Core Viewpoint - Analysts project that Costco will report quarterly earnings of $5.81 per share, reflecting a 12.8% year-over-year increase, with revenues expected to reach $86.23 billion, an 8.2% increase from the same quarter last year [1]. Earnings Projections - Over the last 30 days, the consensus EPS estimate has been revised upward by 0.4%, indicating a collective reassessment by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts expect 'Geographic Revenue - Canada' to be $12.02 billion, an 8.5% increase from the prior year [5]. - 'Geographic Revenue - Other International' is projected at $11.74 billion, reflecting a 9.7% year-over-year change [5]. - 'Geographic Revenue - United States' is forecasted to reach $62.63 billion, indicating an 8.2% increase from the previous year [5]. Comparable Sales - 'Comparable sales - Total Company' are expected to be 5.5%, slightly up from 5.4% a year ago [6]. - 'Changes in comparable sales excluding foreign-currency and gasoline prices - Total Company' are projected at 6.5%, down from 6.9% in the previous year [6]. - 'Comparable sales - U.S.' are anticipated to reach 5.6%, compared to 5.3% in the same quarter last year [10]. Warehouse Growth - The total number of warehouses worldwide is projected to reach 913, up from 891 a year ago [7]. - The number of warehouses in the United States and Puerto Rico is expected to be 629, compared to 614 in the previous year [7]. International Sales Performance - 'Changes in comparable sales excluding foreign-currency and gasoline prices - Other International' are expected to be 6.8%, down from 9.3% in the same quarter last year [8]. - For Canada, the estimate for 'Changes in comparable sales excluding foreign-currency and gasoline prices' is 7.1%, down from 7.9% a year ago [9]. - The consensus for the U.S. stands at 6.0%, compared to 6.3% in the previous year [9]. Stock Performance - Costco shares have seen a -0.8% change over the past month, contrasting with a +4% move in the Zacks S&P 500 composite [11].

Costco (NASDAQ: COST ) will report earnings this week. After a year of underperformance , investors wonder whether Costco will deliver alpha or not. While I argue that investing in Costco doesn't hinge on one year's alpha, I think, in fact, that the stock isI’m a long-term investor focused on U.S. and European equities, with a dual emphasis on undervalued growth stocks and high-quality dividend growers. Through years of experience, I’ve learned that sustained profitability—evident in strong margins, stable ...

Group 1 - Major market movers include Micron Technology Inc. after the close on Tuesday [1] - Accenture plc Class A (Ireland) is set to report pre-market [1] - Costco Wholesale Corporation will report after the close on Thursday, noted for having the highest earnings density [1] Group 2 - Next Monday will focus on the leisure sector, with Carnival Corporation and Carnival Plc ADS reporting pre-market [1]

Group 1 - Costco's stock experienced a significant increase of nearly 18% in early 2025, peaking at $1,078.23 on February 13, but has since fallen 11.8% [1][2] - Despite the decline, Costco maintains strong credibility with investors and analysts, with 18 out of 36 analysts rating the stock as a buy or strong buy [2][6] - The company is set to report its fiscal 4th-quarter results, which are projected to be decent, with revenue expected to be $86.1 billion, up 8% year-on-year, and earnings of $5.80, up 12.6% [3][8] Group 2 - Costco continues to grow, opening approximately 25 stores annually, and its membership fees provide a stable base for profitability [6][10] - The retail environment is challenging, with consumers shopping more cautiously and facing increased costs due to tariffs [9] - In contrast to Costco's sluggish stock performance, rival Walmart's shares have increased by 13.3% for the year and 4.6% for the quarter, highlighting competitive pressures [7]

Group 1: Federal Reserve Actions - The Federal Reserve cut interest rates for the first time in 2025, signaling a shift in monetary policy [1][2][8] - Fed officials will be closely monitoring economic indicators before making further rate decisions, with several speaking engagements scheduled this week [3][8][6] Group 2: Economic Data and Market Reactions - Key economic data releases this week include the final revision of second-quarter GDP, home sales, jobless claims, and consumer sentiment, which will provide insights into the economy's health [4][9][6] - The stock market reacted positively to the Fed's rate cut, with all three major U.S. indexes reaching record highs [2][5] Group 3: Corporate Earnings Reports - Micron Technology is set to report earnings, with analysts optimistic due to strong demand for memory chips driven by data center clients [10][11] - Costco is expected to report quarterly results, having previously seen an 8% increase in sales, indicating robust consumer spending [11][10] - CarMax's earnings report will shed light on the used car market, while AutoZone and other firms will also report this week [11][10]

Core Viewpoint - Costco Wholesale Corporation (NASDAQ:COST) is considered one of the best fundamental stocks to buy currently, with UBS maintaining a Buy rating and a price target of $1,205, citing several growth levers that will support the retailer's momentum [1]. Group 1: Market Performance and Sales - Recent market concerns regarding Costco's performance were driven by weaker comparable sales in May and June, leading to doubts about the retailer's valuation [2]. - UBS argues that these concerns were misinterpreted and should have been alleviated by the reacceleration of Costco's comparable sales and traffic in July and August [2]. Group 2: Business Model and Growth Drivers - Costco's "best-in-class merchandising engine" is highlighted as a key factor that will help the company maintain its growth in the coming months and quarters [3]. - As a membership-based warehouse club, Costco offers bulk discounts on a wide range of products, including food, electronics, and household items [3].

Core Insights - Membership-based warehouse clubs like Costco, Sam's Club, and BJ's Wholesale are experiencing significant growth due to increased membership and changing consumer demographics, particularly among younger shoppers [2][3][27] Group 1: Membership Growth and Expansion - Costco has nearly 80 million paid household members globally, while BJ's has about 8 million members, reflecting a 55% increase since going public [25] - Sam's Club aims to double its membership over the next eight to ten years, with membership income growing nearly 8% in the most recent quarter [26] - All three retailers are expanding their locations, with Costco planning to open about 30 clubs per year, BJ's targeting 25 to 30 new clubs over the next two fiscal years, and Sam's Club planning to open 15 clubs annually [10][9][8] Group 2: Consumer Trends and Preferences - Younger consumers, particularly Gen Z and millennials, are driving membership growth, with these demographics accounting for half of Sam's Club's membership growth over the past two years [27] - The average age of Costco members has decreased, with nearly half of new members being under 40 [28] - Spending among customers aged 25 to 34 on general merchandise at clubs rose by 3% from January to July 2025 compared to the previous year [29] Group 3: Retail Strategies and Innovations - Warehouse clubs are enhancing the shopping experience by incorporating technology such as curbside pickup, home delivery, and self-checkout options like Sam's Club's Scan & Go, which accounts for about 40% of transactions [18][20] - Costco and BJ's are expanding their digital offerings, with BJ's e-commerce sales jumping 34% in the most recent quarter [20][22] - Clubs are diversifying their merchandise, including trendy brands and private label products, to attract a broader customer base [30][32] Group 4: Economic Factors and Challenges - High inflation has increased the appeal of warehouse clubs as consumers seek cheaper options for groceries and household staples [4] - Retailers are navigating challenges such as an uncertain job market and tariffs, with strategies in place to mitigate the impact of high tariffs on imported goods [11][12] - BJ's plans to carry more holiday items from the U.S. or countries with lower tariff exposure to adapt to these economic pressures [13]

Group 1 - Costco Wholesale Corporation (NASDAQ:COST) is considered a strong long-term investment, with the recommendation to buy shares gradually rather than all at once [1] - The company operates membership-based warehouses that offer a wide range of products, including groceries, appliances, electronics, apparel, and household goods, along with additional services like fuel stations and pharmacies [2] - The former CFO, Richard Galanti, played a significant role in maintaining low prices by instilling a strong sense of accountability among suppliers, contributing to Costco's reputation for value [2] Group 2 - Despite the positive outlook for Costco, there are suggestions that certain AI stocks may present greater upside potential and lower downside risk [2]

Group 1 - Micron Technology Inc. is scheduled to report its earnings next Tuesday after market close [1] - Accenture plc Class A will release its key reports on Thursday before market open [1] - Costco Wholesale Corporation is set to report its earnings after market close on Thursday [1]

Group 1 - The Invesco QQQ Trust is expected to deliver significant long-term returns, driven by major tech companies like Nvidia, Microsoft, and Amazon [1][3] - The Nasdaq-100 index includes 100 of the largest non-financial companies on the Nasdaq, heavily weighted towards technology and related sectors, benefiting from trends such as the internet, cloud computing, enterprise software, and artificial intelligence [2][5] - The top 10 holdings in the Invesco QQQ Trust account for 55.8% of its total portfolio value, featuring prominent tech stocks known as the "Magnificent Seven" [5][6] Group 2 - The Invesco QQQ Trust has achieved a compound annual return of 10.2% since its inception in 1999, with an accelerated average return of 19.4% over the last decade due to advancements in technology [9][13] - A consistent investment of $500 per month could potentially grow to $1 million in as little as 19 years, depending on the compound annual return [10][13] - The ETF's performance is significantly influenced by its top-performing stocks, which have delivered a median return of 45% over the past year, contributing to a 24% gain in the Nasdaq-100 [7][9] Group 3 - Companies like Palantir Technologies, Micron Technology, and CrowdStrike have also shown substantial gains, with Palantir soaring 355% in the past year [12] - The AI sector is projected to drive substantial investment, with Nvidia's CEO predicting $4 trillion in infrastructure upgrades over the next five years to support AI development [15] - The long-term outlook for the Invesco QQQ Trust remains positive, as historical performance suggests continued strong results [16]