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."

Sign up for Kiplinger’s Free E-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.
-
I’m 62 and worried about Social Security’s future. Should I take it early?
A Social Security shortfall may be coming soon. We ask financial experts for guidance.
-
My First $1 Million: Retired Tech Industry Director, 78, Delaware County, Ohio
Ever wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
How Much Income Can You Get From an Annuity? An Annuities Expert Gets Specific
Here's a detailed look at income annuities and the factors that determine your payout now and in the future.
-
Your Paycheck Stops in Retirement, But Your Life Doesn't: An Expert Guide to Planning for a Confident Future
Social Security will replace only about 40% of your salary, on average. A solid financial plan will help you plug the gap so you can rest easy in retirement.
-
Are You Jeopardizing Your Future to Help Your Adult Kids? An Expert Guide for How to Not Do That
If your adult child needs financial help, of course you want to provide it, but crafting a plan that also protects your financial and emotional well-being is vital.
-
Stock Market Today: Stocks Slip Ahead of Big Earnings, Inflation Week
Perhaps uncertainty about tariffs, inflation, interest rates and economic growth can only be answered with earnings.
-
I'm a Financial Planner: Here Are Some Long-Term Care Insurance Tips for Every Age
Strategies include adding riders to life insurance for younger individuals and considering hybrid or traditional long-term care policies for those in their mid-50s and 60s.
-
Engineering Reliable Retirement Income in 2025: An Expert Guide
For dependable income, consider using a bucket strategy and annuities in tandem to promote structure, flexibility and peace of mind.
-
Crazy Markets Shouldn't Derail Your Retirement if You Follow This Financial Pro's Plan
Being nervous about retiring in a volatile market is a red flag that you're relying too heavily on your investment portfolio, rather than a comprehensive plan.
-
Stock Market Today: Solid Signals Lift Stocks Despite Tariff Noise
Markets are whistling over the White House in an ongoing display of corporate America's enduring ability to survive and advance.