Core Viewpoint - Costco is a popular choice for consumers seeking savings, but its stock may not be suitable for all investors due to its valuation and growth rates [1] Group 1: Stock Performance - Costco's stock has increased by over 150% in the past five years, but only by 5% in the last year, with a 13% year-to-date rally [1] - The current stock price is $964.18, with a market cap of $428 billion [4][5] Group 2: Sales Growth - Comparable sales growth is crucial for retailers, with Costco reporting a 6.4% year-over-year growth in Q1 of fiscal year 2026, driven by international markets and a 20.5% increase in digitally enabled sales [5][6] - December 2025 sales results showed a 6.2% year-over-year comparable sales growth, indicating continued growth potential for 2026 [6] Group 3: Financial Metrics - Costco's net profit margin stands at 3%, with a P/E ratio above 50, suggesting a high valuation for a wholesaler [6] - Net income growth was reported at 11.3% year-over-year, indicating a positive trend but limited room for error in valuation [6] Group 4: Investment Considerations - Costco may appeal to conservative investors seeking stability, but growth investors might find better opportunities in high-growth sectors like AI, which have shown significant revenue increases [7][8] - The company is unlikely to experience prolonged stock rallies due to its rich valuation and moderate growth rates compared to faster-growing sectors [8]

Key Takeaways COST ended Q1 FY26 with 921 warehouses, including eight new openings across the U.S., Canada and France.The company plans 28 net new warehouses in FY26 and more than 30 annually in future years.FY25 new warehouses averaged $192M in first-year sales, up from $150M two years earlier.Costco Wholesale Corporation (COST) is steadily expanding its footprint to strengthen its global presence, drive membership growth, and capitalize on rising demand for value-driven retail across both domestic and int ...

Key Points Costco's unique model hasn't changed, and it continues to attract millions of new members. Members continue to upgrade to executive status, demonstrating loyalty. Costco still has many growth opportunities. 10 stocks we like better than Costco Wholesale › Costco Wholesale (NASDAQ: COST) stock didn't have a great year in 2025, losing 6% of its value. But over many decades, Costco has outperformed the market and rewarded shareholders. It's reliable for sales growth and high profits, and i ...

Core Insights - Costco Wholesale Corporation (COST) has experienced a stock rally following strong December sales, raising questions among investors about whether to buy more, hold, or take profits [1] - The stock has increased by 9.2% since the December sales report, with a 13.3% rise over the past month, outperforming the industry [1][2] - The December sales report indicated solid comparable sales growth and a significant increase in e-commerce, highlighting Costco's operational execution and customer loyalty [1][4] Sales Performance - For the five weeks ending January 4, 2026, Costco reported a 7% year-over-year increase in total comparable sales, with U.S. sales up 6%, Canada up 8.4%, and Other International markets up 10.6% [4] - Net sales for December rose 8.5% to $29.86 billion, compared to $27.52 billion in the same period last year, following previous sales improvements of 8.1% and 8.6% in November and October, respectively [4] Competitive Position - Costco's membership-driven model is a core strength, ensuring high renewal rates and a dependable revenue stream [3][7] - The company benefits from an efficient supply chain and bulk purchasing power, allowing for competitive pricing and reinforcing its market position [3][8] - Costco's ability to adapt to changing consumer preferences and its strategic investments in technology and logistics enhance its multi-channel ecosystem and e-commerce capabilities [9][10] Financial Estimates - The Zacks Consensus Estimate for Costco's current financial-year sales and earnings per share implies year-over-year growth of 7.6% and 11.7%, respectively [11] - Current estimates for sales in the upcoming quarters range from $66.58 billion to $69.80 billion, with year-over-year growth estimates of 8.12% for the current quarter [12] Valuation Analysis - Costco is trading at a forward P/E ratio of 46.31, significantly higher than its industry peers and the S&P 500, indicating strong investor confidence [15][16] - Despite the premium valuation, Costco's consistent performance and loyal customer base may justify the higher price, although it suggests limited room for error [16] Investment Outlook - Costco's December sales results affirm its position as a reliable stock in the retail sector, supported by strong membership growth and solid financial fundamentals [17] - While the stock's premium valuation may deter value-conscious investors, it remains an attractive option for long-term investors seeking quality and stability [17]

Financial Markets And Banking - Wall Street will be closed on January 19 for Martin Luther King Jr. Day, with both the New York Stock Exchange (NYSE) and Nasdaq suspending trading, resuming normal hours on January 20 [2] - The Federal Reserve will also be closed, leading to the closure of most commercial banks, including major institutions like JPMorgan Chase & Co., Bank of America Corp., and Wells Fargo & Co., although ATMs and mobile banking will remain operational [3] Mail Delivery And Government Offices - The United States Postal Service (USPS) will suspend regular mail deliveries and close retail post office locations nationwide on January 19, while private couriers like UPS will not provide pickup or delivery service [4] - Non-essential federal, state, and local government offices, including the DMV and public courts, will be closed, and most public schools will dismiss classes for the day [5] Retail And Grocery Stores - Major retailers such as Walmart Inc., Target Corp., and Costco Wholesale Corp. are expected to remain open, although hours may vary by location [6] - Grocery chains like Publix and Whole Foods are likely to maintain standard operating hours, with customers advised to confirm specific times with local branches [7] Market Performance - On the last trading day before the holiday, the SPDR S&P 500 ETF Trust closed down 0.084% at $691.66, while the Invesco QQQ Trust ETF declined 0.12% to $621.06 [8] - Year-to-date performance shows the Nasdaq 100 index has advanced by 1.28%, while the S&P 500 and Dow Jones indices have risen by 1.19% and 2.02%, respectively [8]

Costco has discreetly increased gas rewards for holders of its branded credit card.Members with the Costco Anywhere Visa Card, issued by Citi, can now expect to earn 5% cash back at Costco gas pumps, up from the previous 4%. The higher rewards apply only to gas stations located at the warehouse giant and do not extend to any gas purchases outside the company or electric vehicle (EV) charging.  However, all other eligible gas purchased outside of Costco and EV charging will earn 4% cash back. Both the 5% and ...

Costco rarely sets trends. I remember walking its aisles years ago and sampling new items, but noticed the chain was rarely ahead of the curve. For example, it stocked K-Cups only after Keurig machines were mainstream, which makes sense, given its limited SKUs and mass audience. Now, nonalcoholic cocktails and tonics have arrived, and the warehouse club has officially jumped on that trend. Costco has quietly added Hiyo, a social tonic, to warehouses nationwide, according to the brand. Nonalcoholic coc ...

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].