Costco Shares Soar 3.12% on Earnings Beat

Costco Wholesale (COST) shares surged 3.12% today, reaching their highest level since March 2025 with an intraday gain of 4.34%.

The strategy of buying Costco Wholesale (COST) shares after they reached a recent high and holding for 1 week yielded solid results over the past 5 years. The annualized return was 27.7%, surpassing the market average by 12.42%. As of the latest data, a $1,000 investment in COST five years ago would be worth $3,390.10 today.

Costco Wholesale recently reported a 13% increase in earnings to $4.28 per share for the fiscal third quarter of 2025, surpassing analysts' expectations of $4.24. This positive earnings report contributed to a stock price jump as the company exceeded analyst forecasts for sales. Additionally, revenue increased by 8% to $63.21 billion, beating the expected $63.19 billion. These financial results underscore Costco's strong performance and its ability to outperform market expectations.

Morgan Stanley raised its price target for Costco from $1150.00 to $1225.00 and provided an "overweight" rating, indicating a positive outlook for the company's performance. This move by Morgan Stanley reflects the firm's confidence in Costco's future prospects and its potential for continued growth. The price target increase and the "overweight" rating are likely to bolster investor confidence and contribute to the stock's upward momentum.

Despite these favorable developments, shares experienced a slight dip, suggesting market volatility or investor caution. This volatility highlights the dynamic nature of the market and the need for investors to remain vigilant. However, the overall trend remains positive, with Costco's strong financial performance and positive market sentiment driving its stock price movements. Investors are likely to continue monitoring the company's progress and any further developments that could impact its stock price.