Key Points Costco's membership model works well in any environment, even when there's inflation. Its stock trades at a premium valuation, and any negative sentiment could send it down. Costco's been resonating with a digital-first crowd, resulting in increased online signups. 10 stocks we like better than Costco Wholesale › Costco Wholesale (NASDAQ: COST) has been one of those stalwart stocks you can rely on to beat the market for decades. It has handily outperformed the S&P 500 over most time per ...

Costco Wholesale Corporation (NASDAQ:COST) is one of the stocks Jim Cramer shared his take on. Cramer highlighted the stock’s return compared to the S&P over the last two decades. He stated: “Costco’s stock got crushed today, down more than $27 for what I think is actually a pretty silly reason. Its membership increased in the quarter, but not as much as the market anticipated… It didn’t matter that the sales and earnings and same-store sales were all better than expected… The thing is, Costco’s membershi ...

The company has a track record of beating expectations.Costco Wholesale (COST 0.13%) is a name you probably know. If you make trips to the warehouse yourself for groceries, gas, or other purchases, you likely do so because Costco offers a wide variety of products at dirt cheap prices. All of this has equaled success for the company from an earnings and stock performance perspective over time.Wall Street generally has been bullish on Costco, and recommendations to buy or hold well outnumber advice to sell or ...

Investors are keeping an eye on business trends.On Sept. 25, Costco Wholesale (COST 0.13%) reported completed financial results for its fiscal 2025. And the stock immediately dropped. To be clear, the drop for Costco stock was extremely modest at around 3%. But a drop of any size would seem to indicate that investors were unenthused with the company's financial results, at best. And at worst, they're concerned.I believe that investors are leaning more toward the concerned side of the spectrum when it comes ...

Core Insights - Costco's recent quarterly earnings report indicates strong sales and earnings growth, reinforcing confidence in the company's long-term growth potential [1][4][10] Sales and Earnings Growth - Costco's same-store sales grew by 6.4% in the fiscal fourth quarter ending August 31, excluding gasoline price changes and foreign-exchange translations [4] - Operating income increased by 9.8% to $3.3 billion, demonstrating that the pricing strategy does not compromise profitability [5] Customer Loyalty - The company reported a membership renewal rate exceeding 90%, consistent with historical figures, despite a membership fee increase earlier in the year [6] - Total paid members reached 79.6 million in the third quarter, a 6.8% increase from the previous year, and up from 78.4 million in the prior quarter [7] Expansion Opportunities - Costco continues to expand, adding 20 to 30 locations annually, finishing the year with 914 warehouses, an increase of 24 from the previous year [8] - The company has a significant presence in the U.S. and is also expanding internationally, with same-store sales growth of 8.3% in Canada and 7.2% in other international locations [9] Valuation - Costco's shares have a price-to-earnings (P/E) ratio of 52, which, while down from over 60 earlier this year, remains high compared to the S&P 500 Index's P/E ratio of 31 [10]

Economic Indicators - The upcoming non-farm payroll report is highlighted as a critical economic indicator, overshadowing other data releases such as car sales and jobless claims [2] - If the payroll data shows rapid wage growth, the Federal Reserve may delay interest rate cuts, indicating a cautious approach to inflation management [2][3] - Federal Reserve Chair Jerome Powell is navigating a mixed economic landscape, with signs of slowdown in some sectors and growth in data center construction [2] Company Insights - Costco Wholesale Corporation (NASDAQ:COST) is noted for its strong long-term performance, delivering an annualized return of nearly 19% over the past 20 years, significantly outperforming the S&P 500 [7] - Despite a recent drop in stock price due to lower-than-expected membership growth, Costco's fundamentals remain strong, with increased membership fees and a younger demographic joining [7][8] - ONEOK, Inc. (NYSE:OKE) is recognized for its strong position in the natural gas sector, with a focus on providing services to the Gulf Coast, and is considered a buy due to its potential upside despite a recent decline in stock price [9]

Key Points Renewal rates ticked down sequentially, with management pointing to mix effects from online sign-ups. Membership fee income and paid households still climbed at healthy rates. With shares at about 50 times earnings, valuation -- not renewals -- is the main reason for caution. 10 stocks we like better than Costco Wholesale › After a powerful multi-year run, Costco Wholesale (NASDAQ: COST) has finally given investors something to worry about (or has it?): Membership renewal rates slipped ...

Group 1 - Companies that consistently raise dividends have outperformed the S&P 500 by 2.5 percentage points annually since 1972, with a $10,000 investment in dividend growers in 1972 now worth over $4 million compared to $1.6 million in the S&P 500 [2] - Five blue-chip companies exemplify the strategy of combining current income with dividend growth, contributing to wealth accumulation [3] Group 2 - AbbVie (NYSE: ABBV) has a dividend yield of 2.97% and has raised its dividend for 12 consecutive years, despite facing a significant patent cliff with Humira, with a payout ratio of 303% that is distorted by acquisition accounting [4][5] - Costco (NASDAQ: COST) has a low yield of 0.57% but boasts a 13.2% annual dividend growth rate over the past five years, with a conservative payout ratio of 27%, and its membership fees could cover the entire dividend [6][7] - American Express (NYSE: AXP) offers a 0.92% yield but has compounded its dividend at 12% annually over the past five years, with only 21.3% of earnings allocated to dividends, controlling both card issuance and payment processing [10] Group 3 - The combined shareholder returns of these five companies exceed $500 billion over the past decade, with dividend growth every year, and yields ranging from 0.57% at Costco to 7.2% at Pfizer, catering to both income and growth-focused investors [9]

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Skip to Main Content This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. Costco Earnings Beat Expectations. Why the Stock Is Dropping. By Sabrina Escobar, Mackenzie Tatananni and Teresa Rivas Share Resize Reprints Shares of Costco Wholesale were falling Friday even as earnin ...