Shares of Costco Wholesale (COST +1.13%) have been rallying to start 2026, as they're up 16% as of Monday's close. The retail stock is once again around the $1,000 price point, a level it hasn't been at since last summer. Investor sentiment has been rising as the stock approaches its all-time high of $1,078.
The company's upcoming earnings results may play a big role in where the stock goes in the near term, and Costco is scheduled to release those numbers on March 5. Should you buy the stock before they come out?
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Is the company likely to report another good quarter?
Costco last reported earnings on Dec. 11, 2025. Its revenue for the period ending Nov. 23, 2025, rose by around 8.3% and its comparable growth rate was solid at 6.4%. It was a solid showing for the business, not unlike how it has performed in recent periods.
COST Revenue (Quarterly YoY Growth) data by YCharts
While there can be occasional volatility, the company has generally done a great job of growing its business on a fairly consistent basis.
The company releases monthly results as well, which can give investors early insights into how the business has been doing. In the crucial holiday month of December, the company's comparable sales growth rate came in at 7% for the entire company (across all regions). While it may not necessarily be a big acceleration of its most recent quarterly growth rate, it's a good sign nonetheless that Costco should likely post a strong quarter yet again in March. However, that may not be enough of a reason for the retail stock to rise higher.
NASDAQ: COST
Key Data Points
The bigger problem for Costco's stock is its valuation
Costco beat expectations the last time it reported its quarterly results, but that wasn't enough to give the stock a boost afterwards. Instead, it proceeded to fall in the final weeks of the year.
Although the stock has been rising in the early part of 2026, it's priced at a significant premium. Costco's stock trades at an incredibly high price-to-earnings multiple of 54, which is more than double the S&P 500 average of 25.
I wouldn't rush out to buy Costco's stock ahead of earnings, simply because whatever it posts for the past quarterly likely won't change the fact that this is a grossly overvalued stock. As investors have been loading up on safe-haven assets, this has made many of them, such as Costco, incredibly expensive in the process. Even if the business performs well, I still think there are better value stocks to choose from that can provide you with a better mix of value and safety for the long term.
