NEW YORK (TheStreet) -- Costco Wholesale (COST) - Get Report  shares are up 0.53% to $142.76 Tuesday afternoon before the warehouse operator posts its fiscal 2016 third quarter results on Wednesday before the opening bell. 

Earnings are expected to be $1.22 a share, up from $1.17 a share a year ago. The estimated revenue of $27.1 billion is projected to be higher than last year's $26.1 billion.

Additionally, Wall Street is looking for a 0.9% increase in same-store sales.

In the recent period, Costco said its sales were slightly impacted by the transition to its partnership with Visa (V) from the American Express (AXP) card. 

"Costco is set up for a bumpy third quarter, but we think the volatility could present a chance to buy shares at an attractive level as the long-term picture remains bright," UBS said in a note to investors yesterday.

(Costco is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a freetrial.)

Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of A-.

The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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