Core Insights - Three billionaires, Warren Buffett, Ken Fisher, and Chris Davis, have Costco as a significant holding, highlighting its appeal among top investors [1] Group 1: Investment Performance - Warren Buffett purchased Costco in 2000 at under $29 per share and sold it in 2020 after achieving approximately 900% returns [1] - Ken Fisher bought Costco shares in 2012 at a price range of $45 to $65 per share, with the stock's value significantly increasing since then [1] - Chris Davis acquired Costco shares around $27 per share in mid-2000, emphasizing its long-term investment potential [1] Group 2: Competitive Advantage - Costco's business model relies heavily on membership fees, which account for about 70% of its revenue, providing a durable competitive moat [1] - The company has demonstrated consistent same-store sales even during economic downturns, reinforcing its stability and attractiveness to investors [1] Group 3: Investment Strategies - Buffett's investment in Costco aligns with his criteria for long-term holdings, showcasing the stock's resilience through various market crises [1] - Fisher's strategy mirrors Buffett's, focusing on long-term value and customer loyalty, which he believes can drive future growth [1] - Davis views Costco as one of the best quality compounders in the retail sector, indicating strong confidence in its business model [1]

Core Viewpoint - Costco Wholesale is facing a proposed class action lawsuit regarding undisclosed salmonella risks associated with its rotisserie chicken sold at a Nebraska processing plant [1][3]. Group 1: Lawsuit Details - The lawsuit claims that Costco's chicken processing facility in Fremont consistently fails to meet USDA safety standards, with testing data showing over 9.8% of whole chickens and 15.4% of chicken parts testing positive for Salmonella [2]. - The complaint seeks compensatory and triple damages for consumers who purchased Kirkland Signature rotisserie chicken and raw chicken parts from January 1, 2019, onward, alleging breaches of Washington consumer protection laws [3]. Group 2: Sales and Financial Performance - Costco's rotisserie chicken is priced at $4.99, recognized as a loss leader to attract customers, with global sales exceeding 157 million units in 2025 [2]. - In the first quarter of fiscal 2026, Costco reported net sales of $65.98 billion, an increase of 8.2% from $60.99 billion the previous year [4].

Core Insights - The Vanguard Consumer Staples ETF (VDC) and the Fidelity MSCI Consumer Staples Index ETF (FSTA) are designed to capture the performance of the U.S. consumer staples sector, focusing on essential goods [1][2] Cost & Size Comparison - VDC has an expense ratio of 0.09% while FSTA has a slightly lower expense ratio of 0.08% - The one-year return for VDC is 8.45% compared to FSTA's 8.16% - VDC offers a dividend yield of 2.10%, while FSTA provides a marginally higher yield of 2.18% - VDC has assets under management (AUM) of $9.1 billion, significantly larger than FSTA's $1.4 billion [3][9] Performance & Risk Comparison - Both ETFs have experienced similar maximum drawdowns over five years, with VDC at -16.56% and FSTA at -16.57% - The growth of $1,000 over five years is nearly identical, with VDC growing to $1,409 and FSTA to $1,406 [4][7] Portfolio Composition - FSTA tracks the MSCI USA IMI Consumer Staples 25/50 Index and holds 96 stocks, with major positions in Costco Wholesale, Walmart, and Procter & Gamble [5] - VDC invests in 105 holdings, also featuring Walmart, Costco Wholesale, and Procter & Gamble among its top stocks [6][7] Investor Implications - VDC and FSTA are nearly identical in performance, volatility, and portfolio composition, with only minor differences in AUM, expense ratios, and dividend yields [7][8]

Group 1: Company Performance - Costco Wholesale reported net sales of $66 billion in the first quarter of fiscal 2026, ending November 23, indicating strong performance in the global retail sector [1] - The company's shares have generated a total return of 193% over the past five years, significantly boosting investor portfolios [1] - Costco has a market capitalization of $443 billion, with a current price of $1018.04 and a price-to-earnings ratio of 52, suggesting a high valuation [4][5] Group 2: Business Model and Growth - Costco's large scale provides cost leadership, allowing it to leverage bargaining power over suppliers, which contributes to its ability to offer everyday low prices to its 81 million membership households [3] - The company continues to expand by opening 25 to 30 new warehouses each year, indicating ongoing revenue and profit growth potential [3] Group 3: Investment Considerations - While Costco is recognized as a high-quality business, the current price-to-earnings ratio suggests that it may not be the best time to invest, as it indicates an expensive entry point with little margin of safety for new investors [5] - Investors are advised to be patient and wait for a more favorable opportunity to invest in Costco [6]

Core Viewpoint - Costco is facing a lawsuit regarding alleged salmonella contamination in its rotisserie chicken, with claims that its Nebraska processing plant fails to meet USDA safety standards [1] Group 1: Lawsuit Details - The lawsuit is a proposed class action filed by an animal rights nonprofit, citing that over 9.8% of whole chickens and 15.4% of chicken parts from the Fremont, Nebraska plant tested positive for salmonella [1] - The plaintiff, Lisa Taylor, claims she overpaid for rotisserie chickens due to Costco's failure to disclose the contamination risk and is seeking compensatory and triple damages for affected consumers since January 1, 2019 [1] - This lawsuit follows another class action filed in San Diego, alleging false advertising regarding the absence of preservatives in Costco's rotisserie chicken [1] Group 2: Sales and Market Impact - Costco's rotisserie chicken sales reached over 157 million units worldwide in 2025, indicating its significance as a loss-leader product to attract customers [1] - The price of Costco's Kirkland Signature rotisserie chicken is set at $4.99, which has been a key factor in driving foot traffic to its warehouse stores [1] Group 3: Company Response - Neither Costco nor the Lincoln plant has provided comments regarding the lawsuit as of the latest report [1]

Company Performance - Costco's stock closed at $998.40, reflecting a +2.07% increase from the previous day, outperforming the S&P 500, which fell by 1.57% [1] - Over the past month, Costco shares gained 2.86%, while the Retail-Wholesale sector declined by 4.94% and the S&P 500 decreased by 0.29% [1] Upcoming Earnings - Costco's earnings report is anticipated on March 5, 2026, with an expected EPS of $4.53, representing a 12.69% increase from the same quarter last year [2] - The forecasted quarterly revenue is $69.22 billion, up 8.62% from the previous year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $20.18 per share and revenue at $297.12 billion, indicating increases of +12.17% and +7.95% respectively from the prior year [3] - Recent analyst estimate revisions suggest growing confidence in Costco's business performance and profit potential [3] Analyst Ratings - The Zacks Rank system, which includes estimate changes, indicates Costco currently holds a rank of 3 (Hold) [5] - Over the past month, there has been a 0.42% increase in the Zacks Consensus EPS estimate [5] Valuation Metrics - Costco's Forward P/E ratio is 48.48, significantly higher than the industry average of 27.05 [6] - The PEG ratio for Costco is currently 5.16, compared to the Retail - Discount Stores industry average of 2.88 [6] Industry Ranking - The Retail - Discount Stores industry ranks in the top 11% of all industries, with a current Zacks Industry Rank of 26 [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - Costco Wholesale Corporation (COST) is trading at a forward 12-month price-to-earnings (P/E) multiple of 46.21, which is higher than the industry average of 32.63 and the S&P 500's 22.97, indicating a premium valuation despite being slightly below its 12-month median P/E of 48.16 [1][8] Valuation Comparison - Costco's premium valuation is evident when compared to peers such as Ross Stores (P/E of 26.97), Dollar General (P/E of 20.72), and Target (P/E of 14.75) [2][8] Business Performance - Investors have shown strong confidence in Costco due to its resilient business model, high membership renewal rates of 92.2% in the U.S. and Canada, and 89.7% globally, along with consistent traffic growth [5][9] - Costco's stock has increased by 13.6% year-to-date, outperforming the industry average rise of 8.7% [5][6] Sales Growth - The company reported a 7.1% year-over-year increase in total comparable sales for January, with regional growth of 5.8% in the U.S., 11.4% in Canada, and 9.5% in other international markets [10] - Digitally enabled comparable sales surged by 34.4% in January, following gains of 18.9% in December and 16.6% in November, indicating strong momentum in the online channel [11] Operational Efficiency - Costco's disciplined focus on cost control, product mix optimization, and the growth of its private-label brand, Kirkland Signature, supports margin expansion [13] - The company plans to open 28 net new warehouses during fiscal 2026, with new locations generating an annualized $192 million in sales per location during their first year [13] Competitive Landscape - Costco's differentiated membership-driven model and private-label strength provide competitive advantages in a challenging retail environment [14] Analyst Estimates - Wall Street analysts have raised their earnings estimates for Costco, with the Zacks Consensus Estimate for the current fiscal year increasing to $20.18 per share, reflecting a year-over-year growth rate of 12.2% [17]

Core Viewpoint - Costco's Q1 FY2026 earnings report is a significant event, released after market hours on December 11, 2025 [1] Financial Performance - The expected revenue for Q1 FY2026 is $67.156 billion, representing a year-over-year growth of 8.05% [2] - The anticipated earnings per share (EPS) is $4.285, reflecting a year-over-year increase of 6.06% [2] - Market focus includes trends in same-store sales growth, particularly the rebound in sales during the holiday shopping season from November to December, following the government shutdown at the end of October [2]

Group 1 - The core idea is that seniors are increasingly purchasing gold bars as an investment at Costco, rather than traditional jewelry counters [1][6] - Gold prices have surged by 70% over the past year, significantly outperforming the S&P 500, which has risen by 13.95% [2] - Gold is viewed as a hedge against high inflation, although its volatility has been notable this year, with reports indicating it is trading like a meme stock [2] Group 2 - Costco offers competitive pricing for gold, with a 1-ounce gold bar listed at $4,559.99, compared to a spot price of $4,982.60 on the same day [3] - Executive members at Costco can receive up to 4% back on gold purchases, enhancing the value proposition for buyers [4] - There is a purchase limit of four 1-ounce bars per member every 24 hours, which may affect buying strategies [4]

Core Insights - Bernstein analyst Zhihan Ma raised the price target for Costco Wholesale Corporation (COST) to $1,155 from $1,146, maintaining an Outperform rating, amidst mixed signals in U.S. retail and soft consumer sentiment [2] - Costco's January sales figures showed a total sales increase of 9.3% year over year, with comparable sales rising 7.1%, and a 6.4% increase when excluding gasoline price changes and foreign exchange [3][4] - Digital sales have become increasingly significant for Costco, representing 10% of total revenue as per the 2025 annual report [5] Sales Performance - Total sales for January increased by 9.3% year over year, while comparable sales rose by 7.1% [3] - Adjusted comparable sales growth improved from 6.2% in December to 6.4% in January, potentially influenced by severe winter storms in the U.S. [4] Digital Sales Growth - Costco's digital sales, which include transactions initiated through digital devices and sales from its Costco Travel platform, now account for 10% of total revenue [5] Company Overview - Costco operates membership warehouses and e-commerce platforms, offering a range of nationally branded and private-label products, sourcing most merchandise directly from suppliers [6]