Costco Wholesale Corporation (COST) stock reached a new 52-week low on Tuesday. Shares traded as low as $851.40 during the session.
The decline followed Roth Capital’s downgrade of COST from "hold" to "sell." Roth Capital set a $769 price target. Investors appear focused on the stock's high valuation, causing the share price to fall since the earnings announcement. The stock underperformed the broader market throughout 2025.
This negative market reaction occurred despite strong first-quarter fiscal 2026 results reported on December 11th. The retailer’s recent earnings report showcased an 8% year-over-year revenue increase. Digitally enabled comparable sales surged by 20.5%. Key metrics, including comparable sales and membership fee income, also showed healthy growth.