Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories. It offers merchandise, such as sundries, dry groceries, candies, coolers, freezers, deli, liquor, and tobacco; appliances, electronics, health and beauty aids, hardware, garden and patio products, sporting goods, tires, toys and seasonal products, office supplies, automotive care products, postages, tickets, apparel, small appliances, furniture, domestics, housewares, special order kiosks, and jewelry; and meat, produce, service deli, and bakery products. The company also operates gasoline, pharmacies, optical, food courts, hearing-aid centers, and tire installation centers; and offers business delivery, travel, grocery, and various other services online. It also operates e-commerce websites. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.

Costco Wholesale Corporation

It’s been almost a week since Lululemon’s LULU lackluster Q2 report led to a sharp decline in its stock, hitting a new 52-week low of $162 a share. Although Lululemon was able to exceed Q2 earnings expectations, the leading athletic apparel company slashed its full-year guidance, with a major factor being a $240 million hit from tariffs.
This has raised concerns about the effects of a challenging macro environment on other active-wear apparel companies, including Nike NKE, which is scheduled to report results for its fiscal first quarter on Tuesday, September 30.
Like Lululemon, Nike's stock has been submerged in volatility, climbing off a one-year low of $52 a share but still 19% from a 52-week peak of $90. Furthermore, NKE is more than 50% below its all-time high of $167, with LULU trading 67% beneath its record peaks of $511.
Despite their grizzly stock performances in recent years, let’s see if now is an opportune time to invest in either of these leading apparel retailers for a sharp rebound.
Image Source: Zacks Investment Research
Stale Product Lines & Lululemon’s Surprising Competitors
Offering high-quality activewear and footwear, both brands compete directly in the athletic apparel market, but Lululemon has faced increased competition from unlikely competitors that appear to be disrupting its core business. Simarlar to Nike, Lululemon’s management has admitted that its product lines have become stale and is racing to fast-track new designs.
Centered around its yoga-inspired athleisure gear, Lululemon’s same-store sales fell 4% during Q2 in its core North American market. Notably, several analysts and CNBC contributor Jim Cramer pointed to surprising scenarios/competitors for the disruption, such as more affordable jogger brands offered by Costco COST and The Gap GAP.
While it wasn’t enough to offset domestic concerns, Lululemon's international sales surged last quarter, with China segment sales up 25% and collective markets in the rest of the world up 19%. Still, Lululemon is being impacted by the removal of the de minimis exemption, which previously allowed smaller international shipments to bypass tariff duties. Raising more fears regarding margin pressures and its stale product line, Lululemon’s inventory ballooned 21% year over year to $1.7 billion.
Image Source: Zacks Investment Research
Nike’s Leadership Overhaul & Strategic Pivot
Facing a growing number of competitors outside of Adidas ADDYY, Nike has undergone a leadership change with long-term executive Elliott Hill taking over as President and CEO in 2024. Having more than 30 years of experience with Nike, Hill has refocused the iconic sports brand on its core strengths after a tech-centric strategy misfired.
Pouring resources into digital ads and performance marketing, Nike still experienced a drop-off in digital sales and alienated partners like Foot Locker and Macy’s M in a bid to boost its direct-to-consumer (DTC) reach on Nike.com. It’s noteworthy that Nike’s inventory remained flat during its most recent fiscal fourth quarter, and expects to have a “clean” inventory position by the first half of its current fiscal year 2026.
Aiming to rebuild relationships with third-party vendors, Hill has refocused Nike on wholesale distribution, product innovation, and storytelling campaigns. Plus, Nike has announced plans to shift manufacturing away from China, aiming to reduce exposure to tariffs that could cost up to $1 billion. Stating that the brunt of the tariff impact may be behind it, Nike’s leadership has implemented a four-pronged plan that also includes negotiating with suppliers and retailers to share the cost burden, while cutting corporate costs and selectively raising prices in the U.S.
Nike is better suited to handle Tarriff headwinds
While Lululemon’s immense profitability has wowed investors at times, it doesn’t take Captain Obvious to realize that Nike may be better suited to handle tariff headwinds. Even with Nike facing higher tariff costs, the company is projected to bring in over $40 billion in annual sales for the foreseeable future, compared to Lululemon’s forecast of $11 billion or more.
That said, Nike is generally better positioned to handle tariffs than Lululemon thanks to its supply chain maturity as well. Having a deeper global infrastructure, Nike has diversified manufacturing from multiple countries outside of China, including Vietnam, Indonesia, and India. Lululemon, on the other hand, is more vulnerable to sudden policy shifts and cost spikes as it relies heavily on Canadian and Vietnamese factories.
Image Source: Zacks Investment Research
Conclusion & Final Thoughts
Being further along in its turnaround strategy, a rebound looks more likely for Nike stock, as there could still be more short-term weakness ahead for Lululemon shares. Of course, Lululemon will need to overcome tariff uncertainties, but one thing it can learn from Nike as it undergoes an apparel renovation of its own, is that tech is not always a substitute for product relevance, retail relationships, or emotional brand storytelling that resonates with consumers.
Quantum Computing Stocks Set To Soar
Artificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.
Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.
Access the Report Free Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Nike vs. Lululemon: Is Either Apparel Stock Due for a Sharp Rebound?

In trading on Friday, shares of Costco Wholesale Corp (Symbol: COST) crossed above their 200 day moving average of $500.76, changing hands as high as $507.35 per share. Costco Wholesale Corp shares are currently trading up about 0.9% on the day. The chart below shows the one year performance of COST shares, versus its 200 day moving average:
Looking at the chart above, COST's low point in its 52 week range is $406.5101 per share, with $612.27 as the 52 week high point — that compares with a last trade of $502.68. The COST DMA information above was sourced from TechnicalAnalysisChannel.com
Free Report: Top 8%+ Dividends (paid monthly)
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
Also see:
Funds Holding KITE
Costco Wholesale Stock Split History
ETFs Holding STS
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Costco Wholesale (COST) Shares Cross Above 200 DMA

BJ's Wholesale Club Holdings, Inc. BJ is stepping firmly into the digital era as its latest quarter underscores the growing importance of technology in shaping member engagement. In the second quarter of fiscal 2025, digitally enabled comparable sales climbed 34% year over year, with two-year stacked growth of 56%. Services like buy online pick up in club, same-day delivery and ExpressPay have been central to this momentum, integrating e-commerce with the company’s physical footprint.
Management highlighted that more than 90% of digital orders are fulfilled by clubs. The company sees digitally engaged members as twice as valuable compared to in-club-only shoppers due to larger basket sizes and stronger renewal rates. The app has become the primary touchpoint. More than half of active members now use it regularly to clip coupons, locate products or preorder deli items. This explains why membership fee income reached a record $123.3 million in the second quarter, up 9% from last year.
Importantly, the digital push aligns with BJ's Wholesale Club’s broader goal of driving convenience and improving member retention. With membership climbing to a record 8 million and higher-tier penetration hitting 41%, management views digital integration as central to sustaining growth. As macro pressures shape consumer habits, BJ’s focus on omnichannel convenience positions it well to remain relevant.
BJ's Wholesale Club is continuing to invest in digital capabilities and sees this as a cornerstone for future growth, especially as consumer preferences shift toward hybrid retail experiences.
Digital Growth at Walmart and Costco
Walmart Inc. WMT is aggressively scaling its digital ecosystem with second-quarter fiscal 2026 e-commerce sales soaring 25% globally, led by 26% growth in Walmart U.S. and Sam’s Club. Walmart highlighted that store-fulfilled pickup and delivery rose nearly 50%, while membership income and advertising revenues surged in double digits, reinforcing its omnichannel model. AI investments, including the launch of Sparky, Walmart’s AI assistant, aim to further personalize the shopping experience.
E-commerce continued to stand out for Costco Wholesale Corporation COST with comparable sales climbing 13.6% for the fourth quarter of fiscal 2025, or 13.5% after adjusting for fuel and currency impacts. Momentum was even stronger in August, when the metric surged 18.4%. For the fiscal year, Costco reported e-commerce comparable sales growth of 15.6%, reinforcing the importance of the company’s investments in omnichannel capabilities. Costco continues to integrate online and in-club experiences, using digital tools to boost convenience and member loyalty.
What the Latest Metrics Say About BJ's Wholesale Club
BJ's Wholesale Club stock has risen 24.7% over the past year, against the industry’s decline of 10.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, BJ's Wholesale Club’s forward 12-month price-to-earnings ratio stands at 21.81, higher than the industry’s ratio of 20.12. BJ carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BJ's Wholesale Club’s current financial-year sales and earnings per share implies year-over-year growth of 4.9% and 6.7%, respectively.
Image Source: Zacks Investment Research
BJ's Wholesale Club currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quantum Computing Stocks Set To Soar
Artificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.
Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.
Access the Report Free Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is BJ's Wholesale Becoming a Digital Powerhouse in Retail Clubs?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $198.8 million dollar inflow -- that's a 0.2% increase week over week in outstanding units (from 260,950,000 to 261,400,000). Among the largest underlying components of IWF, in trading today Mastercard Inc (Symbol: MA) is trading flat, Costco Wholesale Corp (Symbol: COST) is down about 0.1%, and Intuit Inc (Symbol: INTU) is higher by about 0.8%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average:
Looking at the chart above, IWF's low point in its 52 week range is $308.67 per share, with $452.81 as the 52 week high point — that compares with a last trade of $446.08. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
Funds Holding FUV
BSJR YTD Return
LECO market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

IWF, MA, COST, INTU: Large Inflows Detected at ETF

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Costco Wholesale Corp (Symbol: COST), where a total of 15,246 contracts have traded so far, representing approximately 1.5 million underlying shares. That amounts to about 68% of COST's average daily trading volume over the past month of 2.2 million shares. Particularly high volume was seen for the $930 strike put option expiring September 05, 2025, with 868 contracts trading so far today, representing approximately 86,800 underlying shares of COST. Below is a chart showing COST's trailing twelve month trading history, with the $930 strike highlighted in orange:
Microsoft Corporation (Symbol: MSFT) saw options trading volume of 141,827 contracts, representing approximately 14.2 million underlying shares or approximately 66.6% of MSFT's average daily trading volume over the past month, of 21.3 million shares. Especially high volume was seen for the $530 strike call option expiring September 19, 2025, with 20,745 contracts trading so far today, representing approximately 2.1 million underlying shares of MSFT. Below is a chart showing MSFT's trailing twelve month trading history, with the $530 strike highlighted in orange:
And Dollar Tree Inc (Symbol: DLTR) options are showing a volume of 19,454 contracts thus far today. That number of contracts represents approximately 1.9 million underlying shares, working out to a sizeable 65.1% of DLTR's average daily trading volume over the past month, of 3.0 million shares. Particularly high volume was seen for the $90 strike put option expiring September 05, 2025, with 2,400 contracts trading so far today, representing approximately 240,000 underlying shares of DLTR. Below is a chart showing DLTR's trailing twelve month trading history, with the $90 strike highlighted in orange:
For the various different available expirations for COST options, MSFT options, or DLTR options, visit StockOptionsChannel.com.
Also see:
Highest Yielding BDCs
MDV Videos
AGN Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Tuesday Option Activity: COST, MSFT, DLTR

Costco Wholesale Corporation’s COST last reported quarter painted a compelling picture with strong traffic growth that could be an important signal for the holiday season. Comparable traffic, or shopping frequency, increased 5.2% worldwide in the third quarter of fiscal 2025, with a slightly higher 5.5% jump in the United States.
This metric suggests that, despite a challenging consumer environment, Costco's value proposition remains strongly appealing to its members. The company's strategic initiatives, such as reducing prices on key items and extending gas station hours, have not only attracted more shoppers but also led to increased gallon sales. Costco is rolling out faster checkout options and promoting digital wallet use, moves aimed at easing congestion during peak holiday weeks.
The steady rise in foot traffic, along with a 2.7% jump in adjusted comparable ticket (excluding the impact of changes in gasoline prices and foreign exchange), indicates that members are visiting more frequently and spending more on each visit. While uncertainty related to the economic landscape and global tariffs remains, Costco remains confident about providing value to its customers.
Digital channels are also playing a key role in driving traffic. Costco Logistics deliveries of big and bulky items surged 31% year over year in the last reported quarter, while options like Buy Now, Pay Later are giving shoppers more flexibility. Online sales were up 14.8% and site traffic climbed 20% in the last quarter.
With traffic building and systems in place to handle the rush, Costco appears well-positioned to meet holiday demand.
Costco Traffic Momentum Compared With Walmart & Target
Walmart Inc. WMT continues to post steady traffic gains, with U.S. comparable sales up 4.6% in the second quarter of fiscal 2026, driven by strength in grocery, health & wellness, and improving general merchandise trends. Walmart’s U.S. e-commerce sales climbed 26%, fueled by nearly 50% growth in store-fulfilled delivery, where about one-third of orders were completed within three hours.
Target Corporation TGT showed early signs of recovery after sluggish first-quarter fiscal 2025 results. While Target’s second-quarter sales fell 0.9% year over year, traffic trends improved meaningfully, especially in stores. Target registered an increase of 4.3% in comparable digital sales, fueled by robust same-day delivery and growth in Drive Up.
Walmart’s accelerating traffic and Target’s improving in-store momentum highlight a competitive retail landscape where holiday traffic could be a decisive factor.
What the Latest Metrics Say About Costco
Costco stock has risen 7.3% over the past year, outpacing the industry’s growth of 5.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 52.48, higher than the industry’s ratio of 31.72. COST carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 8.1% and 11.6%, respectively.
Image Source: Zacks Investment Research
Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include
Stock #1: A Disruptive Force with Notable Growth and Resilience
Stock #2: Bullish Signs Signaling to Buy the Dip
Stock #3: One of the Most Compelling Investments in the Market
Stock #4: Leader In a Red-Hot Industry Poised for Growth
Stock #5: Modern Omni-Channel Platform Coiled to Spring
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.
Download Atomic Opportunity: Nuclear Energy's Comeback free today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Does Traffic Growth Signal a Strong Holiday Setup for Costco?

Back-to-school and college is one of the busiest shopping seasons (mid-July to mid-September) in the United States. As of early July,about 67% of back-to-school and college shoppers have already started buying items for the upcoming school year, according to the National Retail Federation (NRF).
This marks an increase from 55% last year and represents the highest level since NRF began tracking early shopping in 2018, the NRF article indicated. Half of families fear rising prices from tariffs, and that’s why they started shopping earlier, per the above-mentioned NRF article.
Where Will Shopping Spent Go?
For college students and parents, the popular back-to-school shopping destinations are online (48%), discount stores (36%), department stores (35%) and college bookstores (27%). K-12 shoppers have a budget of $295.81 on average for electronics ($13.5 billion total), $249.36 for clothing and accessories ($11.4 billion total), $143.77 for school supplies ($6.6 billion total), and $169.13 for shoes ($7.8 billion total), according to the above-mentioned NRF article.
The top five categories for college spending include $309.50 on average for electronics ($20.7 billion total), $191.39 for dorm or apartment furnishings ($12.28 billion total), $166.07 on clothing and accessories ($11.1 billion total), $140.24 on food ($9.4 billion total) and $117.95 on shoes ($7.9 billion total), according to the above-mentioned NRF article.
Stocks to Play
Costco Wholesale COST
Costco Wholesale Corporation sells high volumes of food and general merchandise (including household products and appliances) at discounted prices through membership warehouses. The Zacks Rank #3 (Hold) stock comes from the Retail - Discount Stores industry. The stock has a good VGM Score of B.
Lowe's Companies LOW
Zacks Rank #3 Lowe’s has evolved as one of the world’s leading home improvement retailers, offering services to homeowners, renters and commercial business customers. Lowe’s has all the essentials for going back to campus and making one feel at home. The stock has an upbeat VGM Score of A.
Ambarella AMBA
Ambarella Inc. develops video compression and image processing semiconductors, which enable high-definition or HD video capture, sharing and display. The Zacks Rank #3 company hails from the Electronics – Semiconductors industry.
Amazon.com AMZN
Amazon.com is one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe. The Zacks Rank #3 company hails from the Internet - Commerce industry.
ETFs to Buy
ProShares Online Retail ETF ONLN
Online shopping is one of the most-favored forms of shopping now. The underlying ProShares Online Retail Index is a specialized retail index that tracks retailers principally selling online or through other non-store channels. The fund charges 58 bps in fees and yields 0.65% annually.
VanEck Retail ETF RTH
The underlying MVIS US Listed Retail 25 Index tracks the overall performance of companies involved in retail distribution, wholesalers, online, direct mail and TV retailers, multi-line retailers, specialty retailers, and food and other staples retailers. The fund charges 35 bps in fees and yields 0.70% annually.
Invesco Food & Beverage ETF PBJ
As collegegoers are likely to spend on food, this ETF has a chance of going up. The underlying Dynamic Food & Beverage Intellidex Index comprises stocks of 30 U.S. food and beverage companies. These are companies primarily engaged in the manufacture, sale or distribution of food and beverage products, agricultural products and products related to the development of new food technologies. The fund charges 62 bps in fees and yields 1.68% annually.
VanEck Semiconductor ETF SMH
As electronics sales are on the rise on occasions like this, one should note that the pillar of electronics, i.e., semiconductors, is expected to see higher demand. The underlying MVIS US Listed Semiconductor 25 Index tracks the overall performance of companies involved in semiconductor production and equipment. The fund charges 35 bps in fees and yields 0.37% annually.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Get it now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

How to Play Back-to-School Season With ETFs & Stocks

Walmart Inc.’s WMT second-quarter fiscal 2026 results underscore the company’s strong sales momentum. Revenues rose 5.6% in constant currency, fueled by e-commerce growth and solid performance in the United States and internationally. Yet, adjusted operating income inched up just 0.4% in constant currency, held back by a 560-basis-point drag from higher general liability claims.
Reflecting demand resilience, management raised its full-year sales outlook to 3.75%-4.75%, up from 3%-4%, and lifted adjusted EPS guidance to $2.52-$2.62, supported by reduced currency headwind (now 2-3 cents versus 5 cents earlier). However, Walmart kept its forecast for adjusted operating income growth unchanged at 3.5%-5.5% in constant currency, signaling caution despite accelerating top-line trends.
Profitability remains constrained by expense pressures. The company booked an additional $450 million in liability claim costs during the second quarter, bringing the year-to-date impact to $730 million. Management noted claims inflation will persist in the second half, though at a slower pace, while tariffs and an unfavorable merchandise mix continue to weigh on margins.
Still, Walmart is gaining traction in businesses that could bolster profitability over time. Advertising revenues surged nearly 50% globally, including 31% growth in Walmart Connect U.S. (excluding VIZIO), while membership income advanced 15%. E-commerce economics also improved, with marketplace penetration and delivery efficiencies supporting better margins.
Walmart has shown it can boost sales, making margin recovery the main focus moving forward.
What Latest Metrics Say About Walmart
Walmart, which competes with Costco Wholesale Corporation COST and Target Corporation TGT, has been a standout performer, with shares rallying 25.6% in the past year, almost in tandem with the industry’s growth of 25.8%. Shares of Costco have advanced 5.7%, while Target declined 37.5% in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 34.84, higher than the industry’s 31.98. WMT carries a Value Score of C. Walmart is trading at a premium to Target (with a forward 12-month P/E ratio of 12.19) but at a discount to Costco (52.49).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Walmart’s current financial-year sales and earnings per share implies year-over-year growth of 4% and 3.6%, respectively.
Image Source: Zacks Investment Research
Walmart currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Walmart Raises Sales Guidance: Will Margins Catch Up Next?

Key Points
Despite numerous macro headwinds, Costco’s net sales are substantially higher than before the pandemic.
Disney is already a dominant force in the streaming world, and its theme parks are a major moneymaker.
Valuation is the deciding factor when choosing the best stock to buy.
Investors can jump-start their research process by identifying companies they might be customers of. For example, you might shop at a Costco (NASDAQ: COST) for groceries and other merchandise. You might watch content from Walt Disney (NYSE: DIS) or plan a trip to one of its parks. Thinking like a customer can provide firsthand knowledge that is valuable in the decision-making process.
These two consumer-facing businesses each possess their own investment merits. But which one is the best stock to buy right now?
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Costco: Dominating retail, but at an expensive valuation
Costco's financial performance in recent years highlights its steady and dependable nature. Between fiscal 2019 and fiscal 2024 (ended Sept. 1), the company's net sales increased at a compound annual rate of 10.8%. This time frame included the COVID-19 pandemic, supply chain issues, surging inflation, rising interest rates, changing trade policies, and today's general economic uncertainty. Same-store sales gains have continued into this year.
With Q3 2025 (ended May 11) net sales of $62 billion, Costco is the third-biggest retailer in the world. But compared to its peers, which sell a massive number of different goods, each of this company's warehouses on average carries about 4,000 stock-keeping units. As a result, Costco has a major cost advantage, flexing its negotiating power with its suppliers to obtain favorable pricing.
Those cost savings go to shoppers in the form of constantly low prices. These customers are then inclined to spend more money at Costco. This further reinforces the company's cost advantage.
If the compelling shopping experience wasn't enough to entice customers, Costco's membership model does. On a global level, these had a 90.2% renewal rate in the third quarter. They drive loyalty and repeat visits, while bringing in a high-margin revenue stream.
Costco is a fine business. And the investment community knows it, bidding up the valuation to incredible heights. Shares trade at a price-to-earnings (P/E) ratio of 53.9. In the past 25 years, Costco's valuation has rarely been more expensive. Investors must consider these lofty expectations embedded in the stock price.
Disney: Putting streaming at the forefront
Disney is undoubtedly a leader in the media and entertainment landscape. But its cable networks are in secular decline. Revenue in this segment fell 15% year over year in Q3 (ended June 28), as operating profit dropped 28%. As households continue to ditch their cable subscriptions, there will be pressure here.
However, Disney has been successful in positioning the business for a streaming future. It launched Disney+ in November 2019. Combined with Hulu, the company's direct-to-consumer streaming operations have 183 million subscribers (this excludes ESPN), up 1% from three months prior. This drove a 6% year-over-year revenue gain.
The business just launched its highly anticipated flagship ESPN streaming service, which provides sports fans with a more comprehensive offering with interactive and personalized features. "The enhanced ESPN App will be a sports fan's dream," CEO Bob Iger said.
Disney's most lucrative segment, though, is Experiences. This includes the theme parks, cruise lines, and consumer products. In Q3, it posted a 27.7% operating margin. Management believes there are 700 million people across the globe with "high Disney affinity" that haven't visited a park yet.
Given this estimate, it makes sense that Disney is investing aggressively to add new attractions at its parks, while expanding its cruise fleet. This should allow the company to serve more customers in the future, which could then benefit the media segments by attracting more subscribers.
Investors can buy Disney shares at a P/E multiple of 18.5. While the company is certainly more cyclical than Costco, I believe the House of Mouse is the best stock to buy of these two options. Over the next five years, Disney has greater upside than the extremely expensive Costco shares.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $451,724!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $44,119!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $651,599!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of August 25, 2025
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Walt Disney. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Best Stock to Buy Right Now: Costco vs. Disney

Key Points
Each of these companies has a great track record and great potential.
They're not all bargain-priced right now, though.
They will need to execute their strategies well to top Tesla's possible future value -- but so will Tesla.
The funny thing about valuing stocks is that despite all the intricate calculations and modeling you might do, you'll still end up with your own estimate, which is likely to differ from the estimates of others examining the same stock. Still, we keep trying to estimate the value of various stocks because, if we're a value investor, we want to buy shares for less than they seem to be worth, and if we're a growth investor, we may be trying to make sure we don't pay too much.
Here, then, is my prediction about three stocks that I think will be worth more than Tesla in 10 years.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Tesla and its valuation
Let's first get an idea of Tesla's own valuation. Its market capitalization (or "market cap") was recently $1.1 trillion, reflecting the total value of all its shares. Judging by several valuation metrics, its shares are somewhat overvalued at recent levels:
Metric
Recent
Five-year Average
Price-to-sales ratio
12.90
11.20
Price-to-earnings (P/E) ratio
196.54
98.19
Forward P/E ratio
183.29
76.89
Source: Morningstar.com as of Aug. 22, 2025.
Let's also look at its stock's growth rates:
Period
Average Annual Gain
Last 3 years
2.57%
Last 5 years
18.56%
Last 10 years
35.46%
Last 15 years
44.55%
Source: Morningstar.com as of Aug. 22, 2025.
Clearly, the stock's growth rate has been decelerating. We need to estimate where Tesla's value might be a decade hence, so let's assume an average annual growth rate of, say, 10%. It reflects returns from the past few years instead of the ones further back. And it also considers that, given Tesla's overvaluation today, the stock might pull back within the next year or two, thereby depressing the average annual gain.
So, with a current valuation of $1.1 trillion, in a decade, if Tesla's value grows at 10% annually, it should be worth around $2.85 trillion. Let's now look at a few stocks that might be worth more than that by 2035.
1. Costco
Let's start with Costco (NASDAQ: COST). It recently sported a market cap of $425 billion, and average annual growth rates between about 21% and 24% over the past three to 15 years. If it grows at 21% over the coming decade, it will end up with a market value a few dollars higher than our Tesla estimate of $2.85 trillion.
That's quite close. It assumes that Costco's stock, which seems somewhat overvalued itself, will perform excellently and will maintain a premium valuation. (Costco's forward P/E was recently 47, above its five-year average of 40.)
How's Costco doing these days? Well, some worry about the effect of tariffs and inflation on the company, but though they are damaging, they could damage Costco less than its rivals. For example, Costco can keep profit margins very low while getting billions in revenue from membership fees.
2. Berkshire Hathaway
Warren Buffett's company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), is another possibility. It was recently valued at about $1.06 trillion, with average annual gains over the past three to 15 years of between 13% and nearly 18%. If it grows by an average of 11% annually over the coming decade, it could end up with a value of roughly $3 trillion.
The company has a lot going for it, as it encompasses dozens of wholly owned subsidiaries such as GEICO, Benjamin Moore, Dairy Queen, McLane, and the entire BNSF railroad, along with sizable chunks of other companies, such as Occidental Petroleum, American Express, Coca-Cola, and Bank of America.
Buffett built Berkshire to last, but he can't run it forever. Indeed, Buffett is stepping down at the end of the year, naming Greg Abel as his successor.
3. Netflix
Then there's Netflix (NASDAQ: NFLX), valued at $521 billion as of Aug. 26. Its average annual gain over the past five years is 20%, and over the past 15 years it's more than 32%. Like Costco, Netflix's shares seem at least a little overvalued, with its forward-looking price-to-earnings (P/E) ratio of 48 well above its five-year average of 34. So there's a reasonable chance shares will retreat in the near term. (Shares pulled back 13% in July, for example.)
Still, Netflix's long-term potential is great, as it keeps expanding globally and building its huge library of content. Netflix also has an advertising-supported membership tier now, too, which should expand its reach further while delivering ad revenue. Its leveraging of artificial intelligence (AI) could be another growth driver.
If Netflix can average annual gains of 20% over the coming decade, it can grow to a value of around $3.2 trillion.
These three companies have a lot of potential and could top Tesla's valuation within a decade. But forget Tesla and just focus on whichever of the companies interests you, digging deeper into their challenges and opportunities.
Should you invest $1,000 in Costco Wholesale right now?
Before you buy stock in Costco Wholesale, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Costco Wholesale wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $661,220!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,114,162!*
Now, it’s worth noting Stock Advisor’s total average return is 1,069% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of August 25, 2025
American Express is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Selena Maranjian has positions in Berkshire Hathaway, Costco Wholesale, and Netflix. The Motley Fool has positions in and recommends Berkshire Hathaway, Costco Wholesale, Netflix, and Tesla. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Costco Wholesale Corporation

Price history and volume

Shares 360

Investment risk — high

Investment potential — medium

AI Factors

Consumer Confidence

Inflation

UK Economy

Japanese Economy

stagflation

German Economy

Food Supply

Recession Risk

Labor Supply

Supply Chain Disruptions

Labor Costs

Interest Rates

Security parameters