Costco (COST) Added to Mizuho Top Picks After Pullback

Costco Wholesale Corporation (NASDAQ:COST) is included among the 13 Best Consumer Staples Dividend Stocks to Invest in Now.

Mizuho sees Costco Wholesale Corporation (NASDAQ:COST)'s recent pullback as overdone. The bank added the wholesale retailer to its top picks list and upgraded the stock to Outperform from Neutral. It also raised its price target to $1,000 from $950.

Costco Wholesale Corporation (NASDAQ:COST) shares fell about 6% in 2025, while the S&P 500 gained more than 16%. Mizuho said that the gap looks concerning at first glance, but it is not unusual for Costco. The firm pointed back to mid-2017, when the stock also pulled back as store traffic ran hot and membership growth began to slow. That period was followed by a reacceleration across key metrics once unit growth settled, analyst David Bellinger wrote. He further made the following comment:

“Shares have corrected ~20% on concerns that both membership and comp sales growth are slowing as part of some underlying change within the COST model. We push back with: 1) A proprietary store-level analysis indicating roughly half of recent U.S. warehouse openings are ‘fill-ins,’ siphoning demand from high-volume locations and therefore temporarily weighing on membership growth; 2) Trade-up activity is accelerating with Q1 premium member adds 2-3x that of total membership; 3) Domestic renewal rates remain exceptionally high at > 90% and above the 10-year running average.”

Bellinger said current investor worries are understandable, but they largely come down to “having arguably too much consumer demand.” He also highlighted Costco’s wage growth, which is beginning to normalize after a strong stretch. Another potential catalyst could be ahead, with the analyst pointing to the possibility of a special dividend.

Costco Wholesale Corporation (NASDAQ:COST) operates membership-based warehouses and e-commerce platforms, offering both national brands and private-label products across a wide range of categories.

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