Costco Shares Hit Record High as Fuel Traffic and Trump Investment Drive Momentum

Costco Wholesale Corporation shares climbed to a record high of $1,096.50 on May 19, 2026, as the retailer capitalises on elevated national fuel costs and strong consumer demand. The stock has risen 16.2 per cent year-to-date, outperforming many large-cap retail peers despite broader market volatility. The rally is underpinned by increased foot traffic at Costco’s fuel stations, which are priced $0.10 to $0.25 per gallon below local and national averages, attracting shoppers amid national gas prices exceeding $4.50 per gallon.

The company reported strong fiscal second-quarter 2026 results, with net sales rising 9.1 per cent year-over-year to $68.24 billion for the 12 weeks ended February 15. Net income increased 13.8 per cent to approximately $2 billion, while earnings per share climbed to $4.58 from $4.02 in the prior-year quarter. Comparable sales grew 7.4 per cent companywide, with digitally enabled comparable sales surging 22.6 per cent, highlighting continued strength in e-commerce demand.

Institutional and high-profile interest in the retailer has intensified. A recent financial disclosure filing reveals that President Donald Trump invested up to $5 million in Costco during the first quarter of 2026. This investment coincides with a period of heightened scrutiny on the retailer’s defensive business model, which has drawn loyal consumers through bulk discounts and a membership structure that prioritises value during inflationary periods.

Analysts remain bullish on the stock’s trajectory. UBS recently raised its price target to $1,275 from $1,205, maintaining a Buy rating, while Oppenheimer increased its target to $1,160 from $1,100, keeping an Outperform rating. The consensus among the 34 analysts covering the stock is a Moderate Buy, with 19 advising a Strong Buy. The average analyst price target stands at $1,093.90, suggesting potential upside, while the street-high target of $1,315 implies significant room for growth.

Looking ahead, projections indicate Costco’s earnings per share could climb 13 per cent year-over-year to $20.33 in fiscal 2026 and grow another 10.2 per cent to $22.40 in fiscal 2027. The company’s market capitalisation has reached $456.2 billion, trading at 50.59 times forward earnings. For the first 35 weeks of fiscal 2026, total net sales increased 9.5 per cent to $197.2 billion, reflecting sustained momentum across its global warehouse network.