Juan Llauro/Getty Images Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. For bargain hunters, Costco has long been a go-to destination. The warehouse giant famously still sells its hot dog and soda combo for $1.50 — the same price it launched with back in the mid-1980s. But not every Costco item has held its price as stubbornly as the hot dog combo. Case in point: gold bars. In late 2023, Costco began selling 1-ounce gold bars. At the time, shoppers c ...

Core Insights - Costco Wholesale Corp. has significantly improved its quality score, moving from 86.58 to 94.90, placing it in the top 10th percentile of stocks for fundamental strength [1][2]. Financial Performance - The retailer reported revenue of $67.31 billion, exceeding analyst estimates of $67.14 billion, and adjusted earnings per share reached $4.50, surpassing the projected $4.27 [3]. - There was an 8.2% year-over-year increase in net sales and a 6.4% rise in total comparable sales, indicating strong operational efficiency [3]. Cash Position - Costco ended the quarter with approximately $16.22 billion in cash, further validating its high operational efficiency score [3]. Legal and Trade Actions - The company has filed a lawsuit against the Donald Trump administration, challenging tariffs imposed under the International Emergency Economic Powers Act (IEEPA) as unlawful and seeking a full refund [4]. - To mitigate the impact of tariffs, Costco is increasing production of its Kirkland Signature brand, demonstrating its commitment to maintaining operational excellence despite trade uncertainties [5]. Stock Performance - Costco shares have underperformed in 2025, falling by 6.05% year-to-date, while the Nasdaq Composite Index rose by 22.20% during the same period [6]. - The stock has decreased by 14.68% over the last six months and 3.54% over the last month, closing at $854.79 on Tuesday [6].

Group 1 - The article discusses a cautious approach towards initial public offerings (IPOs), suggesting they may often be overpriced [1] - The focus is on identifying value in small-cap stocks that offer asymmetric upside potential and sustainable high dividend yields [1] - Key investment criteria include insider buying, high insider ownership, a history of free cash flow growth, and significant catalysts for turnaround [1] Group 2 - The investor expresses a preference for long-term holdings and is comfortable with matching market returns during bull markets while aiming for superior returns in downturns [1] - Influences on the investment strategy include notable investors such as Warren Buffett and Peter Lynch [1] - The investor has a background in Economics and Finance, which informs their investment decisions [1]

Core Insights - The holiday shopping season of 2025 highlighted the resilience of consumer demand despite economic concerns, with shoppers prioritizing value and convenience [1][4] - Retailers adapted to changing consumer behaviors by enhancing delivery logistics and utilizing digital and physical channels, leading to innovative shopping experiences [2] - Targeted promotions and loyalty programs were employed to stimulate demand while maintaining profitability, with subscription perks and buy-now-pay-later options appealing to value-conscious consumers [3] Retail Sales Performance - U.S. holiday sales for November and December are projected to exceed $1 trillion for the first time, with year-over-year growth estimated at 3.7%-4.2%, translating to total sales of $1.01-$1.02 trillion [4] - Online spending during Cyber Week increased by 7.7% year-over-year, reaching $44.2 billion, indicating strong digital engagement [4][8] Retailer Strategies and Stock Recommendations - Retailers like Amazon, Ross Stores, Walmart, and Costco are highlighted as strong contenders for growth in 2026, leveraging innovative strategies and consumer engagement [5][8] - Amazon's dominance in e-commerce is supported by its Prime ecosystem and technological innovations, with sales growth estimates of 11.9% for the current year and 11.3% for the next [6][7] - Ross Stores is benefiting from its off-price model and effective merchandising, with sales growth estimates of 6% for the current year and 5.4% for the next [11][12] - Walmart's omnichannel approach and focus on low prices position it well for value shoppers, with sales growth estimates of 4.5% for both the current and next year [15][16] - Costco's membership model drives strong traffic and loyalty, with sales growth estimates of 7.5% for the current year and 7.3% for the next [19][20]

Costco Wholesale Corporation ( COST ) is arguably one of the best businesses in the world. A combination of recurring subscription-based demand for a basic service, such as grocery shopping, combined with a massive obsession with the customer, makes it one ofQuality Growth Investor. I have the simplest of tastes, I only like the best. Here I will analyze the companies in my investment universe. I am looking for the best businesses in the world in order to create a long term portfolio that can outperform the ...

Retail App Downloads & Trends - App downloads data is meaningful for assessing retailer convenience and shopper behavior [1] - Last-minute shoppers are increasingly using apps for in-store pickup, highlighting the importance of convenience [2][3] - Target has seen a resurgence in app downloads, reaching the number three spot, indicating improved customer consideration [3] Target Analysis - Roth Capital Partners maintains a neutral rating on Target, viewing any positive holiday performance as tactical [4] - Toys were up about 10% in 3Q [4] - Concerns remain about Target's long-term structural issues, including underinvestment and pricing [5][6] - Increased spending needs in calendar year 2026 pose an earnings risk for Target [6] Costco Analysis - Costco's app download numbers are not as strong [7] - Several metrics are trending negatively for Costco, including renewal rates, new member additions, and traffic [8] - Costco excels in offering value, but consumers are increasingly prioritizing convenience, where Costco is weaker [9][10][11] - Increased assortment overlap between Walmart.com and Costco is emerging [13]

Core Insights - The focus is on app downloads as a significant indicator of consumer behavior, particularly for last-minute shoppers who prefer in-store pickup options [2][3] - Walmart continues to perform strongly, while Target has seen a recent surge in app downloads, reaching the third position in total downloads, a notable improvement from earlier in the year [3][4] - Target's recent performance may indicate a positive holiday season, but structural issues related to investment spending and pricing strategies could pose risks in the long term [5][6] Target - Target has experienced a rough couple of years but has shown signs of improvement with a 10% increase in toy sales as of Q3, contributing to strong app download numbers [4][5] - Despite a potentially strong holiday season, Target faces increased spending needs in 2026, which could impact earnings [6] Costco - Costco's app download performance has been weak, and the company is facing challenges with declining renewal rates, slower member growth, and reduced traffic [8][10] - While Costco excels in providing value, it struggles with convenience compared to competitors like Walmart, which is becoming increasingly important as consumer preferences shift [9][10] - The rise of Walmart.com and its extensive assortment poses a competitive threat to Costco, as it overlaps with Costco's offerings [12][13]

Summary of U.S. Consumer Strategy & Quantitative Research Webinar Industry Overview - The focus is on the U.S. Consumer sector, specifically Consumer Discretionary and Consumer Staples, which have underperformed the market by low double-digit percentages year-to-date in 2025 [3][18]. Core Insights and Arguments - **Market Performance**: 2025 has been challenging for the Consumer sector, with both Discretionary and Staples underperforming. Consumer Staples are now seen as attractive due to favorable price-to-forward earnings valuation multiples [3][31]. - **Sector Dynamics**: There is a contrasting performance between Consumer Staples and technology sectors, raising concerns about a potential tech bubble. Economic factors such as cutbacks in healthcare and SNAP benefits for low-income consumers, alongside inflation, could lead to an economic slowdown [4][19]. - **Investment Recommendations**: Focus on Consumer stocks that are: 1. More international 2. Exposed to higher-income consumers 3. Defensive in nature 4. Not facing idiosyncratic pressures that are not fully priced in [3][22]. - **Key Themes**: Tariff volatility, GLP-1 drug uptake, and consumer bifurcation are critical themes to monitor. Lower-income households are pressured by cutbacks, while higher-income households may benefit from upcoming tax breaks [5][20]. Subsector Recommendations - **Consumer Staples**: Emphasis on companies with international exposure in Soft Beverages and Household & Personal Care, as well as defensive Broadline Retailers. Caution is advised around companies negatively impacted by GLP-1 drug uptake [6][22]. - **Consumer Discretionary**: Focus on higher-quality names with reliable earnings performance. Caution is advised for those without a quality bias, although companies catering to higher-income consumers may benefit from tax breaks in 2026 [6][22]. Performance Metrics - **Consumer Discretionary**: - Best performers include Casinos (23.7%), Apparel Retail (22.7%), and Automotive Retail (19.1%). Weakest sectors include Textiles, Apparel, and Luxury Goods (2.1%) [27][28]. - **Consumer Staples**: - Dollar Stores (49.5%) and Tobacco (29.8%) are leading, while Food Producers (-7.3%) and Alcoholic Beverages (-28.6%) are lagging [29][30]. Valuation Insights - **Valuation Multiples**: Discretionary multiples are about 10% cheaper than historical averages, while Staples are in line with historical averages despite underperformance [31][32]. - **Stock Performance Drivers**: In 2025, multiple expansion has driven stock performance more than earnings growth in both sectors [44]. Earnings Revisions - **Sales Expectations**: Remained stable across consumer discretionary sectors, while earnings per share revisions have shown significant dispersion, particularly declining in textiles and luxury goods due to tariff impacts [51][52]. Conclusion - The current environment is characterized by significant sector rotation and stock-picking opportunities. Analysts recommend focusing on high-quality, defensive stocks with international exposure as the market navigates through economic uncertainties and potential sector shifts [21][22].

Core Viewpoint - Costco has experienced a disappointing year in 2025, with its stock price down 6% despite strong operational performance [1] Group 1: Same-Store Sales Performance - Costco's same-store sales (SSS) have shown impressive growth, indicating strong productivity at existing locations [4] - In fiscal 2020, during the COVID-19 pandemic, Costco reported positive SSS of 7.7%, followed by 16% in fiscal 2021 and 14.4% in fiscal 2022, with the positive trend continuing [5] - The company is expected to maintain its SSS growth in 2026, driven by increased foot traffic and higher average ticket sizes [6] Group 2: Growth Strategy - Costco currently operates 921 warehouses, with approximately two-thirds located in the U.S., and plans to open 28 net new warehouses in fiscal 2026 [6] - There are significant opportunities for expansion in the U.S. and international markets, particularly in China, which is promising for revenue growth in 2026 and beyond [7] Group 3: Valuation Considerations - Despite a strong operational performance in 2025, with net sales and net income increasing by 8% and 10% year over year, the stock has faced valuation concerns [8] - The current price-to-earnings ratio stands at 46, down from 63 earlier in 2025, indicating a potentially better valuation setup for investors [9]

Group 1 - Costco Wholesale Corporation (NASDAQ:COST) is involved in a lawsuit against the current administration regarding tariff refunds, which could potentially impact its stock performance positively if successful [1] - The company operates membership warehouses offering a wide range of products and services, including groceries, electronics, and e-commerce options [2] - Recent management changes, including the departure of the CFO Richard Galanti, have raised concerns about the company's performance, particularly in terms of slower monthly signups and membership renewals [2] Group 2 - Despite acknowledging Costco's potential, there are suggestions that certain AI stocks may present greater upside potential and lower downside risk compared to Costco [2]