Costco (COST) continued to wow Wall Street with its announcement of beating estimated Q3 earnings, showing strength in an uncertain retail environment. The big-box retailer experienced earnings per share up 13% to $4.28, above the predicted $4.24. Revenue was up 8% to $63.2 billion, above the estimated $63.13 billion.

The strong results are despite comparable store sales barely beating expectations. Same-store sales overall rose 5.7%, falling short of analyst estimates by a hair at 6%. Adjusted for gas prices, the number rose a healthy 8%, reflecting Costco's ability to drive core retail growth.

U.S. and Canada Post Mixed Performance

Domestically, Costco is strong. U.S. stores saw same-store sales rise 6.6%, while Canadian stores saw less impressive 2.9% growth. U.S. same-store sales gains in April were 5.2%, down from 9.2% in January. Excluding the sale of gas, comps rose 7.1% in April, reflecting ongoing strength in core merchandise categories.

April sales were worth $19.8 billion, up 7% from last year. March sales were bigger still at 8.6%. Everyone is watching the trend closely to see how it will do in the second half of the year, given the macroeconomic pressures on consumer wallets.

Gold Bar Craze and Payment Flexibility

In one of the more unusual headlines, Costco has imposed a buy restriction on gold bars—two per buyer every 24 hours. The change, added to the website in mid-May, comes as demand remains high and gold prices swing. Wells Fargo estimates Costco is selling $100 million to $200 million worth of gold bars each month since the initiative began in summer 2023.

Costco is also becoming more convenient to shop at. On May 14, the company announced a deal with Affirm to provide installment payments for big online purchases from $500 to $17,500. This is aimed at both small business owners and cash-strapped families, making bulk shopping more affordable.

Moreover, the company boosted its quarterly dividend to $1.30 a share from $1.16, reiterating its shareholder-friendly strategy for the second quarter running.

Costco Stock Near Buy Zone

COST shares remained flat after the earnings announcement, hovering around its buy zone. The stock had already broken out above a cup-with-handle base at $1,018, and the buy zone was as high as $1,068.90.

The stock has been supported at its 21-day exponential moving average and is at its 10-day line. With the broader S&P 500 and Nasdaq in a confirmed power trend, they are waiting for the breakout to continue.

The average true range (ATR) of COST stock is 1.76%, which represents stable price action as compared to volatile stocks. This would be a more stable growth scenario for growth investors.

Analyst Take: Costco Stock Forecast 2025

Upcoming days will witness analysts keeping their fingers crossed when it comes to the Costco stock forecast 2025. Bernstein has just reaffirmed its "outperform" rating of Costco on the basis of the company's pricing strength and nimble merchandise purchasing.

Although the company reduced its price target from $1,153 to $1,148, it justified that any drop would be a good entry point because shares are currently "priced to perfection" at 53x earnings.

With the firm's steady performance, dividend growth, and services like in-store payment flexibility, the Costco stock forecast 2025 shows growth continuation. Investors anticipate earnings growth to be robust as the company rides on customer loyalty and operational effectiveness.

In summary, as much as same-store sales growth has come down, Costco is still a retail behemoth. For long-term growth investors with moderate volatility, the Costco stock forecast 2025 still holds great prospects.