Costco Stock (COST) Crowned Top Retail Pick for the Rest of 2026 — Here’s Why Shares in wholesale retailer Costco (COST) dipped on Monday despite being named one of Bernstein’s top retail stock picks for the second half of 2026. Analyst Zhihan Ma highlighted Costco’s strong sales growth and long-term potential, even as broader industry challenges persist. The firm’s analysis emphasized the company’s resilience amid ongoing inflationary pressures and shifting consumer behavior. Ma, who selected Costco alongside discount retailer Dollar General (DG) as her top picks for H2 2026, noted that while energy price surges from the Middle East crisis have eased, inflation remains a key concern. She pointed to lingering effects such as higher packaging and fertilizer costs, which have yet to fully impact consumer spending. Additionally, the risk of new tariffs could further strain inflation, disproportionately affecting lower-income households while high-income consumers continue to seek affordable options. Despite these challenges, Ma argued that Costco has performed relatively well year-to-date. Her analysis focused on the company’s recent double-digit growth in comparable sales—sales from stores open for at least a year. This growth was driven by increased traffic to Costco’s fueling stations, where customers sought cheaper gas, and visits to its warehouse-style stores in the same parking lots. Even as gas inflation begins to moderate, Ma expects Costco to maintain 6-7% comparable sales growth, excluding gas and foreign exchange factors. She also cited the prospect of a special dividend as a near-term support for the stock. The analyst further emphasized Costco’s expansion of its international footprint as a key driver of long-term growth.#middle_east_crisis #costco #dollar_general #bernstein #zhihan_ma
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
