The Motley Foolยท2025-08-31 13:45Group 1: Costco - Costco has shown steady financial performance with net sales increasing at a compound annual rate of 10.8% from fiscal 2019 to fiscal 2024, despite challenges like the COVID-19 pandemic and inflation [4] - In Q3 2025, Costco reported net sales of $62 billion, making it the third-largest retailer globally, with an average of 4,000 stock-keeping units per warehouse, providing a significant cost advantage [5] - The company's membership model boasts a 90.2% renewal rate, driving customer loyalty and high-margin revenue [6] - Costco's shares are trading at a price-to-earnings (P/E) ratio of 53.9, indicating a high valuation that investors must consider [7] Group 2: Disney - Disney's cable networks are experiencing a decline, with revenue falling 15% year over year in Q3, and operating profit dropping 28% [8] - The company has successfully positioned itself for a streaming future, with Disney+ and Hulu combined having 183 million subscribers, leading to a 6% year-over-year revenue gain [9] - Disney launched a new ESPN streaming service aimed at enhancing the sports viewing experience [10] - The Experiences segment, including theme parks and cruise lines, reported a 27.7% operating margin in Q3, with management identifying 700 million potential customers with high Disney affinity [11] - Disney shares are available at a P/E multiple of 18.5, suggesting greater upside potential compared to Costco's high valuation [13]