{"id":49528,"date":"2026-05-30T11:35:19","date_gmt":"2026-05-30T11:35:19","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2026\/05\/30\/forget-earnings-costco-stock-investors-are-about-to-get-a-special-boost\/"},"modified":"2026-05-30T11:35:19","modified_gmt":"2026-05-30T11:35:19","slug":"forget-earnings-costco-stock-investors-are-about-to-get-a-special-boost","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2026\/05\/30\/forget-earnings-costco-stock-investors-are-about-to-get-a-special-boost\/","title":{"rendered":"Forget earnings, Costco stock investors are about to get a special boost"},"content":{"rendered":"
<\/div>\n

Issaquah-headquartered Costco Wholesale (COST) ended in the \u201cred\u201d on May 29 after the big-box retailer\u2019s Q3 per-share profit came in shy of Street estimates.<\/p>\n

The multinational\u2019s total revenue surpassed $70 billion in its fiscal third quarter \u2013 handily beating the consensus \u2013 but a more than 15% increase in EPS to $4.93 missed expectations.<\/p>\n

But Bernstein analyst Zhihan Ma recommends buying Costco stock<\/a> on the pullback as it may soon please investors with a special boost.<\/p>\n

The special boost that could ignite a rally in COST shares<\/h2>\n

On the earnings call, Costco\u2019s chief of finance, Gary Millerchip, acknowledged that the company is \u201cin a position where we continue to generate excess cash\u201d.<\/p>\n

Millerchip also agreed that \u201ca special dividend is typically the most effective way to return excess cash without giving up the flexibility to keep investing in growth.\u201d<\/p>\n

He stopped short of announcing one, but the hints were loud enough \u2013 making analyst Zhihan Ma tell clients that Costco\u2019s announcement of a special dividend wouldn\u2019t be surprising at all.<\/p>\n

Bank of America went further. Analyst Christopher Nardone noted that COST’s last special dividend was paid in January 2024, and that the company has historically distributed these one-time payouts every two to three years.<\/p>\n

This means an announcement could come within the next few quarters, given the \u201chealthy\u201d balance sheet, he added.<\/p>\n

Why else is Costco stock worth buying today<\/h2>\n

Note that COST\u2019s previous special dividend carried a yield of about 2.4%.<\/p>\n

At today\u2019s price, a comparable yield would require a payout of around $24 a share \u2013 nearly double the $15-per-share disbursement made in January 2024.<\/p>\n

Costco shares remain attractive for long-term investors also because the firm\u2019s \u201cdigitally-enabled\u201d sales skyrocketed over 21% in the third quarter, while worldwide membership renewal rates held at a remarkable 89.7%.<\/p>\n

Total paid memberships at the end of Q3 stood at 82.9 million, indicating COST is not grappling with a slowdown.<\/p>\n

Costco has also recently teamed up with Google Commerce, YouTube, and retail media \u2013 a notable milestone in its push to capture a growing share of retail media revenue.<\/p>\n

Pharmacy, too, emerged as a standout, with management citing \u201csignificant\u201d market share gains \u2013 partly fueled by surging demand for GLP-1 medications. <\/p>\n

All in all, the operational engine here is firing on all cylinders.<\/p>\n

How Wall Street recommends playing Costco<\/h2>\n

Even from a technical perspective, COST shares look attractive to buy on the pullback.<\/p>\n

The company\u2019s relative strength index (RSI) sits in the early 30s currently, indicating the stock is now approaching \u201coversold\u201d conditions \u2013 a setup that often triggers a relief rally.<\/p>\n

More importantly, Wall Street analysts haven\u2019t thrown in the towel on Costco Wholesale.<\/p>\n

The consensus rating<\/a> on the retail behemoth remains at \u201cmoderate buy\u201d, with the mean price target of about $1,094 indicating potential upside of roughly 15% from here.<\/p>\n

The post Forget earnings, Costco stock investors are about to get a special boost<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Issaquah-headquartered Costco Wholesale (COST) ended in the \u201cred\u201d on May 29 after the big-box retailer\u2019s Q3 per-share profit came in shy of Street estimates. The multinational\u2019s total revenue surpassed $70 billion in its fiscal third quarter \u2013 handily beating the consensus \u2013 but a more than 15% increase in EPS to $4.93 missed expectations. But <\/p>\n","protected":false},"author":1,"featured_media":49529,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-49528","post","type-post","status-publish","format-standard","has-post-thumbnail","category-investing"],"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/49528","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=49528"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/49528\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/49529"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=49528"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=49528"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=49528"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}