Costco Wholesale is reportedly planning to hike pay for most of its US workers to over $30 an hour after union members threatened to strike.The retailer will boost pay for its top store employees over the next three years – increasing wages by $1 to $30.20 an hour in the first year and an extra dollar in each of the next two years, according to a memo sent to Costco staff this week.Costco’s promised pay hike also includes an increase of 50 cents, to $20 an hour, for low-scale employees, according to the mem ...

ToplineCostco announced that all employees at its non-union stores will get a pay raise, just a day before employees at its 50 unionized locations are set to go on strike, according to Bloomberg.Costco employee greeting customer and checking membership status, Costco, Florida. (Photo by: ... [+] Lindsey Nicholson/UCG/Universal Images Group via Getty Images)UCG/Universal Images Group via Getty Images Key FactsHourly pay for non-union members at the top of Costco’s pay scale will get a $1 per hour raise to $3 ...

Costco Wholesale (COST 1.55%) has routinely been a top retail stock to own. It's coming off a stellar performance in 2024, when its shares rallied nearly 39%. And there's good reason for that, as the company has continued to post strong, resilient growth numbers even as other retailers struggled due to rising costs.But the problem is that with the stock rising rapidly and now trading at an inflated valuation, near its all-time high, it could be ripe for a decline. And there could be a major headwind looming ...

Costco Wholesale Corp. (NASDAQ: COST ) (NEOE: COST:CA ) is such an efficient company that even with a gross margin lower than 13%, it has been able to generate consistent shareholder value over the lastEquity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or to connect!Analyst’s Disclosu ...

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Costco identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Group 1: Earnings Growth - Costco has a historical EPS growth rate of 16.2%, with projected EPS growth of 11.8% for the current year, surpassing the industry average of 11.1% [4]. - Earnings growth is a critical factor for growth investors, as double-digit growth is often seen as indicative of strong future prospects [3]. Group 2: Asset Utilization - Costco's asset utilization ratio (sales-to-total-assets ratio) stands at 3.73, indicating that the company generates $3.73 in sales for every dollar in assets, significantly higher than the industry average of 1.46 [5]. Group 3: Sales Growth - The company's sales are projected to grow by 7.2% this year, compared to the industry average of 3.7%, highlighting Costco's strong sales growth potential [6]. Group 4: Earnings Estimate Revisions - The current-year earnings estimates for Costco have been revised upward, with the Zacks Consensus Estimate increasing by 0.2% over the past month, indicating positive momentum [8][9]. Group 5: Overall Assessment - Costco has achieved a Zacks Rank of 2 (Buy) and a Growth Score of A, positioning it as a potential outperformer and a solid choice for growth investors [9][10].

Core Insights - The Motley Fool aims to enhance the financial literacy and well-being of individuals by providing various financial services and educational resources [1] Company Overview - Founded in 1993, The Motley Fool is a financial services company focused on making the world smarter, happier, and richer [1] - The company reaches millions of people monthly through premium investing solutions, free guidance, market analysis, personal finance education, top-rated podcasts, and its non-profit foundation [1]

Core Insights - High-risk, high-reward stocks attract attention, but blue-chip companies are essential for a balanced portfolio [1][2][3] - Long-term stock gains and consistent growth are often associated with companies that have substantial market capitalization [1][4] - Blue-chip companies like Walmart, Costco, and Home Depot demonstrate financial resilience and a history of robust returns [1][4][5] Company Summaries Walmart - Walmart is enhancing its market presence through strategic e-commerce initiatives, including acquisitions and improvements in delivery and payment systems [9] - The company's market capitalization is $761.2 billion, with a trailing four-quarter earnings surprise of 9.3% on average [10] - The Zacks Consensus Estimate for Walmart's current financial-year sales and EPS indicates growth of 4.8% and 11.7%, respectively, from the previous year [11] Costco - Costco effectively navigates market fluctuations through strategic investments and a strong focus on memberships, leading to high renewal rates and customer loyalty [12] - The company's market capitalization is $417.1 billion, with a trailing four-quarter earnings surprise of 2% on average [12] - The Zacks Consensus Estimate for Costco's current financial-year sales and EPS suggests growth of 7.2% and 11.8%, respectively, from the prior year [12] Home Depot - Home Depot dominates the home improvement retail sector, leveraging digital innovations and a robust product lineup to drive growth [15] - The company's market capitalization is $411.7 billion, with a trailing four-quarter earnings surprise of 2.3% on average [16] - The Zacks Consensus Estimate for Home Depot's current financial-year sales forecasts growth of 3.9% from the previous year [16]

Core Insights - Costco's stock has increased approximately 35% over the past year and has tripled in value over the last five years, indicating strong investor confidence and performance [1] Group 1: Business Performance - Costco reported a year-over-year revenue growth of 7.5% in its fiscal Q1 2025, with profits rising by 13.2% [2] - The company had 77.4 million paid members at the end of fiscal Q1, reflecting a 7.6% increase from the previous year, and a membership renewal rate of 90.4%, with 92.8% in the U.S. and Canada [3] - Costco operated 896 warehouses at the end of Q1 and plans to increase this number to 916 during fiscal year 2025 [4] - E-commerce sales grew by 13% year-over-year in fiscal Q1, with a significant acceleration in December, where net sales increased by 8% and e-commerce sales surged by 34.4% [4][5] Group 2: Analyst Predictions - Analysts predict a consensus 12-month price target for Costco with an upside potential of around 8%, which is lower than the returns seen in the past two years [6][7] - The average revenue estimate for fiscal 2025 is projected at 7.14%, following a 5% increase in fiscal 2024 [8] - Earnings per share (EPS) for fiscal 2025 is expected to increase by 9.7%, following a 17% rise in fiscal 2024 [9] Group 3: Strategic Initiatives - Costco's e-commerce strategy and partnerships with Instacart and Uber Technologies are yielding positive results, and private-label product sales are growing faster than the overall business [10] - The company is capitalizing on disruptions in the retail pharmacy market, presenting new opportunities for growth [10] Group 4: Challenges and Considerations - Potential challenges include port strikes in Canada, the Eastern U.S., and India, which could impact operations, although Costco has strategies to mitigate these risks [11] - Concerns about valuation exist, as Costco's price-to-earnings ratio is near its highest level ever, suggesting a possible stock pullback in the future [12]

Core Viewpoint - Investing in stocks with high valuations can be strategic but requires caution, especially with the current market's average P/E ratio at approximately 30.6 [1] Group 1: Eli Lilly - Eli Lilly is recognized for its successful drugs, Zepbound and Mounjaro, but has a high P/E ratio of 79, indicating potential overvaluation [3] - The company's operating income has increased by 71% over the last three years, reaching $15.1 billion [4] - Recent guidance indicates a revenue shortfall of about $400 million for Q4 2024, attributed to weaker sales growth of its key drugs [5] - If growth does not accelerate as expected, the stock may be deemed too expensive [6] Group 2: Costco Wholesale - Costco has a P/E ratio of 55.7 and has seen a 234% increase in net income over the last decade, reaching $7.6 billion [7] - The company is under new leadership with CEO Ron Vachris, whose performance will be closely monitored [8] - Potential employee strikes could threaten Costco's traditional advantages of employee loyalty and efficiency, impacting the investment thesis [9][10] Group 3: Nvidia - Nvidia, with a P/E ratio of 54.6, is viewed as a market bellwether and is heavily involved in AI hardware production [11] - The company's operating income has surged by approximately 2,400% over the past five years, exceeding $71 billion [12] - High market expectations could lead to a significant drop in Nvidia's stock if growth slows, potentially affecting the broader market [13][14]

Core Viewpoint - Costco is opposing a shareholder proposal that calls for an evaluation of business risks associated with its diversity, equity, and inclusion (DEI) practices, with a vote expected during the company's annual meeting [1][3]. Group 1: Proposal Details - The National Center for Public Policy Research submitted the proposal, claiming that Costco's DEI initiatives pose "litigation, reputational and financial risks to the company, and therefore financial risks to shareholders" [2][6]. - The proposal is part of a broader trend where conservative groups are challenging corporate DEI initiatives, especially following a U.S. Supreme Court decision that outlawed affirmative action in college admissions [2][8]. Group 2: Company Response - Costco's board of directors unanimously voted to recommend that shareholders reject the proposal, asserting that their commitment to respect and inclusion is essential and that the requested report would not yield meaningful information [3][10]. - The board emphasized that diverse employees and suppliers contribute to creativity, innovation, and customer satisfaction [3]. Group 3: Market Context - Analysts believe that Costco's management is generally trusted, and there is a prevailing sentiment among shareholders to maintain the current course without disruption [4]. - Other major companies, such as Walmart and McDonald's, have recently faced shareholder scrutiny regarding their DEI policies, indicating a shifting landscape in corporate diversity initiatives [7][9]. Group 4: Legal and Social Implications - The proposal highlights concerns that a significant portion of Costco's workforce, approximately 200,000 out of 300,000 employees, could be seen as victims of illegal discrimination due to the company's DEI practices [10][11]. - The current political climate, including actions taken by former President Trump to terminate DEI programs within federal agencies, adds complexity to the corporate landscape regarding diversity initiatives [9][15].