Key Takeaways Shares of Costco Wholesale have been getting cheaper for nearly a year, dropping from early 2025 highs. They got a little less cheap today. The warehouse retailer's shares were up some 5% Thursday afternoon to levels last seen in about a month. The driver: a measure of optimism about the direction of Costco's (COST) business following the company's announcement of December sales that rose 8.5% year-over year and same-store sales that were 7% higher. Bakery, meat and candy sales powered the foo ...

Costco Wholesale Corporation (NASDAQ:COST) is one of the stocks Jim Cramer shared his take on. During the episode, a caller asked if the stock is back, and Cramer replied: “I was at Costco this weekend, trying to check it out, trying to figure out what the heck is wrong. I think… what’s wrong is the stock got too high. I would’ve thought at 41 times earnings, it’s done going down. That was wrong. We did sell half the position, I can’t believe I sold any of it, for the Charitable Trust. We had to. I don’t ...

Key Takeaways COST Q1 comps rose 6.4% on solid traffic, strong renewal rates and e-commerce growth.Membership fee income grew 14% as paid members hit 81.4M and executive members rose 9.1%.Digitally enabled sales surged 20.5%, driven by app growth, same-day delivery and AI investments.Costco Wholesale Corporation (COST) released its first-quarter fiscal 2026 results on Dec. 11, after the closing bell, drawing fresh attention from investors tracking the retail sector’s performance. Given its stable growth and ...

Core Insights - Costco reported revenue of $67.31 billion for the quarter ended November 2025, reflecting an 8.3% increase year-over-year, with EPS at $4.34 compared to $3.82 in the same quarter last year [1] - The revenue slightly missed the Zacks Consensus Estimate of $67.33 billion by 0.03%, while the EPS exceeded the consensus estimate of $4.26 by 1.88% [1] Financial Performance Metrics - Comparable sales for the total company were 6.4%, surpassing the seven-analyst average estimate of 6.1% [4] - The number of warehouses worldwide reached 923, exceeding the average estimate of 921 by six analysts [4] - Membership fees totaled $1.33 billion, slightly above the estimated $1.31 billion by eight analysts [4] Regional Performance - Comparable sales in the U.S. were 5.9%, compared to the average estimate of 5.7% by four analysts [4] - Comparable sales in Canada were 9%, exceeding the average estimate of 7.8% by four analysts [4] - Comparable sales for Other International markets were 8.8%, surpassing the average estimate of 8.3% by three analysts [4] Stock Performance - Costco shares returned -4.3% over the past month, while the Zacks S&P 500 composite increased by 0.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Costco Wholesale Corp (NASDAQ:COST) reported financial results for the first quarter of fiscal 2026 after the bell on Thursday. Here’s what you need to know from the report.Costco Wholesale stock is moving after hours. Why is COST stock trending?Q1 Highlights: 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 ...

Group 1 - Whales have shown a bullish stance on Costco Wholesale, with 44% of trades being bullish and 34% bearish, indicating strong investor interest [1] - The total amount for put trades was $1,861,411, while call trades totaled $2,471,674, suggesting a higher confidence in upward price movement [1] - The predicted price range for Costco Wholesale is between $580.0 and $1280.0, reflecting the expectations of significant price movement [2] Group 2 - Recent options activity shows a mix of bearish and neutral sentiments, with notable trades including a bearish call sweep and a bearish put trade [7] - Costco Wholesale operates approximately 910 warehouses and serves over 80 million members, with a revenue breakdown of 73% from the US, 13% from Canada, and 14% from international markets [8] - Analysts have a consensus target price of $1,068.75 for Costco Wholesale, with individual targets ranging from $1,025 to $1,100, indicating a generally positive outlook [10][11] Group 3 - The current stock price of Costco Wholesale is $885.73, reflecting a slight decrease of -0.04%, with upcoming earnings expected in 16 days [13]

Market Trends - The current trend for stocks remains bullish, particularly for technology and AI stocks, despite signs of economic slowdown [1] - The government shutdown may have a larger ripple effect on the economy, contrasting with the government's previous rescue actions in 2021 [2] - Investors are advised to consider adding defensive stocks due to ongoing economic uncertainty [2] Costco Wholesale - Costco has proven its value to consumers and investors, with a steady increase in membership fees and strong sales growth [4][5] - The stock has provided a total return of over 175% due to year-over-year comparable sales growth, buybacks, and dividends [5] - Despite its high share price of over $930, Costco's valuation remains reasonable compared to its historical performance [6] Chevron - Chevron has faced challenges as energy stocks have not performed well for growth investors, with crude oil prices not rising as expected [7] - The company is well-positioned in the LNG market, particularly in Asia, which is expected to drive revenue growth as markets shift away from coal [8] - Analysts forecast earnings growth of over 16.5%, suggesting Chevron stock may be undervalued at around 13x earnings [9] Clorox - Clorox is viewed as a contrarian pick among defensive stocks, with its stock trading near six-year lows due to post-pandemic demand struggles [11] - The company is modernizing operations and improving operating margins, which may present a buying opportunity despite bearish sentiments [12] - Clorox's stock has established a solid technical support base around $118, but it needs to demonstrate revenue and earnings growth to regain investor confidence [13]

Core Viewpoint - Costco Wholesale reported strong fiscal fourth-quarter results, with revenue and earnings per share exceeding expectations, but concerns about stock valuation persist [2][9]. Financial Performance - Fourth-quarter net sales increased by 8% to $84.4 billion, with total revenue (including membership fees) rising to $86.2 billion [5]. - Comparable sales grew by 5.7% (6.4% adjusted for gas and foreign exchange), and e-commerce sales increased by 13.5% on an adjusted basis [5]. - Operating income rose to $3.34 billion from $3.04 billion, and earnings per share increased to $5.87 from $5.29, reflecting a 14% year-over-year growth when adjusted for last year's tax benefit [5][6]. Membership and Expansion - Membership fee income reached $1.72 billion for the quarter and $5.32 billion for the year, up from $1.5 billion and $4.8 billion in the previous year [6]. - The company expanded its store count to 914 warehouses globally, up from 891 a year ago, contributing to strong adjusted comps and e-commerce growth [7]. Valuation Concerns - The trailing-12-month earnings per share for fiscal 2025 is $18.21, resulting in a valuation of approximately 52 times earnings, which may reflect high expectations for future growth [9]. - The premium valuation implies that small disappointments in comparable sales, renewal rates, or costs could lead to a rapid compression of the price-to-earnings ratio [10][11]. Investment Outlook - For current shareholders, the report reinforces the long-term investment case due to Costco's resilient model and strong fee income [11]. - However, for new investors, the high valuation presents a challenging risk-reward scenario, suggesting a potential wait for a better entry point [11].

Core Viewpoint - Costco's stock performance has lagged behind the market despite strong fourth-quarter results, leading to a mixed reception from investors [1][2]. Group 1: Company Performance - Costco reported an 8% year-over-year sales increase in the fiscal fourth quarter, reaching $84.4 billion, with comparable sales up 5.7% and e-commerce sales up 13.6% [5]. - Earnings per share (EPS) rose to $5.87 from $5.29 last year, surpassing analyst expectations [5]. - The company has successfully navigated tariff changes, with about one-third of its merchandise sourced from abroad, and has expanded its Kirkland Signature line to mitigate impacts [6]. Group 2: Growth Opportunities - Costco is the third-largest retailer in the U.S. but operates fewer than 1,000 stores globally, indicating significant growth potential [7]. - Currently, Costco has 914 stores, with plans to accelerate openings to 35 in 2026, which is expected to enhance sales further [8]. - The company is also focusing on attracting new members and offering new products to ensure sustained growth [9]. Group 3: Target Demographics - Costco is successfully attracting younger members, with nearly half of new signups under age 40, which is crucial for future growth [10]. - The company is investing in digital channels, resulting in a 27% increase in site traffic in the fourth quarter, and has tailored its homepage experience to enhance consumer engagement [11]. Group 4: Market Sentiment - Despite Costco's strong fundamentals, Wall Street remains cautious, with an average target price 15% higher than the current price, reflecting concerns over the economic environment and slowing comparable sales growth [13]. - The stock is currently trading at a high P/E ratio of 53, indicating that it is priced for perfection and may be vulnerable to market fluctuations [15].

Core Insights - Costco Wholesale Corporation reported fourth-quarter fiscal 2025 results with revenues slightly below estimates but earnings exceeding expectations, driven by membership growth, increased traffic, e-commerce gains, and margin expansion [1][2][3] Financial Performance - Quarterly earnings were $5.87 per share, surpassing the Zacks Consensus Estimate of $5.81, and up from $5.15 in the prior year [2] - Total revenues reached $86,156 million, an 8.1% increase year over year, but fell short of the Zacks Consensus Estimate of $86,179 million [3] - Comparable sales rose 5.7% year over year, with U.S. comparable sales growing 5.1% and international markets seeing increases of 6.3% and 8.6% [3][6] Membership and Traffic Growth - Membership fees increased by 14% to $1,724 million, with total paid members reaching 81 million, a 6.3% increase from the previous year [5] - The membership renewal rate was 92.3% in the U.S. and Canada, and 89.8% worldwide [4][8] E-commerce and Margin Expansion - E-commerce comparable sales grew 13.6% year over year, with gross margin expanding by 13 basis points to 11.1% [7] - Operating income increased by 9.8% to $3,341 million, with operating margin improving by 10 basis points to 3.9% [7] Store Operations and Expansion Plans - Costco operates 914 warehouses globally, with plans to open 35 new warehouses in fiscal 2026 [8][9] - The company added 24 net new warehouses in fiscal 2025, including various international locations [9] Financial Health - As of the end of the quarter, Costco had cash and cash equivalents of $14,161 million and long-term debt of $5,713 million [10] - Capital expenditures for the quarter were approximately $1.97 billion, totaling just under $5.5 billion for the year [10]