Costco Reports 8.5% December Sales Growth, Strong Membership Model
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 19 2026
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Source: NASDAQ.COM
- Strong Sales Performance: Costco's net sales for December reached $29.86 billion, reflecting an 8.5% year-over-year increase, which underscores its robust performance in the retail market and bolsters investor confidence in future growth.
- Membership Model Advantage: With high renewal rates, Costco's membership-driven model ensures a steady revenue stream, allowing it to maintain a strong market position in a highly competitive retail landscape.
- Accelerated E-commerce Growth: Digital sales surged 18.9% year-over-year in December, indicating Costco's success in enhancing the online shopping experience, which boosts customer loyalty and expands market share.
- Market Valuation Analysis: Costco's forward P/E ratio stands at 46.31, significantly higher than the industry average of 31.94; however, investor confidence in its steady growth and strong customer base makes this valuation appear justified.
Analyst Views on COST
Wall Street analysts forecast COST stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for COST is 1061 USD with a low forecast of 769.00 USD and a high forecast of 1205 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
24 Analyst Rating
19 Buy
4 Hold
1 Sell
Strong Buy
Current: 977.670
Low
769.00
Averages
1061
High
1205
Current: 977.670
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.
