Core Viewpoint - Costco is attempting to recover from a significant decline in its stock price, which has led to a challenging year for its shareholders [1] Group 1 - The company has experienced a brutal bear market, impacting its stock performance and shareholder value [1]

Core Insights - Costco Wholesale Corporation (COST) shows strong member engagement with a 3.1% increase in global comparable traffic and a 3.2% rise in average transaction value in Q1 fiscal 2026, indicating the effectiveness of its value proposition [1][8] Member Engagement - The implementation of scanning memberships and pre-scanning of baskets has enhanced the member experience, improving checkout productivity by up to 20% in some locations [2] - Digital enhancements have led to a 24% increase in e-commerce site traffic and over 40% growth in app traffic, with digitally enabled comparable sales rising by 20.5% [3] Membership Growth - Paid memberships grew by 5.2% to 81.4 million, while executive memberships increased by 9.1% to 39.7 million, despite a slight 10-basis-point dip in the worldwide renewal rate to 89.7% [4] Industry Comparisons - Walmart reported a 4.5% growth in comparable sales, with transaction growth of 1.8% and an average ticket increase of 2.7% [5] - BJ's Wholesale Club achieved its 15th consecutive quarter of traffic growth, with digitally enabled comparable sales growing by 30% year over year [6] Stock Performance and Valuation - Costco's stock has declined by 5.3% over the past year, contrasting with the industry's growth of 6.4% [7] - The forward 12-month price-to-earnings ratio for Costco stands at 41.95, higher than the industry average of 29.91 [9] Financial Estimates - The Zacks Consensus Estimate for Costco's current financial-year sales implies a year-over-year growth of 7.5%, while earnings per share are expected to grow by 11.7% [10] - Current quarter sales are estimated at $68.75 billion, with a year-over-year growth estimate of 7.88% [13]

We recently published 8 Stocks on Jim Cramer’s Radar.  Costco Wholesale Corporation (NASDAQ:COST) is one of the stocks on Jim Cramer's radar. Costco Wholesale Corporation (NASDAQ:COST) is one of the largest retailers in America. It is one of Cramer’s favorite stocks despite recent sluggish performance. Even though Costco Wholesale Corporation (NASDAQ:COST)’s shares are down by 4% year-to-date, the CNBC TV host has continued to remain optimistic about the company. Earlier this month, Guggenheim reiterated ...

Costco didn't have a headline-grabbing year in 2025, and that's precisely what the company intended.Costco Wholesale (COST 0.65%) ended 2025 in a familiar position: operationally strong, strategically disciplined, and still trading at a premium that divides investors. While the stock didn't outperform the broader market this year, the underlying business continued to execute in ways that reinforce why Costco remains one of the most closely watched names in retail.As investors look ahead, three themes from 2 ...

Yesterday's Barchart article on Costco Wholesale Corp. (COST) showed that COST stock is cheap. Today's article illustrates an interesting strategy: short one-month out-of-the-money (OTM) COST puts and calls to pay for longer-dated in-the-money (ITM) COST calls. COST is at $870.32 in morning trading on Dec. 29. I described in the Dec. 28 Barchart article that COST could be worth over 18% more at $1,031 per share ("Costco Has Tumbled Despite Higher FCF and FCF Margins - Time to Buy COST Stock?). More News ...

It has been three years or so since artificial intelligence (or AI) leapt into the zeitgeist with the public introduction of DALL-E2 and ChatGPT. As AI technology develops, I have been tracking how companies are thinking about and using it. The latest earnings season for the US stock market – for the third quarter of 2025 – recently ended and there were a number of companies that I follow or have a vested interest in, where the management teams discussed the topic of AI and how the technology could impact t ...

Group 1 - The company, owned by Walmart, operates approximately 60 stores in China and is expanding its presence [1] - The e-commerce business of the company is experiencing rapid growth [1]

Group 1 - Costco Wholesale Corporation operates membership warehouses providing a variety of products including groceries, fresh food, household goods, electronics, and services through pharmacies, gas stations, optical centers, and e-commerce options [2] - Jim Cramer expressed concerns about Costco's stock performance, noting that the stock price may have risen too high at 41 times earnings, and mentioned selling half of the position for the Charitable Trust [1] - Cramer highlighted that Costco is involved in a lawsuit against the Trump administration for a refund related to tariffs, suggesting that a victory could positively impact the company's stock performance [2] Group 2 - Despite acknowledging Costco's potential as an investment, there is a belief that certain AI stocks may offer greater upside potential and carry less downside risk [2]

Core Viewpoint - Costco Wholesale Corp. reported strong free cash flow and margins, yet its stock has declined, making it attractive for value investors [1][4]. Financial Performance - Fiscal Q1 revenue ending Nov. 23, 2025, rose by 8.28%, with a 6.4% increase on a comparable basis [4]. - Free cash flow surged by 58.4% year-over-year to $3.162 billion, compared to $1.996 billion in the previous year's Q1 [4]. - Over the last year, free cash flow increased by over 79% to just over $9 billion from just over $5 billion [4]. Free Cash Flow Margins - Q1 2026 free cash flow margin was 4.70%, a 46% improvement from 3.21% a year ago [5]. - Trailing 12 months free cash flow margin was 3.21% of sales, up from 2.85% in FY 2025, indicating a 12.6% improvement [5]. Sales Forecast - Analysts project sales for the fiscal year ending Aug. 31, 2026, to be $297.14 billion, an 8% increase from $275.2 billion for the year ending Aug. 31, 2025 [7]. - For the year ending Aug. 31, 2027, projected sales are $318.18 billion [7]. - For the next 12 months, projected sales are $302.65 billion, representing a 10% increase over FY 2025 [7].

Core Insights - Costco Wholesale Corporation (NASDAQ:COST) has been upgraded to Buy from Neutral by Northcoast, with a price target set at $1,100, highlighting its strong competitive position in the US and potential for international expansion [2] - The company has demonstrated consistent success in international markets, with significant growth opportunities in developed economies where consumers prioritize savings and discretionary spending [2] - Costco's financial health is underscored by its substantial cash reserves, which may allow for a special dividend of up to $20 per share [2] Sales and Membership Trends - Despite a more than 4% decline in stock price since the start of 2025, management addressed concerns regarding slowed membership sign-ups, attributing it to changing behaviors among younger customers who prefer online sign-ups and renewals [3] - Costco reported record Black Friday non-food orders exceeding $250 million, with digital sales increasing by 20.5% for the quarter, website traffic rising by 24%, and mobile app traffic surging by 48% [4]