Costco Wholesale Corp ( COST ) shares are trending on Thursday with shares up more than 1.5%. Here’s a look at what’s going on.

What To Know: Costco shares are moving higher Thursday, adding to gains of nearly 10% since the start of the year. The stock has almost recovered all of its losses since its last earning report in early March, which included a shortfall on earnings. Management also provided cautious commentary on the earnings call in anticipation of tariffs.

The stock appears to be getting a boost from Walmart Inc ( WMT ) earnings on Thursday. Walmart ( WMT ) shares initially traded higher on the report, and Costco shares followed. Walmart ( WMT ) shares have since pulled back, but Costco shares are holding onto gains.

On the conference call, Walmart ( WMT ) executives noted that February was soft, but demand returned to normal in March and was stronger than expected in April. Walmart ( WMT ) also reaffirmed its guidance for full-year 2025, which may be fueling some optimism for Costco’s upcoming report.

Costco is due to report fiscal third-quarter results in the coming weeks. The company is expected to report earnings of $4.24 per share and revenue of $63.21 billion, according to Benzinga Pro estimates.

Costco said last week that net sales in April were up 7% on a year-over-year basis. Net sales since the start of the year were up 8.2%, the membership-based wholesale retailer said.

JPMorgan reiterated an Overweight rating on Costco last week, highlighting strong global momentum and a rebound in big-ticket items, which account for about 20% of the retailer’s core sales.

It’s worth noting that Costco also showed up on Benzinga’s “Stock Whisper” index last week, suggesting investors are optimistic about the stock with earnings on the horizon.

Costco on Wednesday announced a multi-year partnership with Affirm, adding pay-over-time options for Costco.com in the U.S. Costco’s e-commerce sales climbed 12.6% year-over-year in April.

COST Price Action: Costco shares were up 1.50% at $1,006.46 at the time of publication Thursday, according to Benzinga Pro.

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