Core Viewpoint - Costco Wholesale (COST) shares have increased by 16% over the past month, currently trading at $983.25, but a multi-factor evaluation suggests it may be prudent to sell the shares due to a very high valuation and a negative outlook on the stock [1][3]. Valuation - Costco has a market capitalization of $437 billion, but its valuation appears very high, with a suggested target price of $687 [5][4]. - The stock is considered unattractive due to its very high valuation despite moderate operational efficiency and financial health [3][4]. Growth - Costco has experienced an average revenue growth rate of 6.7% over the last three years, with revenues increasing by 8.3% from $259 billion to $280 billion in the past 12 months [7]. - Quarterly revenues rose by 8.3%, reaching $67 billion in the most recent quarter, up from $62 billion a year prior [7]. Profitability - Over the last 12 months, Costco's operating income was $11 billion, resulting in an operating margin of 3.8% [8]. - The company generated approximately $15 billion in operating cash flow during this period, with a cash flow margin of 5.3% [8]. - Costco's net income for the same timeframe was nearly $8.3 billion, leading to a net margin of around 3.0% [8]. Financial Stability - As of the end of the most recent quarter, Costco had a debt of $8.1 billion, with a debt-to-equity ratio of 1.9% [9]. - The company holds $17 billion in cash (including cash equivalents) within total assets of $83 billion, resulting in a cash-to-assets ratio of 20.8% [9]. Downturn Resilience - Costco has shown more resilience than the S&P 500 index during various economic downturns, recovering quickly from declines [10]. - Historical data indicates that Costco shares have fully recovered from significant drops during the 2022 inflation shock, the 2020 COVID pandemic, and the 2008 global financial crisis [12].

The comedian known for disparaging a frozen snack brand has a new batch of punchlines, and they’re all liquor, all the time. https://t.co/WetraLuj8a ...

Financial Performance - Constellation Brands reported quarterly earnings of $3.63 per share, exceeding the Zacks Consensus Estimate of $3.37 per share, but down from $4.32 per share a year ago, indicating a year-over-year decline [1] - The company achieved revenues of $2.48 billion for the quarter ended August 2025, surpassing the Zacks Consensus Estimate by 0.98%, but down from $2.92 billion in the same quarter last year [2] - Over the last four quarters, Constellation Brands has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Constellation Brands shares have declined approximately 35.7% since the beginning of the year, contrasting with the S&P 500's gain of 14.2% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.79 on revenues of $2.2 billion, and for the current fiscal year, it is $11.50 on revenues of $9.08 billion [7] - The outlook for the Beverages - Alcohol industry is currently in the bottom 22% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] Industry Context - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - Another company in the same industry, Molson Coors Brewing, is expected to report quarterly earnings of $1.81 per share, reflecting a year-over-year change of +0.6% [9]

Beverage Industry Trends - Mahua tree flowers can be distilled into a strong liquor similar to grappa or unaged whisky [1] - The spirit may soon be available in bars [1]