- Costco Expands Member Value With Protein Menu And Digital Perks Shift
May 11, 2026
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Costco Wholesale (NasdaqGS:COST) has added chicken tenders to its food court menu, expanding its protein-focused offerings for members. T-Mobile is rolling out a change that lets Costco members redeem certain membership perks online instead of only in warehouses. Both updates point to Costco using its food court and third party partnerships to support member traffic, loyalty and perceived membership value.
For Costco, the food court has long been part of the appeal that brings shoppers into warehouses and keeps memberships top of mind. The move toward more protein-focused choices, including chicken tenders, fits with broad consumer interest in higher protein meals and quick, low friction options while shopping. For investors watching NasdaqGS:COST, it is another example of the company using relatively low price, high volume items to support member engagement.
The shift in T-Mobile perks from in store only to online redemption points to Costco steadily extending the membership experience beyond the four walls of the warehouse. As more perks become usable on phones and laptops, the membership can stay more visible in everyday life, not just on warehouse trips. For readers tracking Costco as an investment, these kinds of convenience upgrades are part of the broader member value story.
Stay updated on the most important news stories for Costco Wholesale by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Costco Wholesale.NasdaqGS:COST Earnings & Revenue Growth as at May 2026
We've flagged 1 risk for Costco Wholesale. See which could impact your investment.
Investor Checklist
Quick Assessment
⚖️ Price vs Analyst Target: At about US$999, Costco trades roughly 6.8% below the average analyst target of US$1,072, within the 10% band that looks close to consensus fair value. ❌ Simply Wall St Valuation: The stock is flagged as trading 28.2% above estimated fair value, which is a clear premium to the internal model. ✅ Recent Momentum: A 30 day return of 0.1% suggests the price has been broadly stable rather than under pressure.
There is only one way to know the right time to buy, sell or hold Costco Wholesale. Head to Simply Wall St's company report for the latest analysis of Costco Wholesale's Fair Value.
Key Considerations
📊 The expanded protein focused food court menu and digital T Mobile perks both support Costco's core membership value proposition, which is central to the long term investment story. 📊 Watch how membership trends, traffic and ancillary revenue streams evolve alongside a P/E of about 51.9 compared with a Consumer Retailing industry average P/E of about 17.7. ⚠️ The key flagged risk is significant insider selling over the past 3 months, which some investors treat as a signal to monitor sentiment from company leadership.
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Dig Deeper
For the full picture including more risks and rewards, check out the complete Costco Wholesale analysis. Alternatively, you can check out the community page for Costco Wholesale to see how other investors believe this latest news will impact the company's narrative.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include COST.
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- Boot Barn Stock to Post Q4 Earnings: What Investors Should Know?
May 11, 2026
Boot Barn Holdings, Inc. BOOT is slated to report its fourth-quarter fiscal 2026 results on May 14, after market close. The Zacks Consensus Estimate for revenues is pegged at $532.8 million, implying 17.4% growth from the prior year. Meanwhile, the consensus mark for earnings has remained unchanged at $1.43 per share over the past 30 days and suggests a 17.2% increase from the year-ago period. BOOT has a trailing four-quarter earnings surprise of 4.9%, on average.
Boot Barn Holdings, Inc. Price, Consensus and EPS SurpriseBoot Barn Holdings, Inc. Price, Consensus and EPS Surprise
Boot Barn Holdings, Inc. price-consensus-eps-surprise-chart | Boot Barn Holdings, Inc. Quote
Key Factors to Observe for BOOT's Q4 Earnings
Boot Barn’s fourth-quarter performance is likely to have benefited from continued strength across stores and e-commerce channels, healthy consumer demand across core western and workwear categories and sustained transaction growth. Broad-based momentum across men’s and women’s western boots, apparel and denim suggests that the company continued to benefit from resilient demand trends and strong customer engagement.
Digital initiatives are likely to have remained another growth driver during the quarter. Boot Barn has been expanding the reach of its exclusive brands through dedicated standalone websites for labels such as Cody James and Hawx, which management indicated were helping attract new customers and enhance brand awareness. Continued momentum in exclusive brands, combined with disciplined full-price selling and targeted merchandising efforts, is likely to have supported both sales trends and product differentiation during the period.
The company’s aggressive store expansion strategy is also likely to have contributed positively to quarterly results. Boot Barn has continued opening stores across both existing and newer markets, supported by healthy productivity trends and favorable customer response. In addition, buying economies of scale, supply-chain efficiencies and higher penetration of exclusive brands are likely to have been supportive of merchandise margin performance during the quarter.
That said, margins in the fiscal fourth quarter might have faced pressure from higher freight expenses, normalized shrink levels and occupancy deleverage associated with accelerated store openings.
What the Zacks Model Says About BOOT’s Q4 Earnings
As investors prepare for BOOT’s fiscal fourth-quarter results, the question looms regarding earnings beat or miss. Our proven model does not conclusively predict an earnings beat for BOOT this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
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BOOT has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Casey’s General Stores, Inc. CASY currently has an Earnings ESP of +1.02% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter fiscal 2026 earnings per share is pegged at $3.44, which implies 30.8% year over year growth. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly revenues is pegged at $4.33 billion, implying 8.4% year-over-year growth. CASY has a trailing four-quarter negative earnings surprise of 20%, on average.
Capri Holdings, Inc. CPRI currently has an Earnings ESP of +20.37% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter fiscal 2026 earnings per share is pegged at 11 cents, which implies 102.2% year over year growth.
The Zacks Consensus Estimate for quarterly revenues is pegged at $803.7 million, implying 22.4% year-over-year decline. CPRI has a trailing four-quarter negative earnings surprise of 698.9%, on average.
Costco Wholesale Corporation COST currently has an Earnings ESP of +1.14% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter fiscal 2026 earnings per share is pegged at $4.9, which implies 14.7% year over year growth.
The Zacks Consensus Estimate for quarterly revenues is pegged at $69.4 billion, implying 9.7% year-over-year decline. COST has a trailing four-quarter negative earnings surprise of 1.1%, on average.
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Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report
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- B&G Foods' Q1 Earnings on Deck: Key Factors You Should Understand
May 11, 2026
B&G Foods, Inc. BGS is likely to witness bottom-line growth when it reports first-quarter fiscal 2026 results on May 12. The consensus mark for earnings has remained unchanged in the past 30 days at 8 cents per share, indicating growth of 100% from 4 cents recorded in the year-ago quarter. BGS has a trailing four-quarter negative earnings surprise of 19.5%, on average.
B&G Foods, Inc. Price, Consensus and EPS SurpriseB&G Foods, Inc. Price, Consensus and EPS Surprise
B&G Foods, Inc. price-consensus-eps-surprise-chart | B&G Foods, Inc. Quote
Factors Likely to Influence BGS’ Q1 Results
B&G Foods continues to advance its portfolio reshaping efforts while operating in a competitive consumer environment. On its fourth-quarter fiscal 2025 earnings call, management indicated that core business trends improved sequentially through the back half of fiscal 2025, with first-quarter fiscal 2026 trends off to a strong start. The company noted that year-to-date base business net sales through February were up roughly 4%, supported by improving consumption trends across key categories as well as strength in foodservice, club and private-label channels. These upsides are likely to have contributed to the performance in the quarter under review.
Demand across traditional center-store grocery categories is likely to have remained mixed, with consumers staying value-focused and promotional activity elevated. However, the Spices & Flavor Solutions segment is likely to have continued benefiting from demand linked to fresh meal preparation and proteins, alongside resilience in foodservice, club and private-label channels. The company has also been implementing pricing actions to offset tariff-related pressures and higher raw material costs.
On the cost front, B&G Foods has been executing productivity initiatives and restructuring actions aimed at improving manufacturing and supply-chain efficiencies. The company highlighted benefits from productivity gains, favorable crop costs within Frozen & Vegetables, and broader cost-saving initiatives aimed at improving operational efficiency. While tariffs and certain commodity costs are likely to have remained as headwinds, improving sales trends, pricing actions and productivity benefits are expected to have supported earnings growth in the to-be-reported quarter.
Earnings Whispers for BGS Stock
Our proven model doesn’t conclusively predict an earnings beat for B&G Foods this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
B&G Foods currently carries a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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Some Stocks With a Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Casey's General Stores CASY currently has an Earnings ESP of +1.02% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Casey's upcoming quarter’s EPS is pegged at $3.44, which implies 30.8% growth year over year. The consensus estimate for the quarterly revenues is pinned at $4.33 billion, which indicates 8.4% growth from the figure reported in the prior-year quarter. CASY delivered a trailing four-quarter earnings surprise of 20%, on average.
Lowe's Companies LOW currently has an Earnings ESP of +0.57% and a Zacks Rank #3. The consensus estimate for quarterly revenues is pegged at $22.91 billion, which indicates an increase of 9.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Lowe's Companies’ upcoming quarter’s earnings per share is pegged at $2.96, implying a 1.4% year-over-year decline. LOW delivered a trailing four-quarter earnings surprise of 2.1%, on average.
Costco Wholesale Corporation COST currently has an Earnings ESP of +1.14% and a Zacks Rank of 3. The Zacks Consensus Estimate for its upcoming quarter’s revenues is pegged at $69.36 billion, indicating a 9.7% rise from the figure reported in the prior-year quarter.
The consensus estimate for Costco’s earnings is pegged at $4.91 per share, implying 14.7% growth from the year-ago quarter. COST delivered a trailing four-quarter earnings surprise of 1.1%, on average.
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- Which Is the Better Consumer Staples ETF, State Street's XLP or Invesco's RSPS?
May 11, 2026
Comparing the Invesco S&P 500 Equal Weight Consumer Staples ETF(NYSEMKT:RSPS) and the State Street Consumer Staples Select Sector SPDR ETF(NYSEMKT:XLP) reveals how different weighting methodologies can impact sector exposure and risk within defensive stocks.
Investors often turn to the consumer staples sector for its historically lower volatility and reliable dividends, as these companies provide essential goods that consumers buy regardless of economic conditions. While the State Street fund concentrations on industry giants, RSPS provides equal exposure to every staple company within the S&P 500 index.
Snapshot (cost & size)
Metric XLP RSPS Issuer SPDR Invesco Expense ratio 0.08% 0.40% 1-yr return (as of May 6, 2026) 6.40% 2.30% Dividend yield 2.60% 2.80% Beta 0.60 0.63 AUM $14.6 billion $235.5 million
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The State Street fund is significantly more affordable for long-term holders, maintaining a low expense ratio of 0.08%. While the Invesco fund offers a slightly higher payout with a 2.80% trailing-12-month distribution yield, its 0.40% expense ratio is five times higher than its peer.
Performance & risk comparison
Metric XLP RSPS Max drawdown (5 yr) (16.30%) (18.60%) Growth of $1,000 over 5 years (total return) $1,360.0 $1,036.0
What's inside
The Invesco S&P 500 Equal Weight Consumer Staples ETF focuses on equalizing influence across its 37 holdings, ensuring that mid-cap staples have as much impact as industry titans. Its largest positions include Casey's General Stores(NASDAQ:CASY) at 3.29%, Tyson Foods(NYSE:TSN) at 3.28%, and Archer-Daniels-Midland(NYSE:ADM) at 3.21%. This Invesco fund, which was launched in 2006, rebalances quarterly to maintain this structure and has a trailing-12-month dividend of $0.84 per share. Its portfolio is composed of 97.00% consumer defensive stocks and 3.00% consumer cyclical names.
The State Street Consumer Staples Select Sector SPDR ETF is more concentrated, holding 36 companies with a heavy tilt toward mega-caps that can dominate performance. Top holdings include Walmart(NASDAQ:WMT) at 11.93%, Costco Wholesale(NASDAQ:COST) at 9.55%, and Procter + Gamble (NYSE:PG) at 7.25%. This fund was launched in 1998 and paid $2.18 per share over the trailing 12 months. Its sector makeup consists of 99.00% consumer defensive and 1.00% consumer cyclical stocks, offering more concentrated exposure to the largest U.S. consumer companies.
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For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Having exposure to the consumer staples sector is important as a means of buoying a portfolio during turbulent macroeconomic environments. That was the case for the Invesco S&P 500 Equal Weight Consumer Staples ETF (RSPS) and State Street Consumer Staples Select Sector SPDR ETF (XLP) this year. Both funds saw their prices soar in Q1 as investors rotated away from tech stocks.
That changed in Q2, as investors flocked back to the technology industry, creating an opportunity to pick up RSPS and XLP at a lower price. Choosing which to invest in comes down to a few key differences.
XLP is the better ETF for investors who want exposure to some of the biggest companies in the consumer staples sector. This helped the fund deliver strong performance over the past year, and a lower max drawdown. XLP also offers far greater liquidity with a $14.6 billion AUM at a much lower cost. The downside is that the ETF’s performance relies heavily on its mega-cap stocks, considering Walmart and Costco alone represent about 20% of the fund.
RSPS spreads out its holdings more broadly, so one or two companies don’t have a big impact on the fund’s overall performance. This is the ETF for investors who prefer to have more equal weighting across consumer staples stocks, or who already own shares of the mega-cap stocks in the sector. However, the fund is more expensive, and its performance has not be as strong as XLP.
Should you buy stock in Invesco Exchange-Traded Fund Trust - Invesco S&P 500 Equal Weight Consumer Staples ETF right now?
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Robert Izquierdo has positions in Walmart. The Motley Fool has positions in and recommends Costco Wholesale and Walmart. The Motley Fool recommends Casey's General Stores. The Motley Fool has a disclosure policy.
Which Is the Better Consumer Staples ETF, State Street's XLP or Invesco's RSPS? was originally published by The Motley Fool
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- Walmart's Category Mix Pressures Margins: More Pain Ahead?
May 11, 2026
Walmart Inc. WMT continues to face margin pressure from an unfavorable sales mix as stronger growth in grocery and health-related categories offsets gains from higher-margin discretionary businesses. While the company has improved operational efficiency and expanded digital profit streams, category mix remains a meaningful drag on profitability.
In fourth-quarter fiscal 2026, Walmart’s consolidated gross profit rate increased 13 basis points to 24%, supported by strong inventory management and improved business mix. However, the merchandise category mix partially offset those gains.
The pressure was particularly evident in Walmart U.S., where grocery comparable sales increased in the mid-single digits, and health and wellness comps rose in the high-single digits. In comparison, general merchandise delivered only low single-digit growth. Since grocery and pharmacy-related categories typically generate lower margins than discretionary merchandise, the stronger contribution from staples created an unfavorable mix impact.
Walmart also stated that grocery and health and wellness sales outgrew general merchandise, limiting the margin benefit from higher-margin businesses such as advertising and membership income. The company continued to emphasize value pricing and rollbacks in grocery categories to support traffic and unit growth, reinforcing the shift toward lower-margin sales categories.
There were some encouraging signs within discretionary categories. Fashion and hardlines remained relatively strong, while marketplace categories, including fashion, home decor and cook-and-dine, recorded robust growth. Private-brand penetration also improved during the period.
Nonetheless, the broader issue remains unchanged. Walmart’s improving e-commerce economics, advertising growth and operational discipline are helping profitability, but category mix continues to act as a key margin headwind. Unless discretionary categories accelerate meaningfully, staple-led growth could continue to limit the pace of margin expansion.
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 34.8% over the past year compared with the industry’s 32.1% growth. Shares of Costco have dipped 0.7%, while Target has gained 23.9% in the aforementioned period.Zacks Investment Research
Image Source: Zacks Investment Research
From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 43.66, higher than the industry’s 39.45. The company is trading at a premium to Target (with a forward 12-month P/E ratio of 15.38) while trading at a discount to Costco (32.36).
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Zacks Investment Research
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The Zacks Consensus Estimate for Walmart’s current fiscal-year sales and earnings per share implies year-over-year growth of about 5% and 9.5%, respectively.
Walmart currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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- Costco Just Hit $1,000. Is This the Year to ‘Sell in May’ Even on the Safest Stocks?
May 11, 2026
Quick Read
A 17% year-to-date jump in Costco (COST) shares may have investors considering the “Sell in May and Go Away” adage. Should they? Selling a long-term compounder on a seasonal hunch has historically been an expensive habit, but are things different now? The analyst who called NVIDIA in 2010 just named his top 10 stocks and Costco wasn't one of them. Get them here FREE.
Costco (NASDAQ: COST) closed at $1,008.79 a share on May 8, 2026, leaving the warehouse giant perched just above the psychologically loaded $1,000 line. The setup is what makes the "Sell in May and Go Away" adage worth a fresh look on a name most investors think of as bulletproof.
The Setup That Triggers the Question
Costco is up 17.0% year to date, despite being only 0.1% higher over the trailing twelve months. Essentially, the recent gain has come on a defensive name already trading at a 52 trailing P/E and roughly 46 on a forward basis, with a PEG of 5 and price-to-book near 14. That is one of the richest multiples in retail.
Add a macro wobble. University of Michigan consumer sentiment fell to a historical record low of 48.2 in May 2026, deep in pessimistic territory. Insiders have been trimming their positions too: four executive vice presidents sold stock between March 9 and April 1, 2026, at prices between $991 and $1,003.
The analyst who called NVIDIA in 2010 just named his top 10 stocks and Costco wasn't one of them.Get them here FREE.
The Trim Case
The case for trimming practically writes itself. An outsized year-to-date move on a low-beta compounder (beta 0.908) raises the bar for the back half. Comps are tougher to lap after +7.4% Q2 FY26 comps and an April net sales print of $23.92 billion, up 13.0% year over year. And $1,000 has acted as a ceiling before, with shares briefly touching it in May 2025 only to drift lower into year-end.
The Counter: Gold-Standard Compounder
Paid memberships hit 82.1 million, with an 89.7% worldwide renewal rate, and membership fee income grew 13.6% to $1.355 billion. CFO Gary Millerchip described the consumer this way on the Q2 earnings call: "Members are focused on quality, value, and new, exciting items. When we meet these expectations, members seem willing and able to spend."
Summer is also peak warehouse season, and analyst targets keep climbing: Deutsche Bank is at $1,106, Goldman at $1,088, Bank of America at $1,185. Our internal model pegs a 12-month base case of $1,061.16, with a bull case of $1,125.98 and a bear case of $970.07.
How to Think About It at $1,000
Selling a long-term compounder on a seasonal hunch has historically been an expensive habit. Some considerations investors often weigh:
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Whether the position size is still appropriate after an outsized run How the premium multiple compares to historical ranges and peer retailers Where prior support has formed, such as the 200-day moving average near $952 or the $844.06 52-week low, as reference levels for valuation discussions
Costco at $1,000 is a much harder sell than a high-beta cyclical. Keep an eye on the stock into the next comp print and the summer warehouse season for the next read on demand.
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This analyst's 2025 picks are up 106% on average. He just named his top 10 stocks to buy in 2026. Get them here FREE.
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- Why Costco's E-commerce Gains Could Drive Higher Valuation
May 11, 2026
Costco Wholesale Corporation’s COST rapidly expanding e-commerce business is increasingly becoming a factor that could support a richer market valuation for the retailer. While the company has long been associated with warehouse traffic and membership loyalty, the latest sales update suggests its digital business is now contributing to growth in a more material way.
Digitally enabled comparable sales increased 18.8% in April and climbed 21.6% for the first 35 weeks ended May 3, 2026. Even after adjusting for gasoline prices and foreign exchange, digitally enabled comparable sales still rose 18.4% in April and 21.1% for the first 35 weeks. Those figures significantly outpaced the company’s overall comparable sales growth of 11.6%, indicating that Costco’s online ecosystem is scaling faster than its core warehouse business.
Strong digital momentum suggests that Costco is expanding customer engagement beyond in-store bulk shopping while reinforcing convenience for existing members. The company’s e-commerce presence now spans several international markets, including the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan and Australia.
In an environment marked by inflationary pressures and uncertain consumer spending patterns, Costco’s digital growth may be strengthening investor confidence that the retailer can sustain revenue growth across multiple shopping channels. The acceleration of these digital channels serves as a powerful catalyst for a higher valuation because it diversifies revenue streams and captures a broader share of member spending.
What the Latest Metrics Say About Costco's Valuation
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 46.37, higher than the industry’s ratio of 32.36 but below its median P/E level of 46.88, observed over the past year. Although the premium multiple may appear elevated, investors often view Costco as a high-quality retail operator supported by resilient comparable sales growth, strong membership retention and expanding digital capabilities.
As long as Costco continues to deliver consistent sales growth and strengthen its omnichannel presence, its premium valuation could remain supported by investors seeking stable growth within the retail sector. Zacks Investment Research
Image Source: Zacks Investment Research
Shares of Costco have fallen 0.8% over the past year against the Retail – Discount Stores industry’s 9.6% rise. Zacks Investment Research
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 8.9% and 13%, respectively. For the next fiscal year, the consensus estimate indicates a 7.6% rise in sales and 10.2% growth in earnings.
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Zacks Investment Research
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Costco’s Peer Performance: Walmart & BJ’s Wholesale
Walmart Inc. WMT continues to scale its digital ecosystem aggressively, with e-commerce sales rising 24% globally and contributing 23% of total sales during the fourth quarter of fiscal 2026. Walmart is leveraging store-fulfilled delivery, AI-driven tools and marketplace expansion to enhance convenience and drive higher basket sizes. Walmart’s comparable sales growth of 4.6% in the U.S. division reflects increased customer transactions supported by digital adoption.
BJ's Wholesale Club Holdings, Inc. BJ is also seeing robust digital traction, with digitally enabled comparable sales growing 31% during the fourth quarter of fiscal 2025. BJ’s Wholesale benefits from a club-based fulfillment model, with more than 90% of digital orders fulfilled in-club, supporting efficiency. BJ’s Wholesale continues to pair digital growth with membership expansion and traffic gains, reinforcing its omnichannel value proposition.
While Costco and BJ's Wholesale Club each carry a Zacks Rank #3 (Hold), Walmart holds a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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- Costco's April Sales Growth Highlights Strength in Membership Model
May 11, 2026
Costco Wholesale Corporation COST maintained steady comparable sales growth in April, reflecting its appeal among value-conscious consumers. The company’s competitive pricing and quality products — available both in stores and through its expanding e-commerce platform — continue to attract shoppers.
Sneak Peek Into Costco’s April Comparable Sales
For the four weeks ended May 3, 2026, Costco reported an 11.6% year-over-year increase in total comparable sales. Regionally, comparable sales rose 11.7% in the United States and 11.5% in both Canada and Other International markets. This follows total comparable sales growth of 9.4% in March and 7.9% in February, indicating strong momentum.
April saw an extra shopping day versus the prior year due to Easter's calendar shift, lifting total and comparable sales by about 1.5% to 2%.
On an adjusted basis, excluding the effects of gasoline prices and foreign exchange, U.S. comparable sales increased 8%, while Canada and Other International markets posted gains of 7.6% and 6.5%, respectively. Overall, total comparable sales, excluding these factors, grew 7.8% in April, following strong increases of 6.2% in March and 7% in February.
Digitally enabled comparable sales in April surged 18.8%, or 18.4% when adjusted for fuel and currency impacts. This follows gains of 23.3% and 21.8% in March and February, respectively, reflecting sustained strength in Costco’s online sales.
As a result, Costco's net sales for April rose 13% to $23.92 billion, up from $21.18 billion in the same period last year. This follows sales increases of 11.3% and 9.5% in March and February, respectively.Zacks Investment Research
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Bottom Line
Costco remains strong due to its membership-based model. With solid renewal rates, the retailer has cultivated a loyal customer base. This membership loyalty not only supports consistent sales but also helps Costco maintain stable margins, even during economic uncertainty. Costco’s ability to leverage bulk purchasing and operate an efficient supply chain allows it to keep sharp, competitive pricing in today’s inflation-sensitive environment.
Shares of this Zacks Rank #3 (Hold) company have fallen 0.8% over the past year against the Retail – Discount Stores industry’s 9.6% rise.
Picks You Can’t Miss Out On
Ross Stores, Inc. ROST, which operates off-price retail apparel and home fashion stores, currently carries a Zacks Rank #2 (Buy). ROST has a trailing four-quarter earnings surprise of 6.2%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Ross Stores’ current financial-year sales and EPS suggests growth of 6.3% and 10.7%, respectively, from the year-ago reported numbers.
Post Holdings, Inc. POST, a consumer-packaged goods holding company, currently carries a Zacks Rank #2. POST has a trailing four-quarter earnings surprise of 19.3%, on average.
The Zacks Consensus Estimate for Post Holdings’ current financial-year sales and EPS suggests growth of 2.7% and 0.1%, respectively, from the year-ago reported numbers.
Casey's General Stores, Inc. CASY, a leading convenience store chain in the United States, currently carries a Zacks Rank #2. CASY has a trailing four-quarter earnings surprise of 20%, on average.
The Zacks Consensus Estimate for Casey's current financial-year sales and EPS indicates growth of 8.6% and 24.6%, respectively, from the year-ago reported numbers.
Story Continues
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Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Ross Stores, Inc. (ROST) : Free Stock Analysis Report
Casey's General Stores, Inc. (CASY) : Free Stock Analysis Report
Post Holdings, Inc. (POST) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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- Why Costco Stock Could Be Recession-Proof
May 11, 2026
Lower-income American consumers are running out of money. The price of gas has spiked in recent months due to the Iran war, reaching $4.55 per gallon according to AAA, the highest level since 2022.
If consumers cut back on spending due to higher gas prices, this could be bad news for the retail sector and consumer discretionary stocks. Recent analysis from Bloomberg found that CEOs are mentioning gas prices more often on earnings calls. What does this mean for warehouse retailers like Costco(NASDAQ: COST)?
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The company's stock is up about 17% year to date, outperforming the S&P 500 index and about on par with its major competitor, Walmart(NASDAQ: WMT). During the past five years, Costco shares have slightly lagged behind Walmart's performance but have strongly outperformed other major retail stocks like Target(NYSE: TGT), Home Depot(NYSE: HD), and Amazon(NASDAQ: AMZN).COST data by YCharts
Here are a few reasons why Costco stock might be recession proof, even if some consumers cut back on spending.
Costco members are still spending -- and renewing
A big trend in retail is the "K-shaped economy." Fed research shows that most retail spending growth in the past few years has come from high-income households earning more than $125,000 per year. These people can handle higher inflation (and keep shopping at higher prices), even while lower-income customers might feel pressured to cut back.
Good news for Costco shareholders: Costco shoppers tend to be from high-income households. Research from Numerator shows that 40% of Costco members have incomes of $125,000 or higher. A 2023 study from the Northwestern University Medill School of Journalism found that Costco members had an average household income of $81,200, which was higher than members of Walmart+ ($61,500) and Amazon Prime ($66,200).Image source: Getty Images.
The company also boasts a high rate of member retention. As of the end of fiscal 2025, Costco's member renewal rate in the U.S. and Canada was 92.3%. This indicates strong customer loyalty -- people are unlikely to cancel their Costco memberships in both good times and bad.
On the company's most recent quarterly earnings call in March, CFO Gary Millerchip said, "We are seeing our members are willing to and have the capacity to spend."
Higher gas prices could be good for Costco's business
Higher gas prices aren't good news for the economy, and pain at the pump is a real burden for many lower-income households. But Costco is well positioned to survive and succeed in an environment of higher gas prices.
Story Continues
That's because Costco sells a lot of gasoline. The company's gasoline business made up about 10% of its total net sales in 2025. And its lower-price gas pumps can be a good point of entry to attract new members or drive more repeat business from existing members.
On the company's latest earnings call, Millerchip said that "about half of members that will shop at the gas station will also cross-shop at the warehouse." Even if gas prices rise from their current levels, Costco might become a more attractive place for consumers to buy groceries and other household items.
Costco members tend to be more affluent than average and are likely to keep shopping. The company seems well positioned to keep thriving even if lower-income consumers cut back on their spending. I'd rate this stock as a solid buy.
Should you buy stock in Costco Wholesale right now?
Before you buy stock in Costco Wholesale, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Costco Wholesale wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% 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.
See the 10 stocks »
*Stock Advisor returns as of May 11, 2026.
Ben Gran has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, Home Depot, Target, and Walmart. The Motley Fool has a disclosure policy.
Why Costco Stock Could Be Recession-Proof was originally published by The Motley Fool
View Comments
- Why Costco Stock Could Be Recession-Proof
May 11, 2026
Key Points
Costco members have higher average incomes than customers of its biggest competitors at Amazon and Walmart. The warehouse retailer earned about 10% of its net income from gasoline sales in 2025. Higher prices at the pump don’t have to be bad news for Costco shareholders.10 stocks we like better than Costco Wholesale ›
Lower-income American consumers are running out of money. The price of gas has spiked in recent months due to the Iran war, reaching $4.55 per gallon according to AAA, the highest level since 2022.
If consumers cut back on spending due to higher gas prices, this could be bad news for the retail sector and consumer discretionary stocks. Recent analysis from Bloomberg found that CEOs are mentioning gas prices more often on earnings calls. What does this mean for warehouse retailers like Costco(NASDAQ: COST)?
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
The company's stock is up about 17% year to date, outperforming the S&P 500 index and about on par with its major competitor, Walmart(NASDAQ: WMT). During the past five years, Costco shares have slightly lagged behind Walmart's performance but have strongly outperformed other major retail stocks like Target(NYSE: TGT), Home Depot(NYSE: HD), and Amazon(NASDAQ: AMZN).
COST data by YCharts
Here are a few reasons why Costco stock might be recession proof, even if some consumers cut back on spending.
Costco members are still spending -- and renewing
A big trend in retail is the "K-shaped economy." Fed research shows that most retail spending growth in the past few years has come from high-income households earning more than $125,000 per year. These people can handle higher inflation (and keep shopping at higher prices), even while lower-income customers might feel pressured to cut back.
Good news for Costco shareholders: Costco shoppers tend to be from high-income households. Research from Numerator shows that 40% of Costco members have incomes of $125,000 or higher. A 2023 study from the Northwestern University Medill School of Journalism found that Costco members had an average household income of $81,200, which was higher than members of Walmart+ ($61,500) and Amazon Prime ($66,200).
Image source: Getty Images.
The company also boasts a high rate of member retention. As of the end of fiscal 2025, Costco's member renewal rate in the U.S. and Canada was 92.3%. This indicates strong customer loyalty -- people are unlikely to cancel their Costco memberships in both good times and bad.
On the company's most recent quarterlyearnings callin March, CFO Gary Millerchip said, "We are seeing our members are willing to and have the capacity to spend."
Higher gas prices could be good for Costco's business
Higher gas prices aren't good news for the economy, and pain at the pump is a real burden for many lower-income households. But Costco is well positioned to survive and succeed in an environment of higher gas prices.
That's because Costco sells a lot of gasoline. The company's gasoline business made up about 10% of its total net sales in 2025. And its lower-price gas pumps can be a good point of entry to attract new members or drive more repeat business from existing members.
On the company's latestearnings call Millerchip said that "about half of members that will shop at the gas station will also cross-shop at the warehouse." Even if gas prices rise from their current levels, Costco might become a more attractive place for consumers to buy groceries and other household items.
Costco members tend to be more affluent than average and are likely to keep shopping. The company seems well positioned to keep thriving even if lower-income consumers cut back on their spending. I'd rate this stock as a solid buy.
Should you buy stock in Costco Wholesale right now?
Before you buy stock in Costco Wholesale, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Costco Wholesale wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $471,827!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,319,291!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 207% 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.
See the 10 stocks »
*Stock Advisor returns as of May 11, 2026.
Ben Gran has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, Home Depot, Target, and Walmart. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
