories. Foods and sundries delivered mid-single-digit growth, driven by strong demand in food, candy, and frozen items, while fresh foods such as bakery and meat also posted mid-single-digit gains. Non-food categories accelerated to low double-digit growth, helped by jewelry, tires, and major appliances. Ancillary businesses grew in the low-to-mid single digits, with pharmacy, food court, and hearing aids highlighted as top performers. The only clear weak spot was gasoline, where comps declined mid-to-high single digits purely due to lower prices, not volume weakness.

From a valuation standpoint, Drbul notes that Costco currently trades at about 48x his CY26 EPS estimate, which he still considers attractive. His $1,115 price target is based on a roughly 55x multiple of FY26 EPS, arguing that Costco is well positioned to maintain and potentially expand its long-standing premium valuation. He also highlights that while Walmart has historically traded at about a 35% discount to Costco over three, five, and ten-year periods, that discount is now closer to 10% after Costco’s multiple has compressed and Walmart’s has expanded. For investors, the combination of solid sales momentum, resilient category performance, and a still-favorable relative valuation underpins the StrongBuy stance on COST. Never miss a stock rating. Find all the latest ratings on TipRanks’ Top Wall Street Analysts page.