Market Predictions for 2026 - The S&P 500 is expected to deliver single-digit gains in 2026, ending a streak of double-digit gains over the past three years, but no major market sell-off is anticipated due to strong economic and corporate earnings [4][5] - Small- and mid-cap stocks are predicted to outperform larger stocks, with Mirum Pharmaceuticals highlighted as a potential winner after its share price nearly doubled in 2025, and expected positive results from clinical studies in 2026 [6][7][8] - The AI sector is expected to shift from hype to tangible returns, with Alphabet predicted to continue benefiting from its Google Cloud unit and agentic AI technology, which is anticipated to drive growth [9][10][12] - The renewable energy sector is expected to continue its rebound, driven by strong AI growth and increased demand for energy to power data centers, with Brookfield Renewable and Clearway Energy expected to perform well [13][15] - Political dynamics in the mid-term election year are expected to create volatility in the stock market, but once the uncertainty fades, stocks are predicted to move higher, with potential winners in the cannabis industry if Democrats gain control [16][18]

Core Insights - Costco operates with a limited selection of approximately 4,000 stock-keeping units (SKUs), significantly fewer than the 30,000 typically found in supermarkets, focusing on quality, price, brand, and features [1] - Despite rising costs due to inflation, Costco has maintained the price of its hot dog and soda combo at $1.50 since its introduction in 1985, subsidized by sales and membership revenue [2] - The company offers three membership types: Business ($65), Gold Star ($65), and Executive ($130), with over 145 million members, more than double that of its closest competitor, Sam's Club [3] Company History - Costco was founded in 1983 by James Sinegal and Jeff Brotman, focusing on a members-only retail model, and quickly expanded its warehouse locations [4][5] - The merger with Price Club in 1993 created a significant player in the warehouse retail industry, initially named PriceCostco, which later became simply Costco [5][18] - The company has seen substantial growth since its inception, with sales exceeding $1 billion by 1984 and continuing to expand internationally [4][18] Leadership and Expansion - Costco has had three CEOs since its merger: James Sinegal (1983–2011), W. Craig Jelinek (2012–2023), and Ron Vachris (2024–present), with each contributing to the company's growth and expansion [8][10][11] - Under Jelinek, Costco's sales surpassed $100 billion in 2013, and the company successfully navigated the challenges posed by the COVID-19 pandemic [10] - Vachris has ambitious plans for expansion, targeting the opening of 28 new stores in the U.S. and internationally in 2026, as part of a $6.5 billion expansion strategy [11][12] Financial Performance - Costco's revenue from membership fees has shown consistent growth, reaching $5.3 billion in 2025, with total sales approaching $250 billion [39] - The company’s net income exceeded $8 billion in 2025, reflecting its strong market position and operational efficiency [39] - Costco's market capitalization has grown significantly, surpassing $475 billion by 2025, indicating robust investor confidence and market performance [39]

Core Viewpoint - Telsey Advisory Group maintains an Outperform rating and a price target of $1,100 for Costco Wholesale ahead of the December sales report [1] Sales Forecast - Costco is expected to release December sales results after market close on January 7, with total comparable sales growth projected at 2.2% for December 2025, a decrease from 7.4% in the previous year [2] - Core merchandise comparable sales growth is forecasted at 2.0%, down from 9.9% a year earlier, excluding an estimated net benefit of approximately 20 basis points from gasoline prices and foreign exchange [2] Regional Performance - U.S. comparable sales excluding gas are expected to rise by 1.0%, compared to 9.8% last year [3] - Canada’s comparable sales excluding gas and foreign exchange are projected at 4.0%, down from 10.3% [3] - Other international markets are expected to post comparable sales of 5.0% excluding foreign exchange, compared to 9.8% in the prior year [3] External Factors - Gasoline prices declined in the low single-digit range during December, creating a roughly 20 basis point headwind to comparable sales [4] - A weaker U.S. dollar is expected to provide an estimated 40 basis point tailwind based on recent currency trends [4] Traffic and Ticket Growth - Traffic growth is projected at 0.5%, down from 5.5% last year, as consumers continue to seek value [5] - Average ticket growth is expected to be 1.7%, roughly in line with the prior year, supported by tariff-related inflation and positive category trends [5] Digital Sales - Digital sales are forecasted to increase by 5.0%, compared to 34.4% last year, reflecting gains in non-food categories and ongoing benefits from assortment expansion and targeted marketing [6] - Non-food sales are expected to benefit from holiday and gift-driven demand, while Food & Sundries and Fresh Foods are anticipated to remain solid due to at-home consumption trends and Costco's value-focused assortment [6]

Whether you’re already a member or considering joining, buying in bulk at a warehouse club like Costco can lead to significant savings. The key caveat is discipline: to truly save money, you need to keep impulse purchases to a minimum. Costco is a membership-only warehouse-style retailer. It’s the third-largest retailer in the world by revenue, (1) and nearly one-third of U.S. consumers shop there. (2) Costco offers two tiers of membership. For basic access, there is the Costco Gold Star Membership, whi ...

“The most important item we sell is the membership card,” Costco CEO Ron Vachris told Fortune in an April interview Costco has steadily added to its membership base. "Revenue from membership fees increased 5% to $4.8 billion, and our membership base grew to nearly 137 million cardholders, with a 90% renewal rate," the chain shared in its 2024 annual report. The chain raised its membership fees in September, 2024. "In July, we announced our first membership fee increase in seven years, increasing our G ...

Core Insights - Costco Wholesale has proven to be a lucrative investment, significantly outperforming the S&P 500 over the past decade, with a $1,000 investment growing to approximately $6,400 compared to $4,000 in the S&P 500 index fund [1] Company Performance - Costco has a current membership base of 146 million cardholders, indicating strong growth potential as it expands its store presence both domestically and internationally [4] - The company's price-to-earnings (P/E) ratio has increased by over 50% since 2015, currently trading at 46 times its trailing-12-month earnings [5] - Costco's earnings are growing at about 10% year over year, with a consensus long-term earnings growth estimate of 9% [6] Investment Considerations - The high current valuation of Costco stock may limit potential upside in the coming years, with projections suggesting a $1,000 investment today could grow to approximately $2,600 in 10 years, excluding dividends [6] - The Motley Fool Stock Advisor has identified 10 stocks that they believe are better investment opportunities than Costco at this time [7]

Core Insights - Stock splits do not alter a company's intrinsic value but attract significant attention from investors [1] Group 1 - Stock splits are often perceived positively by the market, leading to increased trading activity and investor interest [1]

Core Viewpoint - Costco is attempting to recover from a significant decline in its stock price, which has led to a challenging year for its shareholders [1] Group 1 - The company has experienced a brutal bear market, impacting its stock performance and shareholder value [1]

Core Insights - Costco Wholesale Corporation (COST) shows strong member engagement with a 3.1% increase in global comparable traffic and a 3.2% rise in average transaction value in Q1 fiscal 2026, indicating the effectiveness of its value proposition [1][8] Member Engagement - The implementation of scanning memberships and pre-scanning of baskets has enhanced the member experience, improving checkout productivity by up to 20% in some locations [2] - Digital enhancements have led to a 24% increase in e-commerce site traffic and over 40% growth in app traffic, with digitally enabled comparable sales rising by 20.5% [3] Membership Growth - Paid memberships grew by 5.2% to 81.4 million, while executive memberships increased by 9.1% to 39.7 million, despite a slight 10-basis-point dip in the worldwide renewal rate to 89.7% [4] Industry Comparisons - Walmart reported a 4.5% growth in comparable sales, with transaction growth of 1.8% and an average ticket increase of 2.7% [5] - BJ's Wholesale Club achieved its 15th consecutive quarter of traffic growth, with digitally enabled comparable sales growing by 30% year over year [6] Stock Performance and Valuation - Costco's stock has declined by 5.3% over the past year, contrasting with the industry's growth of 6.4% [7] - The forward 12-month price-to-earnings ratio for Costco stands at 41.95, higher than the industry average of 29.91 [9] Financial Estimates - The Zacks Consensus Estimate for Costco's current financial-year sales implies a year-over-year growth of 7.5%, while earnings per share are expected to grow by 11.7% [10] - Current quarter sales are estimated at $68.75 billion, with a year-over-year growth estimate of 7.88% [13]

We recently published 8 Stocks on Jim Cramer’s Radar.  Costco Wholesale Corporation (NASDAQ:COST) is one of the stocks on Jim Cramer's radar. Costco Wholesale Corporation (NASDAQ:COST) is one of the largest retailers in America. It is one of Cramer’s favorite stocks despite recent sluggish performance. Even though Costco Wholesale Corporation (NASDAQ:COST)’s shares are down by 4% year-to-date, the CNBC TV host has continued to remain optimistic about the company. Earlier this month, Guggenheim reiterated ...