Truist Securities maintains Costco stock Hold rating on strong August sales

Investing.com - Truist Securities has reiterated its Hold rating on Costco Wholesale (NASDAQ:COST) with a price target of $1,042.00 following the retailer’s strong August sales report. The retail giant, with a market capitalization of $423.5 billion, has maintained steady performance with InvestingPro data showing remarkably low price volatility.

Costco’s U.S. comparable sales increased 6.7% in August excluding fuel and foreign exchange effects, showing a slight improvement of 20 basis points compared to July’s performance. For the fourth fiscal quarter, U.S. comparable sales rose 6.0%.

Total company comparable sales excluding fuel and foreign exchange effects grew 6.9% in August and 6.4% for the fourth fiscal quarter. Net sales for the quarter reached $84.4 billion, aligning with Truist’s estimates.

By category, Food and Sundries posted mid-single-digit growth, while Fresh Foods showed mid-to-high-single-digit increases. Non-food categories maintained high-single-digit growth in August.

Despite acknowledging Costco’s ability to attract value-conscious customers with competitive offerings, Truist Securities remains on the sidelines due to valuation concerns, noting the stock trades at approximately 50 times calendar year 2025 estimated earnings per share.

In other recent news, Costco Wholesale Corporation reported significant sales growth for August 2025, with net sales reaching $21.56 billion, marking an 8.7% increase from the same period last year. The company also announced fourth-quarter net sales of $84.4 billion, an 8.0% rise from the previous year, and fiscal year net sales of $269.9 billion, up 8.1% from last year. In July 2025, Costco’s net sales grew by 8.5% to $20.89 billion, with total comparable sales rising 6.4% for the four-week period ended August 3. Additionally, Erste Group downgraded Costco’s stock rating from Buy to Hold, citing valuation concerns despite the company’s strong market position. Meanwhile, Bernstein reiterated an Outperform rating on Costco, emphasizing the strength of its Kirkland brand and projecting growth potential. Costco also declared a quarterly cash dividend of $1.30 per share, payable on August 15, 2025. These developments highlight Costco’s robust sales performance and continued investor interest amid varying analyst opinions.

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