The company's dependable business model continues to deliver strong growth for shareholders. But its stock price remains difficult to justify.Costco Wholesale (COST +2.49%) has a habit of turning "boring" retail into impressive compounding. But the stock didn't deliver in 2025. After a rare weak stretch for the stock, investors are looking at 2026 and asking whether the membership-based wholesale retailer's shares will finally resume their upward march.After all, it's not like the underlying business is sho ...

Costco didn't have a headline-grabbing year in 2025, and that's precisely what the company intended.Costco Wholesale (COST 0.65%) ended 2025 in a familiar position: operationally strong, strategically disciplined, and still trading at a premium that divides investors. While the stock didn't outperform the broader market this year, the underlying business continued to execute in ways that reinforce why Costco remains one of the most closely watched names in retail.As investors look ahead, three themes from 2 ...

Key Takeaways COST's U.S. and Canada renewal rate hit 92.2%, with global rates at 89.7%, down just 10 bps from last quarter.Digital sign-ups renew at lower rates, but COST's outreach efforts helped soften the overall decline.Paid households rose 5.2% to 81.4M, with executive members driving 74.3% of total sales.Costco Wholesale Corporation’s (COST) first-quarter fiscal 2026 results shed light on how its membership renewal rates are holding up amid a gradual shift toward digital enrollment. Membership renewa ...

Core Insights - Expectations of stable economic growth and improving financial conditions are influencing investor strategies as they approach 2026 [1] - Blue-chip retail stocks like Walmart, Costco, and Lowe's are gaining attention due to their operational resilience and steady earnings performance [1] Economic Context - The economic growth in 2025 moderated as the transition from post-pandemic momentum to sustainable expansion occurred, with business investment softening and global trade remaining uneven [2] - Ongoing policy uncertainties regarding taxation and tariffs led many firms to delay major capital expenditures [2] - Inflation remained above the Federal Reserve's long-term target, prompting cautious interest rate cuts to ease financial conditions [3] Market Performance - Equity markets showed positive sentiment with the Dow Jones Industrial Average gaining approximately 14%, the S&P 500 advancing about 16%, and the Nasdaq Composite rising 19% year-to-date [4] Blue-Chip Retail Stocks - Blue-chip retail stocks are characterized by financial strength and a history of reliable returns, making them less volatile and dependable for investors [5] - These retailers possess strong market positions, brand recognition, and loyal customer bases, providing a competitive edge and growth opportunities [6] Company-Specific Insights Walmart - Walmart is enhancing its omnichannel retail position through technology, e-commerce, and high-margin profit streams [10] - The company has a market capitalization of $931.1 billion and pays a quarterly dividend of about $0.24 per share, with a payout ratio of 37% and a five-year dividend growth rate of 4.9% [11] - The Zacks Consensus Estimate suggests growth of 4.5% in sales and 4.8% in EPS for the current financial year [11] Costco - Costco's membership-driven model is driving strong traffic and brand loyalty, supported by digital capabilities and operational technology [12] - The company has a market cap of $382 billion and pays a quarterly dividend of $1.30 per share, with a payout ratio of 28% and a five-year dividend growth rate of 13.7% [13] - The Zacks Consensus Estimate indicates growth of 7.5% in sales and 11.3% in EPS for the current financial year [13] Lowe's - Lowe's is implementing a Total Home Strategy to enhance its competitive position through improved Pro capabilities and online experience [14] - The company has a market cap of $139.6 billion and pays a quarterly dividend of $1.20 per share, with a payout ratio of 39% and a five-year dividend growth rate of 15.6% [15] - The Zacks Consensus Estimate suggests growth of 2.9% in sales and 2.2% in EPS for the current financial year [15]

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 ...

Key Takeaways COST's membership income rose 14% to $1,329M, driven by renewals and fee increases.Paid households grew 5.2% to 81.4M, with executive memberships up 9.1% to 39.7M.Membership renewal rates held strong at 92.2% in the U.S./Canada and 89.7% globally.Costco Wholesale Corporation’s (COST) first-quarter fiscal 2026 performance once again highlighted the strength of the membership business model. Membership income has been one of the company’s most resilient and predictable revenue streams. Membershi ...

Customers walk in the parking lot outside a Costco store on Dec. 2, 2025 in Chicago, Illinois.Costco said on Thursday surpassed Wall Street's quarterly expectations as its sales rose 8.2% year over year.The warehouse club does not share a full-year outlook. The company is expected to share more details about the quarter during an earnings call, which starts at 5 p.m. ET.Here's how Costco did in its fiscal first quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:Earni ...

Core Viewpoint - Costco Wholesale Corporation is set to release its first-quarter fiscal 2026 earnings results on December 11, and investors are evaluating whether to buy or hold the stock based on earnings expectations and market conditions [1] Financial Performance Expectations - Analysts project first-quarter revenues of $67.28 billion, reflecting an 8.3% increase year-over-year, with earnings per share (EPS) expected to rise to $4.25, indicating an 11.3% year-over-year growth [3][8] - The trailing four-quarter earnings surprise average for Costco is 0.2%, with the last quarter showing a 1% beat against the Zacks Consensus Estimate [4] Sales and Earnings Estimates - Current quarter sales estimate is $67.28 billion, with a high estimate of $67.82 billion and a low of $66.84 billion; year-over-year growth for the current year is estimated at 10.25% [5] - EPS estimates for the current quarter stand at $4.25, with a year-over-year growth estimate of 11.26% [6] Growth Drivers - Costco's strategic investments, customer-centric approach, and focus on membership growth have led to solid sales and earnings growth, positioning it as a consumer defensive stock [2] - The company reported net sales of $65.98 billion for the first quarter, an 8.2% increase from the previous year, driven by strong comparable sales and a 20.5% growth in digital sales [11][8] - Membership growth is expected to contribute significantly, with an anticipated 11.3% increase in membership fees during the quarter [12] Competitive Positioning - Costco's competitive pricing and membership-driven model have been key to its success, allowing it to maintain steady store traffic and robust sales volumes [10] - The company is adapting to market demands by regularly updating its product offerings and investing in technology and logistics [13] Valuation Insights - Costco's forward 12-month price-to-earnings (P/E) ratio is 43.71, higher than the industry average of 30.16, indicating a premium valuation relative to peers [17][18] - Despite trading below its historical peak, Costco's premium valuation may deter some investors, but its steady growth and financial health suggest potential for further upside [19] Investment Considerations - Current investors may consider holding or adding to their positions, while prospective investors might view any dips as buying opportunities [19][20] - The stock's high valuation and recent underperformance are countered by consistent traffic, strong membership growth, and effective operations, making Costco a reliable investment option ahead of the earnings release [20]

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It's having a rare off year; is this a buying opportunity?Costco Wholesale (COST 0.18%) is having a rare off year. It's a stock that almost always beats the market, and as you go back in time, the outperformance keeps getting wider. However, Costco stock is roughly flat this year, even as the S&P 500 index has soared 17%. Is this a great time to buy? Or a signal to stay away? Costco, the company, is unstoppableCostco continues to enjoy robust growth, and its membership model provides reliable recurring reve ...