NEW YORK (TheStreet) -- Shares of Costco (COST) - Get Report are up 0.95% to $157.08 in pre-market trade even though Oppenheimer trimmed its fourth-quarter earnings estimates for the stock this morning to $1.69 per share from $1.74 per share previously.
The firm has an "outperform" rating and a $175 price target on shares of the Issaquah, WA-based food retailer.
Costco is slated to report 2016 third quarter earnings on July 6, and Oppenheimer notes that sales have dropped lately.
The company recently launched a credit card program with Visa (V), and initial issues may have spurred some of the loss in sales. Oppenheimer said that these are only "transitory headwinds" to the company's fourth quarter, however.
"Incremental top line weakness should prove temporary and give way to better trends as members more aggressively use the new co-branded card," the firm added.
"We remain optimistic that somewhat sluggish top-line trends largely reflect nearer term, transitory issues including delayed big-ticket purchases...and persistent food deflation" alongside issues with the Visa venture, analysts said in a note.
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Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of A-.
The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. TheStreet Ratings feels its strengths outweigh the fact that the company shows low profit margins.
You can view the full analysis from the report here: COST
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 articles's author.