Group 1 - Costco Wholesale Corp reported March net sales of $25.51 billion, an increase of 8.6% from $23.48 billion last year [1] - The stock is currently priced at $986.50, reflecting a 2.2% increase, and has gained 36.7% over the last 12 months [1][2] - Loop Capital suggests that Costco could benefit from rising inflation amid tariffs [1] Group 2 - The stock is on track for a third consecutive daily gain, with recent trading activity showing a bounce off the $880 region, although there is overhead pressure at $1,000 [2] - Call volume is three times the intraday average, with 19,000 bullish bets compared to 6,620 puts, indicating a shift in sentiment [3] - The Schaeffer's put/call open interest ratio (SOIR) of 1.26 is in the 80th percentile of annual readings, suggesting that short-term traders have been more bearish than usual [3] Group 3 - Costco stock has outperformed options traders' volatility expectations over the last 12 months, with a Schaeffer's Volatility Scorecard (SVS) of 86 out of 100, indicating a favorable environment for options trading [4]

Costco (COST) shares soared 6.2% in the last trading session to close at $965.19. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.3% loss over the past four weeks.U.S. stocks staged their biggest rally yesterday, after President Donald Trump announced a 90-day pause on reciprocal tariffs for all nations except China. Costco’s resilient business model, centered around a membership-based structure, continues to be a major growth ...

ISSAQUAH, Wash., April 09, 2025 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $25.51 billion for the retail month of March, the five weeks ended April 6, 2025, an increase of 8.6 percent from $23.48 billion last year. Net sales for the first 31 weeks were $158.87 billion, an increase of 8.3 percent from $146.64 billion last year. Comparable sales for the periods ended April 6, 2025, were as follows: 5 Weeks 31 Weeks U.S.7.5% 7.0% ...

Shares of Costco Wholesale Corporation (COST) have shown a remarkable run on the bourses, surging 28.7% over the past year. This impressive uptick in the stock price has left investors contemplating whether this momentum can continue or if the stock is due for a pause. Consistent same-store sales growth, robust membership renewals and continued strength in high-frequency consumer categories are the reasons behind Costco’s rally. The company’s value-driven model and loyal customer base have made it a standou ...

Group 1: Tariff Announcement and Economic Impact - President Trump's tariff plan includes varying duties by country, potentially increasing prices for U.S. companies and consumers, leading to a decline in stock performance, with the S&P 500 and Nasdaq experiencing their worst performances since 2020 [1][2] - Higher prices from tariffs are expected to reduce consumers' buying power and increase costs for companies importing goods, raising concerns about a potential recession [2][3] Group 2: Tariff Details - The tariff plan initially targeted Mexico, Canada, and China but has been expanded to include all countries imposing tariffs on the U.S., with China facing a 54% tariff and the European Union a 20% duty [4] - A baseline tariff of 10% on all imports has been established, but the free trade agreement between the U.S., Mexico, and Canada remains unaffected, allowing certain goods to circulate tax-free [5][6] Group 3: Company Responses - Costco is well-prepared to handle tariffs, with CEO Ron Vachris stating the company can absorb or adjust prices due to its bulk ordering and local sourcing strategies, achieving over 20% savings for customers in China [7][8] - Target has over 45 private labels, with more than 10 generating $1 billion in annual revenue, providing flexibility to manage costs associated with tariffs [9][10] - Amazon may face challenges from tariffs but could benefit as competitors from China become less price-competitive due to the elimination of a tariff exemption on goods valued under $800 [11][12] Group 4: Long-term Outlook for Consumer Goods - Despite the immediate challenges posed by tariffs, strong consumer goods companies have the resources to navigate tough economic conditions, as they have previously managed rising inflation and supply chain disruptions [13] - The long-term prospects for quality consumer goods companies remain positive, with the recommendation for investors to hold onto quality stocks and consider adding positions during market dips [14]

Core Viewpoint - Costco Wholesale has consistently outperformed the broader market, generating a total return of 33% over the past 12 months, significantly ahead of the S&P 500's 9% [1] Financial Performance - In Q2 of fiscal 2025, Costco reported a net sales increase of 9.1%, driven by a same-store sales gain of 6.8%, primarily due to higher foot traffic [3] - Strong demand was noted across various categories, including gold and jewelry, gift cards, toys, and home furnishings, with all categories showing double-digit growth [4] - The membership model has proven effective, with a 6.8% year-over-year increase in membership base and a 93% renewal rate in the U.S. and Canada [5] Market Position and Resilience - Despite economic uncertainties, Costco is viewed as recession-resistant due to its broad product offerings at low prices, making it an all-weather business [8] - The company has maintained a strong growth trajectory, with diluted earnings per share (EPS) increasing at a compound annual rate of 11.5% over the past decade [6] Stock Performance Outlook - While Costco has a strong historical performance, predicting its stock performance over the next 12 months is challenging [9] - The stock currently trades at a price-to-earnings ratio of 56.3, which is considered high given its EPS growth of 16.9% in fiscal 2024 and a forecasted 12.2% gain for the current fiscal year [10] - There is a belief that the stock may underperform the S&P 500 despite the potential for higher prices in the future [10]

Core Viewpoint - Costco Wholesale Corp is facing challenges due to tariffs impacting apparel and home furnishings, with expectations of a slowdown in sales growth [1] Sales Performance - The company is anticipated to report a deceleration in total comparable sales (comps) for March to 2.5%, down from 7.7% last year [1] - Traffic is expected to increase by 2.5% compared to 7.2% last year, as consumers seek value [3] Digital Sales and Pricing Impact - Digital sales growth is projected to slow to 5%, a significant drop from 28.3% last year [3] - Gas prices have declined by high single digits in March, contributing to a headwind of approximately 80 basis points [2] - Strength in the U.S. dollar may add an additional headwind of around 170 basis points [3] Product Categories - Non-food sales are expected to outperform, particularly in discretionary categories like gift cards [4] - Food & Sundries and Fresh Foods sales are anticipated to remain solid due to favorable at-home consumption and a value-focused assortment [4] Stock Performance - Shares of Costco Wholesale declined by 2.73% to $942.91 at the time of publication [4]

Core Viewpoint - The retail sector is facing economic challenges due to rising trade uncertainties and tariffs, but select blue-chip retailers possess the financial strength and adaptability to navigate these conditions effectively [1][2]. Industry Overview - Rising tariffs are increasing costs for retailers, particularly those with global supply chains, which can squeeze margins and lead to consumer price hikes [2]. - Established retail companies can adjust sourcing strategies and negotiate supplier contracts to offset rising costs, allowing them to manage economic uncertainties better than smaller competitors [2]. Blue-Chip Retailers - Market experts favor blue-chip stocks like Walmart Inc. (WMT), Costco Wholesale Corporation (COST), and The Home Depot, Inc. (HD) for long-term stability and growth due to their financial resilience and history of delivering robust returns [3][5]. - Blue-chip stocks are less vulnerable to market fluctuations and provide steady dividend payouts, making them attractive for both experienced and novice investors [4]. Company Highlights Walmart - Walmart's market capitalization is $719.6 billion, with a trailing four-quarter earnings surprise of 7.4% [8]. - The Zacks Consensus Estimate for Walmart's current financial-year sales and EPS suggests growth of 3.4% and 4.8%, respectively, from the previous year [9]. - Walmart pays a quarterly dividend of about 23.5 cents per share, with a payout ratio of 33 and a five-year dividend growth rate of 2.9% [9]. Costco - Costco has a market capitalization of $428.2 billion, with a trailing four-quarter earnings surprise of 0.8% [10]. - The Zacks Consensus Estimate for Costco's current financial-year sales and EPS implies growth of 7.7% and 11.4%, respectively, from the previous year [10]. - Costco pays a quarterly dividend of $1.16 per share, with a payout ratio of 28 and a five-year dividend growth rate of 13.2% [10]. Home Depot - Home Depot's market capitalization is $368.7 billion, with a trailing four-quarter earnings surprise of 2.6% [13]. - The Zacks Consensus Estimate for Home Depot's current financial-year sales calls for growth of 2.7% from the previous year [13]. - Home Depot pays a quarterly dividend of $2.30 per share, with a payout ratio of 59 and a five-year dividend growth rate of 11.2% [13].

Core Insights - NBCUniversal's streaming service Peacock is now available to Spectrum TV Select customers at no additional cost as part of a multi-year distribution agreement, enhancing the value of Spectrum's video offerings [1][3] - Spectrum TV Select customers will receive ad-supported Peacock Premium, which has a retail value of $7.99 per month, providing access to live sports, news, and entertainment programming [1][2] - The partnership aims to create a healthier video ecosystem and offers customers access to multiple streaming services, potentially saving them up to approximately $80 per month [2][3] Company Overview - Spectrum, operated by Charter Communications, provides advanced communication services to nearly 57 million homes and businesses across 41 states, including internet, TV, mobile, and voice services [5] - NBCUniversal is a leading media and entertainment company, known for its diverse portfolio that includes television networks, a motion picture company, and a premium ad-supported streaming service, and is a subsidiary of Comcast Corporation [6] Strategic Developments - The integration of Peacock into Spectrum's offerings follows a transformation of its programming distribution agreements to include streaming services, enhancing the overall entertainment experience for customers [3] - Spectrum's hybrid distribution strategy now includes access to multiple streaming services such as Max, Disney+, ESPN+, Paramount+, ViX, and Tennis Channel, with more services expected to be added [3]

Core Viewpoint - Costco's stock has experienced a significant decline after reaching a 52-week high, primarily due to disappointing fiscal Q2 earnings and high valuation expectations, raising questions about whether it presents a buying opportunity at a discount [1][2]. Financial Performance - Costco's net sales for fiscal Q2 2025 increased by 9.1% year over year to $62.53 billion, with comparable sales rising by 6.8% [2]. - Paid household memberships grew to 78.4 million, a 6.8% increase from the previous year, while executive memberships rose by 9.1% to 36.9 million [3]. - Earnings per share (EPS) reached $4.02, up from $3.92 a year ago, reflecting an 8.4% growth when excluding a prior year's tax benefit [5]. E-commerce and Growth - E-commerce comparable sales surged by 22.2% year over year, driven by strong demand in various categories, including home furnishings and small electrics [4]. - Membership renewal rates remain high, at 93% in the U.S. and Canada, and 90.5% globally, indicating strong customer loyalty [3]. Valuation Concerns - Costco's price-to-earnings ratio stands at 54, suggesting that investors expect high single-digit sales growth and double-digit EPS growth for the foreseeable future, which may be overly optimistic [6]. - Despite the recent stock price decline, Costco still trades at a significant premium, leaving little room for error in future performance [8][9]. Long-term Outlook - The long-term outlook for Costco remains strong, with continued growth in sales, earnings, and memberships, alongside effective cost management and e-commerce expansion [8]. - However, the current stock valuation may lead to modest returns if growth only meets expectations, prompting investors to consider waiting for a more favorable entry point [9].