Costco Wholesale Corp. shares edged down approximately 0.1% in after-hours trading Monday, hovering around $996.51. This followed a modest decline during the regular session, where the stock closed at $997.59.
Analyst Maintains Bullish Stance
Despite the after-hours slip, Bernstein analyst Zhihan Ma increased the firm's price target on Costco to $1,155 from $1,146, reiterating an Outperform rating. Ma noted the U.S. retail sector is at a complex juncture, facing uncertain consumer sentiment and a challenging macroeconomic backdrop heading into fiscal 2026.
The upcoming focal point for investors is Costco's fiscal second-quarter earnings report and February sales update, scheduled for release on March 5. Wall Street will scrutinize key metrics, including comparable sales growth and membership renewal rates, which are central to the company's profit model.
Market Context and Risks
The stock's movement comes ahead of a week packed with significant corporate earnings and critical U.S. economic data on inflation and employment. These reports could influence Federal Reserve policy expectations, which often impact defensive stocks like Costco.
Bernstein highlighted a mix of cross-currents—such as food inflation and policy risks—that complicate the outlook. For Costco, these factors affect store traffic, demand for high-value items, and pricing strategies aimed at retaining members.
While after-hours trading is typically volatile, the minor decline suggests the market is in a holding pattern ahead of fresh data. The primary risk for the stock is its premium valuation, which leaves little margin for error should consumer spending soften or operating costs rise more than anticipated.
Beyond the quarterly figures, market participants will listen for management commentary on renewal trends, wage and freight expenses, and potential additional returns to shareholders.
