Why Costco Stock Is Still a Buy After a Q4 Revenue Miss
Costco stock is lower Friday after the membership warehouse firm reported a top-line miss in its fiscal fourth quarter, but Wall Street remains bullish.


Costco Wholesale (COST) stock is trading lower Friday after the membership warehouse club topped earnings estimates for its fiscal fourth quarter, but came up just short of revenue expectations.
In the 16 weeks ended September 1, Costco's revenue increased 1% year over year to $79.7 billion, driven by 5.4% same-store sales growth. Its earnings per share (EPS) were up 8.8% from the year-ago period to $5.29.
"We ended Q4 with 76.2 million paid household members, up 7.3% versus last year and 136.8 million cardholders, up 7% year over year," said Costco Chief Financial Officer Gary Millerchip on the company's conference call. "About half of new member signups in fiscal year 2024 were under 40 years of age. This percentage has been growing since COVID and has lowered the average age of our members over the last few years."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Millerchip added that Costco ended the quarter with 35.4 million paid executive memberships, up 9.6% on a year-over-year basis.
The results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $79.9 billion and earnings of $5.08 per share, according to Barron's. Costco's same-store sales growth also came up short of the 5.7% increase analysts forecasted.
"We are encouraged by our momentum exiting fiscal year 2024 and are excited about the growth opportunities ahead as we continue to execute our strategy of delivering exciting new items and greater value for members, innovating with Kirkland Signature, and growing our warehouse footprint and digital capabilities globally," Millerchip said.
Is Costco stock a buy, sell or hold?
Costco Wholesale has turned in a strong performance on the price charts this year, up 37% on a total return basis (price change plus dividends) vs the S&P 500's 22% gain. Unsurprisingly, Wall Street is bullish on the consumer staples stock.
According to S&P Global Market Intelligence, the consensus analyst target price for COST stock is $921.14, representing implied upside of roughly 4% to current levels. Meanwhile, the consensus recommendation is a Buy.
Financial services firm Oppenheimer is one of the more bullish outfits on the large-cap stock with an Outperform rating (equivalent to a Buy) and $955 price target.
"We look very favorably upon COST's long-term prospects," said Oppenheimer analyst Rupesh Parikh in a note following the earnings release. He went on to provide several reasons for the firm's upbeat outlook toward Costco, including the company's unique and improving consumer value proposition, open-ended worldwide growth prospects, and its leading competitive position that could drive share gains.
Oppenheimer's $955 price target represents implied upside of more than 7% to current levels.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
3M, GM, Blue Chips Lead to the Upside: Stock Market Today
The S&P 500 followed the Dow Jones Industrial Average into green territory, but the Nasdaq lagged the other indexes because of its tech exposure.
-
Social Security Payment Schedule for 2026
Find out when you can expect your 2026 Social Security payments and the date you get paid when your scheduled day falls on a holiday.
-
3M, GM, Blue Chips Lead to the Upside: Stock Market Today
The S&P 500 followed the Dow Jones Industrial Average into green territory, but the Nasdaq lagged the other indexes because of its tech exposure.
-
Should Your Brokerage Firm Be Your Bookie? A Financial Professional Weighs In
Some brokerage firms are promoting 'event contracts,' which are essentially yes-or-no wagers, blurring the lines between investing and gambling.
-
Supermarkets Have Become a Pickpockets' Paradise: How to Avoid Falling Victim
Some stores regularly rearrange inventory with the aim of increasing purchases, and they're creating opportunities for thieves to steal from customers.
-
Dow Adds 516 Points on Broad Optimism: Stock Market Today
Easing trade war tensions and promise from early earnings reports has investors looking on the bright side to start the week.
-
I'm a Wealth Adviser: These Are the Pros and Cons of Alternative Investments in Workplace Retirement Accounts
While alternatives offer diversification and higher potential returns, including them in your workplace retirement plan would require careful consideration.
-
I'm a Financial Planner: If You're Within 10 Years of Retiring, Do This Today
Don't want to run out of money in retirement? You need a retirement plan that accounts for income, market risk, taxes and more. Don't regret putting it off.
-
Five Keys to Retirement Happiness That Have Nothing to Do With Money
Consider how your housing needs will change, what you'll do with your time, maintaining social connections and keeping mentally and physically fit.
-
Six Warren Buffett Quotes Every Retiree Should Live By
The 'Oracle of Omaha' knows a thing or two about life, investing and retirement.