Should traders adjust strategies based on COST's recent EPS trends?

**Traders should consider adjusting their strategies in light of Costco's recent EPS trends.** Here's why:

1. **Consistent Growth Despite Misses**: Costco's EPS has shown consistent growth, albeit slightly below expectations. This indicates a strong underlying performance that could still support bullish trader strategies.
COST EPS
|code|stock code|Diluted EPS (MRQ)|Latest Report Period|Latest Report End Date|market_code|
|---|---|---|---|---|---|
|COST|COST.O|4.02|2025Q2|20250216|185|

2. **Revenue Growth and Market Position**: The company's revenue has grown by 9.0% year-over-year, reaching $62.53 billion, which is robust evidence of its market presence and customer appeal. This continued growth in revenue, despite the EPS misses, suggests that Costco's business model remains effective.
3. **Margin Pressure and Expenses**: The decrease in profit margin to 2.8% from 3.0% in Q2 2024 is a concern. Higher expenses have impacted margins, which could be a result of operational challenges or external factors like inflation. Traders should monitor how Costco manages these expenses in the future.
4. **Foreign Exchange Impact**: The EPS miss in Q2 2025 was primarily due to foreign exchange (FX) headwinds, resulting in a $0.13/share impact. This is a factor that traders should consider, especially if they are dealing with multinational companies. The impact of FX fluctuations on Costco's financials is a key point for analysis.
5. **Investor Sentiment and Long-Term Outlook**: Despite the EPS misses, Costco's stock remains attractive to investors due to its resilient performance and long-term growth prospects. The company's ability to manage expenses and maintain revenue growth is a positive sign for traders looking at longer investment horizons.

In conclusion, while Costco has experienced EPS misses due to FX headwinds and margin pressure, its overall growth in revenue and consistent EPS growth suggest that traders should not entirely adjust their strategies based on these recent trends. However, close monitoring of the company's expense management and potential risks, such as tariff-induced inflation, is advisable. The resilience of Costco's business model and its strong market position provide a foundation for continued interest in the stock, especially for long-term traders.