Core Viewpoint - Costco Wholesale Corporation is set to release its first-quarter fiscal 2026 earnings results on December 11, and investors are evaluating whether to buy or hold the stock based on earnings expectations and market conditions [1] Financial Performance Expectations - Analysts project first-quarter revenues of $67.28 billion, reflecting an 8.3% increase year-over-year, with earnings per share (EPS) expected to rise to $4.25, indicating an 11.3% year-over-year growth [3][8] - The trailing four-quarter earnings surprise average for Costco is 0.2%, with the last quarter showing a 1% beat against the Zacks Consensus Estimate [4] Sales and Earnings Estimates - Current quarter sales estimate is $67.28 billion, with a high estimate of $67.82 billion and a low of $66.84 billion; year-over-year growth for the current year is estimated at 10.25% [5] - EPS estimates for the current quarter stand at $4.25, with a year-over-year growth estimate of 11.26% [6] Growth Drivers - Costco's strategic investments, customer-centric approach, and focus on membership growth have led to solid sales and earnings growth, positioning it as a consumer defensive stock [2] - The company reported net sales of $65.98 billion for the first quarter, an 8.2% increase from the previous year, driven by strong comparable sales and a 20.5% growth in digital sales [11][8] - Membership growth is expected to contribute significantly, with an anticipated 11.3% increase in membership fees during the quarter [12] Competitive Positioning - Costco's competitive pricing and membership-driven model have been key to its success, allowing it to maintain steady store traffic and robust sales volumes [10] - The company is adapting to market demands by regularly updating its product offerings and investing in technology and logistics [13] Valuation Insights - Costco's forward 12-month price-to-earnings (P/E) ratio is 43.71, higher than the industry average of 30.16, indicating a premium valuation relative to peers [17][18] - Despite trading below its historical peak, Costco's premium valuation may deter some investors, but its steady growth and financial health suggest potential for further upside [19] Investment Considerations - Current investors may consider holding or adding to their positions, while prospective investors might view any dips as buying opportunities [19][20] - The stock's high valuation and recent underperformance are countered by consistent traffic, strong membership growth, and effective operations, making Costco a reliable investment option ahead of the earnings release [20]

Investors will rarely find a company that's better at executing on its strategy.Costco (COST 0.29%) is arguably one of the best retailers in the world.*Stock prices used were the afternoon prices of Dec. 6, 2025. The video was published on Dec. 8, 2025. ...

Core Viewpoint - Costco's stock price has experienced significant pressure, declining from a peak of $1,073 in February to the current price of $887, representing a 17% decrease [1] Summary by Relevant Sections - **Stock Performance** - The stock has dropped by 10.1% over the last 12 months, indicating underperformance compared to market expectations [1]

Stocks kicked off December on a solid footing, with the S&P 500 edging higher and now up roughly 17% year- to-date. With only a few weeks left in 2025. Two key drivers to help steer into year-end and 2026: According to the CME FedWatch Tool, markets now assign an 89.4% probability to a quarter-point rate cut at this week's Fed meeting. The central bank last trimmed its policy rate on October 29, to 3.75%-4.00% from 4.00%-4.25%, marking a second straight 25-basis-point reduction this year. But Powell rattled ...

Core Viewpoint - The article emphasizes the significance of the upcoming earnings season in December for U.S. stocks, highlighting the potential for significant stock price volatility and the effectiveness of options as a tool for investors to amplify returns during this period [1][2]. Earnings Calendar - A detailed schedule of key U.S. companies' earnings releases for December 2025 is provided, including companies like AutoZone, GameStop, Adobe, and Nike, with specific dates and times for earnings announcements [1][2]. Options Strategies - The article outlines five classic options strategies that can be employed during earnings season: - **Buy Call**: A strategy for bullish investors expecting significant price increases [4][6]. - **Bull Call Spread**: A moderate bullish strategy with limited upside potential [7]. - **Buy Put**: A strategy for bearish investors anticipating significant price declines [9]. - **Bear Put Spread**: A moderate bearish strategy with limited downside potential [11]. - **Long Straddle**: A strategy for investors expecting high volatility in either direction [13]. Strategy Details - Each strategy includes specific scenarios for application, initial costs, potential returns, and risk profiles: - **Buy Call**: High potential returns with unlimited upside and maximum loss equal to the premium paid [6]. - **Bull Call Spread**: Limited risk and reward, with a defined maximum profit and loss [7]. - **Buy Put**: Limited maximum profit with a defined risk equal to the premium paid [9]. - **Bear Put Spread**: Similar to the Buy Put but with reduced risk and capped profit [11]. - **Long Straddle**: Captures significant price movements in either direction, with defined risk limited to the total premium paid [13]. Trading Considerations - The article advises investors to focus on the breakeven points of their strategies and to select options with sufficient time until expiration to avoid liquidity issues and time decay [4][6].

Core Insights - Costco Wholesale Corporation's latest sales data indicates strong consumer demand and member engagement as the holiday shopping season begins [1][4] Sales Performance - Net sales for the 12-week first quarter ending Nov. 23, 2025, reached $65.98 billion, an 8.2% increase from $60.99 billion in the same period last year [2] - Total comparable sales rose 6.4%, with the U.S. up 5.9%, Canada up 6.5%, and Other International markets up 8.8%, reflecting stable spending patterns [2] - For the four weeks ended Nov. 30, 2025, net sales were $23.64 billion, an 8.1% increase from $21.87 billion last year, with comparable sales increasing 6.9% [3] Digital Sales Growth - Digitally enabled sales rose 16.6% for November and 20.5% for the quarter, indicating strong online shopping adoption as the holiday season intensifies [3][8] Market Position - Costco's shares have declined 9.4% over the past year, contrasting with Dollar General's 63.9% increase and Target's 31.8% decrease [5] - Costco's forward 12-month price-to-earnings ratio is 43.72, higher than the industry average of 30.16, indicating a premium valuation compared to Target and Dollar General [6] Future Estimates - The Zacks Consensus Estimate for Costco's current financial-year sales implies a year-over-year growth of 10.3%, while earnings per share are expected to grow by 11.1% [9] - Current quarter sales are estimated at $67.28 billion, with a year-over-year growth estimate of 8.25% [10]

Earnings season is starting to wind down but we still have some big names due to report Q3 numbers. This week, we have Costco (COST), Broadcom (AVGO), Adobe Systems (ADBE) and Oracle (ORCL) all set to report. More News from Barchart Before a company reports earnings, implied volatility is usually high because the market is unsure about the outcome of the report. Speculators and hedgers create huge demand for the company’s options which increases the implied volatility, and therefore, the price of option ...

Group 1 - Costco Wholesale reported a revenue increase of 10% year-over-year, reaching $70.76 billion for the quarter [1] - The company's net income rose to $1.67 billion, reflecting a 12% increase compared to the previous year [1] - Membership fees contributed significantly, with a 7% increase in membership revenue, totaling $1.01 billion [1] Group 2 - The company experienced a 5% increase in same-store sales, driven by strong demand for groceries and household items [1] - E-commerce sales grew by 20%, highlighting the shift in consumer purchasing behavior [1] - Costco plans to open 25 new locations in the upcoming fiscal year, expanding its footprint in key markets [1]

Market Overview - US stock futures showed positive movement with S&P 500 futures up 0.2%, Nasdaq 100 futures up 0.3%, and Dow Jones Industrial Average futures slightly above flatline, indicating cautious optimism ahead of the Federal Reserve's policy meeting [1][19] - Major US benchmarks experienced consecutive weekly gains, with S&P 500 gaining 0.3%, Dow rising 0.5%, and Nasdaq climbing 0.9%, supported by a softer September PCE inflation reading [2] Federal Reserve Expectations - The Federal Reserve is set to begin its final FOMC meeting of the year, with expectations growing for a rate cut for the first time since the inflation cycle began [3][4] - According to CME FedWatch, there is now an 88% probability of a rate cut, a significant increase from 67% a month ago, reflecting cooling inflation data and concerns over labor market resilience [6][7] Economic Indicators - A busy economic calendar includes the delayed October JOLTS report, which will provide insights into US hiring activity, layoffs, and quits, with investors looking for signs of weakening demand that could justify policy easing [8] - Additional inflation indicators and claims data later in the week will offer further context on economic cooling, consumer resilience, and wage pressures [9] Earnings Season - Earnings season is in focus with major companies like Oracle, Adobe, Broadcom, and Costco set to report, which will provide insights into cloud demand, AI investment, enterprise spending, and US consumer strength [14][17][15] Commodity Market - Silver prices are hovering near historic highs, trading at $58.855, driven by ETF inflows and shifting rate expectations, with total holdings of silver-backed ETFs increasing by 590 tons last week, the strongest inflow since July [16][18] - Gold prices also edged higher, benefiting from expectations that lower US interest rates will boost demand for non-yielding stores of value [19]

Summary of U.S. Consumer Strategy and Quantitative Research Call Industry Overview - The call focuses 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 [2][15]. Key Insights and Arguments 1. **Valuation Multiples**: Price to forward earnings valuation multiples for Consumer Staples appear attractive relative to the market, suggesting potential investment opportunities [2][15]. 2. **Market Dynamics**: The Consumer Staples and tech sectors are experiencing contrasting trading dynamics, with concerns about an AI bubble and its potential burst [3][16]. 3. **Economic Pressures**: Cutbacks in healthcare and SNAP benefits for low-income consumers, combined with rising inflation, may lead to an economic slowdown, while tax breaks for wealthier consumers in 2026 could sustain market strength [3][16]. 4. **Flight to Safety**: In the event of economic downturns, the Consumer Staples sector is expected to benefit from a flight to safety, particularly companies with a global presence [4][17][18]. 5. **Investment Recommendations**: Focus on higher-quality, defensive names with international exposure that are trading below historical averages. Specific sectors to watch include Soft Beverages, Household and Personal Care, and defensive Broadline Retailers [6][21]. Additional Important Points 1. **Key Themes and Catalysts**: - Tariff volatility affecting apparel and household products - GLP-1 drug uptake impacting consumer behavior - Bifurcation of consumer spending due to benefit cutbacks affecting lower-income households while higher-income households may benefit from tax breaks [5][20]. 2. **Subsector Focus**: - In Consumer Staples, companies with international exposure are preferred. - In Consumer Discretionary, names with reliable earnings performance are recommended, with caution advised for those lacking quality bias [6][21]. 3. **Upcoming Events**: Anticipated events such as the World Cup and U.S. 250th anniversary celebrations could provide additional support for certain sectors like Hotels, Resorts, and Cruise Lines [6][21]. Performance Ratings - Companies rated as Outperform include BRBR, CPB, MDLZ, MKC, and others, while CAG, GIS, HSY, and others are rated as Market-Perform. DECK and TGT are rated Underperform [9][10]. Conclusion - The U.S. Consumer sector is navigating a challenging landscape in 2025, with specific investment strategies recommended to capitalize on valuation opportunities and mitigate risks associated with economic pressures and consumer behavior shifts [12][19].