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

Core Insights - Costco Wholesale Corporation is highlighted as a stock to invest in before a potential stock split, with a Buy rating and a price target of $1,060 from Evercore ISI ahead of its Q4 2025 earnings report [1][3] Financial Performance - In Q3 2025, Costco reported net sales of $61.96 billion, an increase of 8% from $57.39 billion the previous year [2] - Net income rose over 13% to $1.9 billion, translating to $4.28 per diluted share, up from $1.68 billion or $3.78 per diluted share a year ago [2] - Total comparable sales increased by 5.7%, with US comparable sales growing by 6.6% and Canadian sales up by 2.9% [2] Membership and E-commerce Growth - E-commerce sales saw a significant increase of 14.8% in comparable sales [3] - Membership fee income for the quarter reached $1.24 billion, a 10.4% increase or $117 million year-over-year [3] - The number of paid household members grew to 79.6 million, a 6.8% increase, while Executive Memberships rose by 9% to 37.6 million, accounting for 73.1% of worldwide sales [3] - The renewal rate for memberships in the US and Canada was notably high at 92.7% [3] Company Operations - Costco operates membership warehouses in various countries including the US, Canada, Mexico, Japan, the UK, and several others [4]