Core Insights - Costco has begun offering Ozempic and Wegovy, injectable prescription drugs from Novo Nordisk, at its pharmacies nationwide for $499 per month, matching prices at CVS, Walmart, and the company's website [1][2] - Wegovy is approved for chronic weight management, while Ozempic is approved for treating type 2 diabetes and reducing cardiovascular risks, with Ozempic being prescribed off-label for weight loss [3][4] Company Financials - Costco reported a net sales increase of 8% for the fourth quarter ending August 31, 2025, reaching $84.4 billion, up from $78.2 billion the previous year [5] - For the fiscal year, net sales rose 8.1% to $269.9 billion from $249.6 billion [5] - The company's current market capitalization stands at $402.6 billion [5]

Core Insights - Costco Wholesale's stock has underperformed in 2023, down 1% year-to-date compared to a nearly 15% increase in the S&P 500 [1] - The company's third-quarter results showed earnings per share of $5.87 and revenue of $86.16 billion, both exceeding consensus estimates, but the market reaction was muted [2] - Membership fee income, a key profitability driver, rose 14% year-over-year, indicating strong customer loyalty despite a recent fee increase [3] - Concerns are growing regarding the impact of tariffs and whether Costco can sustain growth to justify its high price-to-earnings ratio of 51 [4] Options Strategy - Investors can consider a bear put spread by buying a 900-strike put option and selling an 880-strike put option, with a maximum loss of $700 if shares are above 900 at expiration [5][6] - The maximum profit from this strategy is $1,300 if shares trade below 880 at expiration [6] Performance Ratings - Costco has an IBD Composite Rating of 46, with shares trending lower and falling below both the 50- and 200-day moving averages [7] - The Relative Strength Rating of 24 indicates that Costco stock has outperformed less than 25% of stocks in the IBD database over the past year [7]

Quantum Computing - Quantum Computing had a strong week with positive news from an investor conference and an oversubscribed private placement of $750 million, yet experienced a decline of over 10% following this announcement [2][4] - The sector is currently very hot, and the recent pullback presents a buying opportunity, particularly around the $20.50 to $21 range, with limited downside risk [4][5] - The stock has increased approximately 239% over the last six months, indicating strong performance despite the recent downturn [13] Costco - Costco is viewed as mildly bullish due to significant support levels just below the current trading price, with a focus on maintaining stability rather than expecting a large upward movement [14][15] - A put spread strategy is being employed, selling the 910-900 put spread to capitalize on the current price level, with a maximum risk of $550 [15][16] - The stock has shown resilience around the $90.32 level, which has been a low point in recent trading sessions, and further downside could see it testing the $89 level [18][19] Starbucks - Starbucks is experiencing downward movement amidst store closures and layoffs, but there is technical support just below the current trading price, similar to Costco [24][25] - A put spread strategy is also being implemented for Starbucks, selling the 85-80 put spread with a target break-even of $82.50 by October 31 [26][27] - The stock is currently trading around $83.08, with critical support levels identified at $82.67 and $80, indicating potential areas for price stabilization [28][32]

Core Insights - Costco is a leading retail enterprise with a strong global presence and has provided significant returns to shareholders, with a total return of 182% over the past five years [2][4][8] - The retail sector is highly competitive, characterized by thin margins and challenges in inventory management due to changing consumer preferences [3] - Despite economic challenges since 2020, Costco has shown strong financial performance, with increases in membership, revenue, and earnings per share in fiscal 2025 compared to fiscal 2020 [5][8] Financial Performance - Costco's shares have significantly outperformed the market, with a $10,000 investment five years ago now worth over $28,000 [4] - The company has successfully navigated economic headwinds such as the pandemic, supply chain issues, and rising inflation, indicating a robust business model [5] Market Position - Costco dominates the general merchandise retail industry, benefiting from a large sales base and a loyal membership [8] - The outlook for Costco remains positive, with expectations for continued growth in members, revenue, and earnings [5][8]

Group 1 - Costco Wholesale is recognized for its loyal membership base, steady traffic, and value-driven culture, making it a reliable performer in the retail sector [2] - The stock trades near all-time highs, reflecting a valuation premium over competitors, indicating strong investor confidence [2] - Despite its strengths, there are risks associated with the premium valuation, particularly concerning membership income and growth potential [3] Group 2 - Membership fees are crucial for Costco, generating $5.3 billion in revenue in fiscal 2025, which constitutes a significant portion of net income [5] - Renewal rates are high at approximately 90% globally and 92% in the U.S. and Canada, but there are concerns about potential saturation in the U.S. market [5][6] - The company's growth strategy relies heavily on international expansion, which presents both opportunities and risks [6][8] Group 3 - International growth is seen as the primary growth driver, with 914 warehouses globally, including locations in China and Europe [9] - Expanding internationally poses execution risks, as consumer preferences and competitive landscapes differ significantly across markets [10] - Successful adaptation of Costco's business model to various international markets is essential for sustained growth [10]

Core Insights - Costco has been one of the best retail investments over the last three decades due to its unique operational model [1] - The membership model creates different incentives that reinforce the company's competitive advantages [1] Company Operations - Costco operates differently from most retailers, which contributes to its long-term success [1] - The membership model is a key differentiator that enhances customer loyalty and drives sales [1]

Core Insights - VanEck's RTH ETF demonstrates resilience in the retail sector by focusing on adaptable, high-performing companies like Amazon, Walmart, and Costco while minimizing exposure to underperformers [1][3][8] Retail Sector Overview - The retail landscape is evolving due to shifting consumer preferences and macroeconomic challenges, necessitating retailers to adapt or risk falling behind [2][6] - RTH ETF reflects a balanced investment approach, providing diversified exposure to leading U.S.-listed retailers across various subsectors, including e-commerce and specialty chains [4][5] Performance of Key Retailers - Target's recent struggles, including a 52-week low of $87.26, highlight the challenges faced by traditional retailers in adapting to consumer expectations [5][11] - RTH ETF emphasizes companies that have shown agility and innovation, such as Amazon, Walmart, and Costco, which align with modern consumer trends [7][9][10] Retailer Categories - Three categories of retailers are emerging: - Proactive Retailers: Companies that anticipated changes and invested in digital infrastructure and customer analytics [9] - Late Movers: Retailers adjusting but slower than market demands [9] - Stagnant Players: Those failing to innovate, risking customer loyalty and market share [9] Strategic Insights for Investors - RTH ETF mitigates risks associated with individual retail stocks by providing diversified exposure to both established leaders and emerging innovators [12][13] - The ETF captures retail sector upside while buffering against single-stock volatility, making it a strategic choice for investors seeking retail exposure [14][15]

Group 1: Core Business Model - Costco operates a member-first business model, generating significant revenue from membership fees, which amounted to $5.3 billion in fiscal 2025, contributing to a net income of $8.1 billion [3][4] - The company boasts a high member renewal rate exceeding 90% in the U.S., fostering customer loyalty and enabling Costco to maintain low prices with gross margins around 14% to 15% [4][5] - This model creates a self-reinforcing ecosystem where customer value leads to membership renewals, allowing Costco to reinvest in lower prices and generate substantial profits [5][6] Group 2: Growth Potential - With 914 warehouses globally, Costco has ample room for expansion, particularly in international markets, as two-thirds of its locations are in the U.S. [7] - The company opens 20 to 30 new warehouses annually, and early international store openings, such as in China, have shown strong demand for Costco's model [8][9] - Costco is also investing in e-commerce and digital services, enhancing online shopping while leveraging its buying power, indicating diverse and durable long-term growth opportunities [9] Group 3: Valuation Insights - Costco's stock trades at approximately 52 times earnings, reflecting a premium valuation compared to historical multiples and peers, driven by predictable income and loyal membership [10][12] - While the stock is not considered a bargain, its consistent growth and recurring membership base provide a cushion against market fluctuations [11][12] - The focus for long-term investors is not on whether Costco is "cheap" today, but on its potential for growth over the next decade [12] Group 4: Investor Sentiment - Costco is favored in the market due to its unique combination of a member-first model, a strong track record of execution, and long-term expansion potential [13] - The premium valuation reflects investor optimism, making Costco one of the most compelling compounding stories in retail [14]

Shoppers associate Costco with value. Now a new deal. Novo Nordisk partnering with the popular warehouse chain to offer its 120 million members the weight loss drug WGOI and the diabetes drug OMIC for about half the price when paying out of pocket.Why have you decided to do this. Because we want to make sure we offer the real authentic WGOi and OMIC where patients seek care. And we know that Costco is a trusted brand.You won't be able to pull the drugs off the shelf like rolls of paper towels. You will need ...

Investment Strategy - The podcast focuses on identifying big-cap stocks outside the "MAG 7" (Magnificent Seven) for portfolio diversification [1][2] - The analysis suggests waiting for potential price weakness in fundamentally sound companies before investing [17][50] - The podcast emphasizes the importance of a diversified portfolio, highlighting that investment opportunities extend beyond AI stocks [55][56] Berkshire Hathaway (BRK B) - Berkshire Hathaway's stock has underperformed the S&P 500, with a 9% increase over the last year compared to the S&P 500's 155% gain [9] - Berkshire Hathaway's forward PE ratio is 246%, considered expensive for the company, and the PEG ratio is 35% [10][11] - Berkshire Hathaway has a substantial cash hoard of $350 billion, leading to questions about its deployment [15] - Berkshire Hathaway's price to book ratio is relatively attractive at 16% [48] Fastenal (FAST) - Fastenal's shares are up 37% over the last year, outperforming the S&P 500's 155% gain [21] - Fastenal's PE ratio is 4398%, and the PEG ratio is 444%, both considered high [25][26] - Fastenal's price to sales ratio is 72, indicating a high valuation [26] - Analysts are becoming more bullish on Fastenal, with expectations of 11% earnings growth this year and 107% next year [23] Costco (COST) - Costco's shares are up only 44% over the last year, which is disappointing compared to its historical performance [31] - Costco's PE ratio is 46, and the PEG ratio is 55, indicating a relatively high valuation [42] - Costco's price to sales ratio is 148, which is considered relatively cheap [43] - Costco is expected to have 105% earnings growth this fiscal year and another 10% next fiscal year, with 78% sales growth for both years [40]