• Costco is expected to deliver an Earnings Per Share (EPS) of $3.77, reflecting an increase of 8.3%.
• Projected revenue to grow by 7.3%, reaching approximately $62.03 billion.
• Costco’s price-to-earnings (P/E) ratio is currently around 59.54, suggesting investor confidence in its earnings performance.

Costco Wholesale Corporation, a top global retailer operating membership-based warehouse clubs, is renowned for a diverse range of products, from groceries to electronics. The company is set to announce its quarterly earnings on December 12, 2024, with analysts projecting an EPS of $3.77 and anticipated revenue of $62.03 billion.

Analysts are bullish regarding Costco’s performance, forecasting an 8.3% EPS increase to $3.77 year-over-year, alongside a revenue projection of a 7.3% growth to $62.03 billion. Nonetheless, the average price target of $977.95 indicates Costco’s stocks may be nearing their peak, as they presently trade approximately 1% above this threshold. This points to the potential for growth, though with limited room for significant upward movement.

The timing of major sale events like Thanksgiving and Black Friday has somewhat hindered Costco’s online sales; however, analysts still anticipate a 7% revenue increase, reaching around $62 billion. This robust performance has led to speculation about a stock split, which could enhance share accessibility for a broader investor base, as it allows for increased share numbers while maintaining the overall market value.

Costco’s financial overview reveals a price-to-earnings (P/E) ratio of 59.54, indicating investor valuation of earnings potential. The price-to-sales ratio of 1.72 reflects the market’s view on its sales performance. The enterprise value to sales ratio stands at 1.71, and the enterprise value to operating cash flow ratio sits at 38.46, showcasing Costco’s efficiency in cash flow relative to its enterprise value.

Investors will closely watch Costco’s earnings results, alongside major competitors like Oracle and Adobe, as these reports could influence broader market trends. Furthermore, the upcoming November inflation data release could impact stock valuations, including Costco’s shares as investors respond to these financial and economic signals. Costco’s debt-to-equity ratio at 0.25 indicates low leverage in comparison to equity, while a current ratio of 0.97 reflects its capability to manage short-term liabilities effectively.