Costco’s 42nd-Ranked Volume and 0.34% Drop Highlight Resilient Earnings and Growth Outlook

On August 15, 2025, Costco (COST) closed with a 0.34% decline, trading a daily volume of $1.59 billion, ranking 42nd in market activity. The stock’s performance coincided with broader market volatility but remained focused on earnings momentum and macroeconomic factors.

Costco reported Q3 2025 earnings on May 29, exceeding expectations with $4.28 per share, outpacing the $4.24 consensus. Quarterly revenue surged 8.0% year-over-year to $63.21 billion, surpassing forecasts. Analysts project earnings growth of 9.21% for fiscal 2026, with forward EPS anticipated to rise from $18.03 to $19.69. The trailing P/E ratio of 55.14 suggests investors are pricing in sustained expansion amid thin profit margins.

Trade dynamics have positioned Costco with a relative edge. Rising tariffs, while elevating costs, may disproportionately hurt rivals. Costco’s scale allows it to absorb tariff impacts more effectively, leveraging vendor negotiations and streamlined sourcing. Membership-driven revenue and the Kirkland Signature brand further insulate the company from pricing pressures, potentially attracting price-sensitive shoppers away from competitors like Walmart and Target.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 yielded a 1-day return of 0.98% and a cumulative 37.61% gain. While stable, the returns highlight the conservative nature of volume-driven short-term strategies compared to high-risk alternatives.