Costco Wholesale Corp COST The stock appears to be recovering from last week’s weak earnings as positive analyst revisions continue to arrive.

What you should know: Costco shares traded lower late last week after the membership-based retailer reported mixed fourth-quarter financial results. Fourth-quarter revenue of $79.697 billion was below the consensus estimate of $79.973 billion, but earnings of $5.29 per share were above analyst estimates of $5.08 per share.

Total comparable sales rose 5.4% in the fourth quarter, while e-commerce sales rose 18.9%. Membership contributions were $1.512 billion, up from $1.509 billion in the year-ago quarter. Costco announced that its recently announced membership fee increase went into effect on September 1st. The company ended the quarter with $9.906 billion in cash and cash equivalents.

Costco shares fell on the report, but the stock has started to gain traction as positive analyst updates continue to be released.

TD Cowen analyst Oliver Chen maintained a Buy rating on Costco on Monday and raised the price target to $975 from $925. The upward price target revision follows several other price target increases on Friday in the $755 to $1,005 range.

Analysts at Loop Capital, Stifel, BMO Capital, Telsey and Goldman Sachs maintained Buy or Outperform ratings, while analysts at Truist, Barclays, Wells Fargo, Roth MKM and DA Davidson maintained Neutral or Outperform ratings. Equal-Weight” is retained.

BMO analyst Kelly Bania highlighted strong growth in 2024 compared to the last decade. The analyst expects margin improvements to contribute to strong earnings growth over the next five years as recent membership fee increases boost Costco’s revenue.

Truist analyst Scot Ciccarelli also raised his earnings estimates for fiscal 2025 and 2026 following Costco’s quarterly results.

“Costco’s stacked growth continues to be the strongest/most consistent in our coverage,” the Truist analyst said.

Related Link: Costco’s strong fourth-quarter performance sparks mixed reaction from analysts as stock falls

COST price promotion: Costco shares are up about 35% year-to-date. According to Benzinga Pro, the stock was up 0.20% at $887.36 at the time of publication on Monday.

Photo: Mike Mozart from Flickr.