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 демонстрирует высокий уровень P/E и других мультипликаторов, значительно превышающих медианные значения по отрасли, что указывает на переоцененность акций. Однако, компания показывает высокие показатели рентабельности (ROE, ROA) и устойчивый рост прибыли и выручки за последние годы, что является положительным фактором. Долговая нагрузка низка, что снижает финансовые риски. Тем не менее, маржи (операционная и чистая) находятся ниже медианных значений, что вызывает беспокойство о способности компании поддерживать прибыльность. Дивидендная доходность также остается на низком уровне, что может отпугнуть некоторых инвесторов. В целом, несмотря на сильные финансовые показатели и низкий уровень долга, высокая переоцененность акций и низкие маржи создают риски для дальнейшего роста цены акций. Поэтому целевая цена должна быть скорректирована с учетом этих факторов.

Costco Wholesale Corporation

Murphy USA (MUSA) came out with quarterly earnings of $7.28 per share, beating the Zacks Consensus Estimate of $5.37 per share. This compares to earnings of $2.63 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +35.57%. A quarter ago, it was expected that this gasoline station operator would post earnings of $6.67 per share when it actually produced earnings of $7.53, delivering a surprise of +12.89%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Murphy USA, which belongs to the Zacks Retail - Convenience Stores industry, posted revenues of $4.82 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.87%. This compares to year-ago revenues of $4.53 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Murphy USA shares have added about 28.9% since the beginning of the year versus the S&P 500's gain of 4.3%.
What's Next for Murphy USA?
While Murphy USA has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Murphy USA was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $7.68 on $5.54 billion in revenues for the coming quarter and $29.55 on $20.75 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Convenience Stores is currently in the top 2% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Retail-Wholesale sector, Costco (COST), has yet to report results for the quarter ended May 2026. The results are expected to be released on May 28.
This warehouse club operator is expected to post quarterly earnings of $4.88 per share in its upcoming report, which represents a year-over-year change of +14%. The consensus EPS estimate for the quarter has been revised 0% lower over the last 30 days to the current level.
Costco's revenues are expected to be $68.87 billion, up 9% from the year-ago quarter.
Should You Invest in Murphy USA Inc. (MUSA)?
Before you invest in Murphy USA Inc. (MUSA), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Murphy USA (MUSA) Surpasses Q1 Earnings and Revenue Estimates

Key Points
Walmart offers better risk-reward today due to valuation and fast-growing ad and e-commerce profit drivers.
Costco remains a membership-driven compounding machine, but much of that quality is already priced in.
Costco Wholesale (NASDAQ: COST) and Walmart (NASDAQ: WMT) are both high-quality consumer staples companies with durable competitive moats. Neither stock is cheap, and the better stock right now depends on what you're aiming to optimize -- but on the whole, Walmart is the buy right now.
If you want a higher-growth, membership-driven compounder that rewards long-term holders, Costco stock is the pick. If you want lower valuation, more near-term earnings levers, and exposure to one of the fastest-growing retail advertising businesses in the world, Walmart stock has the edge. For most investors building a core position in consumer staples today, Walmart offers the better risk-reward proposition at current prices.
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Costco commands a higher multiple for good reason. Its membership renewal rate in the U.S. and Canada is 92.1%, while global renewal is 89.7%. Membership fee revenue hit $5.3 billion in fiscal 2025 and grew another 13.6% in the second quarter of fiscal 2026, even after absorbing a membership fee hike in late 2024. That recurring revenue is essentially annuity income. The revenue is predictable, durable, and nearly impervious to recessions. When Costco raises its membership price, its members renew anyway.
But that premium is already priced into the stock. Costco shares trade at 53 times trailing earnings, leaving little margin for error.
Walmart's hidden growth engine
The more interesting story for near-term investors is Walmart's diversification into advertising and commerce. The company grew global advertising revenue 37% to $6.4 billion annually, with U.S. e-commerce up 27%. Walmart Connect, its retail media network, transforms the company's enormous traffic into high-margin ad dollars -- a business model with economics structurally closer to Meta Platforms or Alphabet than traditional grocery.
Walmart also achieved 27% operating income growth and continues to push into financial services and healthcare. That earnings diversification is why the company's forward multiple still sits below Costco's, even though Walmart arguably has more near-term profit acceleration built into its model.
The case for Costco
Make no mistake: Costco is not a company to dismiss at any price. Its 26% return on invested capital versus Walmart's roughly 16% is a meaningful part of why the market has consistently paid a premium for the stock year after year. The membership model creates a structural margin floor that Walmart -- with its intentionally thin 11% gross margins -- cannot replicate.
Costco's international expansion and growing e-commerce penetration are an addition to a business that already delivers some of the most reliable consumer traffic in retail. The Q1 fiscal 2026 net sales of $173.26 billion (up from $158.87 billion in the prior-year period) confirm it is doing so without a meaningful deterioration in same-store traffic.
Which one is a buy?
The honest answer is that both are businesses worth owning over a long time horizon, but right now, the risk-reward skews meaningfully in Walmart's favor. Costco is a compounding machine, full stop. Its 92.1% U.S. membership renewal rate is one of the most durable moats in all of retail, and its 26% return on invested capital is the kind of number that justifies a premium valuation. The problem is that the premium is already fully priced in.
Walmart, by contrast, is in the middle of a genuine business model transformation that the market hasn't fully credited yet. Yes, it's the world's largest retailer. Yes, everyone knows it. But most investors still think of Walmart as a low-margin grocery and general merchandise operation. What it's quietly becoming is something different: a high-margin data and advertising platform atop a low-margin retail engine.
Walmart Connect carries margins that look nothing like selling paper towels. Retail media is closer to software economics. Once the advertiser relationships and measurement tools are in place, incremental revenue flows at very high incremental margins.
For comparison, Amazon's advertising segment, which began as a similarly overlooked line item, now generates over $56 billion in annual revenue and is one of the company's most profitable divisions. Walmart is roughly five to seven years behind Amazon on that curve, which means investors buying today are buying into the early innings of that margin expansion story.
There's also a macro dimension to consider. In an environment where tariff-driven inflation is squeezing lower- and middle-income households, Walmart's core customer base tends to gain incremental wallet share rather than lose it. The company's private label penetration is growing as consumers trade down from name brands, and Walmart's scale gives it negotiating power over suppliers that few retailers can match. Costco benefits from a similar dynamic, but its customer base skews wealthier, making it somewhat less torqued to a consumer downturn thesis.
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Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, and Walmart. 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 vs. Walmart Stock: What's the Better Consumer Staples Buy?

Costco Wholesale Corporation COST and Dollar General Corporation DG stand out prominently in the Retail–Discount Stores industry. Costco boasts a substantial market capitalization of approximately $442.8 billion, operating on a membership-based warehouse model that sells goods at discounted prices. The company manages a network of 928 warehouses globally, including 637 in the United States and Puerto Rico.
In contrast, Dollar General has a market capitalization of around $25.8 billion and operates a vast network of more than 20,000 stores across rural, suburban and urban areas. Known for its commitment to everyday low prices and essential household items, Dollar General has carved out a niche as a preferred shopping destination for budget-conscious consumers.
With consumer spending shifting and economic crosscurrents reshaping shopping behavior, the key question for investors is which discount retailer is better positioned to deliver stronger returns from here.
The Case for Costco
Costco continues to demonstrate the strength of its membership-driven model, which underpins a stable and recurring revenue base. The annual fee structure not only ensures predictable income but also reinforces a sense of exclusivity and value for members. This dynamic was evident in the second quarter of fiscal 2026 when membership fee income advanced 13.6% year over year, supported by robust renewal rates of 92.1% in the United States and Canada and 89.7% globally, highlighting strong customer engagement.
The company’s focus on value remains central to its competitive positioning. By offering high-quality merchandise at prices lower than its peers, Costco reinforces customer loyalty and encourages frequent store visits. Its curated merchandising strategy, featuring a dynamic assortment of essentials, seasonal goods and unique offerings, keeps the shopping experience engaging while driving incremental purchases.
Private label expansion remains a key differentiator, with the Kirkland Signature brand playing an important role in driving both customer loyalty and margin efficiency. Known for delivering premium quality at compelling price points, Kirkland enhances Costco’s value proposition. The ongoing addition of new products across categories strengthens brand equity and supports profitability. Costco launched about 30 new Kirkland items in the second quarter.
At the same time, Costco is leveraging technology to enhance the overall member experience and operational efficiency. Investments in digital capabilities are yielding tangible results, with online sales benefiting from strong traffic growth across both the website and mobile app. Enhancements such as mobile payment solutions, pharmacy pre-payment options and in-store automation initiatives are streamlining the shopping and complementing the company’s integrated omnichannel approach.
Costco’s growth trajectory remains supported by a disciplined expansion strategy. The company continues to add new warehouse locations in high-potential markets while maintaining a measured pace that supports productivity and returns. For fiscal 2026, the company expects to open 28 net new warehouses and is targeting 30-plus warehouse openings annually over the longer term. With plans to accelerate new openings in the coming years, this steady expansion, combined with strong membership growth, positions Costco well to sustain long-term revenue and earnings momentum.
The Case for Dollar General
Dollar General has been gaining market share, supported by its resilient product mix, strategic focus on value and real estate expansion. The company’s “back-to-basics” initiative has strengthened its operational foundation, reinforcing a model that tends to hold up when consumer budgets are pressured. This positioning helps sustain customer traffic and broaden the shopper base, including increased engagement from higher-income households seeking everyday value.
DG has made meaningful progress in areas such as inventory management, shrink reduction and store-level efficiency, all of which are driving better profitability. Through ongoing remodel initiatives and the introduction of updated store formats, Dollar General is improving the shopping experience, increasing product visibility and driving higher customer engagement. These initiatives are designed not only to boost sales but also to strengthen brand perception and customer loyalty.
Dollar General’s Project Renovate and Project Elevate programs are important catalysts because they target the mature store base, where the company can improve productivity without relying only on new unit expansion. Management continues to target approximately 6% annualized comp lift from Project Renovate stores and approximately 3% from Project Elevate stores. In 2026, it plans roughly 2,000 Renovate remodels and 2,250 Elevate remodels.
Dollar General is also building new growth engines that extend beyond its traditional retail model. Its expanding digital ecosystem, including myDG delivery and partnerships with DoorDash and Uber Eats, along with its growing retail media platform, DG Media Network, is opening up incremental revenue and profit opportunities. These initiatives improve customer convenience while creating higher-margin income streams through advertising and digital engagement. At the same time, the company is investing in non-consumable categories, private brands and merchandising innovation, which diversifies its product mix and supports margin expansion over time.
That said, DG still faces pressure from a financially stretched core customer, sticky inflation, possible tariff costs and changing consumer behavior, all of which could weigh on traffic, basket size and discretionary purchases. Margin gains from shrink reduction and inventory improvements may also become harder to repeat, while ongoing investments could pressure expenses.
COST vs. DG: How Do Estimates Stack Up?
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 8.5% and 13%, respectively. For the next fiscal year, the consensus estimate indicates a 7.5% rise in sales and 10% growth in earnings. Over the past 60 days, the Zacks Consensus Estimate for the current and next fiscal year has risen by 12 cents and 25 cents, respectively.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Dollar General’s current financial-year sales and earnings per share calls for year-over-year growth of 4% and 6.3%, respectively. For the next fiscal year, the consensus estimate indicates a 4.1% rise in sales and 9.8% growth in earnings. Over the past 60 days, the Zacks Consensus Estimate for the current and next fiscal year has risen by 12 cents and 8 cents, respectively.
Image Source: Zacks Investment Research
COST vs. DG: A Look at Past-Year Stock Performance
While operating in the same industry, Costco and Dollar General have seen markedly different stock performance. Costco shares have advanced 15.8% in the year-to-date period, whereas Dollar General has declined 11.6%.
Image Source: Zacks Investment Research
COST vs. DG: A Peek Into Stock Valuation
Costco trades at a forward price-to-earnings (P/E) ratio of 46.08, modestly below its one-year median of 47.12, but still at a premium to the industry average of 32.97. By contrast, Dollar General’s forward P/E of 15.75 sits above its median of 17.84, yet remains below the broader industry level.
Image Source: Zacks Investment Research
COST vs. DG: Which Stock Looks More Promising Now?
Costco appears better positioned than Dollar General at this stage. Its membership-based model creates dependable recurring revenues, deep customer loyalty and strong traffic stability, while its private-label strength, disciplined global expansion and improving digital capabilities add further support to long-term growth. Dollar General still offers a solid value-oriented story, backed by operational improvements, remodel initiatives and new growth platforms, but its performance remains more exposed to pressure on lower-income consumers, inflation, tariff risk and the need to execute several initiatives at once. For now, Costco’s steadier business model and clearer earnings visibility make it the more promising discount retail stock.
Both Costco and Dollar General carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Costco vs. Dollar General: Which Discount Retailer Holds More Promise?

Key Points
Amazon has a wide moat and leads several fast-growing industries.
Costco's competitive prices and dividend program are great assets, especially in the current environment.
Growth-oriented investors and dividend seekers may come to different conclusions about which is the better pick.
Amazon (NASDAQ: AMZN) and Costco (NASDAQ: COST) are among the largest players in their respective industries, and both have delivered market-beating returns over the long run, though Amazon has done significantly better. However, the e-commerce specialist is now worth $2.7 trillion, more than five times Costco's market cap. Does Amazon still have enough upside left at its size, or should investors opt for the smaller Costco? Let's see which of these two stocks is more attractive.
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The case for Amazon
Amazon has a vast, diversified business spanning e-commerce, digital advertising, cloud computing, video and music streaming, and other things. The company is a leader in practically every major industry it operates in, and most of them still have significant long-term potential. Consider e-commerce. As Amazon's CEO, Andy Jassy, recently said in a letter to shareholders, 80% of retail transactions still occur in brick-and-mortar stores. That will likely change over the long run, and Amazon is well-positioned to capitalize on it. The company is similarly looking at a massive addressable market in cloud computing.
Further, Amazon is pursuing initiatives to reduce costs and improve margins. The company is increasingly relying on industrial robots in its warehouses, for instance, something that can help improve efficiency. Meanwhile, Amazon's rapidly growing advertising business should also elevate its margins in the long run. Lastly, Amazon generates significant free cash flow and benefits from competitive advantages across multiple sources. The company's deep ecosystem displays high switching costs and network effects, while its brand name also effortlessly attracts e-commerce customers. Amazon may be worth over $2 trillion, but the stock still has upside left for investors willing to be patient.
The case for Costco
Costco is one of the largest retailers in the U.S. It offers relatively low prices by selling items in bulk and allowing customers to stock up for a while. One of the company's strengths is its membership model. Once shoppers sign up, they have an incentive to keep shopping at Costco. Otherwise, they are wasting money on their subscription fees. Costco has also adapted to modern demands, even as other legacy brick-and-mortar stores have been left behind. The company has a booming, fast-growing e-commerce business that helps push its top-line growth in the right direction.
It is also helping fuel Costco's advertising business, which has performed well in recent years. Costco should remain a leader in retail as it expands its footprint, thanks to its ability to offer competitive prices and its membership model, which creates switching costs and generates recurring, high-margin revenue. Lastly, Costco is an excellent dividend stock. Even with a low forward yield of 0.6%, Costco has raised its payouts annually for over 20 consecutive years.
Costco's cash payout ratio of 27.9% also suggests it has ample room for additional dividend hikes. A robust dividend program like Costco's may be particularly attractive to many investors right now.
The verdict
Amazon generates higher revenue and profits. Yet it also generally grows its top line faster than Costco. And on top of that, Amazon's shares look much more reasonably valued right now.
Is there any reason to choose Costco over Amazon? Perhaps. Costco could provide some stability in these volatile times. Amazon's cloud and advertising businesses -- which are responsible for much of its operating profits -- could suffer in a recession, leading investors away. We aren't in a recession yet, but given recent developments, some experts are warning it could happen soon, and if it does, Amazon could suffer. Costco should do comparatively better, given its ability to consistently offer low prices in its core business.
Costco is also a clearly better pick for income seekers, since Amazon currently doesn't pay dividends. The bottom line: The choice between these two companies right now may come down to each investor's preferences. Growth-oriented ones should opt for Amazon, but others seeking a reliable dividend payer as a safe haven in challenging times should go with Costco.
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 $540,224!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $51,615!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $498,522!*
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*Stock Advisor returns as of April 27, 2026.
Prosper Junior Bakiny has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Costco Wholesale. 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.

Amazon vs. Costco: Which Stock Is the Better Buy Right Now?

U.S. markets exhibited volatility but ended last week with overall gains. Major indexes, including the Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average, increased by 1.8%, 0.8% and 0.4%, respectively. Investor sentiment was influenced by developments in the U.S.-Iran ceasefire. Easing tensions earlier in the week were followed by a pause in diplomatic talks.
The broader economic outlook was largely supported by a 1.7% increase in retail sales in March, fueled by a 15.5% spike in gas station receipts. The stronger-than-expected retail sales indicate resilient consumer demand. Despite this spending, consumer sentiment for April hit a record low of 47.6, reflecting deep anxiety over the Iran conflict and a 4.8% jump in inflation expectations. The labor market data showed a minor softening, with jobless claims ticking up to 214,000 and continuing claims rising to 1.821 million. While domestic data suggests a sturdy economic floor, the market remains highly sensitive to geopolitical developments and policy uncertainties.
Regardless of market conditions, we, here at Zacks, provide investors with unbiased guidance on how to beat the market.
As usual, Zacks Research guided investors over the past three months with its time-tested methodologies. Given the prevailing market uncertainty, you may want to look at our feats to prepare better for your next action.
Here are some of our key achievements:
Yara International and BGC Following Zacks Rank Upgrade
Shares of Yara International ASA YARIY have gained 24.1% (versus the S&P 500’s 4.6% increase) since it was upgraded to a Zacks Rank #1 (Strong Buy) on Feb. 18.
Another stock, BGC Group, Inc. BGC, which was upgraded to a Zacks Rank #2 (Buy) on February 17, has returned 22.4% (versus the S&P 500’s 4.8% increase) since then.
Zacks Rank, our short-term rating system, has earnings estimate revisions at its core. Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
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In 2025, this hypothetical equal-weight portfolio returned +17.81% vs. +10.85% for the index, while performance comparison was +22.4% vs. +13.7% in 2024. Over the preceding 10-year period (2016 through 2025), this portfolio of qual-weight Zacks Rank #1 stocks outperformed the equal-weight S&P 500 index by more than 7 percentage points (+18.55% vs. +11.65%).
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Zacks Recommendation Upgrades Sandisk and Dave
Shares of Sandisk Corporation SNDK and Dave Inc. DAVE have advanced 59.4% (versus the S&P 500’s 4.3% increase) and 54.9% (versus the S&P 500’s 4.8% increase), since their Zacks Recommendation was upgraded to Outperform on February 20 and February 16, respectively.
While the Zacks Rank is our short-term rating system that is most effective over the one- to three-month holding horizon, the Zacks Recommendation aims to predict performance over the next 6 to 12 months. However, just like the Zacks Rank, the foundation for the Zacks Recommendation is trends in earnings estimate revisions.
The Zacks Recommendation classifies stocks into three groups — Outperform, Neutral and Underperform. While these recommendations are determined quantitatively, our analysts have the flexibility to override them for the 1100+ stocks they closely follow based on their better judgment of factors such as valuation, industry conditions and management effectiveness than the quantitative model.
Zacks Focus List Stocks AMD, Casey's Shoot Up
Shares of Advanced Micro Devices, Inc. AMD, which belongs to the Zacks Focus List, have gained 38% over the past 12 weeks. The stock was added to the Focus List on May 19, 2025. Another Focus-List holding, Casey's General Stores, Inc. CASY, which was added to the portfolio on August 20, 2019, has returned 29.6% over the past 12 weeks. The S&P 500 has advanced 2.7% over this period.
The 50-stock Focus List portfolio returned +6.65% in 2026 (through February 28) vs. +0.68% for the S&P 500 index and +7.06% for the equal-weight version of the index.
The portfolio returned +22.1% in 2025 vs. +17.9% for the S&P 500 index and +11.4% for the equal-weight version of the index.
The Zacks Focus List portfolio returned +18.41% in 2024 vs. +25.04% for the S&P 500 index and +13% for the equal-weight S&P 500 index. The portfolio had returned +29.54% in 2023 vs. +26.28% for the S&P 500 index and +13.61% for the equal-weight S&P 500 index. In 2022, the portfolio returned -15.2% vs. the S&P 500 index’s -17.96%.
Through February 28, 2026, the portfolio’s rolling returns on a one-year, three-year, five-year, 10-year basis, and since 2004 have been +29.35% (vs. +17% for the S&P 500 index), +23.13% (vs. +21.81%), +14.15% (vs. +14.19%), +16.79% (vs. +15.50%) and +12.38% vs. (+10.66%), respectively.
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Zacks ECAP Stocks UnitedHealth and Costco Make Significant Gains
UnitedHealth Group Incorporated UNH, a component of our Earnings Certain Admiral Portfolio (ECAP), has jumped 25.6% over the past 12 weeks. Costco Wholesale Corporation COST has followed UnitedHealth with 4.2% returns.
The Zacks Earnings Certain Admiral Portfolio (ECAP), which consists of 30 concentrated, ultra-defensive, long-term Buy-and-Hold stocks, returned -2.3% in the fourth quarter of 2025 vs. the S&P 500 index’s +2.7% gain (SPY ETF). For 2025 as a whole, the portfolio returned -1.67% vs. +17.9% gain for the S&P 500 index.
For the year 2024, the portfolio returned +16.26% vs. +24.89% for the S&P 500 index (SPY ETF). In 2023, the portfolio returned +12.17% vs. +26.28% for the S&P 500 index. The portfolio returned -4.7% in 2022 vs. the S&P 500 index’s -17.96%.
With little to no turnover and annual rebalance periodicity, ECAP seeks to minimize capital loss by holding shares of companies whose earnings streams exhibit a proven 20+ year track record of surviving recessionary periods with minimal impact on aggregate earnings growth relative to the overall S&P 500.
The ECAP and many other model portfolios are available as part of Zacks Advisor Tools, a cloud-based solution to access Zacks award-winning stock, mutual fund and ETF research. Click here to schedule a demo.
Zacks ECDP Stocks Illinois Tool Works and Starbucks Outperform Peers
Illinois Tool Works Inc. ITW, which is part of our Earnings Certain Dividend Portfolio (ECDP), has returned 4.1% over the past 12 weeks. Another ECDP stock, Starbucks Corporation SBUX, has also climbed 3.1% over the same time frame. Of course, the inclination of investors toward quality dividend stocks to secure an income stream amid heightened market volatility contributed to this performance.
With an extremely low beta and a history of minimum earnings variability over the last 20+ years, this 25-stock portfolio helps to significantly mitigate risk.
The Zacks Earnings Certain Dividend Portfolio (ECDP) returned -2.1% in 2025 Q4 vs. the S&P 500 index’s +2.7% gain and the Dividend Aristocrats ETF’s (NOBL) +1.6% return. For 2025, the portfolio returned -0.6% vs. +6.8% gain for the Dividend Aristocrat ETF.
For the full year of 2024, the portfolio returned +6.95% vs. +24.89% for the S&P 500 index and +6.72% for NOBL.
The portfolio returned -0.9% in 2023 vs. +26.28% for the S&P 500 index and +8.11% for NOBL. The portfolio returned -2.3% in 2022 vs. -17.96% for the S&P 500 index and -8.34% for NOBL.
Click here to access this portfolio on Zacks Advisor Tools.
Zacks Top 10 Stock Amkor Technology Delivers Solid Returns
Amkor Technology, Inc. AMKR, from the Zacks Top 10 Stocks for 2026, has jumped 82% since the list was released on January 5, 2026, compared with the S&P 500 index’s 4.5% increase during this period.
The Top 10 portfolio retuned +10.5% in 2026 (through February 28) vs. +0.5% for the S&P 500 index and +6.3% for the equal-weight version of the index.
The Top 10 portfolio returned +22.6% in 2025 vs. +17.9% for the S&P 500 index and +11.4% for the equal-weight version of the index.
The Top 10 portfolio returned +62.98% in 2024, vs. +25.04% for the S&P 500 index and +13% for the equal-weight version of the index. The portfolio had returned +25.15% in 2023 vs. +26.28% for the S&P 500 index.
Through the end of February 2026, the Top 10 portfolio has produced a cumulative return of +2,761.6% since 2012 vs. +564.8% for the S&P 500 index and +435% for the equal-weight version of the index. The portfolio has produced an average annual return of +26.4% in the period 2012 through February 28, 2026, vs. +13% for the S&P 500 index and +11% for the equal-weight version of the index.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks 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.

Beat the Market the Zacks Way: Sandisk, AMD, Amkor Technology in Focus

Walmart Inc. WMT is increasingly evolving from a traditional retail operator into a multi-engine profit platform, with its latest quarter reinforcing how diversified income streams are reshaping the company’s earnings profile.
At a fundamental level, the shift is visible in the way profits are growing faster than sales. Fourth-quarter fiscal 2026 revenues rose 5.6% to $190.7 billion, while adjusted operating income climbed 10.5% at constant currency, reflecting stronger contribution from higher-margin businesses alongside core retail. Global e-commerce sales surged 24%, continuing to scale as a key growth driver.
What stands out is the changing composition of profits. Advertising and membership income are emerging as meaningful contributors, with advertising up 37% globally and Walmart Connect in the United States growing 41%. Membership fee income increased 15.1% worldwide. Together, these streams now account for a significant share of operating income, highlighting a clear shift toward recurring and margin-accretive revenue sources.
This diversification is supported by the broader omnichannel ecosystem. E-commerce growth remains robust across segments, including 27% in Walmart U.S., 17% internationally and 23% at Sam’s Club. At the same time, improved e-commerce economics, better inventory management and disciplined cost control are helping expand margins, enabling profits to outpace sales growth for the third consecutive year.
The underlying takeaway is that Walmart’s resilience is no longer tied solely to volume-driven retail performance. Instead, a more balanced mix of advertising, memberships, marketplace and digital fulfillment is strengthening earnings stability. This evolving structure positions the company to better absorb external pressures while sustaining profit growth through multiple levers.
What Do the Latest Metrics Say About Walmart?
Walmart, which competes with Costco Wholesale Corporation COST and Target Corporation TGT, has seen its shares rally 36.4% over the past year compared with the industry’s 34.1% growth. Shares of Costco and Target have gained 3.3% and 34.1%, respectively, in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 43.7, higher than the industry’s 39.7. The company is trading at a premium to Target (with a forward 12-month P/E ratio of 15.9) while trading at a discount to Costco (46.72).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Walmart’s current fiscal-year sales and earnings per share implies year-over-year growth of about 5% and 9.5%, respectively.
Walmart currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks 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.

Walmart Builds Diversified Profit Streams: Is Resilience Strengthening?

Costco Wholesale Corporation COST continues to demonstrate exceptional member loyalty, as evidenced by its second-quarter fiscal 2026 results. The worldwide renewal rate remained steady at 89.7%, while the United States/Canada rate saw only a marginal decline of 10 basis points to land at 92.1%. This slight softening stems from a specific shift in the membership mix rather than a broad loss of interest in the warehouse model.
Management noted that new members signing up through digital channels now represent a larger portion of the total base. These online recruits historically renew at lower rates than those who join at physical warehouses.
To bridge this gap, the company is deploying targeted digital communications and retention strategies to increase the stickiness of its online sign-ups. These efforts are already showing signs of success as the decline was less than expected. Beyond digital outreach, the company is leveraging convenience-driven programs such as auto-renewal to solidify the member relationship.
While these younger digital-first members currently lag in retention, they provide a critical runway for long-term revenue growth and executive membership upgrades. The challenge for the coming quarters will be ensuring these high-tech members find the same indispensable value that keeps traditional warehouse shoppers renewing year after year.
Costco’s Peer Performance: Walmart & BJ’s Wholesale
Walmart Inc. WMT continues to scale its digital ecosystem aggressively, with e-commerce sales rising 24% globally and contributing 23% of total sales in the fourth quarter of fiscal 2026, highlighting strong omnichannel momentum. Walmart is leveraging store-fulfilled delivery, AI-driven tools and marketplace expansion to enhance convenience and drive higher basket sizes. Walmart’s comparable sales growth of 4.6% in the U.S. division reflects increased customer transactions supported by digital adoption.
BJ's Wholesale Club Holdings, Inc. BJ is also seeing robust digital traction, with digitally enabled comparable sales growing 31% in the fourth quarter of fiscal 2025 and penetration reaching 16%. BJ’s Wholesale benefits from a club-based fulfillment model, with more than 90% of digital orders fulfilled in-club, supporting efficiency. BJ’s Wholesale continues to pair digital growth with membership expansion and traffic gains, reinforcing its omnichannel value proposition.
What the Latest Metrics Say About Costco
Costco has seen its shares jump 3.4% over the past year compared with the industry’s growth of 16.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 46.72, higher than the industry’s ratio of 32.99 but below its median P/E level of 47.14, observed over the past year. Although the premium multiple may appear elevated, investors often view Costco as a high-quality retail operator supported by resilient comparable sales growth, strong membership retention and expanding digital capabilities.
As long as Costco continues to deliver consistent sales growth and strengthen its omnichannel presence, its premium valuation could remain supported by investors seeking stable growth within the retail sector.
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 8.5% and 13%, respectively. For the next fiscal year, the consensus estimate indicates a 7.5% rise in sales and 10% growth in earnings.
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.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks 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.

Costco's Renewal Rates Hold Strong: Can Digital Members Catch Up?

Key Points
Costco keeps growing mostly through comps, rather than expansion.
Coca-Cola delivered $0.27 of profit for every dollar in sales last year. Drink that up.
Walmart and Costco have delivered just one year of top-line declines over more than three decades.
Consumer staples are popular in 2026. It's not a surprise given the flight to safety. Investors are looking for industries that will thrive in all market environments, and consumer staples scratch that itch.
Costco Wholesale (NASDAQ: COST), Coca-Cola (NYSE: KO), and Walmart (NASDAQ: WMT) are likely names you already know. Let's get into why all three are consumer staples stocks built for market uncertainties.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
1. Costco
The leading warehouse club operator tops the list of stable consumer staples. Try saying that three times fast. Costco has delivered net sales growth in all but one of the last 33 years, and even the outlier is still worth celebrating. The 1.5% decline in 2009 occurred during the Great Recession, when the entire U.S. corporate sector took a 13% top-line hit.
The all-weather appeal is clear. Despite the annual membership fees, churn remains low because shoppers know they will more than make up for it with rock-bottom pricing throughout the year. Costco is a safe stock, even with its lofty valuation.
You will pay 53 times trailing earnings to buy Costco today. It's naturally not growing anywhere close to that pace. This should be the chain's fourth consecutive year of single-digit revenue growth. The key to paying a market premium for Costco is its rabid customer loyalty.
With 924 big-box locations worldwide, it's not expansion that's fueling growth. Net sales rose 9% in its latest quarter, fueled mostly by a 7.9% jump in comps for the fiscal second quarter. This isn't a fluke. It's pretty much the default setting for Costco stock and its investors.
2. Coca-Cola
The high-margin provider of Coca-Cola syrup and other beverage essentials to regional bottlers and distributors is as close to a dream model as you can imagine. Soft drink prices have inched higher in recent years, but it's still a cheap indulgence.
With 64 years of dividend hikes, this Dividend King remains worthy of the throne. Fetching 25 times trailing earnings -- less than half of Costco's multiple -- doesn't make it cheap. It just makes it less expensive. However, when you have an iconic brand, a broad line of globally popular beverages, and a 27% net margin, you're going to be worth that premium.
3. Walmart
The country's second-largest company by revenue has quietly joined the elite club of 11 companies with market caps topping $1 trillion. Walmart's 39% ascent over the past year will do that. Like Costco but without the membership fees (outside of its own Sam's Club concept), Walmart is a haven for affordability.
Like Costco, Walmart has had only one year of negative top-line growth over the past several decades. Like Coca-Cola, it's also a Dividend King with 53 years of boosting its quarterly payouts. Like both stocks, it trades at a high multiple relative to its growth rate. Security is worth a market premium, especially in today's volatile climate.
Should you buy stock 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 $500,572!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,223,900!*
Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 199% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Rick Munarriz has positions in Costco Wholesale. The Motley Fool has positions in and recommends Costco Wholesale and Walmart. 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.

3 Consumer Staples Stocks That Provide Stability in a Volatile Investing Environment

Key Points
Chewy is an operating leverage story trading at a cheap valuation.
The company has a great, highly recurring defensive business model.
Down nearly 20% to start the year, the drop in share price for Chewy's (NYSE: CHWY) stock looks like it could be a gift for long-term investors. In fact, it looks like one of the most attractively valued growth stocks in the consumer space.
Let's look at three reasons to buy the stock for the long term.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
1. An operating leverage story
What differentiates e-commerce companies like Amazon and Chewy from brick-and-mortar retailers is that they tend to have more levers to pull to achieve strong operating leverage. Revenue growth is only half the story in retail, and operating leverage is when companies can grow their profits much more quickly than their revenue.
Chewy is creating operating leverage in a few ways. It's still ramping up a new state-of-the-art fulfillment center and using artificial intelligence (AI) to become more efficient. It's also been leaning into higher-gross margin businesses, including private-label pet food, sponsored ads, vet care services, and pet pharmacy. It is also testing a paid membership program.
The company saw its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins grow by 90 basis points last year to 5.7%, which led to a 26% adjusted EBITDA growth to $719 million. It is expecting adjusted EBITDA margins to expand another 100 basis points this year and for its adjusted EBITDA to climb around 27% to between $900 million and $930 million. The company has a long-term target on 10% adjusted EBITDA margins, which would provide a lot of growth in the coming years.
2. A defensive business
Chewy has one of the most recession-resistant business models in retail. Nearly 70% of its sales last year came from consumables like pet food, while another 16% came from pet health and specialty products. On top of that, 84% of its sales last quarter came from customers who are part of its autoship program.
Chewy's average customer is spending nearly $600 a year, mostly on pet food and other pet necessities, that are automatically shipped to their homes without them having to even place an order. These types of recurring business models are valuable and tend to trade at premiums.
The stock is on sale
Despite Chewy's recession-resistant, highly recurring business model and strong sales and profitability growth, the stock is in the bargain bin. It trades at a forward P/E of below 17 times this year's analyst estimates, which is a huge discount to defensive brick-and-mortar retailers like Walmart and Costco, which have multiples over 40 times. Meanwhile, it's growing its revenue at a quicker pace and seeing huge profitability growth (both EBITDA and operating income).
Take it all together, and this stock is a buy.
Should you buy stock in Chewy right now?
Before you buy stock in Chewy, 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 Chewy 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 $500,572!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,223,900!*
Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 199% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 24, 2026.
Geoffrey Seiler has positions in Amazon and Chewy. The Motley Fool has positions in and recommends Amazon, Chewy, Costco Wholesale, and Walmart. 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.

3 Reasons the Sell-Off in Chewy Is a Gift for Long-Term Investors

Key Points
After the stock’s impressive trailing 10-year performance, the valuation is extremely expensive.
Costco’s long-term goal is to open 30 or more net new warehouses each year.
Consistent financial performance is one reason this is a great business.
The overall brick-and-mortar retail sector is hyper-competitive. The businesses with a highly regarded brand and significant scale are the ones that have achieved durable success. Costco (NASDAQ: COST) is one of these companies.
Its shares have generated a total return of 688% in the past 10 years (as of April 22). But they've had a hard time establishing a new peak. This retail stock is trading almost 7% off its all-time record from February 2025.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Investors might view this situation as a reason to look closely at this opportunity. Could buying Costco shares now set you up for life?
Valuation should never be overlooked
Warren Buffett, the legendary investor who transformed Berkshire Hathaway into a trillion-dollar conglomerate, popularized the concept of value investing. Buying companies at attractive valuations is core to the Oracle of Omaha's philosophy.
Keeping this in mind, it's strikingly clear that Costco isn't a stock worth buying today. The valuation shouldn't be overlooked. Shares trade at a steep price-to-earnings ratio of 52.2, demonstrating lofty market expectations that leave no room for error.
If you're looking for stocks that can set you up for life, you're probably after a sensational 50-fold or 100-fold gain in the coming decades. Costco simply won't pass the test.
Besides the valuation, scale is the other factor that limits long-term growth potential for this massive business. It's much more difficult to expand from a fiscal 2025 net sales base of $270 billion than it is to grow from a drastically smaller revenue position.
To be fair, Costco's expansionary runway is not even close to being finished. It plans to open "30-plus" net new warehouses annually, up from a planned 28 in fiscal 2026. This will help grow its membership base, while lifting sales and earnings down the road.
Costco stock is a high-quality benchwarmer
This pessimistic view doesn't mean that Costco should be completely ignored. This is an outstanding company that has a storied history and a bright future. Its track record of consistent same-store sales growth is impressive. Thanks to steadily rising profits, Costco has also been able to increase the dividend 189% in the past 10 years, with occasional special one-time payouts.
I believe the smart move is for investors to leave Costco stock on the watchlist for now. It can be added to the portfolio bench, if you will, as investors wait for a sizable pullback before acquiring shares.
This will test patience and discipline, critical traits that are necessary for long-term success in the stock market.
Should you buy stock 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 $502,837!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,241,433!*
Now, it’s worth noting Stock Advisor’s total average return is 977% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of April 23, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Costco Wholesale. 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

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