Key Takeaways

Costco ( COST ) on Wednesday reported March sales that topped expectations, and JPMorgan analysts reacted by calling the company a “clear market leader."

The membership-based retailer reported net sales of $25.51 billion in the five-week period through April 6, up more than 8% year-over-year . That beat the analyst consensus of 6.8% net sales growth, JPMorgan said. U.S. comparable sales improved over 7%, also topping estimates, while e-commerce sales jumped 16%. Food and sundries grew high-single digits, led by the cooler, frozen, and candy departments, the analysts noted.

The retailer has experienced “ongoing global/scaled momentum,” JPMorgan said, leading to market share gains across multiple regions. “No other major retailer has succeeded in every country it entered,” the analysts added.

JPMorgan Keeps 'Overweight' Rating for Costco

JPMorgan maintained an “overweight” rating and price target of $1,070, which implies a nearly 11% upside from Costco's Wednesday close of $965.19. On Thursday, the shares were little changed as broader markets tumbled amid tariff-fueled volatility.

Last week, UBS analysts said Costco, along with rival Walmart ( WMT ), may be relatively well-positioned to withstand the impact of tariffs. As retailers respond to import taxes by raising prices, consumers are least likely to cut back on essentials like groceries, the analysts said. That benefits large retailers like Costco, which have the scale needed to negotiate with vendors and offer customers competitive pricing, the UBS report said.

Read the original article on Investopedia