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 остаётся качественным ритейлером с очень сильной рентабельностью капитала, но рынок уже закладывает в цену почти идеальный сценарий. По мультипликаторам оценка выглядит дорогой: P/E, P/S, P/B и P/FCF заметно выше медианы отрасли, а их динамика за последние периоды не показывает устойчивого удешевления. Это означает, что даже при хорошем бизнесе потенциал переоценки ограничен, а требования к будущему росту прибыли и денежного потока очень высоки. Сильная сторона компании — высокая эффективность: ROE, ROA, ROI и return on tangible equity находятся на высоких уровнях и в целом подтверждают качество модели. При этом маржинальность слабее отраслевой медианы: валовая, операционная и чистая маржа низкие, хотя и остаются стабильными по годам, что типично для дискаунтер-формата, но ограничивает масштаб расширения прибыли. Долговая нагрузка выглядит комфортно: debt/equity низкий и постепенно снижается, а долгосрочный долг не растёт, что поддерживает финансовую устойчивость. Ликвидность умеренная: current ratio около 1, quick ratio ниже 1, поэтому запас прочности есть, но он не избыточный. Дивидендная доходность очень низкая, поэтому дивидендный фактор почти не добавляет привлекательности для инвестора, ориентированного на доход. Выручка, активы, капитал и денежные средства растут, что подтверждает масштаб и устойчивость бизнеса, но темпы прибыли не выглядят настолько сильными, чтобы оправдать столь высокие мультипликаторы. В итоге фундаментал у Costco хороший, но не настолько сильный, чтобы агрессивно повышать целевую оценку; скорее уместна небольшая консервативная корректировка вниз из-за дорогой оценки и слабой маржинальности. Для инвестора это история качества и стабильности, а не явной недооценки.

Costco Wholesale Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, значительно упал. Медведи сохранили, но резко ослабили уверенность в своих позициях.

Weak index, significantly down. The bears retained but sharply weakened their confidence in their positions.

Сильный индекс, без изменений. Рынок на стороне быков.

Strong index, flat. The market is on the bulls' side.

Сильный индекс, без изменений. Рынок не поддерживает медведей.

Strong index, flat. The market does not support the bears.

Слабый индекс, незначительно упал. Приток средств в лонги остался положительным, но снизился.

Weak index, slightly down. The inflow of funds into longs remained positive, but decreased.

Слабый индекс, без изменений. Приток средств в шорты остается на невысоком уровне.

Weak index, flat. The inflow of funds into shorts remains at a low level.

Качество бизнеса у Costco очень высокое, но оценка уже завышена: сильная рентабельность и низкий долг сочетаются со слабыми маржами и дорогими мультипликаторами.

Key Points
Consumer confidence just hit a new low.
Many people are frustrated by persistent inflation, among other things.
If people go hunting for inexpensive goods, there are companies which will benefit from it.
Despite the S&P 500 climbing and routinely breaking its all-time highs recently, the U.S. consumer sentiment survey just printed 44.8 in May, the lowest reading in its history, undercutting even the gloom of the mid-2022 inflation scare. When shoppers feel this battered, they typically trim their purchases of discretionary goods first, and the textbook response for investors is to hunt the companies that are about to feel that squeeze.
The idea is that the ongoing consumer despair will lead to discounts on certain consumer-facing stocks soon, which, for those who pick the right assets, will then (hopefully) lead to gains when the mood inevitably lifts. The trouble is that the bargain bin is presently much emptier than that theory predicts, which is making many investors concerned that their new investments will be placed in highly overvalued assets that might never recover to their current price.
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So should investors be worried about how gloomy consumers are feeling right now?
Where's the money going?
When household budgets tighten because people are either expecting or experiencing hard economic times, people tend to redirect their spending rather than halt it altogether.
That meshes with census data, which shows headline retail sales still climbing, even as discretionary and big-ticket categories soften. Be on the lookout for buying opportunities over the next year or so, as you'll probably see some serious earnings softness leading to deep discounts on shares if consumer sentiment remains so sour.
The other side of the coin is that the most obvious winners of this era of discontent are the warehouse and discount giants, Walmart, (NASDAQ: WMT) Costco Wholesale, (NASDAQ: COST) where a dollar can be stretched the furthest.
Of course, much to the chagrin of investors, the market figured this out years ago. Walmart's trailing price-to-earnings (P/E) ratio is 42, and Costco's is 49. By that measure, both rank as being fairly expensive for recession-resistant retailers.
Nonetheless, even if the market experiences a sharp downturn, those names are more likely than not to bounce back, even if consumers remain unhappy.
The case for staying calm
The best move for investors right now is to stay patient and to be highly selective about which stocks to buy and when. The most important trigger to be watching is actual spending habits, not feelings.
If discretionary outlays keep contracting over the next couple of quarters to the point where there appears to be little hope for the stocks of luxury goods producers and similar companies, that will be the moment to look for bargains to buy in that segment. At the same time, the valuations of Costco, Walmart, and other consumer staples businesses may be even less favorable by then, so be more cautious.
In other words, position yourself to take advantage of poor consumer sentiment and any of the resulting market volatility as the opportunities present themselves, and don't be worried about it specifically. It's frustrating to experience inflation, but worrying (rather than taking action) will just make it harder to bear.
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 $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!*
Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 206% 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.
Alex Carchidi 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.

Consumer Sentiment Hit a New Low. Should Investors Be Worried Right Now?

Key Points
Costco, Walmart, and Amazon are all strong retail stocks.
Amazon is riskier, but it has more upside thanks to its cloud business.
Picking a winner depends on the goals and needs of a portfolio.
Costco Wholesale (NASDAQ: COST), Walmart (NASDAQ: WMT), and Amazon (NASDAQ: AMZN) have all carved out their own niche in serving retail shoppers. Walmart is known for low prices, Costco sells bulk items, and Amazon sells and ships pretty much anything you need.
As investments, they are also all unique in how they can fit into a portfolio. Finding the winner between the three comes down to holding periods and investing goals.
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 membership model that keeps making money
Walking through a Costco is often described as being on a treasure hunt, with some members even sharing their shopping trips on social media. With its bulk deals and private-label Kirkland Signature brand, Costco has built a loyal following that helps it boast an impressive membership renewal rate. As of its fiscal Q3 2026, Costco's membership renewal rate in the U.S. and Canada was 92.2%, while its worldwide membership renewal rate was 89.7%.
Mostly known for its warehouse shopping experience, Costco is also seeing positive results from connecting more with its customers online. In the third quarter, e-commerce site and app traffic rose 37%, while digitally enabled comparable sales increased 21.5%. While the quarter was strong and the company generally met or slightly beat expectations, the report wasn't enough to impress investors, and the stock price has recently dipped. Costco is richly valued, with a forward price-to-earnings ratio of 43.1, so expectations are high.
Still, over the last five years, Costco has done well by its shareholders, with the stock climbing over 150%. It's also a dividend payer, and while that yield is on the smaller side at 0.6%, Costco is also known for paying out a special dividend from time to time. In 2024, the one-time special dividend payout was $15 per share.
Constant dividends with a side of tech
Walmart is the only Dividend King on the list, earning that title by increasing its dividend payout for 50 or more consecutive years. That shows stability in the company's business model, because no matter what is going on in the economy, it has consistently rewarded its shareholders with dividend increases for the past 53 years. That comes from having a reliable business model.
Unlike some other Dividend Kings, however, Walmart is also known for providing stock price appreciation, particularly over the last five years, with shares also up over 150%, like Costco. That growth can continue over the long term as it infuses more technology into its business, such as its artificial intelligence (AI) shopping agent, Sparky. It also has growing revenue from its Walmart+ membership and a budding advertising division.
Follow the AI leader
Amazon has a retail presence like Walmart and Costco, and it also has a grocery component through its ownership of Whole Foods. But there's an even bigger opportunity outside of the retail sector for Amazon.
Much as in the chip sector for AI, where most roads lead to Nvidia, that's increasingly becoming true with Amazon's cloud business. In its 2026 first-quarter earnings report, Amazon announced new Amazon Web Service (AWS) agreements with Anthropic, Meta Platforms, Nvidia, OpenAI, and Uber Technologies. In that report, Amazon also announced that AWS revenue increased 28% to $37.6 billion, which was its fastest revenue growth in 15 quarters.
For Amazon, the only catch is that it is judged more as a tech company than a retailer. Tech stocks are usually the first stocks investors rotate out of during periods of heightened economic uncertainty, as they are seen as risky.
The winning stock
Walmart, Costco, and Amazon are well-run companies, and each could be worth holding in a portfolio. But with the idea that you'd be buying a stock in 2026 to hold for years or decades for stock price appreciation, Amazon could offer the most potential thanks to its AI opportunities. It's making heavy investments to win the AI race against other big tech companies, but as those capital expenditures start showing up as revenue and margins improve, that can help the stock price break out.
For long-term investors seeking reliable income, however, Walmart is worth considering. The dividend yield is on the lower side at 0.8%, but that indicates a sustainable yield. Plus, while Amazon could offer more long-term stock price appreciation because of its cloud services and involvement in AI, Walmart's dividend payout can help increase its total return potential.
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 $433,268!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,259,391!*
Now, it’s worth noting Stock Advisor’s total average return is 935% — a market-crushing outperformance compared to 206% 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.
Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, Meta Platforms, Nvidia, Uber Technologies, 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 vs. Amazon: Which Stock Is the Smartest Buy in 2026?

Key Points
Costco has outperformed Walmart stock so far in 2026.
While Walmart customers are buying less than 10 gallons per trip to the pump, Costco recently set new records for gasoline sales volumes.
Both stocks are strongly outperforming the S&P Retail Select Industry Index, but Costco seems better positioned for an environment of lingering high gas prices.
As of this writing on June 10, a new round of U.S. military strikes in the Iran conflict has driven up the price of oil. Higher oil prices mean higher prices at the gas pump. And in an economy where many Americans already feel pressured by high costs of living, that could lead to some changes in how people spend their discretionary income.
Some retail stocks are more vulnerable than others to high gasoline prices. Retail sector stocks in general are struggling in 2026. So far this year, Walmart (NASDAQ: WMT) and Costco (NASDAQ: COST) are both strongly outperforming the S&P Retail Select Industry Index, but only Costco is outperforming the S&P 500 index:
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 »
Costco shares have delivered slightly higher returns than Walmart stock in 2026. And if gas prices stay high, that outperformance is likely to continue. Costco might be better positioned than any other retailer to keep thriving even if gas prices spike again.
Let's look at a few reasons why Costco could be a better buy than Walmart.
Walmart customers are cutting back on gas
Walmart and Costco both sell gas. So on that basic level, both retailers will keep earning revenue from gasoline even if gas prices stay higher for longer. But customers seem to be reacting to high gas prices in a way that's more troubling for Walmart's business.
On May 21, during the company's most recentearnings call Walmart's chief financial officer John David Rainey said that although the retailer's higher-income customers are still spending "with confidence," lower-income customers are "more budget-conscious."
As part of that trend, Rainey shared a surprising statistic: Walmart fuel-center customers are now buying an average of less than 10 gallons of gas per visit. That's the lowest level since 2022.
It's a bad sign, indicating that Walmart shoppers are being hit hard by high gas prices. If people are still topping up their tanks at Walmart gas pumps but having to cut back on gas, that could mean they're tapped out and ready to pull back on other consumer discretionary spending. That could lead to less foot traffic in Walmart stores.
Costco: Record-breaking gasoline sales
Gasoline sales make up a significant portion of Costco's revenue -- about 10% of total net sales, according to the 2025 annual report. But the recent spike in gas prices has driven Costco's gas sales even higher than usual.
On the company's most recent quarterlyearnings callon May 28, CEO Ron Vachris said that Costco achieved "record-breaking volumes" in its latest fiscal quarter, and the final five weeks of the quarter were "our top five volume weeks ever."
Even beyond the sheer volume of gasoline that they buy, Costco members seem to behave differently when buying gas. Instead of buying cheap gas and driving away, Costco's gas customers tend to stick around and shop. Vachris said on May 28 that company executives believe higher gasoline sales volumes "will drive even greater loyalty with these members in the future, as members who use our gas stations typically spend more with us in the warehouse."
During a previousearnings callon March 5, Costco's CFO said that about 50% of gas shoppers also "cross-shop" at the nearby Costco warehouse. Buying gas at Costco isn't just a way to save money, it's an occasion to go spend some more. People might think: "I'll stop by Costco for the cheap gas -- oh, and while I'm there, I'll buy some groceries for dinner."
Why buy Costco stock versus Walmart stock?
High gas prices aren't the only factor that determines how people spend money or where they shop. But if the Iran conflict leads to a longer, more severe spike in gas prices, it would likely drive inflation even higher for longer across the economy. If inflation rises, Walmart's lower-income customer base is likely to pull back on spending sooner than Costco's more affluent gas-pump bargain hunters.
Costco has a recent price-to-earnings (P/E) ratio of 48.8, compared to Walmart's P/E multiple of 42.3. Neither stock looks cheap compared to the S&P 500's current P/E ratio of 31.3. But if I had to choose today between investing in shares of Costco or Walmart, I'd buy Costco stock.
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 $438,283!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,257,427!*
Now, it’s worth noting Stock Advisor’s total average return is 938% — a market-crushing outperformance compared to 206% 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.
Ben Gran has no position in any of the stocks mentioned. 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.

If Gas Prices Stay High, Costco Stock Could Be a Better Buy Than Walmart

Friday, June 12, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Costco Wholesale Corp. (COST), Lam Research Corp. (LRCX) and KLA Corp. (KLAC), as well as two micro-cap stocks Blue Ridge Bankshares, Inc. (BRBS) and AXIL Brands, Inc. (AXIL). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market's open and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> SpaceX IPO Crowds Pre-Market Sentiment
Today's Featured Research Reports
Shares of Costco have gained +13.7% over the past six months against the Zacks Retail - Discount Stores industry’s gain of +14%. The company remains well-positioned due to its differentiated membership-based warehouse model, strong value proposition and loyal customer base. It continues to benefit from recurring membership income, high renewal rates and growing engagement from higher-value members.
Costco’s focus on offering quality merchandise at competitive prices supports steady traffic and reinforces customer loyalty. Costco is also enhancing its digital ecosystem through e-commerce, personalization tools, AI-driven product discovery and convenient fulfillment options, helping improve the member experience.
Also, the company is expanding its warehouse footprint and investing in productivity-enhancing initiatives to support long-term growth. Backed by a strong balance sheet, Costco is well-positioned to strengthen its market leadership and drive sustainable growth over time.
(You can read the full research report on Costco here >>>)
Lam Research’s shares have outperformed the Zacks Electronics - Semiconductors industry over the past six months (+120.9% vs. +50%). The company is benefiting from AI-driven increases in demand for deposition and etch tools across memory, foundry and advanced packaging industries.
Management lifted its calendar year 2026 WFE outlook and sees growth continuing into 2027 as customers work through capacity and cleanroom constraints. Record Q3 results and a higher Q4 outlook reflect momentum in leading-edge foundry and HBM-driven DRAM, while NAND conversion activity is being pulled forward.
Customer Support is scaling with a larger installed base and new productivity services that can lift output and yield. Strong cash flow and an aggressive shareholder return policy are other positives. However, global spending on mature nodes is likely to remain soft in the near term. Growing trade and tariff tensions between the United States and China are a concern.
(You can read the full research report on Lam Research here >>>)
Shares of KLA have outperformed the Zacks Electronics - Miscellaneous Products industry over the past six months (+97.4% vs. +51.7%). The company continues to benefit from AI-driven spending in leading-edge foundry/logic, high-bandwidth memory and advanced packaging, supporting market share gains in process control and steady services growth that helps anchor cash generation.
Management expects its advanced packaging portfolio revenue to rise to about $1 billion in 2026 and sees wafer equipment demand strengthening into 2027, with June quarter guidance calling for another step up in revenue. A high free cash flow profile supports ongoing dividends and repurchases, including a higher quarterly dividend and a new $7 billion authorization.
However, KLAC’s prospects remains balanced for now given export control and tariff uncertainty, customer concentration, and gross margin sensitivity to elevated DRAM-related system costs expected to persist through at least 2026.
(You can read the full research report on KLA here >>>)
Blue Ridge Bankshares’ shares have outperformed the Zacks Banks - Northeast industry over the past year (+41.6% vs. +40%). This microcap company with a market capitalization of $298.51 million is transitioning to a traditional community banking model post-completion of its regulatory remediation efforts. Capital remains above regulatory requirements despite a large special dividend, while liquidity is strong and credit quality continues to improve.
The exit from fintech-related activities has simplified operations, while brokered deposit reduction and expense controls support a leaner model. Yet, earnings remain pressured by balance-sheet contraction, lower loan yields and reduced revenue diversification. Profitability still relies partly on non-core items, while the loan portfolio remains concentrated in real estate.
The valuation reflects investor caution toward earnings recovery. While the successful execution of growth and profitability initiatives could drive upside, failure to rebuild sustainable core earnings may limit shareholder returns.
(You can read the full research report on Blue Ridge Bankshares here >>>)
Shares of AXIL Brands have outperformed the Zacks Consumer Products - Staples industry over the past year (+24.4% vs. -7.5%). This microcap company with a market capitalization of $44.18 million sees its investment thesis driven by its core hearing enhancement and protection business, supported by expanding retail and online distribution.
AXIL Brands is building a more diversified revenue base by complementing its direct-to-consumer model with a growing wholesale presence. Despite tariff-related pressure and elevated marketing spending, AXIL has remained profitable while investing in growth, reflecting disciplined execution. The emerging marketing services segment provides a potential high-margin, complementary revenue stream by leveraging existing digital marketing capabilities.
Additionally, the hair and skin care business offers strategic optionality, with corporate actions creating flexibility for future value-maximizing opportunities while management remains focused on scaling the core hearing platform.
(You can read the full research report on AXIL Brands here >>>)
Other noteworthy reports we are featuring today include Kinder Morgan, Inc. (KMI), Chipotle Mexican Grill, Inc. (CMG) and Cytokinetics, Inc. (CYTK).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Kinder Morgan's (KMI) Take-or-Pay Contracts Support Stable Cash Flows
Per the Zacks analyst, Kinder Morgan's earnings and cash flows are anchored by long-term take-or-pay contracts, which protect it from commodity price swings and other macro headwinds.
Chipotle (CMG) Banks on Strategic Initiatives, High Costs Ail
Per the Zacks analyst, Chipotle's focus on Recipe for Growth strategy, unit expansion and Zipline pilot bode well. However, the uncertain macro environment and high costs pose concerns.
Myqorzo Approval Fuels Cytokinetics (CYTK), Regulatory Setbacks a Woe
Per the Zacks analyst, the FDA approval of Myqorzo is a significant boost for Cytokinetics given the market potential. However, regulatory setbacks are a major concern for other pipeline candidates.
Tenant Demand, Strategic Acquisitions Support Vornado's (VNO) Growth
Per the Zacks analyst, Vornado benefits from strong tenant demand for premium office space, strategic acquisitions and adequate liquidity despite New York assets concentration and competition.
Key Acquisitions, Rising Air Travel Demand Boost AAR Corp. (AIR)
Per the Zacks analyst, AAR Corp. is expected to see strong growth in its parts supply business, supported by rising air travel demand. Disciplined acquisition strategy will also boost its growth.
Tissue Reconstruction Momentum Aids Integra (IART), FX Woes Stay
The Zacks analyst is impressed with Integra LifeSciences' robust Tissue Reconstruction performance, led by Integra Skin, DuraSorb and the PriMatrix launch. Adverse currency impacts may hurt results.
AEG Buyout Enhances ICF's (ICFI) Offerings Amid High Costs
Per the Zacks analyst, Applied Energy Group's (AEG) suite of technology and advisory services to electric and gas utilities improves ICF's offerings. Rising costs are an overhang.
New Upgrades
Credit Sales, Receivables Growth Drive Bread Financial (BFH)
Per the Zacks analyst, Bread Financial is set to grow on credit sales growth driven by existing partners, as well as new product and brand partner additions. Yet, high expenses weigh on margins.
Central Garden & Pet (CENT) Benefits From Digital and Cost Initiatives
Per the Zacks analyst, Central Garden & Pet is expanding through e-commerce growth, innovation, and cost efficiencies. The Cost and Simplicity program is streamlining operations.
Helen of Troy (HELE) Gains on Strength in Leadership Brands
Per the Zacks analyst, Helen of Troy is benefiting from strong performance in its Leadership Brands, with growth in key categories, improved pricing and continued innovation supporting its outlook.
New Downgrades
Weak Demand & Cost Pressures Ail International Paper (IP)
The Zacks analyst is concerned that weak demand in end markets coupled with higher input costs and maintenance outage expenses will continue to impact International Paper's results.
Plexus (PLXS) Faces Near-Term FCF Pressure Amid Growth Push
Per the Zacks analyst, the free cash flow outlook cut and healthcare softness add near-term risk for Plexus even as strong program wins and demand support a strong outlook.
Lower IT Spending to Hurt DXC Technology's (DXC) Prospects
Per the Zacks analyst, DXC Technology's growth prospects might be hurt by soft IT spending as organizations are pushing back their large IT investment plans amid the macroeconomic headwinds.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Analyst Reports for Costco, Lam Research & KLA

Key Points
Costco posted strong Q3 earnings and excellent May sales numbers.
Investors may view the numbers as inflated because of soaring gas prices.
Costco stock may be overvalued and not a good buy right now.
Costco Wholesale (NASDAQ: COST) investors may be scratching their heads a bit over recent stock price movements following seemingly strong sales and earnings reports.
On June 3, the big-box retailer posted a huge May sales increase, up 14% from last May to $24 billion. Net sales for the first 39 weeks of the fiscal year are up 10% from the same period last year. Comparable store sales rose 12.5% in May and have jumped 8% through the first 39 weeks.
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 »
That was boosted by strength in two areas, including digital or online sales, which rose an impressive 21% year over year in May and 21% through the first 39 weeks.
The other major spike came from gas sales. Comp sales excluding gas was 8%, so gas sales increases accounted for a third of the comp sales increase.
This followed a robust third-quarter earnings report released on May 29 for the period ended May 10, when comp sales rose 10%, digital sales spiked 21%, and gas sales set a record. Also, earnings shot up 15% to $4.94 per share.
So why has Costco stock been dropping?
Costco stock sputters
Typically, reports this strong would be a catalyst for the stock price to rise, but Costco shares have sputtered over the past week. The May sales report (released June 3) temporarily caused a spike as shares jumped from $962 per share to $997 per share when the market opened on June 5. But then shares tumbled back down to close at around $960, down almost 5%.
A big part of that June 5 drop was not related to Costco. There was an overall sell-off that day after a hotter-than-expected jobs report threw cold water on the prospects of a rate cut.
But Costco stock fell more than the broader market as investors are wary of its high valuation and may be taking profits, sensing drawn-out impacts from the Iran war and perhaps no rate-cut relief. Also, despite the blowout results, the overall gross margin dropped 21 basis points as Costco lowered prices on some key items and faced higher costs in areas (like transportation). It led to concerns that too much of the gains came from the temporary spike in gas prices.
These are all seemingly minor concerns, but when the stock is trading at 49 times earnings and 43 times forward earnings, there is not much room for error. Investors likely saw potential headwinds and decided to take some profits until the valuation drops.
Costco is a great long-term hold, but it's probably a bit overvalued right now to warrant calling it a strong buy.
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 $445,672!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,280,566!*
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*Stock Advisor returns as of June 9, 2026.
Dave Kovaleski 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.

Costco's Digital Sales Jumped 21% and Gas Volumes Hit a Record. So Why Did COST Stock Drop 5%?

Key Points
Costco is reporting accelerating growth despite the inflationary climate.
The stock is down as the market worries about the future.
Costco stock is cheaper, but it's not cheap.
Costco Wholesale (NASDAQ: COST) has historically been an expensive stock to buy. The company is so reliable for top performance that the stock's premium was worth it. However, as it surpassed 60 times trailing 12-month earnings, it was starting to look too pricey.
Indeed, the stock is flat since it hit that high, although it's had ups and downs in the middle.
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That P/E ratio may have been a signal for a correction. But at 49 times trailing 12-month earnings, is Costco stock finally cheap enough to buy?
Why investors love Costco
Costco consistently reports robust growth, and it has some of its best performance when times have been tough. That's what's been happening today.
In the company's 2026 fiscal third quarter (ended May 10), sales increased 11.6% year over year, while comparable sales (comps) were up 9.4%. Despite rising costs, profitability remains strong, with earnings per share (EPS) up from $4.28 to $4.93.
And if that wasn't enough, Costco just reported its May results, which were even better. Revenue increased 14.5% year over year, and comps were up 12.5%. Costco provides only a limited slate of metrics for the monthly reports.
Costco's reliable membership model generates loyalty and volume, and its rock-bottom prices drive higher sales when customers are penny-pinching. It earns its $65 per annual membership fee, or $130 per executive membership, no matter what, providing reliable recurring revenue.
Love can only go so far
It's this kind of performance that has investors clamoring for the stock despite the high price. The company is resilient, and the stock is expected to be, too. That theory changes, though, as the valuation climbs, because the high price itself makes it susceptible to a correction. That's what's been happening lately.
Costco stock is down 13% this year, even as the S&P 500 has hit record highs. At a P/E ratio of 49, it's only slightly lower than the three-year average of 52.
There could be more pressure on Costco stock in the near term, as the market expects volatility going forward as inflation persists. But this could be one of the dips that are likely to occur, so if you have a long-term investing approach and many years to hold, you could feel comfortable buying Costco stock at the current price.
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 $443,191!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,258,838!*
Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 206% 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 June 9, 2026.
Jennifer Saibil 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.

Is Costco Stock Finally Cheap Enough to Buy?

Key Points
Revenue and comps growth have been accelerating.
Costco management attributes some of the growth to increased oil prices, which is driving customers to its gas stations.
The May sales report showed the highest increase since 2021.
Costco Wholesale (NASDAQ: COST) reported blowout earnings for the 2026 fiscal third quarter (ended May 10). The warehouse retailer is demonstrating accelerating sales growth and is even more popular as consumers seek the best prices amid rising inflation rates.
As outstanding as the report was, it wasn't enough to boost the stock, though, which fell after the results were released. The market's been worried about a slowdown happening as inflation persists, even though the impact so far has only been positive for Costco.
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However, it just provided another round of excellent news for Costco shareholders, and the stock is rising again.
Sales are accelerating
First, here are some of the highlights in the third quarter:
Sales increased 11.6% over last year.
Comparable sales (comps) increased 9.8%.
Earnings per share (EPS) were up from $4.28 last year to $4.93 this year.
As always, Costco's membership metrics tell a deeper narrative. Membership was up 4.1%, and the adjusted membership fee was up 7%. Renewal rates remained strong at 92.2% in North America and 89.7% worldwide. The worldwide rate has been slightly lower since Costco introduced online registration. However, online registration is also attracting younger members, which is an important development for the company's long-term growth story.
Costco has been embracing digital technology in a number of ways that fit its unique model. It's not set up for classic e-commerce, but it has a robust buy online, in-store pickup business, and it works with third-party platforms for same-day grocery deliveries. Digitally enabled sales have been a key growth driver over the past few months, and sales increased 21.5% year over year in the third quarter.
Another growth driver has been the company's gas stations. As shoppers search for the lowest prices, customers who don't usually use Costco's pumps have been trying them out. CEO Ron Vachris said, "We believe this will drive even greater loyalty with these members in the future, as members who use our gas stations typically spend more with us in the warehouse."
The news just got even better
Costco is one of the few public companies that report select monthly results as well as quarterly numbers, and there was another acceleration in May. Total revenue increased 14.5% over last year, while comps were up 12.5%. The highest comps were domestic, with a 13.7% increase in U.S. comps. These are its best monthly results since late 2021.
Based on the third-quarter commentary, higher oil prices likely play a big role in the acceleration. But based on the same commentary, these customers may continue to fill up at Costco and increase engagement across the business. So while there may be a near-term spike in sales due to what is hopefully a short-term jump in oil prices, there could be lasting benefits for Costco.
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 $443,191!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,258,838!*
Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 206% 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 June 9, 2026.
Jennifer Saibil 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.

After Reporting Blowout Earnings, Costco Just Gave Investors Even Better News.

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Axcelis Technologies Inc (Symbol: ACLS), where a total volume of 6,804 contracts has been traded thus far today, a contract volume which is representative of approximately 680,400 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 128.8% of ACLS's average daily trading volume over the past month, of 528,265 shares. Particularly high volume was seen for the $200 strike call option expiring June 18, 2026, with 6,422 contracts trading so far today, representing approximately 642,200 underlying shares of ACLS. Below is a chart showing ACLS's trailing twelve month trading history, with the $200 strike highlighted in orange:
Costco Wholesale Corp (Symbol: COST) options are showing a volume of 31,539 contracts thus far today. That number of contracts represents approximately 3.2 million underlying shares, working out to a sizeable 125.1% of COST's average daily trading volume over the past month, of 2.5 million shares. Particularly high volume was seen for the $770 strike put option expiring June 12, 2026, with 1,357 contracts trading so far today, representing approximately 135,700 underlying shares of COST. Below is a chart showing COST's trailing twelve month trading history, with the $770 strike highlighted in orange:
And Unum Group (Symbol: UNM) options are showing a volume of 13,215 contracts thus far today. That number of contracts represents approximately 1.3 million underlying shares, working out to a sizeable 121.9% of UNM's average daily trading volume over the past month, of 1.1 million shares. Especially high volume was seen for the $105 strike call option expiring December 18, 2026, with 12,851 contracts trading so far today, representing approximately 1.3 million underlying shares of UNM. Below is a chart showing UNM's trailing twelve month trading history, with the $105 strike highlighted in orange:
For the various different available expirations for ACLS options, COST options, or UNM options, visit StockOptionsChannel.com.
Further ACLS Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Monday Option Activity: ACLS, COST, UNM

Target Corporation’s TGT first-quarter fiscal 2026 performance suggests that one of the most important drivers of retail growth is beginning to move in the right direction again — customer traffic. After facing softer demand trends over the past year, the retailer saw shoppers return to stores and digital channels in meaningful numbers, helping fuel broad-based sales growth across the business.
Comparable sales increased 5.6% in the first quarter, driven primarily by a 4.4% rise in traffic, a notable turnaround from the 2.4% decline recorded in the year-ago period. Management highlighted traffic as the largest contributor to growth, calling it an encouraging sign because it reflects more guests choosing Target more often.
The strength was not limited to one part of the business. Store comparable sales rose 4.7%, while digital comparable sales increased 8.9%, indicating that shoppers engaged with Target across multiple channels. Traffic gains also coincided with growth in all six core merchandise categories, reinforcing the breadth of the recovery.
Target tied the improvement to recent merchandising and experience initiatives. Management noted that categories where Target introduced new products, refreshed assortments and enhanced in-store experiences generated positive guest responses.
For now, the key takeaway from the quarter is clear. Target’s efforts are drawing shoppers back, and rising traffic is emerging as a meaningful engine behind its renewed growth momentum.
How Target Compares With Walmart and Costco’s Comp Sales
While Target is showing signs of improving category momentum, peer performance provides additional context on how consumer demand is trending across the retail landscape.
Walmart Inc. WMT posted U.S. comparable sales growth of 4.1% in the first quarter of fiscal 2027, driven by higher customer transactions, increased unit volumes and strong e-commerce performance. Walmart continued to gain market share across income groups while benefiting from growth in advertising, marketplace sales and Walmart+ membership revenues. Walmart’s results reflected steady demand for both grocery and general merchandise offerings.
Costco Wholesale Corporation’s COST third-quarter fiscal 2026 comparable sales rose 9.8%, helped by fuel inflation and foreign exchange. Costco’s adjusted comparable sales increased 6.6%, reflecting broad-based demand, with traffic up 2.4% and adjusted ticket growth of 4.2%. Costco also posted healthy regional adjusted comps of 6.8% in the United States, 6.2% in Canada and 5.9% internationally.
What the Latest Metrics Say About Target
Target has seen its shares jump 1.2% over the past three months against the industry’s decline of 1.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, Target's forward 12-month price-to-earnings ratio stands at 14.35, lower than the industry’s ratio of 31.29. However, it is trading above its 12-month median level of 13.25, suggesting that while the stock remains discounted versus the industry, part of the recent operating improvement may already be priced in.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Target’s current financial-year sales and earnings per share implies year-over-year growth of 3.9% and 10.3%, respectively. The consensus mark for earnings has risen 33 cents to $8.35 per share over the past 30 days.
Image Source: Zacks Investment Research
Target currently carries 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 AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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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.

Target's Growth Story Gains Steam as Traffic Returns in Force

Key Points
Costco's business has thrived over the years, and it continues to possess attractive growth opportunities.
Its valuation, however, remains high despite the stock's recent weakness.
Shares of Costco Wholesale (NASDAQ: COST) have been falling in recent weeks. The retail stock is now down about 11% from its 52-week high of just under $1,097. It's not a huge sell-off by any stretch, but given how strong its gains have been in recent years and how solid a business it has been, it may still make for an enticing option for investors to consider.
On Monday, the stock was trading at around $975. Is it a good buy while it remains below the $1,000 mark?
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 »
Costco's business has been booming, and it still has much more room to grow
Consumers and investors alike love Costco. It's evident in both the company's rising sales and its share price. In five years, the stock has surged around 160%, as the business has been resilient, even though it's not exactly known for being associated with budget-friendly shopping. In fact, people normally break their budgets by spending more than they planned to when going to their local Costco warehouse.
The bargain-hunting business model has, however, worked incredibly well for Costco, enabling the business to grow significantly over the years. In the past three years, its annual revenue has risen from $227 billion to more than $275 billion. And over the trailing 12 months, its top line is now up around $294 billion. Costco has been a growth beast, while focusing mainly on North America; there's still ample room for it to grow internationally. The potential is alluring. The problem with the retail stock, however, is that it isn't cheap.
Is Costco worth its hefty premium?
You might expect retail stocks to trade at low earnings multiples for their modest growth, but Costco investors haven't balked at paying much more. Today, the stock is trading at a price-to-earnings multiple of around 50, which in the past may have seemed ludicrous to pay so much for a retail stock. But that's the kind of premium you'd be paying today, even if you bought it below $1,000.
Costco is a great company, and while there's plenty of value within its warehouses, the same can't be said for its stock. The stock has simply surged so much over the years that its valuation has gotten absurd. Even if you love the business, that doesn't make the stock a good buy. Although its share price has been falling in recent weeks, Costco's valuation would have to come down considerably more for it to be an attractive investment.
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 $443,191!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,258,838!*
Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 206% 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 June 8, 2026.
David Jagielski, CPA 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.

Costco Wholesale Corporation

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