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]

Core Viewpoint - Costco Wholesale Corporation (NASDAQ:COST) reported strong fiscal fourth quarter earnings, with revenue of $86.16 billion and EPS of $5.87, surpassing analyst expectations, but experienced a share price dip following the announcement [2]. Financial Performance - The company's revenue for the fiscal fourth quarter was $86.16 billion, exceeding analyst estimates of $86.06 billion [2]. - Earnings per share (EPS) were reported at $5.87, beating the expected $5.80 [2]. Investment Insights - Jim Cramer emphasized that Costco is a long-term investment, suggesting that it is a good time to buy when the stock trades below 50 times earnings [2][3]. - Cramer noted that Costco has a history of significant price fluctuations, indicating that the stock may be poised for recovery after a decline [2]. - Despite concerns about tariffs impacting margins, Cramer expressed confidence in Costco's management and business model, highlighting the company's ability to save consumers money [3]. Market Sentiment - Cramer acknowledged that while the stock is currently above 50 times earnings, it is expected to drop to around 49 or 48 times earnings, which would present a buying opportunity [3]. - The overall sentiment remains positive regarding Costco's long-term prospects, despite short-term price volatility [2][3].

Costco Wholesale Corporation (NASDAQ:COST) is one of the Top Blue Chip Stocks to Buy At 52-Week Lows. On September 25, Costco Wholesale Corporation (NASDAQ:COST) released its fiscal fourth quarter results for 2025. The company delivered $86.16 billion in revenue, up 8.10% year-over-year and ahead of expectations by $99.41 million. The EPS of $5.87 also topped estimates by $0.07. Wall Street has a mixed opinion on the stock despite the outperformance. On September 29, Steven Zaccone from Citi reiterated ...

Core Insights - Costco Wholesale Corporation (NASDAQ:COST) is considered a top choice for retirement portfolios, with a price target set at $1,205 by UBS, which maintains a Buy rating on the stock [1] - Market anxieties prior to Costco's fourth-quarter earnings are expected to shift towards new issues following the earnings release [1] Sales Momentum - UBS expresses confidence in Costco's ability to sustain sales momentum due to factors such as extended hours of operation and new holiday season products [2] Business Strategy - The growth of Kirkland Signature brands and prospects in digital commerce are highlighted as key components of Costco's business strategy [3] - Costco's ability to maintain core-on-core margin progress and effectively manage tariffs is noted as a factor that should help keep the stock's valuation stable [3] - Costco operates as a membership-based warehouse club, providing bulk discounts on a variety of products including food, electronics, and household items [3]

Core Viewpoint - The government shutdown is expected to have a significant impact on consumer spending and certain retail stocks, particularly as the holiday shopping season approaches [1][4]. Market Performance - Initial market reactions included a dip, but there is a recovery as the market adjusts to the anticipated short duration of the shutdown, likely between one week to ten days [2][3]. Impact on Employment and Consumer Spending - Approximately two million federal employees may face furloughs, which could affect consumer spending and the housing market, especially if mass layoffs occur [3][4]. - The duration of the shutdown and potential mass layoffs will be critical factors influencing consumer behavior and spending patterns [4][7]. Holiday Shopping Season - The holiday shopping season is set to begin in early to mid-October, and any mass layoffs could quickly impact holiday spending [5][6]. - Retail forecasts from organizations like the National Retail Federation and Mastercard will be closely monitored for adjustments due to the shutdown [7]. Consumer Behavior and Retail Preferences - In a tightening economic environment, consumers are likely to gravitate towards cost-conscious retailers such as Costco, Walmart, and TJX, which offer better value [8][9]. - Retailers like Target and traditional department stores may be more vulnerable due to their positioning in the market [10][11]. Retailer Performance Outlook - Costco is highlighted as a strong performer due to its one-stop shopping model and focus on fresh foods, which appeals to consumers during the holiday season [12][15]. - Holiday spending is projected to increase by 3.4%, with Costco expected to outperform this figure based on its ability to capture consumer wallet share [17][18]. Demographic Spending Trends - There are concerns that Gen Z may reduce their holiday spending by 25% if the shutdown persists, reflecting broader consumer sentiment [19][20]. - The overall impact of the shutdown could lead to a general tightening of spending across various demographic groups, not just Gen Z [20][21].

Core Insights - Costco Wholesale reported net sales of $269.9 billion for fiscal 2025, showcasing its dominance in the retail sector [1] - The company has experienced a 160% increase in share price over the past five years, reflecting strong investor confidence [1] Durable Demand - Despite macroeconomic challenges, Costco demonstrated resilience with a same-store sales growth of 5.7% in Q4, driven by increased foot traffic and higher transaction sizes [4] - The global membership renewal rate reached 89.8% in Q4, with a year-over-year membership increase of 6.3%, indicating strong customer loyalty [5] Ongoing Growth - Costco opened 24 net new warehouse stores during fiscal 2025, bringing the total to 629 in the U.S. and 285 internationally, with plans for 30 new locations in fiscal 2026 [6] - E-commerce sales grew by 13.6% year over year in Q4, totaling nearly $20 billion, which represents 7% of the company's total sales [8]

Core Viewpoint - Costco Wholesale has historically outperformed the market but is currently experiencing a rare period of underperformance, remaining flat year-to-date while the market has risen by 14% [2] Group 1: Business Model and Performance - Costco's retail model is distinct and superior, charging annual membership fees that allow customers to access low prices, leading to high savings and increased sales volume [4][5] - In the fiscal fourth quarter of 2025, Costco reported an 8% year-over-year sales increase, with comparable sales up 5.7% and e-commerce sales rising by 13.6% [6] - Earnings per share increased from $5.29 to $5.87, and membership fees rose by 14%, with total members reaching 81 million, a 6.3% increase from the previous year [6] Group 2: Membership Insights - Executive members, who pay double the standard membership fee of $130, represent 47.7% of total paid members but account for 74.2% of sales [7] - Renewal rates for memberships were strong at 92.3% in the U.S. and Canada, and 89.8% globally [7] Group 3: Market Sentiment and Challenges - Despite strong performance metrics, the market has shown some negative sentiment due to slowing comparable sales growth and lower-than-usual global renewals [10] - Management attributes the decline in renewal rates to an increase in online signups, which tend to renew at slightly lower rates, but sees this as a net advantage for attracting younger members [10]

Core Insights - Costco Wholesale reported strong net sales growth for fiscal 2025, with revenue reaching $275 billion, an 8% increase despite economic uncertainties and tariff concerns [1][4] - The company's stock performance has been modest, with only a 2% increase over the past year, leading to a cautious outlook for new investors [5] Financial Performance - Revenue growth was supported by a membership fee increase from $60 to $65, contributing to a $495 million rise in membership fee revenue [4] - Operating income rose by 12%, while net income increased by 10% to $8.1 billion, despite a 15% rise in income tax expenses [5] - Costco added 24 new locations, marking a nearly 3% increase in total warehouses to 914 [4] Valuation Concerns - The current price-to-earnings (P/E) ratio stands at 52, significantly higher than the S&P 500 average of 31 and its major competitors [6] - The likelihood of Costco's valuation decreasing to more reasonable levels, such as Walmart's P/E ratio of 39, appears low [9] Expansion Outlook - Costco's expansion strategy remains steady, with successful penetration into new U.S. markets and international growth, unlike competitors such as Walmart and Home Depot [10] - There is uncertainty regarding whether Costco can or should accelerate its expansion efforts [8]

[Music] It is time for the light of course and then the lightning round is over. Are you ready ski daddy time for the light round so John in North Carolina John. >> Yes. Uh yes sir.Got a question about Arista Network. Ticker symbol A N E T. >> J Shri Yal is unbelievable.I was talking to her neighbor today. Literally came to my book signing and we were both marveling. I got to get her back on the show.That company is doing so well. Great call. Let's go to Todd in Connecticut.Todd, >> hey Jim, how you doing. ...