Core Insights - The expansion of big and bulky merchandise is crucial for Costco's digital business, with a 13% year-over-year increase in deliveries through the Costco Logistics program in Q4 fiscal 2025 [1][8] - Costco's focus on enhancing the delivery experience has led to improved member satisfaction, evidenced by 15 consecutive quarters of rising member experience scores for Costco Logistics deliveries [2] - E-commerce traffic surged by 27% in Q4, driven by strong performance in various categories, contributing to over $27 billion in digitally enabled sales for fiscal 2025 [3][4][8] Financial Performance - Costco's shares have declined by 7.2% over the past year, contrasting with a 0.9% growth in the industry, while Dollar General shares increased by 38.5% and Target shares decreased by 30.5% [5] - The forward 12-month price-to-earnings ratio for Costco is 44.65, significantly higher than the industry average of 30.13, indicating a premium valuation compared to Target and Dollar General [6] Sales and Earnings Estimates - The Zacks Consensus Estimate indicates year-over-year growth of 7.7% in sales and 11% in earnings per share for the current financial year [9] - Current sales estimates for Costco are projected at $67.15 billion for the current quarter and $296.34 billion for the current year, with expected growth rates of 8.04% and 7.67% respectively [10] - Earnings per share estimates are $4.24 for the current quarter and $19.97 for the current year, reflecting a year-over-year growth of 10.99% and 11.01% respectively [11]

Market Volatility and Tariffs - The introduction of new tariffs by President Trump in April 2025 led to significant declines in global stock markets, with the S&P 500 dropping below 5,000 points and European indices like Germany's DAX and France's CAC 40 falling by 10% and 6.6% respectively in a single session [2][3] - The International Monetary Fund (IMF) estimated that a 20% tariff rate could reduce global growth by more than 1% through 2026 and contribute between 0.6 to 1 percentage point to core inflation [3] Company-Specific Developments - Costco is suing the Trump administration for a refund on tariffs, with analysts suggesting it could be a "tariff winner" despite a 2% drop in its stock after mixed Q2 earnings [4] - Costco's stock has fallen less than 1% in 2025, outperforming the S&P 500, which has seen a 15% decline year-to-date [4] UK Pharma Deal - The US and UK reached a deal on December 1, 2025, to establish zero tariffs on British pharmaceutical products, but Britain will pay 25% more for new U.S. medicines [5] - Market reactions to this deal were muted, with shares of UK drugmakers GSK and AstraZeneca showing little change [5] Spain's Defense Spending - Spain faces potential tariffs due to its reluctance to meet a 5% of GDP defense spending target set by President Trump, highlighting the use of trade penalties as leverage for military budgets [7] Federal Reserve Leadership Speculation - Speculation surrounding the next Federal Reserve Chair has introduced volatility into various markets, with expectations of faster rate cuts under a new, potentially more dovish chair [9] Trump Media & Technology Group - Trump Media & Technology Group (DJT) has seen its stock decline significantly, trading near $11 as of November 2025, with forecasts for December ranging widely from $15 to $67.83 [10] Overall Market Trends - On December 1, 2025, U.S. stocks experienced declines, with the Dow Jones down 0.9% and the S&P 500 down 0.5%, attributed to rising Treasury yields and expectations regarding the Federal Reserve [11] - The market remains characterized by volatility driven by political developments and tariff threats, indicating a challenging environment for investors [12]

Joining us now is Feta Kellinska who's a consulting founder and CEO of Relay Global. Thank you so much for joining me this morning. So as we look across, you know, who's reported, who's set to report, you've actually taken a closer look at those are the likes of Costco and BJs.What are you seeing as far as sort of more warehousy type retailers right now. >> Good morning. Thank you so much for having me.So when I analyzed consumer data discussions from social media available channels around those warehouse c ...

Core Viewpoint - Costco's stock has underperformed recently, declining about 7% over the past year, but it remains a strong buy due to solid sales growth and earnings performance [2][11]. Group 1: Financial Performance - Costco's fourth-quarter sales increased by 8% to $86.1 billion, and earnings per share rose by 11% to $5.87, surpassing analysts' expectations [4]. - Membership fees reached $1.7 billion in the fourth quarter, marking a 17% increase from the previous year [7]. Group 2: Competitive Advantage - Costco has approximately 80 million members globally, with a high membership renewal rate of about 90%, indicating strong customer loyalty [6]. - The company holds 60% of the domestic warehouse club market, and there has been an 11% increase in signups for its more expensive Executive Membership over the past decade [8]. Group 3: Resilience in Economic Downturns - Costco's business model allows it to thrive during economic downturns, as consumers seek to save money, making membership a financially prudent choice [9][10]. - The high renewal rates suggest that members are likely to maintain their memberships even in challenging economic conditions [10].

Core Viewpoint - The article highlights eight dividend stocks that cater to various investment styles, emphasizing the importance of balancing current income with long-term growth in a diversified dividend strategy [1][2]. Group 1: Stock Summaries - **American Express (AXP)**: Operates a closed-loop payments network with a yield of 0.87% and a payout ratio of 16%, indicating significant potential for dividend growth due to its affluent customer base and strong pricing power [3][4]. - **JPMorgan Chase (JPM)**: The largest U.S. bank by assets, offering a 2% yield and a 28% payout ratio, making it a solid choice for investors seeking both income and capital appreciation [5]. - **Costco (COST)**: Generates profit primarily from membership fees, with a low yield of 0.5% but a 27% payout ratio and a history of substantial special dividends, showcasing its commitment to shareholder returns [6][7]. - **S&P Global (SPGI)**: Provides essential financial market services with a yield of 0.8% and a 28% payout ratio, boasting a 52-year history of dividend increases, reflecting its strong market position [9]. - **AbbVie (ABBV)**: A biopharmaceutical company with a 3% yield and a remarkable 53 consecutive years of dividend increases, supported by a robust pipeline and strategic acquisitions [10]. - **Pfizer (PFE)**: A major pharmaceutical company with a high yield of 6.7% but a payout ratio near 98%, appealing to income-focused investors despite earnings volatility risks [11]. - **Philip Morris International (PM)**: Offers a 3.8% yield with a payout ratio of nearly 78%, focusing on smoke-free products to differentiate itself and provide growth opportunities [12][13]. - **Nvidia (NVDA)**: A technology company with a minimal yield of 0.02% but a low payout ratio of 1%, indicating strong potential for future dividend growth driven by substantial free cash flow [15].

Core Viewpoint - Costco Wholesale is a well-regarded company with strong employee satisfaction and consistent revenue growth, making it an appealing investment despite its high valuation multiples [2][4][8]. Employee Satisfaction - Costco is recognized as a favorable employer, with an employee turnover rate of only 8%, significantly lower than the retail industry average of 60% [5]. - Employee reviews on Glassdoor rate Costco at 3.9 out of 5 stars, outperforming competitors like Walmart's Sam's Club (3.3) and BJ's Wholesale (3.0) [5]. Dividend and Financial Performance - Costco offers a modest dividend yield of 0.6%, lower than Walmart's 0.9%, but has a history of 20 consecutive years of dividend increases [6]. - The company occasionally issues special dividends, with the last one in 2023 providing a one-time distribution that added 1.5% to annual income [6]. Valuation Metrics - Costco trades at a high price-to-earnings (P/E) ratio of 49, compared to Walmart's 36 and BJ's 20, indicating a premium valuation [7]. - Despite its high valuation, Costco has demonstrated positive revenue growth in 33 of the last 34 fiscal years, suggesting strong business fundamentals [8].

Group 1 - Costco Wholesale Corporation (NASDAQ:COST) is recognized for its strong long-term performance, despite recent stock price challenges [1] - The stock is currently trading at 44 times earnings, which is higher compared to the broader market, leading to its "lackluster" performance [1] - Jim Cramer suggests that Costco is a buy opportunity when priced under $900, indicating it is relatively cheaper than its historical valuation [1] Group 2 - Costco operates membership warehouses offering a variety of products including groceries, fresh food, household goods, and electronics [2] - The company also provides additional services such as pharmacies, gas stations, optical centers, and e-commerce options [2]

Core Viewpoint - BJ's Wholesale Club is trading at a significant discount compared to Costco, presenting an interesting investment opportunity for those who find Costco's stock too expensive [1]. Membership and Sales Trends - BJ's total fiscal third-quarter revenue increased by 4.9% year over year to $5.35 billion, with comparable sales growing by 1.1%, and adjusted for gasoline prices, they rose by 1.8% [5]. - Membership fee income surged by 9.8% to $126.3 million, driven by higher-tier membership penetration and fee increases [5]. - Digitally enabled comparable sales grew by 30% year over year, indicating a significant increase in online sales contribution [7]. Profitability and Operating Performance - BJ's operating income declined by 4.8% year over year to $218.4 million, while net income slipped by 2.4% to $152.1 million due to rising labor and occupancy costs [6]. - The company expects comparable club sales, excluding gasoline, to rise by 2% to 3% for the full fiscal year and has raised its adjusted earnings-per-share outlook to a range of $4.30 to $4.40 [7][8]. Valuation Comparison - BJ's trades at approximately 19 times forward earnings and about 0.6 times sales, while Costco trades at a forward price-to-earnings ratio of about 44 and 1.4 times sales [11]. - The valuation gap reflects BJ's slower growth profile, with total revenue increasing by 4.3% year over year to $15.9 billion for the first nine months of fiscal 2025, compared to Costco's 8.2% revenue growth [10][11]. Market Position and Competitive Landscape - BJ's operates fewer than 300 clubs, while Costco has over 900, which contributes to Costco's stronger brand recognition and sales volume [12]. - BJ's must demonstrate its ability to achieve sustained sales growth and competitive advantages in a crowded market that includes Costco and Walmart's Sam's Club [14]. Investment Perspective - BJ's current valuation appears reasonable for a membership-based retailer with positive comparable sales and increasing membership fees, making it a solid alternative for investors seeking exposure to the warehouse club model [15].

Core Insights - Costco's business model focuses on minimizing costs to provide savings to its members, operating its stores like warehouses with merchandise on pallets and limited traditional store investments [1][2] - The company emphasizes a simple operating philosophy of keeping costs down and leveraging its large membership base and buying power to offer the best prices [2] - While cautious with technology investments, Costco is making strategic upgrades to enhance user experience, including checkout process improvements and digital enhancements [3][4][6] Checkout Improvements - Costco has tested self-checkout but has shifted to a new method that integrates human cashiers while speeding up the checkout process for members [4] - The new checkout technology allows employees to scan items while members are in line, reducing the time spent at the cashier [5] Technology Enhancements - The company is advancing its technology roadmap for digital and e-commerce, focusing on improving search effectiveness and user experience [6] - Recent enhancements include data augmentation for better search, passwordless sign-in for the mobile app, and a waiting room feature for high-demand items to reduce bot traffic and improve site stability during peak times [7]

We recently published 10 Stocks Jim Cramer Talked About. Costco Wholesale Corporation (NASDAQ:COST) is one of the stocks Jim Cramer discussed. For Jim Cramer's morning appearances, where there's Walmart, there's also Costco Wholesale Corporation (NASDAQ:COST). He has discussed both firms regularly throughout 2025 and kept an upbeat tone about them. Cramer believes that Costco Wholesale Corporation (NASDAQ:COST) plays an important role in the economy to ensure that Americans can buy affordable groceries. H ...