03:40 PM EDT, 09/12/2024 (MT Newswires) -- Costco Wholesale ( COST ) continues to gain market share with "consistent and robust traffic growth" averaging 6.5% worldwide in recent months, outpacing competitors, UBS said in a note Wednesday.

Costco is expected to report steady revenue growth in fiscal Q4, with projected year-over-year net sales growth of 0.9% and revenue expected to reach $79.7 billion, the investment firm said.

UBS said it projects a 1.2% growth in membership fee income to approximately $1.5 billion, driven by growing membership numbers and executive membership penetration that "likely remained strong as people looked to maximize their spending power" in Q4.

Costco's productivity loop includes reinvesting membership fee income into pricing and is expected to continue to drive traffic and sales growth, the UBS analysts said.

UBS estimates Q4 earnings per share of $5.19 compared with the $5.06 per share consensus of analysts polled by Capital IQ.

UBS maintained a buy rating on Costco with a price target of $940.

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