Can Costco (COST) Keep Growing into One of Retail’s Biggest Valuation Premiums?

It was reported on September 25 that Costco Wholesale Corporation (NASDAQ:COST) maintains solid underlying business momentum following its Q4 and fiscal year 2026 results, according to a recent research note from RBC Capital. The firm reaffirmed its Sector Perform rating and $1,000 price target, while boosting its EPS forecasts by $0.21 to $20.76 for FY26 and by $0.10 to $22.86 for FY27. RBC's upward revision incorporates expected IEEPA tariff refunds in early 2027 alongside updated margin, store expansion, and capex assumptions. For investors, the analyst's takeaway is clear: while operational stability is intact, the stock's stretched valuation multiple remains its primary hurdle.