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 business with very strong operational efficiency, but the market is already pricing in an almost perfect scenario. Revenue for TTM rose to $95.7 billion, while EBITDA and net income remain resilient, confirming the scale and stability of the model. ROE of 28.27%, ROA of 10.79%, and ROI of 23.92% are noticeably above the industry median, so in terms of capital quality the company looks better than most retailers. At the same time, margins are weaker than the industry’s: gross margin of 12.88%, operating margin of 3.85%, and net margin of 3.01% are below the median, reflecting the low-margin discount retailer model and limiting the potential for profit expansion. Margin trends over the past 5 years have been generally stable, but they do not show strong improvement, so this is more a sign of a mature business than an accelerating one. Debt burden looks comfortable: debt/equity is 0.17, debt is moderate, and equity is growing, which reduces financial risk. Liquidity, however, is not ideal: a quick ratio of 0.62 and a current ratio of 1.06 are below industry benchmarks, so the cushion in working capital is limited. Valuation remains very expensive: P/E of 47.88, P/S of 1.34, P/B of 11.33, and P/FCF of 48.05 are significantly above the industry median, meaning high expectations are already baked into the stock price. Dividend yield is practically zero, so the stock does not provide meaningful support through cash return to investors. Positives remain in the growth of assets, equity, and earnings, as well as high profitability combined with low debt. But at current multiples, the upside from rerating appears limited, and the fundamentals rather support a cautious, slightly lower assessment relative to the current operational forecast. For an investor, this is a story about quality and resilience, but not about a cheap entry point.

Costco Wholesale Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, незначительно упал. Рынок не поддерживает быков.

Strong index, slightly down. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

Costco demonstrates strong profitability and low debt, but trades at very high multiples with weak margins and an almost zero dividend yield.

Key Points
Coca-Cola shares have soared since 2024 as investors seek out safety and income.
Costco stock has performed well in recent years too, even if it’s lagged of late.
Every stock goes through hot and cold periods. Aim to buy during the latter, and be patient when you see the former.
The Coca-Cola Company (NYSE: KO) has officially caught up with club retailer Costco Wholesale (NASDAQ: COST)... almost. Thanks to KO stock's year-to-date 34% rally to record highs, the beverage behemoth's market cap has just eclipsed the $400 billion mark, moving within sight of Costco's $440 billion. That's impressive. Coca-Cola is simply extending a long-lived growth trend that puts it on track to eventually join the $1 trillion club.
Only one of these dividend payers has a realistic shot at getting there within the next 10 years, however. Here's why.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Good, but not built for growth
This isn't to cast any shade on Coca-Cola. It's a fine company with a portfolio of perpetually marketable products like Minute Maid juices, Gold Peak tea, and Powerade sports drinks, in addition to its namesake cola. Its stock is also an income juggernaut, not only paying a quarterly dividend like clockwork for decades now, but raising its dividend payment for 64 consecutive years. Even with this ticker's recent gains, newcomers will be plugging into a respectable forward-looking yield of 2.3%.
However, Coca-Cola is already the leader of a highly saturated drinks market that grows -- at best -- in the mid-single digits. Its opportunity for net growth is limited. For its market cap to reach $1 trillion by 2035, its stock would need to gain 250%. That's an annualized growth rate of nearly 10%, which is possible, but a stretch.
Shareholders reinvesting the beverage company's dividends might achieve such a gain. Given the stock's current elevated price and the fact that roughly half of its profits are consumed by dividend payments, however, the stock itself is unlikely to achieve that sort of gain.
That's not the case for Costco.
A bigger, better growth runway
Yes, the brick-and-mortar retailing industry is saturated too. The industry's growth is in the single digits as well. That doesn't mean its growth opportunities are limited, though. The opportunity rests in the ongoing evolution of how people shop.
Cost-effective shopping -- like that offered by Costco's membership-based offering -- is increasingly popular. In addition to last fiscal year's (ending in August) total revenue growth of just over 10%, Costco's same-store sales improved by an industry-beating 6.6%, extending a well-established streak.
However, Costco's growth potential is rooted in what it hasn't done yet.
The much bigger Walmart's (NASDAQ: WMT) 602 Sam's Club warehouses compete directly with Costco. At the same time, the company's leveraging its several thousand stores to serve its paying Walmart+ members. This reach is nothing to dismiss. Surprisingly, though, Costco remains unfazed. The original powerhouse in this space now boasts a record-breaking 84.1 million paid club memberships, extending a growth trend that's essentially been uninterrupted since the club retailer's launch. Membership renewal rates that are consistently around 90% help on this front.
This still only scratches the surface of what awaits. As of August, Costco operates only 647 domestic stores, plus another 292 outside the United States. There's room for more. There are immediate plans for more as well; the company expects to open 28 more locations this fiscal year alone. For comparison, Walmart -- arguably Costco's top threat -- operates around 11,000 stores worldwide.
Although Walmart's massive established presence could be interpreted as a barrier to Costco's expansion, it's also an indication of what consumers are willing to support in terms of a total physical retailing footprint. Indeed, the presence of a Walmart store in a particular market may indicate that the area is already primed for a cost-effective alternative. Whereas Walmart obviously won't want to cannibalize its own stores, Costco's smaller store count means it's got plenty of places to build new locales without competing with itself.
Again, we continue to see a growing consumer preference for smarter shopping.
Do-able
Costco still has plenty of growth to achieve before joining the trillion-dollar club, to be clear. At its current market cap of $440 million, COST shares would need to gain an average of around 8.5% per year to make the company worth $1 trillion by 2036. That's no small feat.
However, Costco's stock has gained more than enough over the past 10 years to do exactly that. While past performance is no guarantee of future results, when the key drivers of that growth haven't really changed, history is a reasonably good indication of what to expect in the future.
Granted, although it's trailed COST's net return for this same time frame, KO has technically achieved the feat as well. It's only done so because of the uncharacteristic run-up just since 2024, and even then, only with reinvested dividends. You can't count on unusual action repeating itself.
There's one important nuance here. While both stocks are technically dividend payers, with a forward-looking yield of only 0.6%, COST isn't really much of an income holding. It should only be viewed and used as a long-term growth investment, albeit a good one right now after a few months of underperformance. If you need immediate income, Coca-Cola is still the better option.
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 $350,756!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,363,905!*
Now, it’s worth noting Stock Advisor’s total average return is 922% — a market-crushing outperformance compared to 213% 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 October 22, 2026.
James Brumley has positions in Coca-Cola. The Motley Fool has positions in and recommends Costco Wholesale and Walmart. The Motley Fool has a disclosure policy.

Coca-Cola Joins Costco in the $400 Billion Club. I Predict Only 1 of These Dividend Stocks Will Surpass $1 Trillion by 2036.

Key Points
Long-term stock winners share traits you can measure with simple tests.
No company aces every test, so the goal is finding businesses with at least one win.
Copart and Netflix pass their tests even though both stocks fell more than 35% over the past year.
Back on Dec. 27, 2010, I bought some Google stock at a split-adjusted $15.03 a share. The company has since renamed itself Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), split its stock twice, and doubled down on artificial intelligence. On Oct. 16, 2026, the shares closed at $340.59.
That's a 2,166.1% gain in nearly 16 years. A $1,000 stake from that day would be worth about $22,661 now. I'd love to tell you I saw it all coming, but I did not predict the AI boom or YouTube's growth. What I saw was a business with traits that tend to show up in long-term winners. Those traits can be measured. Below are six of them, each paired with a company that clearly illustrates it and a specific test you can apply to any stock.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Fair warning: a couple of these stocks have had a rotten year as of this writing. That's part of the lesson: don't sell a great stock in the inevitable dips.
1. Patience and compounding: Coca-Cola
My test: 25 or more straight years of dividend raises, paid for with actual free cash flow.
Coca-Cola (NYSE: KO) is the stock market's slow cooker. Nothing much seems to happen for hours, and then dinner is ready. The company bumped its quarterly dividend from $0.51 to $0.53 this year, its 64th annual raise in a row. That streak is older than the moon landing.
The payout is backed by trailing free cash flow of about $14.3 billion, which lines up almost exactly with $14.4 billion in net income. The stock yields 2.4% and is up 32.9% this year, which is a wild ride by Coke's stable standards. Its 10-year price gain of 121% looks sleepy compared to the others, but that figure excludes dividends.
Reinvest those for a few decades and the slow cooker starts to look pretty clever. Coca-Cola's stock has quadrupled in price over the last 25 years, but the total return (with reinvested dividends) is about 8.3x:
2. High returns on invested capital: Alphabet
My test: Return on invested capital (ROIC) above 15%, year after year.
ROIC answers a simple question: if you hand this company a dollar, how much profit does it squeeze out of it each year? Alphabet's answer is about 32 cents, tops among these six. Its operating margin is 34% on roughly $446.6 billion of trailing revenue. Very few companies earn that kind of margin at that size.
3. Cash generation: Monster Beverage
My test: Free cash flow of at least 90% of net income, plus little or no debt.
Profits are an accountant's opinion; cash is a proven fact. Monster Beverage (NASDAQ: MNST) turned roughly $2.1 billion of net income into about $2.1 billion of free cash flow over the past year. That's a 99% conversion rate. It has zero debt, and its current assets cover current liabilities 3.7 times over.
Strong companies can fail this test during heavy back-end investment cycles. For example, Alphabet's free cash flow over the past year was about 22% of net income. Much of that gap comes from investment gains, including a big markup on its stake in Space Exploration Technologies when SpaceX went public.
Nice for the income statement, but you can't pay a dividend with an unrealized paper profit. Strip out the SpaceX equity gains, and Alphabet converts less than half of its remaining earnings into free cash, thanks to all that data center spending. It's still a great business, but Alphabet gets a failing grade on this particular test, at least for now.
4. A durable membership moat: Costco
My test: Membership renewal rates around 90% or higher.
Here's a somewhat strange business model. Costco Wholesale (NASDAQ: COST) barely makes money on the stuff it sells, with a 12.8% gross margin and a 3.9% operating margin. Its real product is the membership card, and customers pay for it before they buy a single rotisserie chicken.
And they keep paying. Costco ended fiscal 2026 with a 92.3% renewal rate in the U.S. and Canada and an 89.8% renewal rate worldwide. Paid memberships climbed to 84.1 million from 81.0 million a year earlier. Costco sells loyalty in bulk, too.
Ironically, Costco's stock isn't cheap. At 47.3 times trailing earnings, this is the priciest stock in my group of examples. That's the price of a world-class moat.
5. Owner-minded management: Copart
My test: Insiders own 5% or more, and the balance sheet carries little or no debt.
Copart (NASDAQ: CPRT) sells wrecked and used cars through online auctions. That's not glamorous. But insiders own 9% of the company, and debt is a rounding error at 1% of equity. Copart also holds about $4.5 billion in cash, or 17.4% of its $25.9 billion market cap. People who own a big slice of a company tend to run it as if they'll still own it in 20 years.
Now the uncomfortable part. Copart shares are down 37% over the past year and 24.6% over five years. Owner-minded managers can't always stop a stock from falling when the car market is shrinking. They just make it more likely the company exits a slump with its balance sheet intact.
Over the past 10 years, Copart's stock has risen 310%. I'll be watching to see whether management puts that cash to work while the shares are cheaper.
6. Reinvestment runway: Netflix
My test: This is a multi-part checkup. ROIC above 20%, revenue growth above 10% a year, and profits going back into the business instead of out the door as dividends.
A company with a long runway can reinvest its profits at high rates of return for many years. Netflix (NASDAQ: NFLX) pays no dividend. Most of its spare cash goes back into shows, movies, and new ways to keep you on the couch. It earns 31.1% on invested capital, and revenue has grown 12.6% a year over five years.
Netflix's stock didn't get the memo. Shares are down 41.5% over the past year and trade at 18.5 times forward earnings. The PEG ratio of 0.86 is the lowest in this group. Either the market sees trouble the numbers haven't shown yet, or the runway is on sale. Both possibilities deserve study.
Spoiler alert: I'm still a Netflix bull in 2026.
Putting the tests together
None of these companies ace every test:
Alphabet is failing on cash conversion right now.
Coca-Cola's price chart is a snooze without dividends.
Monster has never paid a penny of dividends.
Copart and Netflix pass their own tests but have lost value over the past year.
Costco generates a lot of cash but also has $7.3 billion in long-term debt.
That's fine. The purpose of these tests is to identify businesses with sufficient strengths to weather rough stretches. My Google shares had plenty of those, and I'm glad I never sold during any of them.
Should you buy stock in Netflix right now?
Before you buy stock in Netflix, 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 Netflix 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 $380,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*
Now, it’s worth noting Stock Advisor’s total average return is 919% — a market-crushing outperformance compared to 211% 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 October 19, 2026.
Anders Bylund has positions in Alphabet and Netflix. The Motley Fool has positions in and recommends Alphabet, Copart, Costco Wholesale, Monster Beverage, and Netflix. The Motley Fool has a disclosure policy.

6 Signs of a Winning Stock, Each Shown by a Real Company

Key Points
Costco will pay its shareholders $1.47 per share on Nov. 13.
The retailer's dividend yield is on the lower side at 0.6%.
However, its shares have outperformed the broader markets.
On Nov. 13, Costco Wholesale (NASDAQ: COST) will issue a dividend payout to all of its shareholders on record as of Oct. 30. That dividend payout will be $1.47 per share.
That said, this payout in and of itself isn't enough of a reason to buy shares before October ends. The dividend payout only yields 0.6%, and there are plenty of other stocks in the consumer goods space that pay more. For instance, Coca-Cola's dividend yield is 2.3%, Procter & Gamble's is 2.7%, and PepsiCo's is 4.6%.
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 »
Still, the reason someone might want to consider taking a position in Costco sooner rather than later is that its stock price has a history of outperforming the S&P 500, and Costco can continue to reward shareholders in three distinct ways.
Three ways to make money
As a retail chain, Costco often has a reputation for being a standard consumer goods company. It's also, however, a growth stock, with plenty of opportunities to expand domestically and internationally, building an even larger base of loyal customers and generating even more revenue.
For its fiscal 2025, Costco finished the year with 914 warehouses, expanding that to 939 by the end of fiscal 2026. For its fiscal 2027, it expects 967 warehouses to be open by year-end. With further expansion that can lead to increased revenue, investor enthusiasm can also increase, pushing the stock price higher. While Costco's stock price has returned 13.4% this year, slightly better than the S&P 500's 13.1% return over the same period, Costco has historically shown the ability to handily outperform the broader market.
Over the past five years, Costco's shares have risen 116%, while the S&P 500 has risen 73%. Of course, history is just a guidepost, but finding a stock that has demonstrated the ability to beat the broader markets over a five-year stretch can help build long-term wealth.
Two different dividend payouts
There isn't a set schedule of when it happens, but Costco has rewarded investors over the years with a special dividend. The last time it paid one out was in 2024, at $15 per share. Before that, it paid out a $10 dividend in 2020.
Finally, that brings us back to where we started, with the quarterly dividend. As mentioned earlier, a yield of 0.6% may not seem significant. Still, over time, as you add up Costco's stock price appreciation potential, special dividends, and quarterly dividends, it can offer significant total return potential for long-term shareholders.
With all that in mind, it's worth considering starting a position sooner rather than later to be in the driver's seat to capture all that return potential over the years ahead.
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 $380,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*
Now, it’s worth noting Stock Advisor’s total average return is 919% — a market-crushing outperformance compared to 211% 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 October 18, 2026.
Jack Delaney 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.

Should You Buy Costco Stock Before Oct. 30? Here's the Clear Answer.

Key Points
Anyone who owns shares of Costco as of Oct. 30 will receive a dividend of $1.47 per share on Nov. 13.
If shareholders sign up for a dividend reinvestment program, that dividend will automatically be used to buy more shares.
Costco shareholders can also just keep the dividend, using it as income.
Shareholders of Costco Wholesale (NASDAQ: COST) can look forward to some dividend payouts heading their way soon. The dividend of $1.47 per share will be paid out on Nov. 13 to shareholders of record at the close of business on Oct. 30.
When that time comes, shareholders will have a decision to make. They can either take the dividends as income, or use them in a dividend reinvestment plan (DRIP), which purchases more Costco shares. Depending on your investing goals, one may make more sense over the other.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Why establishing a Costco DRIP makes sense
The power of a DRIP is that investors can use dividends to increase their stakes in a company without using their personal funds. For a stock like Costco, having additional shares can help build a larger position that can compound into meaningful returns, given its stock price appreciation potential. For example, over the last five years, as of this writing, Costco shares are up 117%, compared with the S&P 500's 72.6% return.
When Costco pays its $1.47-per-share dividend, if an investor's account is enrolled in a DRIP, the funds will be used to purchase additional shares. Costco has also paid a special dividend every few years, with the last payout of $15 per share in 2024. When that special dividend is paid out, if an account supports a Costco DRIP, the dividend will also purchase additional shares.
Using the dividend to automatically purchase shares would make the most sense for someone with a significant number of shares, as well as for someone with many working years ahead. That type of individual may not need the income right now, and they could just use the DRIP to build a larger position. Then, when they are ready to retire, they could just turn off the DRIP and collect the dividend payouts for income.
Why using Costco's dividend as income makes sense
For shareholders at or around retirement age, as well as for those with only a small stake in the company, considering only taking the income could make more sense. When folks are considering retiring or are about to retire, they may be less worried about stock price appreciation and more focused on generating income.
For investors who may not own many shares of the company, it may make more sense to take the dividend as well. For example, if someone owned 20 shares of Costco, their dividend payout would be $29.40 on Nov. 13. Costco stock closed at $982 on Oct. 14, so reinvesting the dividend would still increase a shareholder's stake. However, it may be less meaningful to add less than $30 worth of fractional shares than it would be to keep the dividend and invest it into another stock that trades at a lower share price, or to just use it as pure income.
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 $380,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*
Now, it’s worth noting Stock Advisor’s total average return is 919% — a market-crushing outperformance compared to 211% 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 October 17, 2026.
Jack Delaney 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.

Costco Will Pay a $1.47 Dividend on Nov. 13 -- Here's Whether It Makes More Sense to Use a Dividend Reinvestment Program or Keep the Income

Key Points
Essentials makers like P&G and Coca-Cola are resilient even under pressure, and they're also Dividend Kings.
Discount retailers like Costco and Walmart thrive when there's a challenging economy.
TJX offers brand-name items at lower prices, and shoppers flock to its stores when every penny counts.
Is a market crash coming? That's the question investors are asking as the S&P 500 (SNPINDEX: ^GSPC) gets closer to ending its fourth year in a row with double-digit gains.
Understandably, a market crash is a scary thought. However, it's part of investing. When you set up your portfolio, keep that in mind and create your stock mix accordingly. When you do your annual review, swap out different stocks based on where you see gaps. And if you haven't done that yet and anticipate a market crash on the horizon, you should make your move now.
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 »
Although a market crash can affect even defensive and value stocks, some manage through better than others, and some actually thrive under adverse circumstances. Costco Wholesale (NASDAQ: COST), TJX Companies (NYSE: TJX), Coca-Cola (NYSE: KO), Procter & Gamble (NYSE: PG), and Walmart (NASDAQ: WMT) all have a history of holding up through market crashes.
What's more, they all pay dividends, and Coca-Cola, Procter & Gamble, and Walmart are Dividend Kings, meaning they've raised their dividends for at least 50 consecutive years. That's reliability under pressure. Here's how they performed in 2008, 2018, and 2022, when the S&P 500 lost value:
1. Costco
Costco's low prices are a draw all the time, but they become even more valuable under pressure, and that's why the market loves it during a downturn. As inflation persists, rising another 3.7% in September, Costco's sales growth has accelerated, reaching 13% year over year in September.
That's great news for Costco investors. Costco stock is neck and neck with the market, up 14% year to date, and if there's a correction or crash, it's likely to manage through.
Notice that in the last chart, Costco underperformed the S&P 500. However, it gained 49% the next year, nearly double the index's gain. Often, the resilience is in how quickly the stock bounces back after a downturn.
2. TJX
TJX is an off-price retail chain that buys overstock and off-season merchandise from designer brands. It works with 21,000 vendors and therefore can be very selective about what it buys.
The company sells products at 20% to 60% off retail prices in its 5,200 global stores, and it becomes a magnet for shoppers during periods of inflation or economic distress. Sales increased 4% year over year in the fiscal 2027 second quarter (ended Aug. 1), and earnings per share were up 24%.
TJX barely beat the market in 2008, and that's another example of a lag period -- it gained 81% in 2009, triple the market's rebound.
3. Coca-Cola
Coca-Cola is the world's largest beverage company, and the company has developed brands that people love and are willing to pay for. That gives it sticking power despite whatever's happening in the economy. It generally outperforms when the market's having a tough time, because investors know it has a resilient business, and because of its storied dividend, which it has raised for the past 64 years straight.
Coca-Cola stock has been outperforming this year despite the market's rise for similar reasons, and it's up a fantastic 40%, outperforming many hot tech stocks. Sales increased 7% year over year in the second quarter, and EPS rose 16%.
4. Procter & Gamble
Procter & Gamble makes many of the world's leading household and hygiene brands, such as Tide laundry detergent, Oral-B oral care, and Bounty paper towels. People are willing to pay extra for these products because they feel they're getting good value, and they're essentials people buy no matter what. Procter & Gamble stock soared early in the pandemic, for example, when people were loading up on toilet paper (it makes the Charmin brand).
Procter & Gamble has one of the longest dividend-raise track records, at 70 years, another reason it's valuable in a downturn.
5. Walmart
Finally, Walmart is the largest retailer in the world, with almost 11,000 stores, and it reaches 90% of the U.S. population within 10 miles. Its discount prices are even more attractive when people are penny-pinching.
Today, it's also reaching more people with its e-commerce channels. E-commerce sales increased 23% year over year in the 2027 fiscal second quarter (ended July 31), driving total sales growth of 5.9%.
Walmart is also a Dividend King, having raised its dividend annually for the past 53 years.
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 $380,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,315,732!*
Now, it’s worth noting Stock Advisor’s total average return is 919% — a market-crushing outperformance compared to 211% 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 October 17, 2026.
Jennifer Saibil has positions in Walmart. The Motley Fool has positions in and recommends Costco Wholesale, TJX Companies, and Walmart. The Motley Fool has a disclosure policy.

If a Stock Market Crash Is Coming, These 5 Stocks Have a History of Holding Up

Key Points
According to research, 79% of shoppers are trading down.
Premium companies that can maintain or raise prices are performing well despite inflation.
These kinds of stocks can continue to grow long term, representing great investing opportunities.
What makes a great stock? That seems to be an obvious question for every investor, but the answer isn't always as obvious. Is it a revolutionary product? New technology? Fantastic growth? Strong cash flow? Clearly, different qualities resonate with different investing styles.
From a long-term investing standpoint, one of the most important factors separating winners from losers is pricing power. It means that a company can charge more for its product without curbing demand, and it implies that the company has an excellent brand with a strong following. Companies with pricing power can withstand challenging times and grow into bigger, better companies.
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There's no better time to access this than in a high-inflation climate. According to a McKinsey report, 79% of consumers are trading down. As consumers become more choosy about how they spend, notice which companies don't have to cut prices to generate sales. Consider these five powerhouses: Costco Wholesale (NASDAQ: COST), Coca-Cola (NYSE: KO), On Holding (NYSE: ONON), Starbucks (NASDAQ: SBUX), and Procter & Gamble (NYSE: PG).
1. Costco
Costco is a discount king, but what makes it stand out in terms of pricing power is its membership fee. It raised the fee in 2025 from $60 to $65, or $110 to $120 for an executive membership, but its renewal rates and signups have been strong. On the contrary; shoppers tend to shop at Costco even more when times are tough and every penny counts to get the most out of their membership and the best prices.
In the 2026 fiscal fourth quarter (ended Aug. 30), total sales increased 11.2% year over year to $93.9 billion, driven by a 9.4% increase in comparable sales (comps). Average ticket was up 5.9%, but management said it's keeping prices down, implying that the increases are due to consumers buying more.
2. Coca-Cola
Coca-Cola is the classic example of a company with great pricing power, and that's one of the reasons Warren Buffett loves its business. People need to have something to drink, and they love Coca-Cola. The company has taken many actions to keep consumers buying despite inflation, including new marketing campaigns, smaller, lower-cost packages, and working with retailers to keep its beverages in front of shoppers.
The results have been fantastic. Sales increased 6% year over year in the second quarter, although unit care volume was up 1%. Higher pricing is offsetting rising costs, and earnings per share (EPS) rose 30% to $0.86.
This model has led to extraordinary success over time, and Coca-Cola pays shareholders back with its excellent dividend, which it has raised for 64 years, making it a Dividend King (a designation for companies that have raised dividends for 50 or more consecutive years).
3. On Holding
On Holding is a relatively new player in athleisure and athletic footwear, and it's positioning itself as the leader in premium products. It has cultivated a major following and targets affluent consumers, which has helped it withstand the need to mark down its products in the current operating environment.
In the second quarter, revenue increased 21.6% year over year (currency neutral) and 34.3% in its direct-to-consumer channels, indicating customer loyalty. It has maintained its pricing and image, and gross margin improved from 61.5% to 65.4%. It has signed important celebrity ambassador deals with names like actress Zendaya and soccer star Kylian Mbappe to secure its branding as a power player in its industry. Management got a thumbs-up from the market when it announced at its investor day that it was confident in its ability to retain its premium status and maintain gross margins of 65% through 2029.
4. Starbucks
Starbucks has had a rough time over the past few years, but under the new leadership of CEO Brian Niccol, things are starting to turn around. The pricing power is actually working in its favor; previous management had run too many specials, diluting the brand. Niccol has taken the opposite approach, cutting the specials and leaning into the company's premium image. It's working.
In the 2026 fiscal third quarter (ended June 28), global comps increased 7.9% year over year, driven by a 4.2% increase in transactions and 3.5% increase in average ticket. That means that even as inflation rages, more people are coming back for Starbucks' high-priced beverages. Profits are increasing, too, which Niccol has said would happen after it fixes comps, and earnings-per-share (EPS) grew 86% to $0.91.
5. Procter & Gamble
Procter & Gamble makes many of the premium beauty and hygiene brands you know and love, and are willing to pay a little bit more for. That's what it counts on, and sales typically increase by low single digits even in rough times. While some customers switch down to generic brands, many pay up for the small luxuries of brands they see as a value because they're better. These are names like Pampers diapers, Tide laundry detergent, and Puffs facial tissues.
Price increases contributed to sales increases in three of its five categories in the 2026 fiscal fourth quarter (ended June 30), and total sales increased 2% year over year. Instead of cutting prices to boost growth, it's doubling down on its premium positioning and generating higher consumer loyalty.
Procter & Gamble is also a Dividend King and has raised its dividend for the past 70 years.
Should you buy stock in Coca-Cola right now?
Before you buy stock in Coca-Cola, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Coca-Cola wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,408,822!*
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*Stock Advisor returns as of October 12, 2026.
Jennifer Saibil has positions in On Holding. The Motley Fool has positions in and recommends Costco Wholesale, On Holding, and Starbucks. The Motley Fool has a disclosure policy.

As Shoppers Trade Down, These 5 Brands Still Have Pricing Power

Walmart (NASDAQ: WMT) and Costco (NASDAQ: COST) operate similar business models.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
*Stock prices used were the afternoon prices of Sept. 24, 2026. The video was published on Sept. 26, 2026.
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 $373,352!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,406,241!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 212% 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 September 29, 2026.
Parkev Tatevosian, CFA 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. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Should Investors Buy Costco Stock Instead of Walmart Stock?

Key Points
The retail behemoth turned in another strong quarter, led by its growing digital sales.
U.S. same-store sales (exluding gasoline sales) easily outpaced those from Walmart and Target.
One knock on Costco is the stock's high valuation, trading at a forward P/E ratio of nearly 41.
Walmart (NASDAQ: WMT) has long been considered a place for investors to park money in the retail space when consumers are under stress, but after its stock fell more than 8% in the session following its fiscal Q1 results and more than 9% after its fiscal Q2 results, that baton may have been passed to a close rival: Costco Wholesale (NASDAQ: COST).
Costco posted another quarter of solid results and was up 7% year-to-date as of Sept. 25, while Walmart is down 3%. Below, I'll take a closer look at the retailer's fiscal Q4 results and prospects to see if this is the recession-resistant retailer to own.
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 »
Momentum continues
Costco continues to deliver strong results, with e-commerce sales leading the way. Adjusted digital revenue surged nearly 20%, with U.S. digital sales climbing more than 20%, helped by the company's partnerships with Uber Technologies and DoorDash.
Overall, the company's fiscal Q4 revenue jumped 11% to $95.7 billion, and adjusted earnings per share (EPS) rose 12% to $6.60, excluding a $0.15 benefit from tariff refunds. That was ahead of the analyst consensus for EPS of $6.55 on revenue of $95.7 billion.
Same-store sales jumped by 6.7% when adjusting for changes in gasoline prices and foreign currency. U.S. same-store sales climbed 7.2% (adjusted), while Canadian comparable-store sales rose 4.6% (adjusted). Other international same-store sales increased by 6.2% (adjusted).
Excluding gasoline and currency impacts, Costco's average transaction rose 3.3%, led by a 3.9% rise in the U.S. Traffic also increased by 3.3%, led by a 4.5% increase in international markets, while the U.S. saw a 3.2% gain. The retailer said that spending remained resilient in discretionary categories where it provides good value. It called out travel, jewelry, and major electronics as all seeing strong growth. Pharmacy sales also outperformed.
Membership-fee revenue jumped nearly 8% year over year, excluding currency movements, in the quarter to reach $1.85 billion. This was helped by a membership fee increase that it has now lapped. Meanwhile, paid memberships rose by nearly 4% to 84.1 million paid households. Higher-cost Executive membership climbed to 42.4 million members. These customers account for just over 50% of total paid memberships and made up 75.6% of Costco's worldwide sales.
Costco's membership renewal rate was 92.3% in North America and 89.8% worldwide. That was a slight 10-basis-point increase for both.
The warehouse club opened 11 new locations in the quarter, ending its fiscal year with a total of 939 stores. It expects to open 33 new stores (28 net) in fiscal year 2027, with openings in both domestic and international markets.
Is Costco stock a buy?
Costco continues to outperform its brick-and-mortar general merchandise retail peers. Its 7.2% increase in adjusted U.S. same-store sales (excluding gasoline sales) came in well ahead of the 2.7% and 2.6% increases that Target and Walmart posted last quarter, respectively. On top of that, it continues to see nice growth in members and membership revenue, and it is expanding its store base by about 3% a year.
Given this outperformance relative to Walmart, it does appear that Costco has taken the mantle of the best recession-resilient retailer. Consumers are clearly showing some signs of economic stress due to high gasoline prices and overall inflation, but Costco seems largely unaffected, even in discretionary categories.
While Costco continues to fire on all cylinders, the one knock on the stock is valuation. It trades at a frothy forward price-to-earnings ratio (P/E) of nearly 41. That's below the 50-plus multiple it has traded at over the past few years; however, it is still not cheap.
While Costco is likely to remain a good defensive stock, I think, given its valuation, it will likely be pretty range-bound over the next couple of years as its P/E multiple compresses to more normal levels of between 25 and 35, where it traded before 2020.
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 $373,352!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,406,241!*
Now, it’s worth noting Stock Advisor’s total average return is 933% — a market-crushing outperformance compared to 212% 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 September 29, 2026.
Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, DoorDash, Target, and Walmart. The Motley Fool recommends Uber Technologies. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Has Costco Stock Become the New Recession-Resilient Retail King?

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Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.
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Costco (COST) Q4 2026 Earnings Call Transcript

Costco Wholesale Corporation’s COST fourth-quarter fiscal 2026 results highlighted how the recovery of International Emergency Economic Powers Act (“IEEPA”) tariffs could influence its earnings profile in fiscal 2027. In the fourth quarter of fiscal 2026, the company received $184 million related to IEEPA tariffs, comprising $174 million of refunds and $10 million of interest. Management said this represented a little more than one-third of the total refunds expected. Costco had already received a similar amount in the first quarter of fiscal 2027.
The earnings impact, however, will depend on how much of these proceeds Costco retains versus reinvests. In the fourth quarter, tariff refunds, net of partial reinvestment in member value, contributed a nonrecurring benefit of 15 cents per share. Excluding this benefit, net income and EPS increased 12.3% and 12.4%, respectively. Management highlighted that tariff refunds and related reinvestment added nine basis points to gross margin.
Management intends to reinvest the majority of future refunds in increased member value, primarily through lower prices. During the fourth quarter, such investments included reductions across produce, meat, beverages, home furnishings and hardware.
Fiscal 2027 earnings could see periodic benefits from additional refunds, but the net contribution may vary depending on the pace and magnitude of reinvestment. Costco has already indicated that it intends to reinvest the majority of future refunds and separately disclose their net quarterly impact, making the distinction between reported earnings and underlying operating performance particularly important.
How Tariff Refunds Are Affecting Walmart and Target
Walmart Inc. WMT is also using tariff refunds as a temporary earnings and margin benefit while directing much of the proceeds back into pricing. In the second quarter of fiscal 2027, Walmart said tariff refunds helped lift gross profit and operating income, with operating income receiving an approximately 750-basis-point net benefit after price investments. Walmart expects to continue prioritizing the remaining tariff refunds toward customer experience and price investments in the second half.
Target Corporation TGT saw an even more pronounced second-quarter fiscal 2026 earnings benefit from tariff refunds. Target recognized $994 million of pretax tariff refunds, which added $752 million to net earnings and $1.65 to earnings per share. Target said the refunds contributed 3.7 percentage points to both gross margin and operating margin in the quarter. Its full-year guidance includes about 90 basis points of operating-margin benefit from second-quarter refunds, while excluding any potential future tariff refunds.
What the Latest Metrics Say About Costco
Costco has seen its shares tumble 2.5% over the past three months compared with the industry’s decline of 2.2%.
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 40.59, higher than the industry’s ratio of 27.39. However, it is trading below its 12-month median level of 45.14, indicating some moderation in valuation.
The Zacks Consensus Estimate for Costco’s current fiscal-year sales and earnings per share implies year-over-year growth of 7.9% and 10.4%, respectively. For the next fiscal year, the consensus estimate indicates a 7% rise in sales and 9.5% growth in earnings.
The Zacks Consensus Estimate for earnings for the current fiscal year has increased by 7 cents to $22.57 per share, while the estimate for the next fiscal year has risen by 25 cents to $24.71 per share over the past seven days.
Costco 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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