Cotsco Wholesale Corporation (COST) will report earnings after the closing bell Thursday Oct. 4.
The company is expected to make $2.40 a share on revenue of $44.34 billion, on a GAAP basis, according to Bloomberg.
The big-box wholesaler's shares have been trending upwards of late, up roughly 23% for the year.
Two thirds of analysts surveyed have a buy rating on the stock buy the stock. Shares were down Thursday, as the broader market saw selling tied to higher interest rates.
Analysts have an average price target of $243 per share on Costco, 5% above its current level.
Costco reported an August sales increase year-over-year of 8.3%, beating broader U.S. retail sales growth of 4% to 5%. It has beaten bottom line estimates 7 out of the last 8 quarters.
JPMorgan analyst Christopher Horvers lifted his 2020 price target from $227 to $255 in September, saying Costco is successfully expanding its online sales avenue, and improving its already strong value proposition. "Given the company's expanding online offering and improved value prop from its Visa credit offering, we see a runway of share opportunity both in-store and online," Horvers wrote. August results included a 20% increase in digital sales. Longer-term, Horvers believes Costco is hitting the right nerve with its customer base, pointing out it has a "fiercely loyal customer base" and 90% renewal rate.
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Goldman Sachs is also positive on Costco's ability to maintain performance. "Costco sales have been consistently exceeding expectations, sharply outpacing the broader retail segment despite an assortment focused on consumables," Matthew Fassler wrote. Fassler has a price target of $241. He did note, however, that Costco's price-to-earnings ratio of 33 is a risk, given that "the firm's relative P/E stands at a long-run peak."
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