Costco(US:COST) ZACKS·2025-12-30 15:41Core Insights - Costco Wholesale Corporation (COST) shows strong member engagement with a 3.1% increase in global comparable traffic and a 3.2% rise in average transaction value in Q1 fiscal 2026, indicating the effectiveness of its value proposition [1][8] Member Engagement - The implementation of scanning memberships and pre-scanning of baskets has enhanced the member experience, improving checkout productivity by up to 20% in some locations [2] - Digital enhancements have led to a 24% increase in e-commerce site traffic and over 40% growth in app traffic, with digitally enabled comparable sales rising by 20.5% [3] Membership Growth - Paid memberships grew by 5.2% to 81.4 million, while executive memberships increased by 9.1% to 39.7 million, despite a slight 10-basis-point dip in the worldwide renewal rate to 89.7% [4] Industry Comparisons - Walmart reported a 4.5% growth in comparable sales, with transaction growth of 1.8% and an average ticket increase of 2.7% [5] - BJ's Wholesale Club achieved its 15th consecutive quarter of traffic growth, with digitally enabled comparable sales growing by 30% year over year [6] Stock Performance and Valuation - Costco's stock has declined by 5.3% over the past year, contrasting with the industry's growth of 6.4% [7] - The forward 12-month price-to-earnings ratio for Costco stands at 41.95, higher than the industry average of 29.91 [9] Financial Estimates - The Zacks Consensus Estimate for Costco's current financial-year sales implies a year-over-year growth of 7.5%, while earnings per share are expected to grow by 11.7% [10] - Current quarter sales are estimated at $68.75 billion, with a year-over-year growth estimate of 7.88% [13]