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

Key Points
Chewy's stock is one of the most attractive growth stocks in all of retail.
The stock trades at a discount despite strong revenue growth and margin improvement.
Despite putting up solid growth metrics, it's been a tough stretch for Chewy (NYSE: CHWY) stock. The e-commerce company specializing in pet food and supplies has seen its stock cut in half from its 52-week high, and its shares are down around 20% in 2026 alone.
However, this sell-off could be a nice buying opportunity for investors.
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 »
A defensive gem
Chewy operates one of the more defensive concepts in retail. The bulk of its sales comes from pet food and other essential pet supplies that are automatically shipped to its customers on a regular basis. A whopping 84% of its sales come from customers who use its autoship feature, although that does include some non-autoship sales from these customers.
These types of defensive retail stocks that mostly sell necessities generally tend to trade at premium valuations. However, Chewy's valuation greatly trails many peers that would fit into this category, such as Walmart, Costco, and Tractor Supply Company. Trading at a forward P/E of just 16.5 times next fiscal year analyst estimates, the stock is very attractively valued, especially in relation to other retail staples.
Meanwhile, Chewy has been growing both revenue and profits at a nice pace. While the company will report its fiscal fourth quarter results later this month, it has grown revenue by more than 8% each quarter this past fiscal year, including 8.3% last quarter. The growth is led by its autoship customers, whose spending is up 16% over the past year. The company has grown its active customer base, while spending per active customer has risen to nearly $600 a year.
Chewy has also leaned into initiatives to help improve its margins and deliver operating leverage. This includes introducing a paid membership program with perks, introducing more private label brands, pushing more into the pet pharmacy business, automation, and growing its sponsored ad business.
These actions helped lead to a 50 basis point increase in gross margin in fiscal Q3 to 29.8%, and for its EBITDA (earnings before interest, taxes, depreciation, and amortization) margins to expand by 100 basis points to 5.8%. Meanwhile, between its strong sales and margin expansion, its adjusted EPS (earnings per share) soared from $0.12 a year ago to $0.32 in fiscal Q3.
While Chewy does show some signs of maturing as new user growth slows, the company is still seeing solid overall sales growth. Meanwhile, it looks like it is on the path to achieving its 10% EBITDA margin goal in the coming years, as it continues to become more efficient and experience revenue growth from higher-margin businesses.
Between its growth, margin improvement, highly recurring revenue model, and valuation, Chewy is one of the best bargains currently in the market.
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 $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
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*Stock Advisor returns as of March 15, 2026.
Geoffrey Seiler has positions in Chewy. The Motley Fool has positions in and recommends Chewy, Costco Wholesale, Tractor Supply, and Walmart. The Motley Fool recommends the following options: short April 2026 $55 calls on Tractor Supply. 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.

1 Growth Stock Down Nearly 50% to Buy Right Now

Key Points
Walmart and Costco are both reporting high e-commerce growth.
Walmart has more than 5,000 U.S. locations that can get deliveries to customers quickly.
Costco is demonstrating high renewal rates and membership growth.
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 »
The market continues to punish Amazon (NASDAQ: AMZN) stock, with another drop after it released its latest earnings results.
Today, the market seems to value Amazon more for its artificial intelligence (AI) development than advances in retail e-commerce, but e-commerce is still its largest business. Although the company has no real competition in the space right now, accounting for nearly 40% of U.S. e-commerce, many other retailers are building thriving e-commerce segments to complement their retail businesses.
If you're looking for top choices, I recommend Walmart (NASDAQ: WMT) and Costco Wholesale (NASDAQ: COST).
1. Walmart
Walmart has fallen to second-largest retailer in the world behind Amazon as of the end of 2025, but the market continues to prize Walmart's consistent growth and emerging digital business. It has the largest store footprint in the U.S., with more than 5,000 stores, and it keeps finding new ways to boost its business.
E-commerce has been a major growth driver over the past few quarters. E-commerce sales increased 24% year over year in the 2026 fiscal fourth quarter (ended Jan. 27), with a 27% increase in U.S. e-commerce.
It has its own Prime-like membership program called Walmart+, which has been growing quickly, and membership income increased 15% year over year in the fourth quarter. Members are enjoying the quick delivery, and Walmart has an advantage in fast delivery because of its huge store base. Fast deliveries increased 60% year over year, demonstrating the opportunity here.
Walmart is a dependable Dividend King. And it's both resilient and innovative, making it a top long-term play.
2. Costco
Costco stock is finally back in the market's good graces after reporting another stellar earnings report for the 2026 fiscal second quarter (ended Feb. 15). Sales were up 9.1% year over year, and comparable sales rose 7.4%. Whatever reservations the market had about Costco's ability to keep growing despite inflation seem to have vanished.
E-commerce has been a major growth driver for Costco, too. Like Walmart, Costco is leveraging its distinctive edge to boost what it calls digitally enabled sales, which encompasses its robust order pickup business in addition to home deliveries.
Digitally enabled sales increased nearly 23% year over year in the quarter. Total app visits were up 63%, while site traffic rose 35%, and average order value increased 15%. That bodes well for the company's future in this space.
As usual, membership renewal rates remain high at nearly 90% globally and 92.5% in the U.S. and Canada, and membership growth was up 4.8%.
Costco stock is up 16% this year, outpacing the market as it demonstrates resilience and value.
Should you buy stock in Walmart right now?
Before you buy stock in Walmart, 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 Walmart 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 $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% 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 March 15, 2026.
Jennifer Saibil has positions in Walmart. 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.

Top 2 Retail Growth Stocks to Buy After Amazon's Latest Sell-Off

Key Points
Target beat analyst earnings estimates in the 2025 fourth quarter.
Its new CEO has laid out a plan for getting back to the model customers used to love.
Target is a Dividend King.
The S&P 500 hasn't moved much this year after three years of double-digit gains. It's less than three months into 2026, so investors shouldn't worry at this point. However, there's going to be a year where things go south -- and it could be this one.
In the meantime, any stock that's gaining this year is more or less beating the market. And there's at least one surprise -- Target (NYSE: TGT) -- which has been losing value for years and is 55% off its highs but is up 22% year to date.
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 »
Is Target back in action? Or is this a short-term movement that's not going to last?
A new CEO and roadmap
New CEO Michael Fiddelke has only been in the top spot as of Feb. 1, but he's been in training since the announcement in August. He comes from the role of COO, so he's intimately familiar with the company.
It's not hard for anyone who's been following Target, whether as an investor or a shopper, to see how Target has fallen short. It's been having trouble with inventory, and its merchandise hasn't been resonating with its core consumer. Sales have been dragging, while competitors like Walmart and Costco Wholesale continue to enjoy consistent growth.
Fiddelke outlined a plan for Target to get back to its roots as a fun place to shop, with a distinctive flair and owned brands that offer style and value. It's also planning to open more new stores and lean into technology to expand its markets for next-day delivery, where it has always shone. In the fourth quarter, same-day delivery for members increased 30% year over year, and Target has consistently performed well in this area.
I think he nailed it when he explained what Target's customers are looking for:
Target is not an everything store. That's not what guests want from us. They want a strong, trend-forward assortment that they can trust to deliver quality and value.
Now, investors need to see that management can translate that into measurably higher sales and profits.
The proof will be in the performance
Target still has a long road to stability, but the market was enthusiastic about its fourth-quarter results. Sales and comparable sales were slightly down year over year, but adjusted earnings per share (EPS) and adjusted operating income were slightly up. What the market tends to reward is an earnings beat, and adjusted EPS beat Wall Street estimates by $0.28.
The market also liked guidance for 2026 sales to increase about 2% and operating margin to rise 20 basis points. EPS is also expected to increase for the year.
The company is planning to spend an extra $2 billion this year alone to revamp its stores and create more value for customers. It expects that to boost engagement and, ultimately, sales.
That's on top of the $5 billion it had already earmarked for capital expenditures and includes updated floor plans, staff training, and marketing. It expects to open 30 new stores this year and remodel 130 others and will open its 2,000th store later this month.
Is Target stock the ultimate contrarian buy?
It seemed like the market had moved on from Target after it experienced setback after setback. Even with this year's gains, it remains well off its highs. The stock is dirt cheap right now, trading at under 15 times trailing-12-month earnings and 19 times trailing-12-month free cash flow.
Also in its favor is that it's a Dividend King, and its dividend yields 3.8% at the current price. Even if investors are unsure about where the stock price is headed, shareholders will benefit from a reliable, high-yielding dividend. That mitigates some of the risk.
If Target can sharpen its model and get back to what it does best, it could be an incredible investment. That's still an unknown, but since it already offers value in its dividend, investors might want to take small bite right now.
Should you buy stock in Target right now?
Before you buy stock in Target, 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 Target 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 $514,000!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% 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.
Jennifer Saibil has positions in Walmart. The Motley Fool has positions in and recommends Costco Wholesale, Target, 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.

This Passed-Over Stock, 55% Off of Its All-Time High, Is Crushing the Market This Year. Is It the Ultimate Contrarian Stock to Buy Now?

Key Points
Costco Wholesale is a world-class retail business with an iconic brand among shoppers.
Its membership-fee business model generates recurring profitable revenue streams for durable growth.
But a bit too much market enthusiasm has priced the stock at alarmingly high levels.
Costco Wholesale (NASDAQ: COST) has grown into one of the world's largest retailers, and its business success has translated to life-changing returns for shareholders. The stock has returned more than 6,330% over its lifetime, turning a $10,000 investment into more than $642,000.
Shoppers flock to its stores for its vast selection of bulk-quantity goods and quirky customer favorites, like its famous $1.50 hot dog meal, which hasn't increased in price since it launched over 40 years ago.
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 »
But can Costco stock continue making investors wealthy? Here is what investors can expect.
Why the business can continue making shareholders richer
Costco's business is wonderfully simple. The company sells a wide variety of bulk-quantity goods, food, beverages, and odds and ends at low prices. Shoppers often treat their store visits like field trips, and the brand is so beloved that Costco doesn't need to spend any money on advertising.
The catch? You need to purchase a membership to shop at Costco, and that's how the company makes most of its profits. High-margin membership fees allow Costco to act as a price leader, selling its goods at razor-thin markups that reinforce its reputation as a place where people shop for deals.
The beauty of Costco's model is that it gatekeeps its stores. Costco is popular with high earners, who are willing to spend upfront on bulk quantities in the name of per-unit savings and to pay for the privilege of shopping there. High earners also account for an outsized share of total retail spending, making them a lucrative customer demographic.
Costco currently has 82.1 million paid memberships and continues to grow steadily. Paid memberships grew by 4.8% year over year in the most recent quarter. Management can also raise membership prices, though that's less common. Costco raised its membership fees for the first time in seven years in September 2024.
Wall Street analysts estimate that the company will grow earnings by an average of 10% annually over the next three to five years. Often, the companies with slow but consistent success over decades have the most lucrative stocks, and there's no reason to believe that Costco won't continue making investors richer with continued excellence as a top retail company.
However, a lofty valuation puts prospective buyers in a bind
World-class companies frequently command premium stock valuations. It would seem that Costco's stock has gotten a bit carried away in recent years. Shares trade at 52 times Costco's trailing-12-month earnings, about 33% above its decade average.
Frankly, it's tough to justify paying over 50 times earnings for 10% earnings growth, even for a business as well-run as Costco. Therefore, consider staying on the sidelines until shares at least approach their historical valuation, whether via business growth or via a pullback from the stock's current price.
Investors who overpay for Costco stock are far less likely to enjoy returns commensurate with the company's sterling reputation.
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 $508,607!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,122,746!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 188% 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 March 13, 2026.
Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends 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.

Could Investing $10,000 in Costco Wholesale Make You Richer?

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Costco Wholesale Corp (Symbol: COST), where a total volume of 28,088 contracts has been traded thus far today, a contract volume which is representative of approximately 2.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 136.1% of COST's average daily trading volume over the past month, of 2.1 million shares. Especially high volume was seen for the $1025 strike call option expiring March 13, 2026, with 2,642 contracts trading so far today, representing approximately 264,200 underlying shares of COST. Below is a chart showing COST's trailing twelve month trading history, with the $1025 strike highlighted in orange:
SiriusXM Holdings Inc (Symbol: SIRI) options are showing a volume of 48,592 contracts thus far today. That number of contracts represents approximately 4.9 million underlying shares, working out to a sizeable 122.7% of SIRI's average daily trading volume over the past month, of 4.0 million shares. Especially high volume was seen for the $23 strike call option expiring March 20, 2026, with 11,834 contracts trading so far today, representing approximately 1.2 million underlying shares of SIRI. Below is a chart showing SIRI's trailing twelve month trading history, with the $23 strike highlighted in orange:
And Hallador Energy Co (Symbol: HNRG) options are showing a volume of 5,749 contracts thus far today. That number of contracts represents approximately 574,900 underlying shares, working out to a sizeable 122.6% of HNRG's average daily trading volume over the past month, of 469,010 shares. Particularly high volume was seen for the $21 strike call option expiring April 17, 2026, with 3,235 contracts trading so far today, representing approximately 323,500 underlying shares of HNRG. Below is a chart showing HNRG's trailing twelve month trading history, with the $21 strike highlighted in orange:
For the various different available expirations for COST options, SIRI options, or HNRG options, visit StockOptionsChannel.com.
Also see:
BDC Baby Bonds and Preferreds
Top Ten Hedge Funds Holding AUGU
AIKI YTD Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Friday Option Activity: COST, SIRI, HNRG

Costco Wholesale Corporation COST released its second-quarter fiscal 2026 results on March 5, after the closing bell, drawing fresh attention from investors tracking the retail sector’s performance. Given its stable growth and loyal membership base, Costco has historically weathered economic hiccups better than many competitors. Now that its latest earnings are out, investors are considering whether to increase their stake, hold tight to their current investments or sell shares in response to new data and market trends.
Sneak Peek Into Costco’s Q2 Performance
Shares of Costco have risen 2.1% since its second-quarter fiscal 2026 earnings were released. Both revenues and earnings not only beat the Zacks Consensus Estimate but also improved year over year, driven by robust membership growth, resilient traffic, double-digit e-commerce gains and margin expansion. (Read: Costco Q2 Earnings Beat Estimates on Solid Sales and Membership Growth)
The company's ability to generate strong comparable sales across regions highlights its effective pricing strategy and member loyalty. Comparable sales, excluding gasoline prices and foreign exchange impacts, rose 6.7%. In the United States, comparable sales increased 6.4%, while Canada and Other International markets saw gains of 7.6% and 7.1%, respectively.
Costco ended the quarter with 82.1 million paid members, representing a 4.8% increase from the prior year. Executive memberships, a more profitable category for Costco, increased 9.5% year over year to reach 40.4 million. The company's commitment to value and quality has fostered strong loyalty among members.
How Consensus Estimates Stack Up for Costco Post Q2 Earnings
Over the past seven days, the Zacks Consensus Estimate for the current fiscal year has moved up by 7 cents to $20.29, while the estimate for the next fiscal year has increased 13 cents to $22.28. These estimates indicate expected year-over-year growth rates of 12.8% and 9.8%, respectively.
Image Source: Zacks Investment Research
Costco’s Winning Formula: Membership and Digital Expansion
Costco’s resilient business model, centered around a membership-based structure, creates a recurring revenue stream while encouraging customers to shop frequently. Members pay an annual fee for access to Costco's warehouses, where they can purchase goods at significant discounts. This model not only ensures a steady inflow of revenues but also creates a sense of exclusivity and value among its members. Membership fee income rose 13.6% year over year in the second quarter, benefiting from strong renewal rates. The renewal rate remained healthy at 92.1% in the United States and Canada and 89.7% worldwide.
The company focuses on offering quality merchandise at prices that are often lower than its competitors and continuously invests in lowering prices for its members when conditions allow. This approach strengthens customer loyalty and encourages repeat visits. Costco’s merchandising strategy also keeps the shopping experience fresh through a curated assortment of products, seasonal offerings, and unique items that attract customers and drive impulse purchases. By combining everyday essentials with compelling offerings, Costco maintains strong consumer engagement.
Costco’s private label brand is another important driver. The Kirkland Signature brand has become widely recognized for delivering premium quality at a lower price compared with national brands. This private label not only reinforces Costco’s reputation for value but also gives the company greater control over sourcing and product quality. As the assortment continues to expand across food, household essentials and general merchandise, Kirkland strengthens Costco’s brand identity and customer loyalty. At the same time, it supports profitability because the company can capture more value within its own supply chain while still offering compelling prices to members. Costco launched roughly 30 new Kirkland items in the second quarter.
The company is also benefiting from strategic investments in digital capabilities and operational efficiency. Costco has been expanding its online platform, improving its mobile app and using technology to personalize product recommendations and streamline the shopping experience. These initiatives complement the warehouse model by allowing customers to shop across multiple channels. Digitally enabled comparable sales surged 22.6% year over year, supported by 32% growth in e-commerce site traffic and 63% growth in app visits. Initiatives such as mobile wallet enhancements, pharmacy pay-ahead, employee pre-scan technology and a pilot of automated pay stations are improving traffic flow and enhancing the member experience.
Costco’s long-term growth outlook remains strong due to its disciplined expansion strategy and global opportunities. The company continues to open new warehouses in attractive markets. During the quarter under discussion, Costco opened four warehouses, including a relocation in the United States, one net new U.S. location and two Canadian business centers. For fiscal 2026, the company expects to open 28 net new warehouses and is targeting 30-plus warehouse openings annually over the longer term to support continued global expansion. This measured expansion approach has led to strong productivity from new locations and sustained growth in membership.
Costco Navigates Competitive Landscape as Peers Scale Up
Costco's impressive sales figures are part of a larger retail picture where competition is intensifying. Rivals like Ross Stores, Inc. ROST, Dollar General Corporation DG and Target Corporation TGT are investing in expanding their product assortments, enhancing supply-chain efficiency, and upgrading in-store and digital experiences to capture greater market share. These retailers are also sharpening their value propositions through competitive pricing, private-label expansion and targeted promotional strategies.
Margins remain a critical area to monitor, with potential concerns stemming from any deleverage in the selling, general and administrative rate. Foreign exchange volatility and potential tariffs on key imports create uncertainty.
Does Costco Tick the Boxes for Value Investing?
Costco stock has rallied 16.6% over the past three months compared with the industry’s rise of 11.1%. A sneak peek into key retail peers' performance reveals that shares of Dollar General have risen 2.3% during the said time frame, while Ross Stores and Target have climbed 13.9% and 18.7%, respectively.
Image Source: Zacks Investment Research
The stock is trading at a significant premium to its peers. Costco's forward 12-month price-to-earnings ratio stands at 47.05, higher than the industry’s ratio of 32.98 and the S&P 500's 21.95. Costco is trading at a premium to Target (with a forward 12-month P/E ratio of 14.46), Ross Stores (28.74) and Dollar General (18.83).
Image Source: Zacks Investment Research
Costco continues to trade at a notable premium to its peers, reflecting investor confidence in its strong brand image, loyal membership base and long-term growth potential.
How to Play Costco Stock: Buy, Hold or Sell?
Costco’s latest quarterly results reinforce the strength of its core business model, built on a loyal membership base, consistent traffic, disciplined pricing and expanding digital capabilities. The company continues to execute well by balancing value for members with operational efficiency while steadily expanding its warehouse footprint and strengthening its private-label portfolio. These factors support a stable long-term growth outlook. However, the stock’s premium valuation suggests that much of this strength is already reflected in the share price. For existing investors, holding the stock appears reasonable, while potential investors may consider waiting for more attractive entry points while keeping Costco on their watchlist.
Costco currently has 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should Investors Buy Costco Stock After Its Q2 Earnings Beat?

Key Points
All three companies pay consistent dividends.
Coca-Cola and Hormel have increased their dividends for six decades.
Costco's membership retention and international expansion are powering its growth.
Some companies stand the test of time and become synonymous with greatness and excellence. There are three stocks we'll discuss here that meet this standard of success and are worth buying and holding for decades. Coca-Cola (NYSE: KO), Costco (NASDAQ: COST), and Hormel Foods (NYSE: HRL) are the cream of the consumer staples crop. Consumer staples stocks tend to be defensive and generally offer lower volatility, greater consistency, and solid dividends.
Coca-Cola is still the leader
It's likely that when you hear the phrase "consumer staple," one of the very first brands that pops into your head is Coca-Cola. This beverage giant is one of the most durable and reliable companies in the world. Coca-Cola operates in more than 200 countries and has a portfolio of over 200 beverage brands.
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 »
Coca-Cola is a free cash flow titan, which is largely how it became a Dividend King. A Dividend King is a company that has raised its dividends for more than 50 consecutive years. Coca-Cola is now well into its sixth decade of dividend increases, and its current yield is 2.67%. The company maintains an asset-light business model that keeps costs in check and profitability high.
If you don't believe me and my reasons for owning and keeping Coca-Cola, know that Warren Buffett's Berkshire Hathaway purchased shares back in 1988 and has never sold.
Coca-Cola isn't a high-growth company, but it is still expanding. The company released its full fiscal year 2025 results in February, and organic revenue was up 5%. For the 2026 outlook, Coca-Cola expects much of the same, with a 4% to 5% increase. Mid-single-digit growth and six decades of increasing dividends make this a solid long-term buy-and-hold stock.
Costco competes on high retention and low prices
Yes, the $1.50 hot dog-and-drink combo is enough to get many cost-conscious customers through the door, but the real reason Costco will dominate for decades is its stellar membership model and renewal rate.
Costco stock does trade at a premium, but the company's consistent performance more than justifies it. Not only does Costco provide investors with strong growth, but it also pays regular and special dividends to shareholders. Costco's dividend yield is low at 0.52%, but I prefer Costco for its plan to continue expanding its footprint.
Costco is growing internationally, and its flywheel is impressive. Costco's competitive pricing attracts more members, those members continue to renew, and Costco can keep its prices lower than its competitors'. It's going to be very difficult to beat Costco over the next several years.
Costco has a bit more to offer than Coca-Cola in the way of growth. The company reported an 8.1% increase in net sales in the 2025 fiscal year. For the first two quarters of 2026, Costco improved even more to an 8.7% net sales increase. Costco stock is expensive, but there's a lot to love about its growth and income.
Hormel is quietly consistent
Last, but definitely not least, Hormel Foods is a stock you should buy and hold for a very long time. As another Dividend King, Hormel has paid a consistent dividend for nearly a century and has raised the dividend for 60 years.
Where Costco trades at premium prices, Hormel's stock is quite inexpensive, particularly for a long-term investor. The company has faced headwinds recently, pushing the stock 15% lower over the past 12 months. This price drop has also increased Hormel's dividend yield to 5.0% as of March 10.
Hormel's latest quarterly earnings were cautiously optimistic. The food business reported a 2% increase in net sales, marking its fifth consecutive quarter of net sales growth. Hormel also reaffirmed its 2026 guidance, which could see organic sales growth of 1% to 4%.
Hormel knows how to navigate challenges and will remain a global food leader for the foreseeable future.
These three stocks are great options for a variety of long-term investors. From their business fundamentals to their global brand recognition, Coca-Cola, Costco, and Hormel Foods are worth buying and holding on to for decades.
Should you buy stock in Coca-Cola right now?
Before you buy stock in Coca-Cola, 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 Coca-Cola 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 $511,735!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,140,464!*
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Catie Hogan has positions in Coca-Cola. 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.

The Best 3 Consumer Staples Stocks to Buy and Hold for Decades

Key Points
These three companies show that quiet, pragmatic accumulation can outperform flashy trends.
Extending trusted brands, improving core products, and adding thoughtful new offerings can drive real growth without the roller-coaster risk of tech stocks.
Lately, I've been paying close attention to how everyday consumer staples are quietly stealing the spotlight in 2026. While the S&P 500 is still being carried by a handful of tech giants, there are more grounded, cash flow‑rich companies that are showing steady strength in the Consumer Staples sector, too.
The three companies featured below are finding smart ways to grow, innovate, and stay relevant. For anyone looking for reliable upside without the wild swings, these stocks feel positioned to outperform the broader market this year.
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1. Church & Dwight
Church & Dwight (NYSE: CHD) was founded in 1846, and it has spent 180 years turning baking soda into an empire. The Arm & Hammer brand appears in more grocery aisles than almost any other single brand in America, with products related to laundry, cat litter, toothpaste, deodorant, and household cleaning.
That ubiquity is not an accident. It is the product of a pragmatic innovation engine that extends existing brands into adjacent categories rather than chasing moonshots.
I've been really impressed by what Church & Dwight has been up to this year and last year, and the market seems to agree. The stock has surged 22% over the past two months, reflecting investor excitement around their innovation and growth strategy.
Their 2026 innovation pipeline is a glimpse into how this machine keeps running. Take TheraBreath, which the company acquired in 2021. It's moving beyond mouthwash into toothpaste, with three versions focused on fresh breath, whitening, and gum health. Hero Cosmetics, the acne-patch brand Gen Z loves, is rolling out invisible liquid patches and cleansers, opening up completely new ways for makeup-wearing consumers to use their products.
Even Trojan is getting in on the innovation, debuting GOAT (Greatest of All Trojan), a non-latex condom, their first major material breakthrough in over 20 years, and early reviews are strong. And on the household front, Arm & Hammer is launching a Baking Soda Fresh laundry detergent with 10x more baking soda, aimed squarely at value-conscious shoppers right when many are trading down.
The company expects these new launches to drive roughly half of its organic growth this year.
I'm a big fan of businesses that acquire strong, established brands rather than reinventing the wheel from scratch. It's smart, efficient growth in action. Church & Dwight is one of those tickers.
2. Lamb Weston
Lamb Weston (NYSE: LW) is one of the world's largest producers of frozen potato products, with McDonald's, Wendy's, and thousands of food service operators depending on its supply chain.
The stock has been under pressure. It cratered around 30% in mid-December 2025 into the new year, creating an entry point as the company executes a strategic transformation called "Focus to Win." The plan is straightforward: close underperforming facilities (including the Connell, Washington, plant); curtail excess production lines; and redirect capital into higher-return investments.
An American Falls, Idaho, expansion involving over $415 million in investment is boosting french fry production capacity by roughly 40%. A new facility in Argentina commenced production in late 2025, extending Lamb Weston's reach into Latin American markets. Capacity in the Netherlands was expanded in the first half of fiscal 2025.
The innovation angle is overlooked. Lamb Weston is developing "fridge-friendly fries" designed for at-home consumption, a category extension that would move beyond its traditional food-service dependency.
French fries are one of the most universally consumed food items on Earth, and Lamb Weston controls a disproportionate share of the global supply.
With the ticker down 30% over the last 3 months, I think it's a safe buy if you want to beat out the S&P 500.
3. Costco Wholesale
Costco Wholesale (NASDAQ: COST) stands out to me not just for its name but for why it could outperform in 2026. The shift into consumer staples has brought record inflows, and Costco sits at the sweet spot of defensive demand and real growth.
Kirkland Signature is the engine. The retailer's private-label collection of products offers members 15%–20% price savings compared to comparable national brands while expanding into premium categories such as organic foods and luxury skincare.
Over 30 new Kirkland products were launched in its most recent quarter, with more coming in 2026. Domestic sourcing in key categories like health, beauty, tires, and mattresses cuts costs 30%–40% and reduces tariff exposure.
I've written about how I think the magic of Costco has always been its membership model, and today, that flywheel is spinning faster than ever.
In the first quarter of fiscal 2026, membership fee income jumped 14% to $1.33 billion, fueled by a 5.2% increase in the paid membership base to 81.4 million.
Executive memberships, the company's most profitable tier, grew 9.1% to 39.7 million. Beyond its loyal members, Costco continues to compound its advantages through 28 new warehouse openings globally and 15% growth in e-commerce.
For investors seeking both capital preservation and steady growth, Costco delivers on both fronts.
Should you buy stock in Church & Dwight right now?
Before you buy stock in Church & Dwight, 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 Church & Dwight 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 $511,735!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,140,464!*
Now, it’s worth noting Stock Advisor’s total average return is 946% — a market-crushing outperformance compared to 191% 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.
Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends 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.

These 3 Consumer Staples Stocks May Outperform the S&P 500 in 2026

Putting money to work in individual stocks can work out extremely well. However, for some investors, adopting a more diversified and simplistic approach makes the most sense. Luckily, there are some compelling exchange-traded funds (ETFs) that provide investors with exposure to certain market themes and sectors.
That being said, if you have less than $1,000 to invest, look no further than the Vanguard S&P 500 Growth Index Fund ETF (NYSEMKT: VOOG). Here are three reasons why it deserves a place in your portfolio.
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1. Betting on growth
As its name suggests, the Vanguard S&P 500 Growth Index Fund ETF provides investors with exposure primarily to growth-oriented companies within the S&P 500 (SNPINDEX: ^GSPC). In total, this ETF contains 209 stocks, giving investors a lot of diversification within their overall portfolios.
Nonetheless, the fund has popular stocks investors are undoubtedly familiar with. The "Magnificent Seven" are extremely important. Combined, they represent 44.7% of the ETF. Their performance has a big impact on the fund.
Essentially, investors are betting heavily on the success of America's most well-known growth businesses. The advantage is that someone doesn't need expert financial modeling or investment analysis skills. Investing in the Vanguard S&P 500 Growth Index Fund ETF is a no-hassle, low-maintenance approach, freeing up lots of time for other endeavors.
2. Solid performance at a low cost
Besides its exposure to growth, another reason investors should consider buying the Vanguard S&P 500 Growth Index Fund ETF is perhaps something people care about most: performance. In the past decade, it has generated a total return of 277%, well ahead of the overall S&P 500's 230%. Investors would have nearly quadrupled their starting capital in 10 years -- a wonderful result.
This ETF's gains are even more impressive when zooming out. Since the fund's inception in September 2010, it has outperformed the broader S&P 500 by a notable 131%. This type of performance speaks for itself.
You might think the ETF is saddled with a high fee that eats away at investor returns. However, this is not the case. The ETF's expense ratio is just 0.07%. For every $1,000 invested, only $0.70 goes to the fee on an annual basis. Investors get to keep more of their money in the long run.
3. Buy the dip
While it's generally a good idea to put money to work in the stock market, now looks like a particularly good time to be on the offensive. As of this writing, the Vanguard S&P 500 Growth Index Fund ETF trades 9% below its all-time record, established in February. The market's softness presents a worthwhile opportunity.
Investing when there's so much uncertainty can be daunting. After all, everyone is talking about the new political landscape or how the economy will shape up in the near term. And this might discourage you from allocating capital.
But to be clear, there's always something to be worried about. Investors should remain optimistic about the long-term trajectory of the economy, instead of waiting until uncertainty subsides.
Time in the market matters much more than trying to successfully time the market. The latter is a losing game. By investing $1,000 into the Vanguard S&P 500 Growth Index Fund ETF today, you're making a no-brainer financial decision that's likely to benefit your portfolio well into the future.
Should you invest $1,000 in Vanguard Admiral Funds - Vanguard S&P 500 Growth ETF right now?
Before you buy stock in Vanguard Admiral Funds - Vanguard S&P 500 Growth ETF, 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 Vanguard Admiral Funds - Vanguard S&P 500 Growth ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $672,177!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of March 24, 2025
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.

1 No-Brainer S&P 500 Vanguard ETF to Buy Right Now for Less Than $1,000

Walmart Inc.’s WMT fourth-quarter fiscal 2026 results highlighted a strong 24% surge in global eCommerce sales, underscoring the retailer’s steady transition into a tech-powered omnichannel leader. The digital growth was broad-based across segments, with Walmart U.S. eCommerce increasing even more strongly with 27% rise, reflecting continued traction in the company’s online channels.
The primary engines behind this momentum include store-fulfilled pickup and delivery, along with the company’s expanding marketplace and advertising businesses. In the United States, Walmart’s focus on convenience is yielding meaningful results, with expedited store-fulfilled delivery channels growing more than 50%. In addition, the number of customers choosing ultrafast delivery, defined as under three hours, increased more than 60% during the year. This convenience-driven model has helped attract a broader customer base, including higher-income households that continue to contribute meaningfully to share gains.
Technology investments are also strengthening Walmart’s digital ecosystem. The company’s AI shopping assistant, “Sparky,” is already driving higher engagement, with users generating average order values roughly 35% higher than non-users. By combining forward-deployed inventory, automation and AI-powered shopping experiences, Walmart is strengthening the connection between digital demand and physical fulfillment.
As these capabilities expand across markets, Walmart’s efforts to offer faster and more convenient online shopping experiences could continue to support its digital momentum. The company’s ability to integrate the vast store network with digital capabilities is also helping strengthen its omnichannel fulfillment model.
WMT and Peers: Target & Costco Strengthen Digital Ecosystems
Target Corporation’s TGT digital ecosystem continues to gain traction as the retailer focuses on speed and convenience to drive online engagement. The company noted that same-day services generated more than $14 billion in sales in 2025, accounting for roughly two-thirds of digital revenues. Target is also expanding next-day fulfillment capabilities to improve delivery speed. As digital adoption grows, Target continues to focus on enhancing convenience and strengthening its omnichannel capabilities.
Costco Wholesale Corporation COST reported a 22.6% increase in Digitally-Enabled comparable sales in the second quarter of fiscal 2026. This momentum for Costco is fueled by enhanced personalization efforts and a 45% surge in mobile app traffic. As digital engagement continues to grow, Costco is using its vast warehouse network to support omnichannel fulfillment and make shopping more convenient for customers.
WMT’s Price Performance, Valuation and Estimates
Shares of Walmart have fallen around 7.6% in the past month compared with the industry’s decline of 6%.
Image Source: Zacks Investment Research
From a valuation standpoint, WMT trades at a forward price-to-earnings ratio of 42.18X, significantly up from the industry’s average of 38.92X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for WMT’s fiscal 2027 and 2028 earnings implies year-over-year growth of 9.5% and 12.7%, respectively.
Image Source: Zacks Investment Research
WMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
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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.

Costco Wholesale Corporation

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