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 remains a high-quality retailer with very strong operating efficiency, but the market is already pricing in an almost perfect scenario. Revenue for TTM reached $70.5 billion, while net income was $2.19 billion, with both figures generally increasing year over year, which supports the company’s fundamental valuation. ROE of 28.27%, ROA of 10.71%, and ROI of 23.92% look very strong and notably above industry medians, confirming a high return on capital. At the same time, profitability remains structurally low for the sector: gross margin of 12.88%, operating margin of 3.82%, and net margin of 3.01% are below the median, so the business still depends on scale and turnover rather than high markups. The debt burden looks comfortable: debt/equity of 0.17 is significantly below the industry level, long-term debt is stable, and nearly $20 billion in cash on hand provides a solid liquidity cushion. However, the current and quick ratios are below typical levels, which is not critical for Costco, but still limits its buffer in case working capital deteriorates. The main factor holding back the valuation is the very high multiples: P/E of 46.51, P/S of 1.40, P/B of 13.35, and P/FCF of 46.68 are significantly above the industry median, meaning the premium for quality is already very large. The recent trend in valuation multiples has generally improved, but they remain elevated, so the potential for further valuation expansion is limited. The dividend yield of 0.16% is growing, but remains symbolic and is not a meaningful driver of total return. Shareholders’ equity and assets are growing, which supports fundamental resilience, but does not remove concerns about the stock’s expensiveness relative to current financial performance. Overall, Costco’s fundamentals are strong, but not strong enough to justify an aggressive increase in the target price given the already high expectations. For an investor, this is more of a story about quality, stability, and defensive characteristics than about rapid upside from current levels.

Costco Wholesale Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, незначительно вырос. Рынок на стороне быков.

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

Сильный индекс, значительно вырос. Приток средств в лонги на высоком уровне.

Strong index, significantly up. Inflow of funds into longs at a high level.

Costco demonstrates strong profitability and a solid balance sheet, but it trades at a very high valuation premium, so the upside potential appears limited.

Key Points
Costco pays $1.47 per share in dividends quarterly, a figure that has climbed 227% in the past decade.
Management has a track record of using excess cash to pay sizable special dividends.
The retail stock trades at a price-to-earnings ratio of nearly 49.
Costco (NASDAQ: COST) is a clear juggernaut in the retail sector. It reported $69 billion in net sales just in the last fiscal quarter (Q3 2026 ended May 10). This makes it the world's third-largest retailer.
Investors have gained tremendously. In the past five years, the retail stock has produced a total return of 137% (as of July 28). A small part of this performance comes from the company's quarterly payout.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Here's how many Costco shares you'd need to generate $10,000 in yearly dividends.
Capital appreciation is the main driver of investor returns
In April, Costco's board of directors increased the quarterly payout from $1.30 to $1.47. This means that the company pays $5.88 to its investors per share annually. To collect $10,000 in yearly dividend income, investors would need to own about 1,701 shares. At the current stock price of $967.40, this would require an upfront investment of more than $1.6 million.
The dividend yield is low at 0.61%. Consequently, investors shouldn't see Costco as a top dividend stock.
But there are two positive trends to keep in mind. In the past decade, the dividend has increased by 227%. And the company occasionally pays out sizable special dividends. Most recently, it paid out $15 per share in January 2024.
The priority is to reinvest in the business. Once management believes there is excess cash, a special dividend will be on the table. "But no plan to share at the present time," chief financial officer Gary Millerchip said on the Q3 2026 earnings call.
Costco shareholders mainly benefit from capital appreciation. The stock price has risen 128% in the last five years, meaningfully outpacing the broader S&P 500 index.
This is a high-quality and expensive stock
This company has a history of sustainably growing its profit year in and year out. Costco's diluted earnings per share climbed 79% from Q3 2021 to the third quarter of fiscal 2026.
The growth story isn't over. Management aims to open 26 net new warehouses this fiscal year. The long-term plan is to open 30 or more new stores annually, with opportunities both in the U.S. and internationally. This supports more members and more spending, which then translate into durable sales and earnings gains.
Given how high the valuation is, however, investors should be patient. The stock's price-to-earnings ratio of 48.6 is extremely expensive, although it has come down in the past year and a half. Costco is a great company, but the dividend would make more sense at a calmer valuation.
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 $390,394!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,209,184!*
Now, it’s worth noting Stock Advisor’s total average return is 899% — 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.
Neil Patel 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.

Here's How Many Shares of Costco You'd Need to Generate $10,000 in Yearly Dividends

Key Points
Traders are selling volatile chip stocks and buying more stable investments.
Dividend stocks can add ballast to your portfolio.
Previously high-flying semiconductor stocks have plunged in recent days. Intensifying competition from Chinese chipmakers and mounting concerns that artificial intelligence (AI)-related spending may not produce its promised returns are prompting investors to seek shelter in more defensive businesses.
That's driving up the prices of dividend stocks like Kroger (NYSE: KR), Verizon (NYSE: VZ), and Costco Wholesale (NASDAQ: COST), all of which saw gains of roughly 2% on Tuesday.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Shifting to defense
Companies like Alphabet are being punished for stepping up their capital expenditures, as investors grow increasingly impatient with the ballooning spending plans of hyperscalers and other tech giants.
At the same time, tech leaders like ASML Holding, with competitive moats once thought to be unassailable, are facing new threats from upstarts in China and elsewhere.
In turn, investors who were previously gung-ho on AI stocks are now moving to dial back risk. That's leading many of them to more defensive dividend stocks.
3 dividend stocks to consider for your portfolio
Costco's shares are up 13% so far in 2026. In today's inflationary economic environment, the warehouse store leader's well-curated merchandise, low prices, and treasure hunt-style shopping experience are resonating with bargain-focused shoppers.
Verizon's flat-rate unlimited mobile plans and bundled wireless and internet offerings are helping it win more subscribers. The telecom titan's free cash flow is up 16% in the first half of 2026, and its shares are up 19% so far this year.
Kroger benefits as people choose to dine at home rather than at restaurants. The grocery giant is cutting prices to boost sales. That's weighing on its margins. But with its shares down 6% in 2026 and trading at about 11 times forward earnings projections, Kroger's stock is approaching bargain territory.
Should you buy stock in Kroger right now?
Before you buy stock in Kroger, 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 Kroger 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 $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!*
Now, it’s worth noting Stock Advisor’s total average return is 886% — 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.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Alphabet, and Costco Wholesale. The Motley Fool recommends Kroger and Verizon Communications. 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.

Why Costco, Verizon, Kroger, and Other Safe Dividend Stocks Are Rising

At Holdings Channel, we have reviewed the latest batch of the 55 most recent 13F filings for the 06/30/2026 reporting period, and noticed that Costco Wholesale Corp (Symbol: COST) was held by 33 of these funds. When hedge fund managers appear to be thinking alike, we find it is a good idea to take a closer look.
Before we proceed, it is important to point out that 13F filings do not tell the whole story, because these funds are only required to disclose their long positions with the SEC, but are not required to disclose their short positions. A fund making a bearish bet against a stock by shorting calls, for example, might also be long some amount of stock as they trade around their overall bearish position. This long component could show up in a 13F filing and everyone might assume the fund is bullish, but this tells only part of the story because the bearish/short side of the position is not seen.
Having given that caveat, we believe that looking at groups of 13F filings can be revealing, especially when comparing one holding period to another. Below, let's take a look at the change in COST positions, for this latest batch of 13F filers:
In terms of shares owned, we count 16 of the above funds having increased existing COST positions from 03/31/2026 to 06/30/2026, with 9 having decreased their positions and 3 new positions. Worth noting is that Pacific Asset Management LLC, included in this recent batch of 13F filers, exited COST common stock as of 06/30/2026.
Looking beyond these particular funds in this one batch of most recent filers, we tallied up the COST share count in the aggregate among all of the funds which held COST at the 06/30/2026 reporting period (out of the 2,527 we looked at in total). We then compared that number to the sum total of COST shares those same funds held back at the 03/31/2026 period, to see how the aggregate share count held by hedge funds has moved for COST. We found that between these two periods, funds reduced their holdings by 9,434,088 shares in the aggregate, from 12,268,080 down to 2,833,992 for a share count decline of approximately -76.90%. The overall top three funds holding COST on 06/30/2026 were:
We'll keep following the latest 13F filings by hedge fund managers and bring you interesting stories derived from a look at the aggregate information across groups of managers between filing periods. While looking at individual 13F filings can sometimes be misleading due to the long-only nature of the information, the sum total across groups of funds from one reporting period to another can be a lot more revealing and relevant, providing interesting stock ideas that merit further research, like Costco Wholesale Corp (Symbol: COST).
Further COST Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

See Which Recent 13F Filers Hold COST But Pacific Asset Management Exited

Walmart Inc. WMT is broadening its appeal beyond value-focused consumers as higher-income households respond to its mix of low prices, convenience and wider product selection. The sustainability of these gains will depend on whether those shoppers continue using Walmart across more categories and shopping occasions.
The first quarter of fiscal 2027 showed further progress. Walmart U.S. recorded broad-based share gains across categories and income tiers, led by upper-income households. Comparable sales rose 4.1%, driven by a 3% increase in transactions and a 1.1% rise in the average ticket.
Digital convenience is supporting that engagement. Walmart U.S. e-commerce sales advanced 26%, while store-fulfilled delivery grew about 45%. Nearly 36% of store-fulfilled orders were delivered in less than three hours, and Walmart can now reach about 60% of the U.S. population within 30 minutes.
A broader assortment is also helping attract higher-income customers. U.S. marketplace net sales increased nearly 50%, aided by greater engagement from higher-income households. Fashion posted its strongest share growth in five years, while expanded offerings supported results in patio and garden, sporting goods, furniture and toys.
While higher tax refunds may have supported some general merchandise demand during the quarter, Walmart’s combination of value, delivery speed and assortment breadth gives it several ways to stay relevant to higher-income shoppers. Sustained transaction growth and continued strength in marketplace and general merchandise would indicate that these customers are becoming a more consistent part of Walmart’s business.
What Do the Latest Metrics Say About Walmart?
Walmart, which competes with Costco Wholesale Corporation COST and Target Corporation TGT, has seen its shares rally 12.2% over the past year compared with the industry’s 10.1% growth. Shares of Costco have climbed 0.3%, while Target has gained 28.5% in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 35.6, higher than the industry’s 32.49. The company is trading at a premium to Target (with a forward 12-month P/E ratio of 15.88) while trading at a discount to Costco (41.93).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Walmart’s current fiscal-year sales and earnings per share implies year-over-year growth of 5.2% and 9.5%, respectively.
Walmart currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can Walmart Sustain Gains Among Higher-Income Customers?

Costco Wholesale Corporation COST is demonstrating remarkable momentum in its private label operations, leveraging its Kirkland Signature brand to deliver exceptional value to members. It is evolving into one of the retailer’s most effective growth engines, helping strengthen member loyalty while supporting merchandising differentiation.
Management highlighted that Kirkland Signature continues to drive growth in food and sundries by pairing equal or better quality with savings of at least 15% to 20% compared with national brands. Rather than relying on promotions, Costco is expanding the assortment with products designed to meet emerging consumer preferences.
New launches during the third quarter of fiscal 2026 included Kirkland Signature Energy Drink, Kirkland Signature Ultra Filtered Milk, Kirkland Signature Sea Salt Popcorn and Kirkland Signature Oven Roasted Chicken Dog Food, reflecting the brand’s expansion into faster-growing categories.
The strategy extends beyond introducing new products. Costco also lowered prices on several Kirkland Signature staples, including Crispy Wings, Milk Chocolate Almonds, Golf Balls and King Size Sheets, underscoring management’s commitment to passing cost efficiencies back to members instead of protecting margins.
Management suggested that Kirkland Signature is keeping pace with changing consumption trends. The company pointed to strong demand for protein-focused products, noting that its newly launched Ultra Filtered Protein Milk has gained traction quickly as shoppers increasingly prioritize health and wellness.
What the Latest Metrics Say About Costco
Costco, which competes with Dollar General Corporation DG and Target Corporation TGT, has seen its shares drop 5.9% over the past three months compared with the industry’s 1.4% decline. While shares of Dollar General have risen 1.3%, those of Target have jumped 7.6% in the aforementioned period.
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 41.93, higher than the industry’s ratio of 30.58. However, the stock is trading below its 12-month median level of 46.07, indicating some moderation in valuation despite sustained investor confidence in the stock.
Costco is trading at a premium to Target (with a forward 12-month P/E ratio of 15.88) and Dollar General (15.26).
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.6% and 13.5%, respectively. For the next fiscal year, the consensus estimate indicates a 7.8% rise in sales and 10.2% growth in earnings.
The consensus estimates for earnings per share for both the current and next fiscal year have increased by 6 cents to $20.42 and $22.50, respectively, over the past 60 days.
Image Source: Zacks Investment Research
Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Costco's Kirkland Brand Is Becoming a Powerful Growth Engine

Key Points
Costco's shares have outperformed the S&P 500 index.
The company continues to draw members with its attractive prices for high-quality goods.
The market has high expectations, but Costco still has growth opportunities.
For years, people have been saying that Costco Wholesale's (NASDAQ: COST) stock price run-up meant they'd missed the boat. Yet the shares have continued to do well.
Over the last decade, through July 17, the shares gained 459.6%, nearly double the S&P 500 index's 244.7% appreciation. That shows how investing in well-performing companies over long periods can result in outperforming the market.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Will this patience continue to pay off for investors?
A look at the business
Costco's business seems simple. Yet it's been executing very well for a long time.
If you haven't been to a Costco warehouse, it fills huge spaces (147,000 square feet on average) with a variety of goods and services, often packaged in bulk sizes. While Costco has varied offerings, it focuses on a narrow number of high-quality products that it provides at low unit prices.
You have to pay an annual membership fee to enjoy the benefits, but people clearly feel the value outweighs the cost. Costco consistently has high retention rates and membership growth. Renewal rates were nearly 90% in the fiscal third quarter (ended May 10), consistent with previous quarters. And Costco ended the period with 82.9 million paid members, up from 82.1 million on Feb. 15.
It continues to attract crowds, with same-store sales (comps) increasing 6.6% for the quarter, after removing gasoline sales and foreign-currency translation effects. Fortunately, Costco doesn't merely produce sales growth. It continues to grow profitability, with operating income leaping 11.3% year over year to $2.8 billion.
What to do
The company's strong performance has fueled the stock price gain. That also means the shares trade at a more expensive valuation.
In the last 10 years, Costco's price-to-earnings (P/E) ratio has jumped from 37 to 47. The shares have a median P/E of 37 over this time. They also have a richer valuation than the S&P 500, which trades at a P/E multiple of 32.
That sounds discouraging, but it's important to remember that Costco has been growing sales and profits at a nice clip. Furthermore, the company still has expansion opportunities.
Management has been opening more than 20 warehouses annually for the last several years. It opened 16 locations during the first nine months of the fiscal year and plans to add another 13 in the final quarter.
While the stock's lofty valuation reflects the market's high growth expectation, Costco hasn't previously disappointed. Investors may see some short-term volatility, but for long-term investors, the shares remain an attractive opportunity.
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 $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — 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 July 26, 2026.
Lawrence Rothman, CFA has positions in Costco Wholesale. 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.

Everyone Said It Was Too Late to Buy This Stock. They Were Wrong.

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in C3.ai Inc (Symbol: AI), where a total of 66,982 contracts have traded so far, representing approximately 6.7 million underlying shares. That amounts to about 121.7% of AI's average daily trading volume over the past month of 5.5 million shares. Especially high volume was seen for the $9 strike call option expiring July 31, 2026, with 15,770 contracts trading so far today, representing approximately 1.6 million underlying shares of AI. Below is a chart showing AI's trailing twelve month trading history, with the $9 strike highlighted in orange:
Micron Technology Inc. (Symbol: MU) options are showing a volume of 573,865 contracts thus far today. That number of contracts represents approximately 57.4 million underlying shares, working out to a sizeable 113.7% of MU's average daily trading volume over the past month, of 50.5 million shares. Especially high volume was seen for the $1000 strike call option expiring July 24, 2026, with 36,967 contracts trading so far today, representing approximately 3.7 million underlying shares of MU. Below is a chart showing MU's trailing twelve month trading history, with the $1000 strike highlighted in orange:
And Costco Wholesale Corp (Symbol: COST) options are showing a volume of 28,518 contracts thus far today. That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 105.9% of COST's average daily trading volume over the past month, of 2.7 million shares. Especially high volume was seen for the $630 strike put option expiring July 31, 2026, with 711 contracts trading so far today, representing approximately 71,100 underlying shares of COST. Below is a chart showing COST's trailing twelve month trading history, with the $630 strike highlighted in orange:
For the various different available expirations for AI options, MU options, or COST options, visit StockOptionsChannel.com.
Further AI 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 Thursday Option Activity: AI, MU, COST

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell Top 200 Value ETF (Symbol: IWX) where we have detected an approximate $189.1 million dollar inflow -- that's a 4.9% increase week over week in outstanding units (from 35,550,000 to 37,300,000). Among the largest underlying components of IWX, in trading today AbbVie Inc (Symbol: ABBV) is up about 1.1%, RTX Corp (Symbol: RTX) is up about 7.7%, and Costco Wholesale Corp (Symbol: COST) is lower by about 1%. For a complete list of holdings, visit the IWX Holdings page » The chart below shows the one year price performance of IWX, versus its 200 day moving average:
Looking at the chart above, IWX's low point in its 52 week range is $82.7834 per share, with $109.16 as the 52 week high point — that compares with a last trade of $107.35. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further IWX Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

IWX, ABBV, RTX, COST: Large Inflows Detected at ETF

Key Points
Amazon is seeing accelerating cloud computing revenue growth and strong operating leverage in its e-commerce business.
Meta is starting to shift the narrative about its AI ambitions in a positive way.
Meta Platforms (NASDAQ: META) and Amazon (NASDAQ: AMZN) are two of my favorite short- and long-term buys. With the companies set to report earnings on July 29 and July 30, respectively, I'd be scooping up shares of both before then.
Both Meta and Amazon stocks have been laggards over the past year, but that doesn't mean the companies haven't been performing well. While they have been penalized for their aggressive AI infrastructure plans, that should be about to change.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Let's look at why both stocks look like great buys right now.
Amazon: Accelerating cloud growth
Amazon has a history of investing aggressively, and history tells us that the company generally comes out much stronger after these big investment cycles. Its investments today are centered largely around building AI infrastructure, and the company's efforts in this area should lead to continued accelerating revenue growth at its AWS cloud computing unit when it reports its second quarter results after the bell on July 30.
Amazon invented the entire infrastructure-as-a-service cloud industry, and it continues to be the market share leader. Because of AWS' sheer size, though, its growth rate has lagged behind its peers. However, Q2 should demonstrate that not only is AWS' growth now much more robust, but that it is sustainable, backed by partnerships with Anthropic and OpenAI. The company also has a nice advantage in this area with its custom chip business, which should just continue to grow.
At the same time, Amazon's e-commerce business continues to hum along. The company's Amazon Prime Day event in June was once again strong, with Adobe and Retail Drive reporting that U.S. online sales jumped more than 9% during the event. And with the event shifting from Q3 to Q2, Amazon should see a nice lift in sales.
What is most exciting about Amazon's e-commerce business, though, is the operating leverage the company has been seeing with its investments in robotics and AI. Amazon is the world's leading manufacturer of robots, and with more than 1 million deployed in its fulfillment centers and coordinated by its Deepfleet AI model, it is driving serious efficiency gains in this business. That, in turn, is driving strong profitability growth that is nicely outpacing revenue growth.
Trading at a forward P/E of below 25 times 2027 analyst estimates, the stock is historically cheap and also a bargain compared to its brick-and-mortar peers, Costco and Walmart, which trade at forward P/Es above 37. That makes Amazon a bargain stock to buy ahead of earnings and to hold for the long term.
Meta Platforms: The newest cloud player
After bungling its metaverse vision and wasting a boatload of cash in the process with little to show for it, investors have been rightfully cautious about Meta's AI ambitions. However, the company is starting to change the narrative, and it will have a great chance to continue to do this on its nextearnings callafter it reports its Q2 results after the bell on July 29.
Meta revealed that it is looking to get in on the cloud computing game, with the social media giant in talks to lease up to $10 billion in computing capacity to Anthropic over the next two years. In total, Meta is looking to build approximately 14 gigawatts of AI capacity by 2027.
A cloud computing offering will give Meta more flexibility and ease the fear of it overbuilding capacity, since the company would be able to move between its own needs and those of customers. The company has also revealed its own custom chip, Iris, which it developed with Broadcom, to meet Meta's specific needs. The chip should also help Meta save costs. Meanwhile, its new AI model, Spark Muse 1.1, looks like a big leap forward.
At the same time, Meta's use of AI has been driving strong revenue growth, improving its recommendation algorithm to keep users on its sites longer, and helping advertisers achieve better conversion. This is leading to increased ad loads and higher prices. The company also has a huge runway as it starts to introduce ads to WhatsApp and Threads.
With Meta growing rapidly and trading at a forward P/E of only 17 times 2027 estimates, the stock has a lot of room to move higher in the short and long terms.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $538,309!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $62,465!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $370,332!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of July 23, 2026.
Geoffrey Seiler has positions in Amazon, Broadcom, and Meta Platforms. The Motley Fool has positions in and recommends Adobe, Amazon, Broadcom, Costco Wholesale, Meta Platforms, and Walmart. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. 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.

Should You Buy Amazon and Meta Platforms Stocks Before July 29?

For Immediate Release
Chicago, IL – July 22, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Eli Lilly and Co. LLY, Costco Wholesale Corp. COST, Morgan Stanley MS and Kewaunee Scientific Corp. KEQU.
Here are highlights from Tuesday’s Analyst Blog:
Top Research Reports for Eli Lilly, Costco and Morgan Stanley
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 Eli Lilly and Co., Costco Wholesale Corp. and Morgan Stanley, as well as a micro-cap stock Kewaunee Scientific Corp.. 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.
You can see all of today's research reports here >>>
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 opens, attempting 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 >>> Q2 Earnings Pick Up Steam: GM, MMM, DHI & More
Today's Featured Research Reports
Eli Lilly's shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+48.8% vs. +33%). Demand for the company's popular GLP-1 drugs, Mounjaro and Zepbound, remains strong, making them the company's key top-line drivers. Lilly's other new drugs like Kisunla, Omvoh and Jaypirca are also contributing to top-line growth.
Lilly is also making rapid progress in its pipeline with its new oral GLP-1 obesity pill, Foundayo, expected to be a commercial game-changer for the company. Lilly has aggressively expanded through M&A in 2026 across oncology, neuroscience, cardiovascular and other areas to diversify growth beyond GLP-1 therapies.
Declining sales of Trulicity, rising pricing pressure on some drugs and potential competition in the GLP-1 market are some top-line headwinds. Estimates have increased slightly ahead of Q2 results. Lilly has a positive record of earnings surprises in recent quarters.
(You can read the full research report on Eli Lilly here >>>)
Shares of Costco have gained +8.8% over the year-to-date period against the Zacks Retail - Discount Stores industry's gain of +11.3%. 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 >>>)
Morgan Stanley's shares have outperformed the Zacks Financial - Investment Bank industry over the past year (+54.3% vs. +25.2%). The company's outperformance suggests meaningful execution progress. Its second-quarter 2026 results reflected robust trading and investment banking (IB). It benefits from a durable wealth and asset management franchise that supports steadier fee income and deep client relationships, with strategic deals and alliances adding to long-term growth optionality.
The IB business will improve as pipelines rebuild, M&A demand holds up and relatively lower rates aid client activity. A strong capital position allows continued shareholder returns.
Yet, expense pressure from growth initiatives, technology spend and platform investments may limit operating leverage. Trading has been supportive, but the business is volatile and harder to grow from current levels. Its premium valuation limits its upside potential.
(You can read the full research report on Morgan Stanley here >>>)
Shares of Kewaunee Scientific have underperformed the Zacks Instruments - Scientific industry over the year-to-date period (-3.1% vs. +19%). This microcap company with a market capitalization of $104.01 million has its profitability exposed to project timing, construction activity, input-cost inflation and tariff pressures. Elevated corporate expenses and integration investments continue to weigh on earnings conversion.
Although the balance sheet has improved through debt reduction, lower liquidity and ongoing capital commitments limit financial flexibility. Share dilution from equity compensation may also restrain per-share earnings growth.
Nevertheless, Kewaunee's investment case is supported by a broader laboratory products portfolio following the Nu Aire acquisition, expanding its offerings, distribution reach and reducing reliance on laboratory furniture. A healthy backlog provides near-term revenue visibility, while international operations diversify earnings through turnkey laboratory design, engineering and project management capabilities that strengthen customer relationships.
(You can read the full research report on Kewaunee Scientific here >>>)
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Costco Wholesale Corporation

Sign up and unlock all the capabilities of the AI-screener