Shares of Costco Wholesale Corporation (NASDAQ:COST) demonstrated upward movement during premarket trading on Thursday, buoyed by the company’s recent disclosures of its sales performance. This positive trajectory for the stock aligns with modest gains observed in the broader Consumer Discretionary sector and the overall S&P 500 index, indicating a degree of investor confidence within the retail landscape on this trading day.
Costco’s financial data for January revealed impressive growth in net sales, which totaled $21.33 billion. This figure reflects an increase of 9.3% over the same month in the previous year, when net sales stood at $19.51 billion. The growth was driven by comparable sales increases across key markets, with U.S. comparable sales advancing by 5.8% and Canadian comparable sales surging by 11.4%. These metrics underscore the ongoing strength of Costco’s core retail operations in North America.
Beyond the month of January, the company reported that total sales over the initial 22 weeks of its fiscal year reached $123.16 billion, showing an 8.5% increase from $113.55 billion recorded during an equivalent timeframe last year. Notably, digitally-enabled sales displayed robust expansion, climbing by 34.4% in January alone. This significant uplift in digital sales contributed materially to the broader revenue growth and highlights Costco’s evolving omnichannel capabilities.
On a technical analysis front, Costco’s stock price is currently positioned 3.2% above its 20-day simple moving average and stands 8.2% higher than the 100-day simple moving average, signaling sustained longer-term strength in price trends. Despite these gains, the shares have decreased by 6.19% over the past twelve months, yet they remain closer to the 52-week high than their low point.
Examining momentum indicators, the Relative Strength Index (RSI) is at 64.84, a level generally interpreted as neutral and not indicative of overbought or oversold conditions. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator lies below its signal line, which represents bearish pressure on the stock. The presence of a neutral RSI alongside a bearish MACD suggests a mixed momentum profile that may reflect investor caution or transition.
Key technical thresholds include a major resistance level at $1,000.00 and a support level at $950.00, which traders and investors might watch closely as the stock approaches these price points.
Looking ahead, market participants are preparing for Costco’s forthcoming earnings report anticipated on March 5, 2026. Analysts project earnings per share (EPS) to rise to $4.52, up from $4.02 year-over-year, and expect total revenue to reach $68.97 billion compared to $63.72 billion a year earlier. The company trades at a premium valuation with a price-to-earnings (P/E) ratio of approximately 52.4 times estimated earnings.
Consensus analyst opinion currently favors the stock, assigning it a Buy rating alongside an average price target of $1,058.50. Notable recent analyst activity includes Mizuho rating the stock as Outperform and raising its price target to $1,065.00 on February 3. Similarly, the Telsey Advisory Group has maintained an Outperform rating with a target price steady at $1,100.00 as of both February 2 and January 8.
During premarket hours on Thursday, Costco’s shares were trading at $990.00, reflecting a gain of 1.19%, according to Benzinga Pro data. This movement corresponds with the company’s positive sales announcements and investor sentiment as the market digests recent performance data.
The unfolding scenario reveals a retail giant demonstrating solid sales momentum, sustained technical strength, and favorable analyst sentiment. Nonetheless, investors may consider the mixed signals in momentum indicators as a prompt for measured caution pending the upcoming earnings results, which will offer deeper insight into the firm’s financial trajectory and growth stability.