Why Some Experts Think 'Defensive' Investors Could Lift Costco Stock Back Toward Records

Core Insights - Costco Wholesale's earnings for the fiscal second quarter were $4.58 per share on revenue of $69.6 billion, surpassing analyst expectations of $4.51 per share and $69.1 billion in sales [1] - Despite a 1% increase in stock price following the earnings report, Costco shares are down slightly over the past year, although they have rallied 15% at the start of the year [1] Investor Relevance - Costco's shares are approximately 8% below their early 2025 record high of nearly $1,077, with an average analyst price target $40 lower than that peak [2] - Analysts from JPMorgan noted that Costco's sales and margin growth are outpacing other retailers, maintaining an "overweight" rating and raising their price target to $1,060, which is about 9% above the recent closing price [2] - William Blair analysts view Costco as a stable, defensive consumer stock in a volatile market, suggesting potential for special dividends or increased buybacks to support the stock [2] Additional Context - The potential for tariff refunds could impact Costco this year, as the company is awaiting a court decision regarding refunds from tariffs imposed by the previous administration [3] - CEO Ron Vachris indicated uncertainty regarding the timing of any tariff refunds, but stated that any recovery would be passed on to consumers through lower prices [4]