'We See a Compelling Opportunity': Costco Stock (COST) Stalls as Q1 Divides Wall Street

Shares in Costco Wholesale Corporation (COST) on Friday shrugged off the membership-based retailer's Q1 2026 earnings beat as Wall Street analysts took opposite sides of the stock.Claim 50% Off TipRanks Premium and Invest with Confidence Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential During the quarter, the bulk-purchase-focused company grew its revenue by 8.3% from a year ago to $67.31 billion, with digital sales jumping by 20.5%. Its earnings per share also climbed by 11.4% year-over-year to $4.50 per share. Goldman Sachs Shows 'Confidence' in Costco However, reacting to the performance, while some analysts raised their price targets on COST stock, others trimmed them. Goldman Sachs analyst Kate McShane reaffirmed her Buy rating on the stock and put forward a price target of $1,171, implying over 32% upside from Thursday's regular session closing price of $884.48. McShane said her equity research team continues "to have confidence" in Costco's value proposition and sustained resonance with shoppers. She highlighted growth in the company's digital and alternative revenue streams, along with new Costco warehouse locations driving sales and new stores boosting the membership base. 'Recent Pullback Creates Opportunity,' Says TD Cowen In addition, UBS analyst Michael Lasser noted that "we see a compelling opportunity to own the stock," while TD Cowen analyst Oliver Chen added that the "recent pullback [in the stock price] creates opportunity." According to Lasser, most of the concerns about Costco, including about traffic, comparable sales, and customer membership renewal rates, were "favorably addressed" during the quarter. The analyst added that his team sees Costco remaining consistent with its growth journey and not slowing down. Mizuho Says Sales Continue to 'Cannibalize' On the other end, Mizuho analyst David Bellinger stuck to his Neutral rating on the stock. Bellinger called Costco's earnings beat "modest" and noted that the retailer's operating expenditures are still rising — albeit at a slower pace — and that the rate of increase in paying Costco members has also slowed compared with the past 14 quarters. Furthermore, the Mizuho analyst pointed out that the opening of new warehouses by U.S. retailers continues to "cannibalize sales at an elevated level." This means that a meaningful chunk of sales is simply shifting from older warehouse clubs to the newer ones. Wrapping up, Bellinger noted that although he expects Costco to keep running its business model "incredibly well," he and his team "await a better entry point." Is COST Stock a Good Buy? Across Wall Street, Costco's shares hold a Moderate Buy consensus rating based on 16 Buys and eight Holds issued by analysts over the past three months. At $1,091.79, the average COST price target implies more than a 24% upswing possibility.