Costco(COST)
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3 Reasons Long-Term Investors Keep Coming Back to Costco Stock
The Motley Fool· 2026-01-15 23:15
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 ...
Costco(COST) - 2026 FY - Earnings Call Transcript
2026-01-15 23:02
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].
Costco(COST) - 2026 FY - Earnings Call Transcript
2026-01-15 23:02
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].
Costco(COST) - 2026 FY - Earnings Call Transcript
2026-01-15 23:00
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].
These 3 Blue Chip Dividend Stocks Are Trading Near Their 52-Week Lows
The Motley Fool· 2026-01-15 22:30
The stocks have been raising their payouts for years and have solid underlying businesses.Are you looking for a good dividend stock to buy to start 2026 with some income flowing into your portfolio? Below, I've got a list of three blue chip stocks that make for safe investments to hang on to. And they've all been increasing their dividend payments in recent years.Costco Wholesale (COST +0.54%), Home Depot (HD +0.78%), and McDonald's (MCD +0.17%) are not only solid dividend investments, but you can get them ...
Supreme Court's Delay In Tariff Ruling A Sign Of Potential Victory For Trump? - Costco Wholesale (NASDAQ:COST)
Benzinga· 2026-01-15 10:58
The Supreme Court’s delay in delivering a verdict on the use of emergency powers to implement tariffs under the International Emergency Economic Powers Act (IEEPA) could be a sign of a favorable outcome for President Donald Trump, according to JPMorgan analysts.For a second time, the Supreme Court declined to rule on the legality of Trump's tariffs on Wednesday, and did not set a date for a future decision.In a note to clients, the analysts, Amy Ho and Joyce Chang, highlighted that the longer the court take ...
Costco Finally Breaks Out: Is There Still Time to Buy?
Yahoo Finance· 2026-01-14 17:42
Costco logo, with a background containing a shopping cart and colorful store aisle symbolizing the brand's market strength. Key Points COST shares struggled in the second half of 2025, dipping nearly 20% in the last six months. Despite the sluggish stock, Costco's sales remained strong and the company is set up for more growth in 2026. Investors are starting to take notice as the stock is up 10% in the last two weeks, but there's still time to buy back into this retail giant. Interested in Costco Whol ...
Read This Before Buying Costco Stock for the Long Term
The Motley Fool· 2026-01-14 09:15
Core Viewpoint - Costco is a solid retailer but may not be a worthwhile investment choice due to its high valuation compared to its growth prospects [1][3]. Financial Performance - In fiscal Q1 2026, Costco generated over $67 billion in revenue, marking an 8% increase year-over-year, with net income rising 11% to $2 billion [4]. - The company's profit growth in fiscal 2025 was 10%, which aligns with its current performance but does not justify its high P/E ratio of about 50 [5]. Valuation Comparison - Costco's P/E ratio of 50 is significantly higher than competitors like Amazon at 35 and Walmart at 40, making it less attractive compared to other investment options [6]. - Target, despite declining sales, trades at a P/E of 13, further highlighting Costco's premium valuation [6]. Investment Outlook - While Costco stock is technically a buy, the high price relative to its returns suggests that investors may find better opportunities elsewhere [9]. - The potential for a financial crisis could make Costco stock more appealing, but without such an event, it is advisable to seek other investments [10].
Quicklly Achieves a Major Nationwide Milestone with Landmark Costco and Aldi launch
Accessnewswire· 2026-01-13 15:00
A nationwide retail moment that redefines how Indian food shows up in American kitchens CHICAGO, ILLINOIS / ACCESS Newswire / January 13, 2026 / Quicklly, the leading Indian online marketplace in the United States, today announced its launch of Just by Quicklly ready-to-heat Indian Meals at leading global retailers, Costco and ALDI. This milestone marks a major step in making authentic, restaurant-quality Indian cuisine more accessible to mainstream American shoppers. ...
Jim Cramer Says “Costco, I Like It”
Yahoo Finance· 2026-01-13 14:06
Costco Wholesale Corporation (NASDAQ:COST) is one of the stocks Jim Cramer discussed, along with recent market rotation. Cramer discussed the stock’s unsatisfactory performance last year and recent expectations, as he commented: “Or how about Costco versus Walmart?… How about Costco?… Well, first, it lost its long-standing CFO, Richard Galanti of more than 38 years. He was the heart and soul of Costco. He knew pricing, knew merchandise, knew the customer like no other CFO and most CEOs. Second, the renewa ...