Core Viewpoint - Costco's shares have increased by 12.5% over the past month, reaching a new 52-week high of $1043.09, and have gained 13.8% year-to-date, outperforming the Zacks Retail-Wholesale sector and the Zacks Retail - Discount Stores industry [1]. Performance Drivers - The stock has consistently exceeded earnings expectations, not missing the consensus estimate in the last four quarters. In the latest earnings report on December 12, 2024, Costco reported EPS of $3.82, surpassing the consensus estimate of $3.79, and beat the revenue estimate by 0.17% [2]. Earnings Projections - For the current fiscal year, Costco is projected to achieve earnings of $18.01 per share on revenues of $272.79 billion, reflecting an 11.79% increase in EPS and a 7.21% increase in revenues. For the next fiscal year, earnings are expected to rise to $19.66 per share on $291.08 billion in revenues, indicating year-over-year changes of 9.18% and 6.7%, respectively [3]. Valuation Metrics - Costco's current valuation shows a Price-to-Earnings (P/E) ratio of 57.9X for the current fiscal year, significantly higher than the peer industry average of 19.9X. The trailing cash flow basis shows a ratio of 49.2X compared to the peer group's average of 17.3X, and the PEG ratio stands at 6.22, indicating that the stock may not be in the top tier from a value perspective [7]. Zacks Rank - Costco holds a Zacks Rank of 2 (Buy) due to rising earnings estimates. The company meets the criteria for selection, as it has a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, suggesting potential for further share price appreciation in the near term [8].

Peloton told investors Thursday it still has a "steep hill to climb" to achieve profitable growth under its new CEO, but the connected fitness company beat holiday sales expectations, thanks in part to its partnership with Costco. The bike maker posted mixed fiscal second quarter results, as it topped Wall Street's sales estimates but lost more than expected as it continued its efforts to make its costly hardware business more profitable.The bike maker also cut costs in three key areas that it has faced cri ...

Costco Wholesale (COST 2.06%) has emerged as one of the world's most successful retailers. Its strategy of selling high-quality bulk goods at competitive prices and razor-thin margins has built the company a loyal customer base.However, Costco's focus on offering the lowest possible prices does not necessarily apply to its stock. Thus, investors need to take a closer look at the company and its financials to know whether Costco will be an obvious buy in 2025.Costco's businessFew can argue with the success o ...

Costco Wholesale (COST) 2025 Update Summary Industry and Company Overview - The conference call pertains to Costco Wholesale, a leading retail company known for its membership-based warehouse club model [1] Core Points and Arguments - **Sales Performance**: - Net sales for January reached $19.51 billion, marking a 9.2% increase from $17.87 billion in the same month last year [3] - Comparable sales in the U.S. increased by 9.2%, while Canada saw a 5.7% increase, and other international markets reported a 1.1% increase [3] - E-commerce sales grew by 13.6% [3] - **Comparable Sales Excluding Gas and FX**: - Comparable sales excluding the impacts of gasoline prices and foreign exchange were as follows: U.S. at 9.2%, Canada at 12.3%, and other international at 10% [3] - **Traffic and Frequency**: - Comparable traffic increased by 7.1% globally and in the U.S. [4] - **Impact of Foreign Exchange**: - Foreign currency fluctuations negatively impacted total and comparable sales, with Canada down approximately 7.6% and other international down approximately 9.1% [4] - **Gas Price Inflation**: - Gas price inflation positively impacted total reported comparable sales by approximately 0.1% [5] - **Average Transaction Value**: - The average worldwide selling price per gallon of gas increased by approximately 1.2% year-over-year, with the average transaction value up about 0.4% [5] Merchandise Highlights - **Category Performance**: - Food and sundries showed positive high single-digit growth, with strong performance in cooler, candy, and frozen foods [6] - Fresh foods increased by low double digits, particularly in meat and produce [7] - Non-food items also saw low double-digit growth, with notable performance in gift cards, toys, seasonal items, and jewelry [7] - Ancillary business sales rose by mid single digits, with pharmacy, optical, and food court being the top performers [7] Forward-Looking Statements - The February reporting period will cover the four weeks from February 3 to March 2, with results to be announced alongside Q2 quarterly results on March 6 [8] Additional Information - The call included forward-looking statements that involve risks and uncertainties, which may cause actual results to differ from those projected [2] - The company does not commit to updating forward-looking statements except as required by law [2]

ISSAQUAH, Wash., Feb. 05, 2025 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $19.51 billion for the retail month of January, the four weeks ended February 2, 2025, an increase of 9.2 percent from $17.87 billion last year. Net sales for the first 22 weeks were $113.55 billion, an increase of 8.2 percent from $104.94 billion last year. Comparable sales for the periods ended February 2, 2025, were as follows: 4 Weeks 22 WeeksU.S.9.2% 6. ...

Core Viewpoint - Costco Wholesale Corporation has reached a new 52-week high, raising questions about whether to take profits or remain invested, driven by strong fundamentals such as membership growth and pricing power [1][2]. Performance Metrics - The stock hit a peak of $1,009.61, closing at $1,005.83, reflecting a 41.4% increase over the past year, outperforming the industry and S&P 500, which rose 21.8% and 23.8% respectively [2]. - Costco's stock is currently trading above its 50-day and 200-day moving averages, indicating strong upward momentum and price stability [5]. Membership and Pricing Power - Costco's membership model is a key revenue driver, with renewal rates exceeding 90% in the U.S. and Canada, showcasing customer retention through competitive pricing and quality products [7]. - Comparable sales growth was reported at 7.4% in December, following increases of 3.1% and 5.1% in the preceding months [8]. Operational Efficiency - The company maintains low operating costs while delivering high-quality goods, allowing it to operate on thin margins but with greater volume [9]. - Costco opened six net new warehouses in the first quarter of fiscal 2025, with four located outside the U.S., indicating international expansion [9]. E-commerce Growth - E-commerce comparable sales grew 13% in the first quarter, driven by Costco Logistics, which specializes in large items, and the U.S. app saw 2.9 million downloads in the quarter [10]. Earnings Estimates - The Zacks Consensus Estimate for earnings per share has been revised upward, with current and next fiscal year estimates at $18.01 and $19.66, reflecting year-over-year growth rates of 11.8% and 9.2% respectively [11]. Valuation Analysis - Costco's forward 12-month price-to-earnings ratio is 53.73, significantly higher than the industry average of 33.94 and the S&P 500's 22.46, indicating a premium valuation [14]. - The premium reflects investor confidence in Costco's ability to sustain growth and maintain its competitive edge [15]. Investment Outlook - Costco's strong fundamentals, resilient business model, and consumer loyalty position it well for long-term growth, despite its premium stock price [16].

Given its proximity to many consumers, you've most likely shopped at a Costco (COST 2.65%) or Home Depot (HD -0.78%) warehouse. With combined annual revenue in the hundreds of billions of dollars, these businesses are two gigantic retailers.Due to their dominant positions, Costco and Home Depot might be on your investing radar. Of the two, what is the top retail stock to buy right now?Taking Costco for grantedCostco continues to hum along, supporting a long-running track record of steady growth. Revenue and ...

Buying top dividend stocks and holding them long-term can be a great approach to building your investment portfolio. It boils down to holding shares of companies that have historically provided reliable dividends (as well as dividend growth) in all sorts of market environments. The challenge, of course, is finding the right companies to invest in.The search should begin with companies that have consistent track records of financial growth. It helps if they also have considerable economic moats that are prim ...

ToplineCostco and the International Brother of Teamsters union came to a tentative three-year contract agreement at the 11th hour, averting a strike that would have affected operations at more than 50 Costco stores starting today, according to the Associated Press.CHICAGO, ILLINOIS - JANUARY 31: Customers shop at a Costco Wholesale store on January 31, 2025 in ... [+] Chicago, Illinois. According to a company memo, the company plans to increase pay for most of its hourly workers to more than $30-per-hour. T ...

Core Points - A potential strike involving 18,000 Costco workers was averted with a tentative agreement reached by the Teamsters union just before the deadline [1] - The Teamsters union had previously voted overwhelmingly to authorize a walkout due to stalled contract negotiations, citing Costco's significant profits of $7.4 billion last year [2][3] - The union has demanded substantial wage increases and better benefits, emphasizing that workers would not continue past January 31 without a favorable agreement [2][3] Company Actions - Costco announced pay increases for most store employees, with top scale employees receiving a $1 hourly increase to $30.20, and a commitment to annual $1 increases over the next two years [6] - Employees at the bottom of the wage scale will see a $0.50 increase to $20 an hour [6] - The company's CEO, Rich Vachris, received over $12 million in total compensation in 2024, which has drawn criticism from the union [4] Union Activities - The Teamsters union held practice pickets and rallies outside Costco's headquarters during the company's annual shareholder meeting, where their questions went unanswered [3][4] - Union representatives have accused Costco's negotiators of undercutting workers while corporate executives receive high salaries [4][5] Industry Context - Amidst a trend of large corporations rescinding diversity, equity, and inclusion policies, Costco has maintained its DEI policies despite threats from Republican state attorney generals [7]