As the week comes to an end, let’s take a look at some of the most significant stories that made headlines. From the Supreme Court’s potential tariff ruling in favor of Costco Wholesale Corp. (NASDAQ:COST) to Jamie Dimon’s future political aspirations, here’s a quick round-up of the week’s top economic stories.Supreme Court’s Delay In Tariff Ruling A Sign Of Potential Victory For Trump?The Supreme Court’s decision to postpone the ruling on the legality of President Donald Trump’s tariffs could indicate a fa ...

Core Viewpoint - Costco's stock has shown strong long-term performance, with a total return of 52% over the 12 months leading to February 2025, but currently trades 11% below its all-time high, prompting investor interest in potential gains [1] Stock Performance and Projections - For Costco's stock to reach $1,000 by the end of 2026, it would need to increase by just 5% from its current price of $954, which is achievable given its historical compound annual growth rate of 20% over the past decade [2] - Sell-side analysts have set a consensus price target of $1,033 for Costco, indicating an 8% upside potential based on its long-term performance [3] Financial Performance - Costco reported a 7% increase in same-store sales (SSS) for December 2025, following a 5.9% increase in fiscal 2025 and a 5.3% increase in fiscal 2024, highlighting strong fundamental gains [3] - Wall Street analysts forecast revenue and earnings per share to grow by 8% and 11%, respectively, between fiscal 2025 and fiscal 2026, reflecting a stable outlook for the company [8] Membership and Customer Retention - Costco has 81.4 million membership accounts, a 5.2% increase from the previous year, indicating strong customer retention and attraction [4] Market Position and Valuation - Costco's stock trades at a high price-to-earnings (P/E) ratio of 51, reflecting the market's premium valuation of the company due to its strong brand recognition and cost advantages in the retail sector [9] - Despite facing competition and the rise of online shopping, Costco continues to perform well, supported by its expanding store base [9] Economic Considerations - While external factors such as a potential recession could impact consumer spending and foot traffic, the current economic environment, including the Federal Reserve's rate-cutting cycle and quantitative easing, is seen as a stimulus for growth [6][7]

Core Insights - The article compares two ETFs in the consumer staples sector: State Street Consumer Staples Select Sector SPDR ETF (XLP) and iShares Global Consumer Staples ETF (KXI), highlighting their differences in focus, cost, performance, and holdings [1][5]. Group 1: ETF Overview - XLP consists of 36 U.S. consumer defensive stocks, including major companies like Walmart, Costco, and Procter & Gamble, providing targeted exposure to established U.S. staples [2]. - KXI, with a portfolio of 96 companies, offers global exposure, with 59% in U.S. stocks, 29% in European stocks, and 7% in Asian stocks, featuring both U.S. giants and international leaders like Nestle and Unilever [3][7]. Group 2: Performance and Fees - XLP has a lower expense ratio of 0.08% and a higher dividend yield of 2.7%, compared to KXI's expense ratio of 0.39% and dividend yield of 2.3%, making it more appealing for income-focused investors [4][8]. - Over the last five years, XLP generated a total return of 36.2% (CAGR of 6.4%), outperforming KXI, which had a total return of 28.1% (CAGR of 5.1%), although both funds lagged behind the S&P 500's CAGR of 14.6% [8]. Group 3: Investment Considerations - XLP is recommended for investors seeking exposure to the U.S. consumer staples market due to its better performance, yield, and fees, while KXI offers regional diversification as its main advantage [9].

Core Viewpoint - Costco Wholesale Corporation has ended its partnership with PepsiCo and returned to Coca-Cola for its food courts, marking a significant shift after a decade-long relationship [1][2]. Group 1: Partnership Transition - The transition back to Coca-Cola began in late 2025 and was completed in early 2026 [1]. - Costco had been exclusively partnered with Pepsi since 2013, initially switching to Pepsi as a cost-saving measure to maintain the price of its popular hot dog and soda combo at $1.50 [2]. Group 2: Reasons for the Switch - The reasons for the switch back to Coca-Cola have not been officially disclosed, but customer preference and Coca-Cola's renewed commitment to quality and partnership with Costco are suggested factors [2]. Group 3: Market Performance - Costco has outperformed the market over the past 20 years by 7.13% on an annualized basis, achieving an average annual return of 16.0% [3]. - The current market capitalization of Costco Wholesale is $426.19 billion [3].

Core Insights - The rising cost of groceries is driving consumers to seek out discount retailers like Aldi and Walmart, with higher-income shoppers increasingly turning to these stores [2][11] - Aldi has announced plans to open over 180 new stores by the end of the year, aiming for a total of 2,800 stores by the end of 2026 and 3,200 by the end of 2028 [4][6] - Aldi's expansion could significantly impact competitors like Costco, which relies on membership fees and private-label products to attract customers [10][13] Company Strategies - Aldi is focusing on expanding its presence in new markets and enhancing its online shopping experience, which may attract more customers [6][14] - Costco reported a 92.2% membership renewal rate in the U.S. and Canada, but experienced a slight slowdown in renewals, indicating potential challenges ahead [11] - The competition between Aldi and Costco is intensified by Aldi's low-cost model, which does not require an annual membership fee, making it more appealing to budget-conscious consumers [10][13] Market Trends - Inflation has led to significant changes in grocery shopping habits, with 88% of Americans altering their shopping behaviors due to rising prices [16] - American families spent an average of $310 more on groceries in 2025 compared to 2024, marking a 4% year-over-year increase [16] - Grocery prices rose by 2.4% nationally in December 2025 compared to the previous year, with the Western U.S. experiencing a 1.1% increase, the largest monthly rise since 2022 [16]

Key Points The global retail industry is gigantic, with an addressable market estimated at $36.9 trillion by 2030. Despite an abundance of competition, Costco Wholesale has managed to differentiate itself through its membership-driven operating model. Costco has added or adjusted a trio of perks for its Executive cardholders, who account for more than 74% of the company's net sales. 10 stocks we like better than Costco Wholesale › For the last three years, the talk on Wall Street has centered on ...

It has an evergreen retail model.Costco Wholesale (COST +0.54%) is typically a reliable, market-beating stock. However, it's roughly flat over the past year, while the S&P 500 index is up more than 21%.The stock had actually lost about 6% of its value in 2025, but it's already soaring after an excellent December performance report. Even after a rare down year, investors keep coming back to this top stock. Here are three reasons why. 1. The resilienceCostco continues to demonstrate strong and steady growth d ...

Financial Data and Key Metrics Changes - The company's pre-tax profit grew from $5.4 billion in fiscal 2020 to over $10.8 billion in fiscal 2025, indicating a significant increase in profitability [12]. Business Line Data and Key Metrics Changes - The company has installed over 20 EV charging locations globally this year, reflecting its commitment to adapting to member needs [16]. - The company continues to rotate products based on member demand, as seen with the discontinuation of MyPillow due to declining sales [18]. Market Data and Key Metrics Changes - The company is actively pursuing new locations, with plans to open 30 new locations in the next year, indicating ongoing market expansion [25]. Company Strategy and Development Direction - The company is focused on balancing emissions reductions with business growth, emphasizing a practical approach to its climate action plan adopted in 2020 [12]. - The company is committed to enhancing its product offerings with a focus on clean ingredients, which is a top priority for its buyers [22]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain profitability while pursuing growth and sustainability initiatives [12]. - The company is not currently planning to expand into South America or India, indicating a focused approach to market entry [31]. Other Important Information - The shareholder proposal regarding financial risks and costs of climate commitments was overwhelmingly rejected, with over 98% voting against it [14]. - The company has reformulated Roundup products to remove concerning chemicals while still meeting member demand [22]. Q&A Session All Questions and Answers Question: Has the company considered installing additional EV charging stations? - Yes, over 20 locations have been added this year, and the company will continue to monitor member needs for future installations [16]. Question: What happened to the My Pillow product? - MyPillow was discontinued due to declining sales, which is a common practice based on member demand [18]. Question: Are the company's Scope 3 reduction targets for suppliers voluntary or business imperatives? - Currently, there are no business imperatives related to Scope 3; all imperatives are related to Scope 1 and 2 [19]. Question: Is there any consideration for a stock split or special dividend this year? - Both stock splits and special dividends are regularly discussed with the board, but there is nothing to report at this time [20]. Question: Will Costco commit to removing Roundup products from its warehouses? - The company plans to continue selling Roundup as it meets member demand, but has reformulated it to remove glyphosate [21][22]. Question: What are the company's plans for entering new markets? - The company plans to open 30 new locations, with a third of those in new markets, indicating ongoing expansion efforts [25]. Question: Can you update on the progress of the company opening freestanding gas stations? - There are currently four freestanding gas stations in process, aimed at enhancing service near existing warehouses [27]. Question: How does the company plan to maintain its corporate culture with new executives? - The company is focused on teaching its culture to new hires, particularly in IT, to ensure alignment with corporate values [29].

Financial Data and Key Metrics Changes - The company's pre-tax profit grew from $5.4 billion in fiscal 2020 to over $10.8 billion in fiscal 2025, indicating a significant increase in profitability [12]. Business Line Data and Key Metrics Changes - The company has installed over 20 EV charging locations globally this year, reflecting its commitment to adapting to member needs [16]. - The company continues to rotate products based on member demand, as seen with the discontinuation of the MyPillow product due to declining sales [18]. Market Data and Key Metrics Changes - The company is actively pursuing new locations, with plans to open 30 new warehouses in the upcoming year, indicating ongoing market expansion [25]. Company Strategy and Development Direction - The company is focused on balancing emissions reductions with business growth, emphasizing a practical approach to its climate action plan adopted in 2020 [12]. - The company is committed to enhancing its product offerings with a Clean Ingredient Index, focusing on healthier products for consumers [22]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth potential, stating that there is still room for expansion in both North America and internationally [25]. - The company is monitoring the impact of tariffs on products and is involved in a lawsuit to seek refunds on tariffs paid, indicating a proactive approach to regulatory challenges [26]. Other Important Information - The shareholder proposal regarding financial risks and costs of climate commitments was overwhelmingly rejected, with over 98% voting against it [14]. - The company has reformulated certain products, such as Roundup, to remove concerning chemicals while still meeting member needs [22]. Q&A Session Summary Question: Has the company considered installing additional EV charging stations? - Yes, over 20 locations have been added this year, and the company will continue to monitor member needs for future installations [16]. Question: What happened to the MyPillow product? - Sales declined, leading to its removal from warehouses, which is a common practice based on member demand [18]. Question: Are the company's Scope 3 reduction targets voluntary or business imperatives? - Currently, there are no business imperatives related to Scope 3; all imperatives are related to Scope 1 and 2 [19]. Question: Is there any consideration for a stock split or special dividend? - Both topics are regularly discussed with the board, but no updates are available at this time [20]. Question: Will Costco commit to removing Roundup products from its warehouses? - The company plans to continue selling Roundup, having reformulated it to remove glyphosate [22]. Question: What are the company's plans for entering new markets? - The company will open 30 new locations, with a third in new markets and ongoing international expansion [25]. Question: How have tariffs impacted certain products? - The impact varies by product code and country of origin, and the company is seeking legal relief regarding tariffs [26]. Question: When will the company open a store in Wyoming? - The company has not found a suitable location in Wyoming due to population density challenges [28]. Question: How will the company maintain its corporate culture with new executives? - The company is focused on teaching its culture to new hires, particularly in IT, to ensure alignment with corporate values [29]. Question: Will food court prices increase in the foreseeable future? - There are currently no plans to raise food court prices [30]. Question: Are there plans to expand into South America or India? - There are no current plans for expansion into these regions [31].

Financial Data and Key Metrics Changes - The pre-tax profit grew from $5.4 billion in fiscal 2020 to over $10.8 billion in fiscal 2025, indicating a significant increase in profitability [12]. Business Line Data and Key Metrics Changes - No specific data on individual business lines was provided in the meeting, but the overall profitability and growth were emphasized [12]. Market Data and Key Metrics Changes - No specific market data or key metrics changes were discussed during the meeting [0]. Company Strategy and Development Direction - The company is focused on balancing emissions reductions with business growth, emphasizing a practical approach to sustainability that does not compromise profitability [12]. - Plans for expansion include opening 30 new locations, with a mix of infill markets and new international markets, indicating ongoing growth opportunities [21]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's climate action plan, stating it has not impaired profitability and has been well-received by members and shareholders [12]. - The company is committed to continuing its expansion efforts and addressing market demands, particularly in areas where they have received positive feedback from residents [19]. Other Important Information - The shareholder proposal regarding financial risks and costs of climate commitments was overwhelmingly rejected, with over 98% voting against it [14]. - The company is exploring the installation of additional EV charging stations and has already implemented over 20 locations globally [15]. Q&A Session All Questions and Answers Question: Has the company considered installing additional EV charging stations in its parking facilities? - Yes, the company has put in over 20 locations this year and will continue to monitor member needs for future installations [15]. Question: What happened to the My Pillow product? - MyPillow was discontinued due to declining sales, which is a common practice at Costco based on member demand [16]. Question: Are the company's Scope 3 reduction targets for suppliers the result of business imperatives or voluntary company initiatives? - Currently, there are no business imperatives related to Scope 3; all imperatives are related to Scope 1 and 2 [17]. Question: Is there any consideration for a stock split or special dividend this year? - Both stock splits and special dividends are regularly discussed with the board, but there is nothing to report at this time [17]. Question: Will Costco commit to removing Roundup products from its warehouses? - The company plans to continue selling Roundup, having reformulated it to remove glyphosate while maintaining effectiveness [18]. Question: What are Costco's newest offerings to address customer desires for healthier products? - The company is focused on a Clean Ingredient Index for all food and sundries departments, ensuring limited and healthy ingredients [18]. Question: What are the company's plans for entering new markets? - The company plans to open 30 new locations, with a third in new markets and ongoing international expansion [21]. Question: Can you update on the progress of the company opening freestanding gas stations? - There are currently four freestanding gas stations in process, aimed at enhancing parking and accessibility for existing warehouses [23]. Question: How does the company plan to maintain its corporate culture with new executives? - The company emphasizes teaching its culture to new hires, particularly in IT, to ensure alignment with corporate values [25].