Evercore ISI Reiterates Buy Rating on Costco (COST) with $1,060 PT Ahead of Q4 Earnings

Costco Wholesale Corporation (NASDAQ:COST) is one of the stocks to invest in before they split next. On September 5, Greg Melich from Evercore ISI kept a Buy rating on Costco, with a price target of $1,060. Evercore ISI’s sentiment was reiterated ahead of Costco’s Q4 2025 earnings report.

In Q3 2025, Costco reported strong growth in both its top and bottom lines. Net sales increased by 8% to $61.96 billion, which was up from $57.39 billion in the prior year. Net income increased by over 13%, rising to $1.9 billion or $4.28 per diluted share, from $1.68 billion or $3.78 per diluted share a year ago. Total company comparable sales were also up 5.7%. In the US, particularly, comparable sales grew by 6.6%, while in Canada, they were up 2.9%.

E-commerce was a standout segment, with comparable sales increasing by 14.8%. Membership fee income for the quarter was $1.24 billion, which was an increase of 10.4% or $117 million year-over-year. The company reported having 79.6 million paid household members, an increase of 6.8%. The number of Executive Memberships grew by 9% to 37.6 million, with Executive Members now accounting for 73.1% of worldwide sales. The US and Canada saw a high renewal rate of 92.7%.

Costco Wholesale Corporation (NASDAQ:COST) operates membership warehouses in the US, Puerto Rico, Canada, Mexico, Japan, the UK, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden.

While we acknowledge the potential of COST as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.