Costco is tipped by Evercore ISI for earnings rally
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Costco Wholesale Corporation (NASDAQ:COST) is on watch after Evercore fires off a positive tactical trading call on the retailer about two weeks ahead of the retailer's earnings report.
Analyst Greg Melich and team see more than double digit upside for COST into earnings on May 26 and boost the base case price target to $600, which is 40X the 2023 EPS estimate.
"Costco management does not historically provide guidance, but we believe they are likely to signal a solid start to May and provide enough ammunition for Street EPS to move up on the year with earnings."
Higher transportation costs and elevated fuel prices are two factors that could hurt the full-year guidance from Costco (COST), while a member ship fee hike and special dividend are two positive catalysts that could enter the mix.
Costco has topped earnings expectations in nine straight quarters and beat EPS marks in ten of the last twelve quarters. 
Shares of Costco (COST) are -13.85% YTD vs. -17.03% for the S&P 500 Index and -29.77% for the SPDR S&P Retail ETF.