Core Viewpoint - Costco Wholesale reported strong fiscal fourth-quarter results, with revenue and earnings per share exceeding expectations, but concerns about stock valuation persist [2][9]. Financial Performance - Fourth-quarter net sales increased by 8% to $84.4 billion, with total revenue (including membership fees) rising to $86.2 billion [5]. - Comparable sales grew by 5.7% (6.4% adjusted for gas and foreign exchange), and e-commerce sales increased by 13.5% on an adjusted basis [5]. - Operating income rose to $3.34 billion from $3.04 billion, and earnings per share increased to $5.87 from $5.29, reflecting a 14% year-over-year growth when adjusted for last year's tax benefit [5][6]. Membership and Expansion - Membership fee income reached $1.72 billion for the quarter and $5.32 billion for the year, up from $1.5 billion and $4.8 billion in the previous year [6]. - The company expanded its store count to 914 warehouses globally, up from 891 a year ago, contributing to strong adjusted comps and e-commerce growth [7]. Valuation Concerns - The trailing-12-month earnings per share for fiscal 2025 is $18.21, resulting in a valuation of approximately 52 times earnings, which may reflect high expectations for future growth [9]. - The premium valuation implies that small disappointments in comparable sales, renewal rates, or costs could lead to a rapid compression of the price-to-earnings ratio [10][11]. Investment Outlook - For current shareholders, the report reinforces the long-term investment case due to Costco's resilient model and strong fee income [11]. - However, for new investors, the high valuation presents a challenging risk-reward scenario, suggesting a potential wait for a better entry point [11].

Does the top warehouse retailer have a shot at joining the 12-zero club?Over the past few years, a handful of high-profile companies saw their market caps top $1 trillion. Many of those stocks -- including Microsoft, Nvidia, and Amazon -- were in the tech sector. Amazon, the top cloud infrastructure company, also became the first online retailer to join the 12-zero club.Yet not a single brick-and-mortar retailer has joined that elite group. Could Costco Wholesale (COST -2.92%), with a market cap of $420 bil ...

Costco is arguably the best brick-and-mortar retailer in the world.Costco (COST -2.92%) reported its quarterly financial results, which alleviated many concerns among stock market investors.*Stock prices used were the afternoon prices of Sept. 24, 2025. The video was published on Sept. 26, 2025. ...

Core Viewpoint - Costco's stock performance has lagged behind the market despite strong fourth-quarter results, leading to a mixed reception from investors [1][2]. Group 1: Company Performance - Costco reported an 8% year-over-year sales increase in the fiscal fourth quarter, reaching $84.4 billion, with comparable sales up 5.7% and e-commerce sales up 13.6% [5]. - Earnings per share (EPS) rose to $5.87 from $5.29 last year, surpassing analyst expectations [5]. - The company has successfully navigated tariff changes, with about one-third of its merchandise sourced from abroad, and has expanded its Kirkland Signature line to mitigate impacts [6]. Group 2: Growth Opportunities - Costco is the third-largest retailer in the U.S. but operates fewer than 1,000 stores globally, indicating significant growth potential [7]. - Currently, Costco has 914 stores, with plans to accelerate openings to 35 in 2026, which is expected to enhance sales further [8]. - The company is also focusing on attracting new members and offering new products to ensure sustained growth [9]. Group 3: Target Demographics - Costco is successfully attracting younger members, with nearly half of new signups under age 40, which is crucial for future growth [10]. - The company is investing in digital channels, resulting in a 27% increase in site traffic in the fourth quarter, and has tailored its homepage experience to enhance consumer engagement [11]. Group 4: Market Sentiment - Despite Costco's strong fundamentals, Wall Street remains cautious, with an average target price 15% higher than the current price, reflecting concerns over the economic environment and slowing comparable sales growth [13]. - The stock is currently trading at a high P/E ratio of 53, indicating that it is priced for perfection and may be vulnerable to market fluctuations [15].

Core Insights - Costco continues to demonstrate strong performance, outpacing traditional retail competitors and expanding its global footprint [1][2] - The company reported an 8% revenue increase to $86.2 billion, slightly exceeding estimates, with comparable sales rising 6.4% [4] - Earnings per share increased by 11% to $5.87, surpassing consensus expectations [4] Financial Performance - Revenue for the quarter reached $86.2 billion, up from $79.9 billion a year ago, slightly above the estimated $86.1 billion [4] - Comparable sales, adjusted for foreign currency and fuel prices, rose 6.4%, exceeding the consensus estimate of 5.9% [4] - Gross margin improved to 11.13%, an increase of 13 basis points year-over-year [5] - Membership income grew by 14%, with paid memberships increasing by 6.3% to 81 million [5] Membership and Expansion - Costco's recent warehouse expansions have allowed for increased sales of high-priced discretionary items [5] - The company has introduced extended store hours for executive members, which has led to an uptick in membership upgrades [6] - Membership renewal rates remain high, with a 92% renewal rate in North America and 90% worldwide [9] Market Position and Valuation - Despite strong earnings, Costco's stock fell by 0.8% in after-hours trading, reflecting its stable nature and low volatility [7] - The company does not provide forward guidance, contributing to a stable but potentially stagnant growth outlook [8] - Costco's price-to-earnings ratio stands at 51.8, indicating a premium valuation compared to other retailers, which may limit future stock growth [9][10]

Truist Securities将开市客的目标价从1042美元下调至1033美元，维持"持有"评级。(格隆汇) ...

Core Insights - American Express is successfully attracting new customers despite raising annual fees on its popular cards, indicating strong demand for its services [1][4] - The company has seen significant growth in net card fee revenue, which increased by 39.2% from 2022 to 2024, compared to a 14.5% increase in merchant fee revenue, suggesting a robust increase in card sign-ups [2] - American Express's business model relies on charging higher merchant fees to offset the costs of generous cardholder rewards, which amounted to $16.6 billion in 2024, nearly double the card fees collected [3][9] Revenue Breakdown - In 2024, card fees generated $8.45 billion, accounting for 16.8% of total revenue, while discount revenue from merchant fees made up 69.8% of total revenue [2][3] - The increase in annual fees for the Platinum Card and Gold Card reflects a strategy to cater to affluent consumers and small businesses [7] Customer Demographics - The fastest-growing demographics for American Express are millennials and Gen Z, with the company adding 13 million new proprietary cards in 2024 [4] - Customer loyalty is a significant competitive advantage for American Express, especially during economic uncertainty [10] Comparison with Competitors - Both American Express and Costco have successfully built loyal customer bases despite charging annual fees for services that have free alternatives [5][6] - American Express's stock has outperformed the S&P 500 over various time frames, indicating strong long-term investment potential [6] Financial Performance - American Express has maintained a low net write-off rate of around 2%, showcasing effective risk management [8] - The company's forward earnings valuation is more attractive at 22.3 times compared to Costco's 47 times, making it a potentially better investment choice [19] Dividend Strategy - American Express has a history of rapidly increasing its dividends, currently yielding 1%, while Costco yields 0.6% but occasionally pays special dividends [20]

Market Overview - The stock market experienced volatility with the S&P 500 and Nasdaq reaching record highs before a three-session losing streak, ultimately closing the week with losses of nearly 1% and just over 1% respectively [1] - Economic data, including a significant drop in weekly jobless claims and an upward revision in GDP for Q2, influenced investor sentiment, leading to concerns about potential interest rate adjustments by the Federal Reserve [1] Nvidia and OpenAI Partnership - Nvidia announced a $100 billion investment in OpenAI to develop AI data centers, prompting analysts to revise earnings outlooks for Nvidia for 2026 [1] - The partnership is seen as an indication of the early stages of the AI trade, with significant growth potential in AI infrastructure [1] Boeing Developments - Boeing's stock rose significantly due to reports of finalizing a large order of jets with China and the FAA easing restrictions on aircraft deliveries [1] - The stock has increased by 25% year-to-date, with expectations for further growth driven by favorable trade policies and international orders [1] Costco's Earnings Report - Costco's stock declined nearly 3% on Friday and almost 4% for the week despite beating earnings and revenue expectations, primarily due to lower same-store sales growth and membership renewal rates [1] - Analysts remain optimistic about Costco's long-term prospects, citing improvements in gross margins and supply chain efficiency [1] Apple Performance - Apple stock was the best performer of the week, rising 4% as positive signs emerged regarding the successful rollout of the new iPhone 17 and Air models, with T-Mobile reporting record iPhone sales [2] - Analysts have raised their price targets for Apple, reflecting confidence in the company's market position and product offerings [2] Nike's Investment Potential - The company initiated a position in Nike, citing a promising turnaround plan under CEO Elliott Hill and potential sales boosts from the upcoming FIFA World Cup [2] - A price target of $80 per share was set, indicating about 16% upside from the recent close [2]

Take a Trial Today Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! IBD Videos Get market updates, educational videos, webinars, and stock analysis. BREAKING: Inflation Data Cements Rate Cut Expectations The Dow Jones Industrial Average and the other major stock indexes rose Friday as Wall Street reacted to the Federal Reserve's favored inflation gauge, the core PCE price index. Meanwhile, Apple (AAPL) and Costco Wholesale (COS ...

Market Performance - U.S. stocks experienced a rise on Friday, with the S&P 500 increasing by 0.6%, the Dow Jones Industrial Average gaining 299 points (0.7%), and the Nasdaq composite adding 0.4%, helping to reduce weekly losses [1][2] - The S&P 500 closed at 6,643.70, the Dow at 46,247.29, and the Nasdaq at 22,484.07 [8] Inflation and Economic Indicators - Inflation in the U.S. accelerated to 2.7% in August from 2.6% in July, which, while above the Federal Reserve's 2% target, aligned with economists' forecasts [2][3] - Consumer sentiment showed weakness, with a University of Michigan survey indicating frustration with high prices, although inflation expectations for the next 12 months slightly decreased to 4.7% from 4.8% [10][11] Federal Reserve and Interest Rates - The Federal Reserve's potential for continued interest rate cuts is critical for Wall Street, as expectations for these cuts have driven U.S. stocks to record highs since April [3][4] - The Fed recently implemented its first rate cut of the year, but further cuts are uncertain due to concerns about worsening inflation [4] Tariffs and Market Reactions - President Trump's announcement of new tariffs on imports, including pharmaceutical drugs and heavy trucks, has created uncertainty among analysts regarding their ultimate effects on the market [5][6] - Companies like Paccar, Eli Lilly, and Pfizer saw stock increases following the tariff announcement, while home furnishing companies experienced volatility in their stock prices [6][7] International Market Trends - European stock indexes rose after declines in Asia, with France's CAC 40 climbing 1% and South Korea's Kospi dropping 2.5% [9] Upcoming Events - A potential U.S. government shutdown is on the horizon, with a deadline set for next week, but historical data suggests limited impact on the market from such political events [12]