Costco Wholesale Corporation (NASDAQ:COST) is one of the stocks Jim Cramer offered insights on. Cramer discussed the trust’s position in the stock, as he remarked: “We sold some Costco for the Charitable Trust. Frankly, we would have sold all of it, but the company’s too good… I was about to dump the whole rest of the position… when Larry Williams, the legendary technician and market historian, wrote me and said it was time to buy Costco. As much as I don’t like to stick with a stock that slides endlessly ...

Costco Wholesale Corp. (NASDAQ:COST) reported better-than-expected financial results for the first quarter of fiscal 2026 after the bell on Thursday.Costco reported first-quarter revenue of $67.31 billion, beating analyst estimates of $67.14 billion, according to Benzinga Pro. The membership-based retailer reported fourth-quarter adjusted earnings of $4.50 per share, beating estimates of $4.27 per share.Membership fees came in at approximately $1.33 billion, up from $1.17 billion in the prior year’s quarter ...

Costco Wholesale beat Wall Street estimates for first-quarter revenue on Thursday, on the back of resilient demand from consumers across income groups amid rising economic uncertainty. ...

Core Insights - BJ's Wholesale Club Holdings, Inc. reported third-quarter fiscal 2025 results that exceeded Wall Street expectations, leading to an increase in the full-year profit forecast due to rising membership income [1] Financial Performance - The company posted adjusted earnings per share of $1.16, surpassing analysts' expectations of $1.10 [2] - Revenue reached $5.35 billion, matching consensus estimates and reflecting a 4.9% increase compared to the same period last year [2] - Comparable club sales rose by 1.1% year over year, while comparable sales excluding gasoline increased by 1.8%, indicating a two-year stacked growth of 5.5% [2] Membership and Sales Growth - Membership fee income, a crucial profitability driver, grew by 9.8% to $126.3 million, supported by strong member acquisition and retention trends [3] - Digitally enabled sales expanded by 30% year over year, with a two-year stacked growth rate of 61% [3] Future Outlook - The company narrowed its full-year comparable club sales outlook but raised its earnings forecast, now expecting fiscal 2025 adjusted earnings per share of $4.30 to $4.40, compared to analyst expectations of $4.33 [3]

Core Insights - Costco Wholesale Corporation (NASDAQ:COST) is recognized as one of the 15 Best Passive Income Stocks to buy currently [1] - JPMorgan has lowered the price target for Costco to $1,025 from $1,050 while maintaining an Overweight rating, citing that October sales met expectations despite some impact from the government shutdown [2] - Costco is adapting to changing consumer purchasing trends, with increased demand for lower-priced and private-label products, while sales of higher-priced discretionary goods have softened [3] Financial Performance - For fiscal 2025, Costco reported total net sales of $269.9 billion, reflecting an 8.1% increase from the previous year [4] - Net income for the year rose to $8.1 billion, surpassing the prior year's figure of $7.37 billion [4] - Online sales experienced robust growth, increasing by 15.6% for the full fiscal year [4] Business Model - Costco operates as a membership-based warehouse club, offering a wide range of bulk products, including groceries, electronics, and apparel, at discounted prices [5]

Group 1 - Costco Wholesale Corporation (NASDAQ:COST) is currently viewed as a strong investment opportunity despite its stock reaching an all-time high earlier this year and experiencing a recent decline under new leadership [1] - The stock is trading at 45 times earnings, which is considered high, but it is suggested that starting a position could be worthwhile as Costco is regarded as the best buy in the industry [1] - Recent negative sentiment surrounding Costco, stemming from a major magazine article suggesting that the company's best times may be over, is not seen as a valid concern [1] Group 2 - Costco operates membership-based warehouses that offer a variety of food and non-food merchandise, along with services such as fuel stations, pharmacies, optical centers, and e-commerce operations [2]

Core Viewpoint - The upcoming Amazon Prime Day is seen as an indicator of the health of the US consumer and overall market conditions [1][2] Consumer Behavior - There is a growing concern among consumers regarding rising costs, leading them to seek ways to save money [4] - In previous economic downturns, companies like Costco have performed well as consumers look for cost-effective options [4] Company Analysis: Costco - Costco has a high membership renewal rate of over 90%, providing a cushion for profitability [5] - Despite concerns about consumer spending, Costco's model allows consumers to stretch their dollars by purchasing in bulk [6][8] - The stock is currently valued at approximately 47 times forward earnings, indicating a high valuation [5] Economic Impact - Moody's estimates that each week of a government shutdown could negatively impact quarterly GDP by 0.1% [9] - The current government shutdown has not yet significantly impacted consumer behavior, but concerns are rising as it continues [10][11] AI Market Perspective - The AI sector is viewed as a long-term investment opportunity, with ongoing developments expected to influence the market positively [13][14] - Despite potential overvaluation, continued investment in AI-related stocks is encouraged as the market evolves [14]

Core Insights - Costco Wholesale's stock has underperformed in 2023, down 1% year-to-date compared to a nearly 15% increase in the S&P 500 [1] - The company's third-quarter results showed earnings per share of $5.87 and revenue of $86.16 billion, both exceeding consensus estimates, but the market reaction was muted [2] - Membership fee income, a key profitability driver, rose 14% year-over-year, indicating strong customer loyalty despite a recent fee increase [3] - Concerns are growing regarding the impact of tariffs and whether Costco can sustain growth to justify its high price-to-earnings ratio of 51 [4] Options Strategy - Investors can consider a bear put spread by buying a 900-strike put option and selling an 880-strike put option, with a maximum loss of $700 if shares are above 900 at expiration [5][6] - The maximum profit from this strategy is $1,300 if shares trade below 880 at expiration [6] Performance Ratings - Costco has an IBD Composite Rating of 46, with shares trending lower and falling below both the 50- and 200-day moving averages [7] - The Relative Strength Rating of 24 indicates that Costco stock has outperformed less than 25% of stocks in the IBD database over the past year [7]

Core Viewpoint - Costco Wholesale Corporation (NASDAQ:COST) reported strong fiscal fourth quarter earnings, with revenue of $86.16 billion and EPS of $5.87, surpassing analyst expectations, but experienced a share price dip following the announcement [2]. Financial Performance - The company's revenue for the fiscal fourth quarter was $86.16 billion, exceeding analyst estimates of $86.06 billion [2]. - Earnings per share (EPS) were reported at $5.87, beating the expected $5.80 [2]. Investment Insights - Jim Cramer emphasized that Costco is a long-term investment, suggesting that it is a good time to buy when the stock trades below 50 times earnings [2][3]. - Cramer noted that Costco has a history of significant price fluctuations, indicating that the stock may be poised for recovery after a decline [2]. - Despite concerns about tariffs impacting margins, Cramer expressed confidence in Costco's management and business model, highlighting the company's ability to save consumers money [3]. Market Sentiment - Cramer acknowledged that while the stock is currently above 50 times earnings, it is expected to drop to around 49 or 48 times earnings, which would present a buying opportunity [3]. - The overall sentiment remains positive regarding Costco's long-term prospects, despite short-term price volatility [2][3].

Economic Data Summary - Q2 GDP was revised up from +3.3% to +3.8%, marking the strongest quarter of growth since Q3 2023 [2] - Consumption increased significantly from +1.6% to +2.5%, indicating a stronger appetite among U.S. consumers [3] - The Price Index rose by 10 basis points, with headline inflation at +2.1% and core inflation at +2.6% [3] Job Market Insights - Initial Jobless Claims fell to 218K, down 17K from estimates and 64K lower than two weeks ago, reaching the lowest level since mid-summer [4] - Continuing Claims rose slightly to 1.926 million, remaining below 1.94 million for the third consecutive week [5] Manufacturing and Trade Data - August Durable Goods Orders increased by +2.9%, significantly better than the prior month's -2.7% and the consensus estimate of -0.5% [6] - The Advanced U.S. Trade Balance for August showed an improvement to -$85.5 billion from -$102.8 billion [7] - Advanced Retail Inventories remained unchanged, while Advanced Wholesale Inventories decreased to -0.2% [7] Market Expectations - Existing Home Sales for August are forecasted at 3.96 million, a decrease from July's 4.01 million [8] - Costco is expected to report fiscal Q4 results with a projected earnings growth of +12.8% year over year and +8.1% revenue growth [9]