{"id":1952,"date":"2025-09-26T16:42:38","date_gmt":"2025-09-26T16:42:38","guid":{"rendered":"https:\/\/retrotradingreport.com\/index.php\/2025\/09\/26\/why-costco-stock-slipped-post-q4-3-reasons-plus-5-to-buy-the-dip\/"},"modified":"2025-09-26T16:42:38","modified_gmt":"2025-09-26T16:42:38","slug":"why-costco-stock-slipped-post-q4-3-reasons-plus-5-to-buy-the-dip","status":"publish","type":"post","link":"https:\/\/retrotradingreport.com\/index.php\/2025\/09\/26\/why-costco-stock-slipped-post-q4-3-reasons-plus-5-to-buy-the-dip\/","title":{"rendered":"Why Costco stock slipped post-Q4: 3 reasons, plus 5 to buy the dip"},"content":{"rendered":"
<\/div>\n

Investors are choosing caution on Costco Wholesale Corp (NASDAQ: COST) this morning even though the membership-only big-box retailer came in ahead of Street estimates for its fiscal Q4<\/a>.<\/p>\n

Including today\u2019s decline, COST shares are down nearly 15% versus their year-to-date high.<\/p>\n

Why did Costco stock tumble after Q4 earnings?<\/h2>\n

While the headline numbers remained reasonably strong in the fourth quarter, Costco stock is under pressure on Friday because of the following three reasons:<\/p>\n

    \n
  1. Costco\u2019s comparable sales growth hit a six-quarter low \u2013 signaling a moderation or slowing domestic growth momentum.<\/li>\n
  2. Costco shares are priced for perfection. Signs of deceleration can, therefore, trigger profit-taking and investor concern.<\/li>\n
  3. Several analysts maintained their neutral rating, while one even lowered his price target on COST shares following the earnings release.<\/li>\n<\/ol>\n

    Why COST shares are worth buying on the post-earnings dip<\/h2>\n

    On the flip side, however, there are ample reasons for long-term investors to consider buying the post-earnings dip in the retail stock as well. These include:<\/p>\n

      \n
    1. Solid recurring revenues and customer loyalty, thanks to a powerful membership model. In Q4, membership fee income surged 14%, with renewal rate keeping strong at 90% globally.<\/li>\n
    2. Continued upside in comparable sales, despite some deceleration. US same store sales cam in up 5.1% in the fourth quarter \u2013 a resilient showing amid cautious consumer spending.<\/li>\n
    3. Price leadership at scale. A 13 basis points increase in Q4 gross margin reflects Costco\u2019s ability to maintain price discipline and value through Kirkland and sourcing efficiencies.<\/li>\n
    4. Room for future expansion. COST ended fiscal 2025 with 914 warehouses, having opened 27 new locations. It plans to add 35 more in fiscal 2026, showing global growth potential.<\/li>\n
    5. Robust cash returns and flexibility. Operating cash flow hit $13.33 billion for the year, with $14.16 billion in cash. The dividend was raised 12% to $1.30 per share in April.<\/li>\n<\/ol>\n

      Can Costco weather tariff risks?<\/h2>\n

      Costco shares remains worth owning at current levels also because they appear well-positioned to navigate tariff headwinds<\/a>, thanks to company\u2019s scale, sourcing agility, and private-label strength.<\/p>\n

      On the Q4 earnings call, CFO Gary Millerchip noted that about one-third of U.S. sales stem from imported goods, but the company has actively mitigated exposure.<\/p>\n

      In some cases, it has swapped tariff-hit items with Kirkland Signature alternatives \u2013 leveraging its trusted private label to maintain value.<\/p>\n

      Additionally, Costco is adjusting its merchandise mix by sourcing more U.S.-made products and leaning into lower-risk categories like health and beauty.<\/p>\n

      These strategic pivots, combined with a disciplined cost structure, suggest COST stock can absorb tariff pressures without compromising its price leadership.<\/p>\n

      How Wall Street recommends playing COST stock<\/h2>\n

      Despite premium valuation and an earnings release that didn\u2019t quite please investors on all fronts, Wall Street continues to see significant further upside in Costco stock.<\/p>\n

      The consensus rating on COST remains at \u201coverweight\u201d with the mean target of roughly $1,086 indicating potential upside of nearly 18% from here.<\/p>\n

      The post Why Costco stock slipped post-Q4: 3 reasons, plus 5 to buy the dip<\/a> appeared first on Invezz<\/a><\/p>\n

      <\/p>\n","protected":false},"excerpt":{"rendered":"

      Investors are choosing caution on Costco Wholesale Corp (NASDAQ: COST) this morning even though the membership-only big-box retailer came in ahead of Street estimates for its fiscal Q4.Including today\u2019s decline, COST shares are down nearly 15% versus their year-to-date high.Why did Costco stock tumble after Q4 earnings?While the headline numbers remained reasonably strong in the…<\/p>\n","protected":false},"author":1,"featured_media":1953,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1952","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/1952","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/comments?post=1952"}],"version-history":[{"count":0,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/1952\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media\/1953"}],"wp:attachment":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media?parent=1952"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/categories?post=1952"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/tags?post=1952"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}