Costco Wholesale stock falls ahead of September 24 earnings after Bank of America trims its target

Costco Wholesale Corporation stock (ISIN US22160K1051) is trading near USD 895 per share on Nasdaq as of September 18, 2026, with investors positioning ahead of fiscal fourth-quarter results due on September 24, 2026 and digesting a lower price target from Bank of America.

Bank of America trims Costco target ahead of Q4 report

According to TheStreet on September 18, 2026, Bank of America analyst Christopher Nardone cut the firm’s price objective on Costco Wholesale stock to USD 1,095 from USD 1,200 while maintaining a Buy rating, trimming the fiscal 2026 earnings estimate to USD 20.37 per share from USD 20.47.

The same report notes that Bank of America now forecasts Costco will deliver fourth-quarter adjusted earnings of USD 6.52 per share, slightly below the USD 6.55 consensus estimate cited in the firm’s research, underscoring expectations for solid but not spectacular profit growth in the warehouse retailer’s upcoming results.TheStreet

As Futunn reported on September 19, 2026, the broader analyst community expects Costco to post fiscal fourth-quarter 2026 revenue of USD 94.85 billion, up 10.09 percent year over year, with EPS estimated at USD 6.527, up 11.2 percent year over year, pointing to double-digit growth in both top and bottom line despite macro pressures.

Stock pulls back from recent highs but remains richly valued

AltIndex’s stock comparison overview updated on September 19, 2026 shows Costco Wholesale stock at a price of USD 895.31, implying a market capitalization of around USD 396.44 billion and a 12-month share price change of negative 6.1 percent, after a strong multi-year run that left the retailer trading at a premium valuation.AltIndex

Commentary from Adalytica on September 19, 2026 highlights that Costco shares have fallen to about USD 895.31 from a recent high above USD 1,090, leaving the stock below both its 50-day and 200-day moving averages, with the latest 14-day relative strength index near 21 signaling a technically oversold condition rather than a structural break in the investment case.

Further technical context from Adalytica indicates that Costco closed at USD 895.31 on September 18, 2026, below a 50-day moving average of USD 936.24 and a 200-day moving average of USD 958.23, reinforcing the view that the recent slide has pushed the shares into oversold territory ahead of the earnings catalyst.

Earnings preview focuses on membership strength and delivery partnerships

According to an earnings preview from Futunn on September 19, 2026, Costco is scheduled to release its fiscal fourth-quarter 2026 financial results post-market on September 24, 2026, with analysts looking for revenue of about USD 94.85 billion and EPS of roughly USD 6.527, which would mark year-over-year increases of 10.09 percent and 11.2 percent respectively.

Coverage from The Motley Fool on September 18, 2026 notes that investors are focused on Costco’s membership model and recurring fee income heading into the report, pointing out that the stock’s current valuation near 39 times forward earnings still finds support in steady traffic growth and high renewal rates.

An article from 24/7 Wall St. on September 18, 2026 highlights that Costco’s same-day delivery partnership with DoorDash, covering more than 4,000 products inside a third-party app, went live after the fiscal fourth-quarter 2026 period closed, meaning the initiative will not affect the reported numbers but could support revenue growth and membership convenience in subsequent quarters.

Cash-flow perspective and valuation debate

A discounted cash flow analysis from Simply Wall St dated September 18, 2026 points out that Costco’s latest twelve-month free cash flow sits around USD 9.25 billion, with a five-year total shareholder return of about 108 percent, but argues that the current share price near USD 893.93 leaves the stock trading meaningfully above the intrinsic value implied by those cash flow projections.

This tension between premium valuation and robust cash generation frames the upcoming earnings release as a key checkpoint, with bullish investors expecting continued double-digit revenue and EPS growth to justify the high multiple, while more cautious shareholders look for evidence that free cash flow can keep compounding at a pace consistent with the market’s expectations.

Stock level and market context

Per data compiled in recent technical overviews, Costco Wholesale stock closed at approximately USD 895.31 on Nasdaq on September 18, 2026, down from a recent high above USD 1,090 and leaving the shares in a technically oversold zone with a relative strength index near 21, which some investors see as a potential entry point ahead of the September 24, 2026 earnings report.

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