Costco Wholesale Corp (NASDAQ:COST) shares are trading flat Thursday morning as investors brace for the warehouse giant’s third-quarter earnings report, scheduled after the bell.
- Costco Wholesale shares are consolidating. What’s the outlook for COST shares?
What To Watch Ahead Of Costco’s Q3 Earnings
Wall Street is setting a high bar for the print, with consensus estimates looking for EPS of $4.92 on $69.42 billion in revenue. Beyond the top-and-bottom-line numbers, investors will be keeping a close eye on membership renewal trends and traffic growth to see if the retail titan can continue justifying its premium valuation.
Ahead of Costco's third-quarter report after the close, a market strategist flagged a wide technical range: a bullish reaction could target a gap above $1,050 and potentially extend toward $1,200, while downside support was highlighted near $960 (with deeper support discussed around $870). Commentary also pointed to potential tailwinds from higher gasoline prices and continued focus on membership growth and value-driven traffic.
Costco's earnings bar is elevated after beating revenue estimates in six straight quarters and eight of the last 10, while topping EPS in four consecutive quarters and nine of the last 10 overall. That consistency is part of why traders are focused on whether the stock can reclaim the $1,050 area quickly if results clear expectations.
Fuel is also a swing factor into the quarter, with Placer.ai data showing Costco gas station traffic up 8.1% and 11.4% year over year in the first two weeks of March. That traffic boost can support membership sign-ups and higher in-store attach, even if fuel margins tighten near-term.
Costco Stock: Key Technical Levels To Watch
Costco is sitting in a "pause" zone: it is trading 2.2% below its 20-day SMA and 0.4% below its 50-day SMA, but it remains 1.4% above the 100-day SMA and 4.9% above the 200-day SMA. That mix often reads as consolidation within a still-intact longer-term uptrend, especially after the golden cross in March.
Momentum is the main question mark right now: MACD is below its signal line and the histogram is negative, which points to cooling upside pressure unless buyers can reassert control. Put simply, when MACD is below the signal line, it suggests the recent push higher is losing steam versus its own trend baseline.
- Key Resistance: $1031.50 — close to the stock's short-term trend zone (near the 20-day/50-day area) where rebounds can stall.
- Key Support: $985.00 — a nearby floor that sits close to the stock's intermediate trend area (near the 100-day region) where dip-buyers have room to defend.
Costco Earnings Preview: What Analysts Expect
Looking further out, the next major catalyst for the stock arrives with the September 24, 2026 (estimated) earnings report.
- EPS Estimate: $6.52 (Up from $5.87 YoY)
- Revenue Estimate: $93.87 Billion (Up from $86.16 Billion YoY)
- Valuation: P/E of 52.2x (Indicates premium valuation relative to peers)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $1084.25. Recent analyst moves include:
- UBS: Buy (Raises Target to $1275.00) (May 20)
- Oppenheimer: Outperform (Raises Target to $1160.00) (May 19)
- DA Davidson: Neutral (Maintains Target to $1000.00) (April 10)
Costco’s Benzinga Edge Rankings Explained
Below is the Benzinga Edge scorecard for Costco Wholesale, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Neutral (Score: 37.84) — The stock's recent follow-through has been choppy versus the broader market, matching the "cooling" momentum signals on the chart.
- Quality: Strong (Score: 89.08) — The business screens well on durability metrics, consistent with Costco's membership model and steady demand profile.
- Value: Neutral (Score: 37.85) — Shares don't screen as cheap, which fits a stock that often trades at a premium when execution is clean.
- Growth: Neutral (Score: 61.45) — Growth characteristics remain supportive, but not so strong that they fully offset valuation sensitivity near resistance.
The Verdict: Costco Wholesale’s Benzinga Edge signal reveals a quality-led profile with moderate growth and only middling momentum and value support. For longer-term investors, that often means the trend can stay constructive, but breakouts may need a clean catalyst to justify the premium.
Costco Stock Price Activity On Thursday
COST Stock Price Activity: Costco Wholesale shares were flat at $1001.16 at the time of publication on Thursday, according to Benzinga Pro data.
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