Leading discount retailer Costco (COST Quick QuoteCOST - Free Report) is set to announce its fiscal second-quarter earnings results after Thursday’s closing bell. The company surpassed the earnings mark in three of the last four quarters. But with markets showing enhanced volatility lately, is COST a buy ahead of the release?

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Analysts are expecting Costco to post earnings of $4.55 per share, reflecting a 13.2% improvement versus the same quarter last year. Revenues are anticipated to jump 8.5% during the quarter to $69.12 billion.

Costco is well-positioned to deliver earnings growth given its resilient membership model. Solid renewal rates and an expanding member base reinforce its recurring revenue stream. The company’s Kirkland Signature brand continues to drive margin strength.

The Zacks Rank #2 (Buy) for COST suggests bullish expectations, bolstered by a positive Earnings ESP (Expected Surprise Prediction) of +0.66%, indicating potential for an upside surprise. Investors will watch closely for updates on retail trends when the company reports the results later this evening.