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Investing.com - Truist Securities has reiterated its Hold rating and $1,042.00 price target on Costco Wholesale (NASDAQ:COST), a $434 billion market cap retailer, following the June sales report. According to InvestingPro data, the stock currently trades at 55.15 times earnings, reflecting premium market positioning.
The warehouse club reported U.S. comparable sales growth of 5.5% excluding fuel and foreign exchange effects in June, matching May’s 5.5% increase. Total (EPA:TTEF) comparable sales excluding fuel and foreign exchange rose to 6.2% in June, slightly above the 6.0% reported in May. This performance aligns with the company’s trailing twelve-month revenue growth of 5.94%.
Food and Sundries maintained solid mid-single-digit growth, while Fresh Foods posted high-single-digit increases. Non-food categories also showed mid-single-digit growth during the period.
Truist Securities noted that Costco continues to attract value-conscious customers with its wide range of offerings at competitive price points, contributing to the retailer’s consistent performance.
Despite acknowledging Costco’s solid results, Truist maintained its Hold rating, citing the stock’s current valuation at approximately 51 times calendar year 2025 earnings per share as a reason for seeking a more attractive entry point. This aligns with InvestingPro’s Fair Value assessment, which suggests the stock is currently overvalued despite its excellent financial health rating.
In other recent news, Costco Wholesale reported June 2025 sales of $26.4 billion, marking an 8.0% increase year-over-year. The growth was driven by a 5.8% rise in comparable sales and the addition of 25 new warehouses. Analysts at William Blair reiterated their Outperform rating on the stock, while Evercore ISI also maintained an Outperform rating, despite noting a deceleration in sales growth. Mizuho (NYSE:MFG) and DA Davidson both maintained Neutral ratings, emphasizing Costco’s current valuation and steady sales performance. Mizuho highlighted the company’s reinvestment into its membership model, while DA Davidson pointed out a slight decline in traffic growth.
JPMorgan reiterated an Overweight rating, noting that Costco’s June sales exceeded expectations, particularly in international markets like Canada and other regions outside the U.S. Costco’s e-commerce sales also showed strong growth, increasing by 11.2% excluding foreign exchange effects. The company saw a slight reduction in cannibalization headwinds, which fell to 60 basis points in June from 70 basis points in May. Analysts noted that average ticket size in the U.S. increased by 3%, suggesting inflationary trends in certain categories. These developments reflect Costco’s robust performance and strategic focus amid varying market conditions.
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