Core Insights - Costco has experienced a challenging year in 2025, marking one of its worst relative performances in over two decades [1] Company Performance - The company's performance in 2025 is noted as particularly poor compared to its historical performance [1]

Core Insights - Costco Wholesale Corporation's first-quarter fiscal 2026 performance demonstrates the resilience of its membership business model, with membership income increasing by 14% to $1,329 million, driven by strong renewal rates and a recent membership fee increase [1][8] Membership Growth - Sustained membership growth is the main driver behind the increase in membership fees, with paid households rising by 5.2% to 81.4 million and total cardholders growing by 5.1% to 145.9 million [2] - Executive memberships saw a significant increase of 9.1% year-over-year, reaching 39.7 million, and now represent 74.3% of total sales [2] Customer Loyalty and Renewal Rates - The company has established strong customer loyalty, reflected in a membership renewal rate of 92.2% in the U.S. and Canada, and 89.7% globally, despite a slight decline of 10 basis points sequentially [3] - Proactive communication efforts aimed at improving retention have helped mitigate some pressure on renewal rates [3] Stability of Membership Income - Costco's membership income remains stable and recurring, supported by pricing leverage, an expanding base of paid households, and upgrades to executive memberships [4] Industry Comparisons - BJ's Wholesale Club reported a 9.8% increase in membership fee income to $126.3 million, with strong member acquisition and retention [5] - Walmart Inc. experienced a 17% growth in global membership fee income, driven by Walmart+ and Sam's Club, indicating a trend of embedding membership income into broader retail operations [6] Stock Performance and Valuation - Costco's stock has declined by 10.9% over the past year, contrasting with the industry's growth of 1.7% [7] - The forward 12-month price-to-earnings ratio for Costco stands at 42.99, higher than the industry average of 30.15, indicating a relatively high valuation [9] Financial Estimates - The Zacks Consensus Estimate for Costco's current financial-year sales implies a year-over-year growth of 7.6%, while earnings per share are expected to grow by 11.3% [10]

Core Viewpoint - The article presents a list of 12 stocks that are recommended for investment during the countdown to the new year, highlighting their long-term growth potential and current market conditions. Group 1: Recommended Stocks - **Apple**: Expected to achieve an 11% gain for the year, with a strong brand and growing AI integration across products, which may drive future revenue growth [5][6]. - **Costco**: Trading at 43x forward earnings estimates, down from over 58x, with a strong business model and high membership renewal rates above 90% in the U.S. and Canada [7][9]. - **Carnival**: The world's largest cruise operator has returned to profitability and is paying down debt, trading at only 11x forward earnings estimates [11][12]. - **Intuitive Surgical**: A leader in robotic surgery with a strong moat due to high costs of its systems and recurrent revenue from instruments and accessories [13][15]. - **Vertex Pharmaceuticals**: Leading in cystic fibrosis treatment with strong revenue and growth potential in new treatment areas [16][18]. - **Coca-Cola**: Strong brand and distribution network with a history of dividend increases for over 50 consecutive years, making it a solid choice for passive income [19][20]. - **Pool Corp.**: The largest supplier of pool equipment, trading at 22x forward earnings estimates, with consistent demand for maintenance services [21][22]. - **Amazon**: A leader in e-commerce and cloud computing, benefiting from AI growth, with AWS reporting a $132 billion annual revenue run rate [24][25]. - **Target**: Facing challenges but may recover in 2026, trading at 13x forward earnings estimates, presenting a potential buying opportunity [27][28]. - **CRISPR Therapeutics**: Recently approved a blood disorder treatment, with expected significant growth in the coming year [29][30]. - **Broadcom**: A networking giant emerging as a potential AI chip winner, with high demand for custom chips [31][32]. - **Taiwan Semiconductor Manufacturing**: A key player in chip production for AI, benefiting from multiple clients and significant investments in U.S. manufacturing [33][34].

Core Insights - Costco is enhancing its digital experience alongside physical store improvements to build trust and loyalty with members [3] - The company has updated its digital personalization capabilities, leading to a positive sales lift, with website traffic up 24% and app traffic up 48% in Q1 [4] - U.S. comparable sales increased by 5.9% year over year, with net sales rising 8.2% to $65.98 billion [6] Digital Enhancements - Costco's digital vision focuses on delivering a seamless experience for members both in-store and online [3] - The company has implemented personalized product recommendations based on recent search history, contributing to a positive sales impact [4] - The scan-and-go pilot has improved checkout speed by up to 20% at participating locations [8] Customer Experience Improvements - Costco has adjusted store hours to open one hour early and close one hour later on Saturdays for executive members, reducing crowding [5] - The addition of membership card scanners at warehouse entrances complements the scan-and-go technology to enhance shopper experience and store productivity [8] - The focus on technology is aimed at strengthening member loyalty, driving sales, and improving operational efficiency [8]

Truist将开市客的目标价从1033美元下调至926美元，维持"持有"评级。(格隆汇) ...

高盛将开市客的目标价从1218美元下调至1171美元，维持"买入"评级。(格隆汇) ...

Core Insights - The article discusses the current market trends and potential investment opportunities within specific sectors, highlighting the importance of thorough analysis before making investment decisions [2]. Group 1: Market Trends - Recent market fluctuations have shown a significant impact on investor sentiment, with many turning to defensive stocks as a safe haven during uncertain times [2]. - The technology sector continues to demonstrate resilience, with several companies reporting strong earnings despite broader economic challenges [2]. Group 2: Investment Opportunities - Analysts suggest that companies with robust balance sheets and consistent cash flow generation are likely to outperform in the current environment [2]. - There is a growing interest in renewable energy stocks, driven by increasing regulatory support and consumer demand for sustainable solutions [2].

Core Insights - Costco Wholesale Corp. reported stronger-than-expected earnings and revenue for its fiscal first quarter of 2026, with net income rising to $2.0 billion or $4.50 per diluted share, exceeding Wall Street expectations of $4.28 per share [1] - Total revenue increased by 8.3% year-over-year to $67.31 billion, surpassing analyst forecasts of $67.08 billion [1] Revenue Breakdown - Net sales accounted for $65.98 billion, while membership fee revenue, a high-margin segment, climbed 14% year-over-year to $1.33 billion [2] - Comparable sales growth, excluding fuel and foreign exchange effects, was 6.4% across the company, with U.S. comparable sales rising 5.9% and Canada and other international markets posting adjusted comparable sales growth of 9.0% and 6.8%, respectively [2] Operating Performance - Operating income increased to $2.46 billion from $2.20 billion a year earlier, supported by strong private-label performance and disciplined inventory management [3]

Costco logo over a blurred warehouse aisle with a shopping cart in the foreground. Key Points Costco had a solid quarter and showed momentum in its Q1 FY2026 results, providing investors with reasons to be optimistic. Cash flow is positive, the cash pile is building, and a special dividend payment is on the horizon. Analysts lifted price targets and pointed to a solid double-digit upside and new all-time highs. Interested in Costco Wholesale Corporation? Here are five stocks we like better. Costco ...

Core Insights - Costco Wholesale Corporation is a leading global retailer with over 900 warehouses, known for its membership-only model and bulk sales strategy [1] Financial Performance - In the first quarter, Costco reported an 8% increase in revenue, reaching $67.3 billion, exceeding analysts' expectations by $200 million [3] - Earnings per share were reported at $4.50, surpassing forecasts by $0.22, indicating strong financial performance [3] Expansion Strategy - The company continues to expand aggressively, operating 923 warehouses at the end of the quarter, an increase of 26 from the previous year [4] - Comparable sales rose by 6.4% on an adjusted basis, with a 5.9% growth in the US market [4] Digital Engagement - Digitally enabled sales surged by 20.5%, highlighting the impact of strong online engagement on overall sales and customer traffic [4] Membership Income - Membership fee income increased by 14% year-over-year to $1.33 billion, supported by a higher penetration of Executive Memberships [5] - Despite a slight decline in renewal rates, the company's focus on technology enhances member experience and productivity [5] Price Target Adjustment - Scot Ciccarelli from Truist Financial set a new price target of $926 for Costco, indicating a potential increase of approximately 6.7% from its then-current price of $867.89 [2][6]