Wolfe Research Flags Tax Refund Tailwinds as a Positive for Costco Wholesale (COST)

Group 1 - Costco Wholesale Corporation (NASDAQ:COST) is projected to benefit from an expected increase in U.S. consumer spending due to significant tax refunds in 2026, particularly for households earning under $200,000 [2][3] - Wolfe Research anticipates an incremental $75 billion in tax refunds for lower-income households, translating to approximately $500 per filer, alongside an additional $20 billion for those earning between $200,000 and $500,000 [3] - The company declared a quarterly cash dividend of $1.30 per share, payable on February 13, 2026, and received a 'Buy' rating from Deutsche Bank with a price target of $1,044 [4] Group 2 - Costco operates membership-based warehouse clubs in the U.S., Canada, and internationally, focusing on bulk merchandise at low prices with a high-renewal, fee-driven business model [5]