Costco Wholesale Corporation (COST-Q)

Great company and franchise, but valuation got expensive.

They will survive this tariff war, because they can source cheap, bulk products.

Recently sold. PEG ratio just got too high.

Any time it opens up a store, it's successful. Model is easy to replicate in other countries. Exceptional customer loyalty. Produce will probably be impacted less by tariffs, as it's sourced locally; hardware goods may be impacted.

Managed to combine recurring revenue (membership fees) with traditional retail. Business model is still the best in the retail space. Big push toward lower-cost merchandisers. Second to none in its ability to not only survive, but thrive, in what could be a difficult economic environment. Yield is 0.48%.

They boast profits and growth, and shares are -12% in the past month, making this a buy. No, it's not rolling over. Buy some now, and buy some next week.

Profitability is improving; expanding due to e-commerce growth, Kirkland signature, and ad revenue. Reputable brand. Opens 25-30 stores a year. Adding footprint in China. Likes the stability and steady growth. Performs well even in uncertain markets. Impressive membership renewal rate over 90%, and that recurring revenue is a major strength. Sales are still growing from both price and traffic increases. Yield is 0.51%.

Profitability is improving; expanding due to e-commerce growth, Kirkland signature, and ad revenue. Reputable brand. Opens 25-30 stores a year. Adding footprint in China. Likes the stability and steady growth. Performs well even in uncertain markets. Impressive membership renewal rate over 90%, and that recurring revenue is a major strength. Sales are still growing from both price and traffic increases. Yield is 0.51%.

Its stability can weather volatility long term. Expecting 9% EPS growth in both 2025 and 2026. Fundamental score is 9/10.

A great company based on a fantastic model with nearly all profits covered by membership fees, but trades in the mid-40x PE, which is too high for a retailer, even after this pullback. Great company, but not a great stock.

They had a terrific quarter, but fell 6% anyway. Is -13% from all-time high of a few weeks ago. But it usually sells off on good quarters, but bounces back, so you must buy it into weakness. Almost always. They reported a revenue beat, but earnings miss. Same-store sales were +6.8%, beating the street. Operating margin barely missed as did EPS. Costco shoppers are still spending, but getting picky about value. Non-food same-store sales growth was around 15%, good. Only one-sixth of their goods come from China, Canada and Mexico, so they are fairly insulated from tariffs; and they can replaced those tariffed items with non-tariffed ones. Shares are hit because it's a high-PE stock and the market is down. Shares now are a buying opportunity.

It reported excellent numbers last night, but shares still got hammered. Wait till Tuesday when all the sellers will probably be done. It's a major holding of his.

High valuation, but paying a premium for a name that has scale and not many competitors. 

Costco and Walmart offer terrific private label products that appeal to consumer starved for value after products were hiked during Covid. True, private label brands aren't growing much, but they keep all prices--including consumer brands--down. The brands are one reason why  Costco and Walmart keep hitting new highs.

World's third-largest retailer. Set apart by narrow product offering, lean supply chain, and good procurement clout. High traffic, repeat business, very high retention at 93%. Very strong same-store sales growth, still not a saturated concept. Great sales growth, earnings growth, compound total return. Despite the run, any day that ends in "y" is a good day to buy. Yield is 0.5%.

Trades at a reasonable valuation. Such a broad company. Their ad business continues to grow and they will remain competitive in data centres (they and Google have the best infrastructure in data centres). Prefers Amazon for its valuation and diversification.