Company Performance - Costco's stock closed at $924.88, reflecting a +1.05% increase from the previous day, outperforming the S&P 500's gain of 0.65% [1] - Over the past month, Costco's stock has risen by 3.49%, which is below the Retail-Wholesale sector's increase of 4.29% but above the S&P 500's gain of 1.15% [1] Earnings Forecast - The upcoming earnings report for Costco is anticipated to show an EPS of $4.49, representing an 11.69% increase from the same quarter last year [2] - Revenue is projected to be $68.88 billion, indicating an 8.1% growth compared to the corresponding quarter of the previous year [2] - For the full year, earnings are expected to be $20.09 per share and revenue is forecasted at $296.08 billion, reflecting changes of +11.67% and +7.57% respectively from the prior year [3] Analyst Estimates - Changes in analyst estimates for Costco are crucial as they indicate shifting business trends, with upward revisions suggesting positive sentiment regarding the company's profitability [4] - The consensus EPS projection has increased by 0.48% in the past 30 days, and Costco currently holds a Zacks Rank of 3 (Hold) [6] Valuation Metrics - Costco's Forward P/E ratio stands at 45.55, which is a premium compared to the industry average Forward P/E of 29.33 [6] - The company has a PEG ratio of 5.48, higher than the industry average PEG ratio of 3.55, indicating a difference in expected earnings growth [7] Industry Context - The Retail - Discount Stores industry, part of the Retail-Wholesale sector, holds a Zacks Industry Rank of 40, placing it in the top 17% of over 250 industries [7] - The Zacks Industry Rank evaluates the performance of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Core Insights - Costco's December comparable sales rose 7%, with adjusted comparable sales at 6.2%, indicating a slight deceleration from November's 6.4% [1][2] - U.S. adjusted comparable sales increased to 6.3% in December, up from 5.8% in November, suggesting a potential reacceleration in consumer shopping habits [2][5] - Net sales for December reached approximately $29.9 billion, an 8.5% increase year-over-year, surpassing November's 8.1% growth [3][8] Sales Metrics - The company's digitally enabled comparable sales rose 18.3% in December, up from 16.3% in November, indicating strong momentum in e-commerce [7] - Membership fee income increased by 14% year-over-year to $1.33 billion, contributing to overall profit growth [8] Business Model and Valuation - Costco's business model relies on membership fees and low prices, fostering customer loyalty and repeat visits [9] - Despite strong sales growth, Costco's stock is considered overpriced with a price-to-earnings ratio of 49, raising concerns about future valuation sustainability [11][12] - The December sales report reinforces confidence for current shareholders, but the high valuation presents a risk for new investors [12]

Core Insights - Costco Wholesale Corporation is experiencing a significant shift in growth dynamics, with international markets becoming vital contributors to overall sales growth while the U.S. remains the largest market [1] Sales Performance - For the five weeks ended January 4, 2026, Costco reported a 7% year-over-year increase in total comparable sales, driven primarily by strong international performance, with Canada and Other International markets seeing increases of 8.4% and 10.6% respectively, compared to 6% growth in the U.S. [2] - Over the first 18 weeks of fiscal 2026, total comparable sales grew 6.6%, with international markets outperforming the domestic segment, showing 7% growth in Canada and 9.5% in Other International markets, while the U.S. grew by 5.9% [3] Global Expansion - Costco is expanding its global footprint, currently operating 290 warehouses outside the U.S. in major markets including Canada, Mexico, Japan, the U.K., Korea, Australia, Taiwan, China, Spain, France, Sweden, Iceland, and New Zealand [4] - The company plans to open 30 net new clubs in fiscal 2027 and beyond, with approximately half of these planned outside the U.S., supported by a strong global membership renewal rate of 89.7% [5][8] E-commerce and Consumer Demand - By combining a strong physical presence with an expanding e-commerce reach, Costco is effectively capturing global consumer demand, particularly as international consumers seek value and quality through its bulk-purchasing model [6] Competitive Landscape - Costco's shares have declined by 2.3% over the past year, contrasting with the industry's growth of 6.1%. In comparison, Dollar General shares have increased by 101.8%, while Target's shares have dropped by 24.9% [7] Valuation Metrics - Costco's forward 12-month price-to-earnings ratio is 44.10, which is higher than the industry average of 30.16, indicating a premium valuation compared to Target (13.80) and Dollar General (20.51) [9] Financial Estimates - The Zacks Consensus Estimate for Costco's current financial-year sales and earnings per share indicates year-over-year growth of 7.5% and 11.7% respectively, with a projected 7.2% rise in sales and 9.2% growth in earnings for the next fiscal year [10]

Group 1 - Costco Wholesale Corporation (NASDAQ:COST) is favored by Jim Cramer despite a 4.8% decline in shares over the past year [2] - Analyst attention has been focused on Costco's membership renewal rates, with Guggenheim maintaining a Neutral rating and Telsey reiterating an Outperform rating with a $1,100 price target [2] - Mizuho upgraded Costco to Outperform and included it in its Top Picks list, citing high demand, lower costs, and top-line growth as key factors [2][3] Group 2 - Jim Cramer highlighted the long-term share price performance of Costco and discussed its renewal rates, noting that it sells at 43 times earnings [3] - Cramer expressed a mixed view, acknowledging short-term challenges while maintaining a long-term positive outlook on Costco [3]

Group 1: Non-Farm Payroll Report - The upcoming U.S. non-farm payroll report is expected to be a critical test for investors, with consensus predicting an addition of 60,000 jobs in December and a slight decrease in the unemployment rate from 4.6% to 4.5% [3][4] - A strong report could lead to a reassessment of the Federal Reserve's interest rate cuts, potentially disrupting the upward momentum of the stock market, while a weak report may reignite concerns about the economy and labor market [3][4] - The ideal scenario for the market would be a "Goldilocks" number that shows steady job growth while keeping the unemployment rate stable, which could support further stock market gains [3][4] Group 2: Tariff Ruling - The U.S. Supreme Court is expected to rule on the legality of Trump's tariff policies, with a low probability of supporting these policies at 24% according to prediction markets [4][5] - If the tariffs are overturned, it may not significantly impact the overall market, but investors will closely monitor the stock performance of major retailers like Walmart and Costco, which are involved in lawsuits for tariff refunds [5][6] - The ruling could lead to a weakening of the dollar and a steepening of the U.S. Treasury yield curve, potentially influencing Federal Reserve policy [6][7]

Core Insights - Costco's sales are experiencing significant growth, with net sales increasing by 8.5% year over year to $29.86 billion for the five weeks ending January 4 [2] - The company's stock price rose over 3% following the release of its December sales figures, reflecting positive market sentiment [1] Sales Performance - Comparable sales in the U.S. grew by 6.3%, while companywide comparable sales increased by 6.2%, excluding the effects of gasoline price fluctuations and foreign exchange rates [2] - Digitally enabled sales surged by 18.3%, indicating strong performance in Costco's online retail segment [4] Market Position - Costco's strategy of offering quality merchandise at low prices is resonating well with consumers, particularly in a cash-strapped environment [4] - The company's large scale allows it to provide a curated selection of goods at competitive prices, making it difficult for rivals to match [4] Customer Loyalty and Growth Strategy - The savings provided by Costco help build loyalty among its members, driving repeat traffic and stable profits [5] - Expansion of store count, along with growing sales at existing locations, is expected to continue fueling Costco's earnings growth in the future [5]

Core Insights - Costco Wholesale's shares have been declining for nearly a year but saw a 5% increase recently due to positive sales announcements [1] - December sales rose 8.5% year-over-year, with same-store sales increasing by 7% [1] Sales Performance - The food category, particularly bakery, meat, and candy sales, drove the sales growth last month, along with strong performances in jewelry, tires, and small appliances [2] Investor Sentiment - Investors appreciate Costco for its value, and there is optimism regarding potential stock splits and special dividends, contributing to the recent rise in share prices [3][6] - Analysts from William Blair noted that the recent sales figures could provide a much-needed boost after a 10% decline in shares over the past six months due to valuation concerns [4] Analyst Ratings - Sell-side analysts maintain a generally positive outlook on Costco's stock, with a mean price target of around $1,035, indicating a 17% premium over recent closing prices, though it remains below record highs of approximately $1,080 [5] Market Expectations - Recent investor discussions have included speculation about a stock split or special dividend, which could further enhance stock performance [6] - Analysts from UBS noted that expectations for same-store sales growth were between 3% and 5%, which Costco exceeded, indicating strong business performance [7][8]

Core Insights - Costco Wholesale Corporation's stock increased following strong monthly sales data, indicating steady demand in both U.S. and international markets [1] - JP Morgan analyst Christopher Horvers maintains an Overweight rating on Costco with a price target of $1000, highlighting the company's market share gains and improving traffic trends [1][2] Sales Performance - Comparable sales are expected to accelerate due to easier comparisons and stimulus spending, with consumables making up about 70% of Costco's product mix [2] - U.S. core comparable sales rose 6.3% in December, surpassing consensus and internal expectations, while total enterprise traffic increased by 2.7% year over year [3][4] - Average ticket size increased by 3.4% when excluding gas price deflation and foreign exchange impacts [4] Regional Insights - The Midwest, Northwest, and Southeast regions led U.S. performance, while Australia, Japan, and Korea contributed to international strength [5] - Weather negatively impacted some Northeast demand in December, but comparisons against BJ's were less unfavorable [5] Membership and Revenue - Membership fees account for approximately half of Costco's operating profit, providing strong pricing power and margin flexibility [3] - Executive membership sign-ups rose to 80,000 per week, contributing to a 5% growth in membership fee income this quarter [6][7] Future Outlook - Strong November and December results suggest Costco "won the holidays," with expectations for continued sales growth as year-over-year comparisons ease [6] - Anticipated spring tax stimulus is expected to further enhance Costco's demand profile [6]

Core Insights - Costco Wholesale Corporation's stock increased following strong monthly sales data, indicating steady demand in both U.S. and international markets [1] - JP Morgan analyst Christopher Horvers maintains an Overweight rating on Costco with a price target of $1000, highlighting the company's market share gains and improving traffic trends [1][2] Sales Performance - Comparable sales are expected to accelerate due to easier comparisons and stimulus spending, with consumables making up about 70% of Costco's product mix [2] - U.S. core comparable sales rose 6.3% in December, surpassing consensus and internal expectations, while total enterprise traffic increased by 2.7% year over year [3][4] - Average ticket size increased by 3.4% when excluding gas price deflation and foreign exchange impacts [4] Regional Insights - The Midwest, Northwest, and Southeast regions led U.S. performance, while Australia, Japan, and Korea contributed to international strength [5] - Weather negatively impacted some Northeast demand in December, but comparisons against BJ's were less unfavorable [5] Membership and Revenue - Membership fees account for approximately half of Costco's operating profit, providing strong pricing power and margin flexibility [3] - Executive membership sign-ups rose to 80,000 per week, contributing to a 5% growth in membership fee income this quarter [6][7] Future Outlook - Strong November and December results suggest Costco "won the holidays," with expectations for continued sales growth as year-over-year comparisons ease [6] - Anticipated spring tax stimulus is expected to further enhance Costco's demand profile [6]

Core Insights - Costco Wholesale Corporation (COST) demonstrated consistent comparable sales growth in December, appealing to value-conscious consumers through competitive pricing and quality products [1][5] Sales Performance - For the five weeks ending January 4, 2026, Costco reported a 7% year-over-year increase in total comparable sales, with U.S. sales rising 6%, Canada 8.4%, and Other International markets 10.6% [2] - Adjusted for gasoline prices and foreign exchange, U.S. comparable sales increased by 6.3%, while Canada and Other International markets saw gains of 6% and 5.6%, respectively, leading to an overall growth of 6.2% in December [3] - Digitally enabled comparable sales surged 18.9% in December, or 18.3% when adjusted for fuel and currency impacts, continuing a trend of double-digit growth in online sales [4][7] - Costco's net sales for December rose 8.5% to $29.86 billion, up from $27.52 billion in the same period last year, following sales improvements of 8.1% and 8.6% in November and October, respectively [4] Membership Model and Market Position - Costco's membership-based model fosters customer loyalty, supporting consistent sales and stable margins even amid economic uncertainty [5] - The company's ability to leverage bulk purchasing and maintain competitive pricing is crucial in the current inflation-sensitive environment [5]