Costco Wholesale (COST) is experiencing a surge in its stock price as it pushes towards record highs, signaling investors' optimism ahead of the retailer's Q1 earnings report, which is scheduled to be released later this week.

The company has demonstrated impressive performance in recent quarters, with double-digit earnings growth and solid revenue growth ranging from low- to upper-single digits. Analysts have taken notice of this positive trend and have raised their price targets for COST stock, citing the company's strong performance and anticipation of an upcoming membership fee hike.

Evercore ISI analyst Greg Melich described Costco as a "juggernaut" in the past month, setting a high benchmark for the upcoming quarterly report. As a result, Evercore ISI raised its price target on Costco stock by $10 to $650 and maintained an outperform rating on the shares going into 2024, with a membership price increase expected on the horizon.

Costco's Chief Financial Officer, Richard Galanti, has also hinted at a potential membership fee hike during the retailer's Q3 earnings call, stating that it is "a question of when, not if." The company last increased its membership fees in June 2017, and Galanti suggested that a similar move could happen in the future.

Telsey Advisory expressed confidence in Costco's ability to execute well in an uncertain operating environment. The firm noted the company's solid performance in November, outperforming most other retailers, and projected further market share gains driven by strong sales and high membership renewal rates. Telsey raised its price target on COST stock to $625 from $600 and maintained an outperform rating.

In recent trading, Costco stock rose by 2% prior to the earnings report release. It has seen a significant boost this year, rallying approximately 40% thus far. The stock's surge has been supported by a breakout from a flat base on September 28, leading to a 12% increase and surpassing its previous all-time high of $612.27 from April 7, 2022.

Eager investors are eagerly awaiting the Q1 earnings results, with FactSet forecasting an 11% growth in earnings to $3.41 per share and a 6.2% increase in sales to $57.79 billion. If Costco continues its streak of positive performance, it is likely to further solidify its position as a leading retailer in the market.