Analysts Forecast 11% Growth Potential for SUSA
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 18 2025
0mins
Should l Buy COST?
Source: NASDAQ.COM
ETF Performance Analysis: The iShares ESG Optimized MSCI USA ETF (SUSA) has an implied analyst target price of $144.73, indicating a potential upside of 10.77% from its current trading price of $130.66.
Notable Holdings with Upside: Key underlying holdings in SUSA include Molina Healthcare Inc (MOH), Cisco Systems Inc (CSCO), and Costco Wholesale Corp (COST), each showing significant upside potential based on analyst target prices.
Analyst Target Comparisons: MOH's average target is $195.36 (16.64% upside), CSCO's is $75.06 (13.38% upside), and COST's is $1092.44 (12.39% upside) compared to their recent trading prices.
Investor Considerations: Questions arise regarding the validity of analysts' targets and whether they reflect realistic expectations or are overly optimistic, necessitating further research by investors.
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Analyst Views on COST
Wall Street analysts forecast COST stock price to rise
24 Analyst Rating
19 Buy
4 Hold
1 Sell
Strong Buy
Current: 997.360
Low
769.00
Averages
1061
High
1205
Current: 997.360
Low
769.00
Averages
1061
High
1205
About COST
Costco Wholesale Corporation (Costco) operates membership warehouses and e-commerce sites that offer a selection of nationally branded and private-label products in a wide range of categories. The Company buys the majority of its merchandise directly from suppliers and route it to cross-docking consolidation points (depots) or directly to its warehouses. It operates 891 warehouses, including 614 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 35 in Japan, 29 in the United Kingdom, 19 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, two in France, and one each in Iceland, New Zealand and Sweden. It also operates e-commerce sites in the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan and Australia. The Company provides wide selection of merchandise, plus the convenience of specialty departments and exclusive member services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Costco's Ten-Year Investment Returns Remarkable
- Investment Return Analysis: A $1,000 investment in Costco ten years ago would be worth $6,500 today, or $7,725 with reinvested dividends, showcasing its strong performance against the S&P 500 index.
- Sustained Growth Drivers: From fiscal 2020 to 2025, Costco's revenue and EPS grew at CAGRs of 10.5% and 15.1%, respectively, with warehouse count increasing from 795 to 914 and cardholders rising from 105.5 million to 140.6 million, demonstrating robust market expansion capabilities.
- Membership Renewal Challenges: Despite raising membership fees for the first time in 2024, Costco's global renewal rate dipped to 89.7% in the first half of fiscal 2026, primarily due to younger digitally signed members being more likely to cancel.
- Future Growth Expectations: Analysts forecast Costco's revenue and EPS to grow at CAGRs of 8% and 11% from 2025 to 2028, but with a current P/E ratio of 49, the stock may only rise 34% over the next decade.
See More
Impact of Rising Gas Prices on Costco
- Widespread Impact of Gas Prices: Rising gas prices not only affect consumers at the pump but also increase costs for heating oil and propane, leading to higher electricity prices and broader economic implications.
- Costco's Unique Business Model: As one of the largest retailers in the U.S., Costco profits primarily from membership fees and sells goods at near-cost, leveraging its Kirkland private label to attract consumers, which allows for high product turnover despite lower margins.
- Positive Effects of High Gas Prices on Costco: Higher gas prices encourage consumers to fill up at Costco, increasing store traffic and boosting sales, as its bulk-selling model effectively draws customers even during price hikes.
- Historical Performance as a Benchmark: In 2022, during the spike in gas prices due to the Ukraine conflict, Costco reported a 10.4% increase in comparable sales, demonstrating resilience in high gas price environments and indicating that its business model is well-positioned to navigate current challenges.
See More
Costco Reports Strong Sales Growth in Q2 2026
- Significant Sales Growth: Costco achieved $68.31 billion in sales for Q2 2026, reflecting a 9% year-over-year increase, with digital revenue soaring 22.6%, traffic up 32%, and average order value rising 15%, showcasing the effectiveness of personalized marketing strategies.
- Strong Same-Store Sales: Adjusted same-store sales in the U.S. grew by 6.4%, while Canadian same-store sales increased by 7.6% and international same-store sales rose by 7.1%, indicating robust performance across markets, particularly with double-digit growth in pharmacy and food court segments.
- Membership Revenue Growth: Membership fee revenue climbed 13.6% year-over-year to $1.36 billion, with paid memberships increasing by 4.8% to 82.1 million households, demonstrating success in membership management and customer loyalty.
- Ongoing Expansion Plans: Costco opened three new locations in the quarter and plans to open 18 more this fiscal year, totaling 28 new stores, bringing the global warehouse count to 924, with intentions to open over 30 new warehouses annually, further solidifying its market position.
See More
Costco Faces Challenges with Declining Renewal Rates
- Investment Return Analysis: Over the past decade, a $1,000 investment in Costco (NASDAQ: COST) would be worth $6,500 today, or $7,725 with reinvested dividends, showcasing its strong performance against the S&P 500, yet high valuation may limit future growth potential.
- Membership Growth and Renewal Rates: While Costco's membership increased from 105.5 million to 140.6 million, its global renewal rate declined from 90.5% to 89.7%, primarily due to younger, digitally signed members being more likely to cancel, indicating a reliance on physical store visits.
- Revenue and Earnings Growth: From fiscal 2020 to fiscal 2025, Costco achieved revenue and EPS CAGRs of 10.5% and 15.1%, respectively, expanding its warehouse count from 795 to 914 despite macro challenges like inflation and rising interest rates.
- Future Outlook and Valuation: Analysts expect Costco's revenue and EPS to grow at CAGRs of 8% and 11% from fiscal 2025 to 2028, but with a current P/E ratio of 49, the stock is considered overvalued, with potential price appreciation of only 34% to over $1,300 in the next decade.
See More
Costco Reports Strong Q2 Earnings Amid Growth Concerns
- Significant Revenue Growth: Costco reported nearly $70 billion in revenue for Q2 of fiscal 2026, marking a 9.2% increase year-over-year, which demonstrates robust growth amid economic uncertainty and reassures investors about the company's stability.
- Profitability Improvement: The company earned over $2 billion in net income during Q2, a 14% increase, indicating that revenue growth has outpaced the rise in costs and expenses, reflecting strong financial management.
- Outstanding Market Performance: Over the past five years, Costco's stock has surged more than 210%, significantly outperforming the S&P 500, showcasing its competitive edge and attractiveness to investors in the retail sector.
- Future Growth Potential: Despite facing a high P/E ratio of 54 that may pressure short-term valuations, Costco has substantial expansion opportunities both domestically and internationally, particularly in mid-sized metros and business centers, which are expected to drive long-term stock price increases.
See More
Costco Continues Steady Growth Amid Economic Uncertainty
- Strong Earnings Performance: Costco's revenue for Q2 of fiscal 2026 reached nearly $70 billion, reflecting a 9.2% year-over-year increase, demonstrating the company's ability to maintain growth amid economic uncertainty and bolstering investor confidence.
- Profitability Improvement: The company reported over $2 billion in net income for the quarter, a 14% increase, indicating that revenue growth has outpaced rising costs and expenses, providing a solid foundation for future investments.
- Market Expansion Potential: With 634 of its 924 warehouses located in the U.S., many mid-sized metros still lack a Costco, and large metros are missing Costco Business Centers, which serve restaurants and small businesses, presenting significant growth opportunities ahead.
- Valuation Challenges: Despite Costco's strong growth momentum, its 54 P/E ratio poses challenges for short-term stock price increases, potentially leading investors to seek lower-valued retail stocks, which may impact its stock trajectory.
See More
Costco's Ten-Year Investment Returns Remarkable
- Investment Return Analysis: A $1,000 investment in Costco ten years ago would be worth $6,500 today, or $7,725 with reinvested dividends, showcasing its strong performance against the S&P 500 index.
- Sustained Growth Drivers: From fiscal 2020 to 2025, Costco's revenue and EPS grew at CAGRs of 10.5% and 15.1%, respectively, with warehouse count increasing from 795 to 914 and cardholders rising from 105.5 million to 140.6 million, demonstrating robust market expansion capabilities.
- Membership Renewal Challenges: Despite raising membership fees for the first time in 2024, Costco's global renewal rate dipped to 89.7% in the first half of fiscal 2026, primarily due to younger digitally signed members being more likely to cancel.
- Future Growth Expectations: Analysts forecast Costco's revenue and EPS to grow at CAGRs of 8% and 11% from 2025 to 2028, but with a current P/E ratio of 49, the stock may only rise 34% over the next decade.
See More
Impact of Rising Gas Prices on Costco
- Widespread Impact of Gas Prices: Rising gas prices not only affect consumers at the pump but also increase costs for heating oil and propane, leading to higher electricity prices and broader economic implications.
- Costco's Unique Business Model: As one of the largest retailers in the U.S., Costco profits primarily from membership fees and sells goods at near-cost, leveraging its Kirkland private label to attract consumers, which allows for high product turnover despite lower margins.
- Positive Effects of High Gas Prices on Costco: Higher gas prices encourage consumers to fill up at Costco, increasing store traffic and boosting sales, as its bulk-selling model effectively draws customers even during price hikes.
- Historical Performance as a Benchmark: In 2022, during the spike in gas prices due to the Ukraine conflict, Costco reported a 10.4% increase in comparable sales, demonstrating resilience in high gas price environments and indicating that its business model is well-positioned to navigate current challenges.
See More
Costco Reports Strong Sales Growth in Q2 2026
- Significant Sales Growth: Costco achieved $68.31 billion in sales for Q2 2026, reflecting a 9% year-over-year increase, with digital revenue soaring 22.6%, traffic up 32%, and average order value rising 15%, showcasing the effectiveness of personalized marketing strategies.
- Strong Same-Store Sales: Adjusted same-store sales in the U.S. grew by 6.4%, while Canadian same-store sales increased by 7.6% and international same-store sales rose by 7.1%, indicating robust performance across markets, particularly with double-digit growth in pharmacy and food court segments.
- Membership Revenue Growth: Membership fee revenue climbed 13.6% year-over-year to $1.36 billion, with paid memberships increasing by 4.8% to 82.1 million households, demonstrating success in membership management and customer loyalty.
- Ongoing Expansion Plans: Costco opened three new locations in the quarter and plans to open 18 more this fiscal year, totaling 28 new stores, bringing the global warehouse count to 924, with intentions to open over 30 new warehouses annually, further solidifying its market position.
See More
Costco Faces Challenges with Declining Renewal Rates
- Investment Return Analysis: Over the past decade, a $1,000 investment in Costco (NASDAQ: COST) would be worth $6,500 today, or $7,725 with reinvested dividends, showcasing its strong performance against the S&P 500, yet high valuation may limit future growth potential.
- Membership Growth and Renewal Rates: While Costco's membership increased from 105.5 million to 140.6 million, its global renewal rate declined from 90.5% to 89.7%, primarily due to younger, digitally signed members being more likely to cancel, indicating a reliance on physical store visits.
- Revenue and Earnings Growth: From fiscal 2020 to fiscal 2025, Costco achieved revenue and EPS CAGRs of 10.5% and 15.1%, respectively, expanding its warehouse count from 795 to 914 despite macro challenges like inflation and rising interest rates.
- Future Outlook and Valuation: Analysts expect Costco's revenue and EPS to grow at CAGRs of 8% and 11% from fiscal 2025 to 2028, but with a current P/E ratio of 49, the stock is considered overvalued, with potential price appreciation of only 34% to over $1,300 in the next decade.
See More
Costco Reports Strong Q2 Earnings Amid Growth Concerns
- Significant Revenue Growth: Costco reported nearly $70 billion in revenue for Q2 of fiscal 2026, marking a 9.2% increase year-over-year, which demonstrates robust growth amid economic uncertainty and reassures investors about the company's stability.
- Profitability Improvement: The company earned over $2 billion in net income during Q2, a 14% increase, indicating that revenue growth has outpaced the rise in costs and expenses, reflecting strong financial management.
- Outstanding Market Performance: Over the past five years, Costco's stock has surged more than 210%, significantly outperforming the S&P 500, showcasing its competitive edge and attractiveness to investors in the retail sector.
- Future Growth Potential: Despite facing a high P/E ratio of 54 that may pressure short-term valuations, Costco has substantial expansion opportunities both domestically and internationally, particularly in mid-sized metros and business centers, which are expected to drive long-term stock price increases.
See More
Costco Continues Steady Growth Amid Economic Uncertainty
- Strong Earnings Performance: Costco's revenue for Q2 of fiscal 2026 reached nearly $70 billion, reflecting a 9.2% year-over-year increase, demonstrating the company's ability to maintain growth amid economic uncertainty and bolstering investor confidence.
- Profitability Improvement: The company reported over $2 billion in net income for the quarter, a 14% increase, indicating that revenue growth has outpaced rising costs and expenses, providing a solid foundation for future investments.
- Market Expansion Potential: With 634 of its 924 warehouses located in the U.S., many mid-sized metros still lack a Costco, and large metros are missing Costco Business Centers, which serve restaurants and small businesses, presenting significant growth opportunities ahead.
- Valuation Challenges: Despite Costco's strong growth momentum, its 54 P/E ratio poses challenges for short-term stock price increases, potentially leading investors to seek lower-valued retail stocks, which may impact its stock trajectory.
See More
