Top Bernstein Analyst Has Optimistic Costco Stock Outlook for 2026 Costco Wholesale (COST) shares experienced a slight decline on Monday, June 29, as one of Wall Street’s top retail analysts, Zhihan Ma of Bernstein, delivered a bullish outlook for the company’s stock in the second half of 2026. Ma, who has been a prominent voice in retail analysis, named Costco and Dollar General (DG) as her top retail picks for the period. Her recent analysis included raising Costco’s price target to $1,194 from $1,192, while maintaining her “outperform” rating. This target significantly exceeds the stock’s closing price of $951.67 on Thursday, July 2, despite the stock having already risen over 11% since January. Ma’s optimism is rooted in her belief that Costco can capitalize on ongoing inflationary pressures by turning them into a competitive advantage. While inflation continues to strain household budgets, she argues that Costco’s business model allows it to thrive in such environments. Her analysis highlights how the company’s ability to offer low prices and value-driven products positions it well against broader retail challenges. A key factor in Ma’s outlook is Costco’s performance in the retail sector, particularly its ability to attract customers during periods of economic uncertainty. She points to the company’s recent double-digit sales growth, much of which has been driven by increased traffic at Costco’s gas stations as drivers seek cheaper fuel. Even as gas inflation begins to moderate, Ma expects Costco to maintain a strong growth trajectory, projecting 6-7% comparable sales growth excluding gas and foreign exchange impacts. She also notes the potential for a special dividend to further support the stock’s performance in the near term. Costco’s financial results have reinforced the analyst’s confidence.#costco_wholesale #ron_vachris #dollar_general #bernstein #zhihan_ma
Costco Signals Price Cuts If Tariff Refunds Materialize Costco Wholesale, a major U.S. retailer, has indicated it may reduce prices if it receives refunds from the U.S. Supreme Court’s decision to invalidate President Donald Trump’s emergency tariffs. The company, which joined over 1,000 businesses in suing the government over the legality of the tariffs, emphasized its commitment to lowering costs for customers if refunds become available. The Supreme Court’s ruling in late 2025 overturned Trump’s tariffs, which had been imposed under the 1977 International Emergency Economic Powers Act. Costco’s CEO, Ron Vachris, stated during a post-earnings call that it remains uncertain whether companies will receive refunds for the tariffs paid in 2025. However, he noted that Costco would prioritize passing savings to customers if refunds are processed. The company has already adjusted prices on items like textiles, bedding, and cookware following the reduction of tariffs on countries such as China. Despite the Supreme Court’s decision to strike down the emergency duties, Trump’s continued enforcement of temporary import levies has added pressure on consumer companies navigating a volatile trade environment and rising costs. Sales at Costco have remained stable as shoppers increasingly seek value amid high living expenses, including rent and fuel costs. Competitors like Walmart and Costco are attracting customers across income levels by offering discounted in-house brands, such as Costco’s Kirkland Signature line. Costco’s quarterly same-store sales, excluding gas, rose 6.7% in the second quarter, surpassing analysts’ expectations of a 5.88% increase. Net income for the period grew nearly 14% to $2.04 billion.#donald_trump #costco_wholesale #us_supreme_court #ron_vachris #kirkland_signature
