Is Costco's January Sales Surge Fueling a Bigger 2026 Rally?

Costco Wholesale Corporation COST kicked off calendar year 2026 on a solid note, delivering stellar comparable sales growth in January, which highlights its appeal to value-conscious consumers. The company’s competitive pricing and quality merchandise, supported by a growing e-commerce business alongside its warehouse network, continue to draw shoppers.

For the four weeks ending Feb. 1, 2026, Costco reported a 7.1% year-over-year increase in total comparable sales. Regionally, comparable sales rose 5.8% in the United States, 11.4% in Canada and 9.5% in Other International markets. This follows total comparable sales growth of 7% in December and 6.9% in November, indicating consistent momentum.

On an adjusted basis, excluding the effects of gasoline prices and foreign exchange, U.S. comparable sales increased 6.8%, while Canada and Other International markets posted gains of 8.2% and 2.7%, respectively. Overall, total comparable sales, excluding these factors, grew 6.4% in January, following strong increases of 6.2% in December and 6.4% in November.

Digitally enabled comparable sales in January surged 34.4%, or 33.1%, when adjusted for fuel and currency impacts. This follows gains of 18.9% and 16.6% registered in December and November, respectively, underscoring sustained momentum in the company’s online channel.

As a result, Costco's net sales for January rose 9.3% to $21.33 billion, up from $19.51 billion in the same period last year. This follows a sales improvement of 8.5% and 8.1% in December and November, respectively.

What the Latest Metrics Say About Costco

Costco, which competes with Dollar General Corporation DG and Target Corporation TGT, has seen its shares decline 5.8% in the past year against the industry’s growth of 6.9%. While shares of Dollar General have rallied 97.8%, those of Target have dropped 12% in the aforementioned period.
 

From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 47.67, higher than the industry’s ratio of 33.35. COST carries a Value Score of D. Costco is trading at a premium to Target (with a forward 12-month P/E ratio of 14.88) and Dollar General (20.67). 
 

The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 7.9% and 12.2%, respectively. For the next fiscal year, the consensus estimate indicates a 7.1% rise in sales and 9.3% growth in earnings.
 

Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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