Core Insights - Costco Wholesale Corp. has significantly improved its quality score, moving from 86.58 to 94.90, placing it in the top 10th percentile of stocks for fundamental strength [1][2]. Financial Performance - The retailer reported revenue of $67.31 billion, exceeding analyst estimates of $67.14 billion, and adjusted earnings per share reached $4.50, surpassing the projected $4.27 [3]. - There was an 8.2% year-over-year increase in net sales and a 6.4% rise in total comparable sales, indicating strong operational efficiency [3]. Cash Position - Costco ended the quarter with approximately $16.22 billion in cash, further validating its high operational efficiency score [3]. Legal and Trade Actions - The company has filed a lawsuit against the Donald Trump administration, challenging tariffs imposed under the International Emergency Economic Powers Act (IEEPA) as unlawful and seeking a full refund [4]. - To mitigate the impact of tariffs, Costco is increasing production of its Kirkland Signature brand, demonstrating its commitment to maintaining operational excellence despite trade uncertainties [5]. Stock Performance - Costco shares have underperformed in 2025, falling by 6.05% year-to-date, while the Nasdaq Composite Index rose by 22.20% during the same period [6]. - The stock has decreased by 14.68% over the last six months and 3.54% over the last month, closing at $854.79 on Tuesday [6].

Group 1 - The article discusses a cautious approach towards initial public offerings (IPOs), suggesting they may often be overpriced [1] - The focus is on identifying value in small-cap stocks that offer asymmetric upside potential and sustainable high dividend yields [1] - Key investment criteria include insider buying, high insider ownership, a history of free cash flow growth, and significant catalysts for turnaround [1] Group 2 - The investor expresses a preference for long-term holdings and is comfortable with matching market returns during bull markets while aiming for superior returns in downturns [1] - Influences on the investment strategy include notable investors such as Warren Buffett and Peter Lynch [1] - The investor has a background in Economics and Finance, which informs their investment decisions [1]

Key Takeaways AMZN, ROST, WMT and COST stand out as 2025 holiday strategies set the tone for 2026 growth.Retailers used AI, omnichannel tools and loyalty perks to meet value-focused consumer demand.U.S. holiday sales are projected to hit $1.01-$1.02T, with online Cyber Week spend up 7.7% YoY.As the final calendar pages of 2025 turn, the holiday shopping season once again underscored its importance to the retail industry. From Black Friday through Christmas week, consumer demand has remained resilient despit ...

Costco Wholesale Corporation ( COST ) is arguably one of the best businesses in the world. A combination of recurring subscription-based demand for a basic service, such as grocery shopping, combined with a massive obsession with the customer, makes it one ofQuality Growth Investor. I have the simplest of tastes, I only like the best. Here I will analyze the companies in my investment universe. I am looking for the best businesses in the world in order to create a long term portfolio that can outperform the ...

Retail App Downloads & Trends - App downloads data is meaningful for assessing retailer convenience and shopper behavior [1] - Last-minute shoppers are increasingly using apps for in-store pickup, highlighting the importance of convenience [2][3] - Target has seen a resurgence in app downloads, reaching the number three spot, indicating improved customer consideration [3] Target Analysis - Roth Capital Partners maintains a neutral rating on Target, viewing any positive holiday performance as tactical [4] - Toys were up about 10% in 3Q [4] - Concerns remain about Target's long-term structural issues, including underinvestment and pricing [5][6] - Increased spending needs in calendar year 2026 pose an earnings risk for Target [6] Costco Analysis - Costco's app download numbers are not as strong [7] - Several metrics are trending negatively for Costco, including renewal rates, new member additions, and traffic [8] - Costco excels in offering value, but consumers are increasingly prioritizing convenience, where Costco is weaker [9][10][11] - Increased assortment overlap between Walmart.com and Costco is emerging [13]

Core Insights - The focus is on app downloads as a significant indicator of consumer behavior, particularly for last-minute shoppers who prefer in-store pickup options [2][3] - Walmart continues to perform strongly, while Target has seen a recent surge in app downloads, reaching the third position in total downloads, a notable improvement from earlier in the year [3][4] - Target's recent performance may indicate a positive holiday season, but structural issues related to investment spending and pricing strategies could pose risks in the long term [5][6] Target - Target has experienced a rough couple of years but has shown signs of improvement with a 10% increase in toy sales as of Q3, contributing to strong app download numbers [4][5] - Despite a potentially strong holiday season, Target faces increased spending needs in 2026, which could impact earnings [6] Costco - Costco's app download performance has been weak, and the company is facing challenges with declining renewal rates, slower member growth, and reduced traffic [8][10] - While Costco excels in providing value, it struggles with convenience compared to competitors like Walmart, which is becoming increasingly important as consumer preferences shift [9][10] - The rise of Walmart.com and its extensive assortment poses a competitive threat to Costco, as it overlaps with Costco's offerings [12][13]

18 December 2025 U.S. Consumer Strategy & Quantitative Research U.S. Consumer Strategy; have we reached capitulation yet & should we prepare for a sector rotation? Webinar Transcript Alexia Howard +1 917 344 8453 alexia.howard@bernsteinsg.com Danilo Gargiulo +1 917 344 8475 danilo.gargiulo@bernsteinsg.com Zhihan Ma, CFA +1 917 344 8303 zhihan.ma@bernsteinsg.com Nadine Sarwat, CFA +44 20 7676 6849 nadine.sarwat@bernsteinsg.com Aneesha Sherman +1 917 344 8457 aneesha.sherman@bernsteinsg.com Cinnie Lin +1 917 ...

Core Viewpoint - Costco has experienced a disappointing year in 2025, with its stock price down 6% despite strong operational performance [1] Group 1: Same-Store Sales Performance - Costco's same-store sales (SSS) have shown impressive growth, indicating strong productivity at existing locations [4] - In fiscal 2020, during the COVID-19 pandemic, Costco reported positive SSS of 7.7%, followed by 16% in fiscal 2021 and 14.4% in fiscal 2022, with the positive trend continuing [5] - The company is expected to maintain its SSS growth in 2026, driven by increased foot traffic and higher average ticket sizes [6] Group 2: Growth Strategy - Costco currently operates 921 warehouses, with approximately two-thirds located in the U.S., and plans to open 28 net new warehouses in fiscal 2026 [6] - There are significant opportunities for expansion in the U.S. and international markets, particularly in China, which is promising for revenue growth in 2026 and beyond [7] Group 3: Valuation Considerations - Despite a strong operational performance in 2025, with net sales and net income increasing by 8% and 10% year over year, the stock has faced valuation concerns [8] - The current price-to-earnings ratio stands at 46, down from 63 earlier in 2025, indicating a potentially better valuation setup for investors [9]

Group 1 - Costco Wholesale Corporation (NASDAQ:COST) is involved in a lawsuit against the current administration regarding tariff refunds, which could potentially impact its stock performance positively if successful [1] - The company operates membership warehouses offering a wide range of products and services, including groceries, electronics, and e-commerce options [2] - Recent management changes, including the departure of the CFO Richard Galanti, have raised concerns about the company's performance, particularly in terms of slower monthly signups and membership renewals [2] Group 2 - Despite acknowledging Costco's potential, there are suggestions that certain AI stocks may present greater upside potential and lower downside risk compared to Costco [2]

Two consumer staples ETFs go head-to-head on size, history, and structure—see what sets them apart for portfolio builders.The Vanguard Consumer Staples ETF (VDC) (VDC 0.52%) and the Fidelity MSCI Consumer Staples Index ETF (FSTA) (FSTA 0.48%) both target U.S. consumer staples, but VDC stands out for its much larger assets under management (AUM) and longer track record.Both funds aim to capture the U.S. consumer staples sector, making them potential core options for those seeking defensive equity exposure. T ...