Core Viewpoint - Investors are closely watching Costco Wholesale Club Inc. as it prepares to report earnings on December 11, following Walmart's strong quarterly performance, with Costco's stock down 10% over the last three months, erasing year-to-date gains [2][3] Group 1: Stock Performance - COST shares have decreased by 10% in the last three months, bringing the stock near critical technical levels [3][4] - The stock has erased all gains made in 2025, raising questions about potential further downside or a rebound [4] Group 2: Reasons for Optimism - Costco's brand loyalty is strong, supported by its Kirkland Signature brand and high employee satisfaction, alongside popular offerings like the $1.50 hot dog/soda combo [3] - Digital commerce growth is showing promise, with a rebound in digital comp sales from 13.6% in Q3 to 26.1% in September and 16.6% in October, indicating potential for e-commerce growth [5] - Impressive same-store sales numbers were reported, with Q4 2025 earnings per share at $5.87 and record revenue of $86 billion, alongside a 5.7% comp sales increase and 8.6% from international stores [5] - A successful membership fee increase in September 2024 saw minimal drop-off in memberships, with a global renewal rate of 89.8% and a 14% growth in membership income, more than double the Q4 2024 figure [5]