Feast on a Spread of ETFs This Thanksgiving
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 27 2024
0mins
Source: NASDAQ.COM
Thanksgiving Costs and Travel Trends: This Thanksgiving, the average cost for a dinner of 10 is estimated at $58.08, down 5% from last year, while travel is expected to reach a record 80 million Americans, with significant increases in both car and air travel.
Consumer Spending Insights: Despite a slight decrease in expected consumer spending to $125 billion this holiday weekend, millennials and Gen X are projected to lead expenditures, with various ETFs positioned to benefit from the holiday shopping surge.
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Analyst Views on COST
Wall Street analysts forecast COST stock price to rise
24 Analyst Rating
19 Buy
4 Hold
1 Sell
Strong Buy
Current: 951.450
Low
769.00
Averages
1061
High
1205
Current: 951.450
Low
769.00
Averages
1061
High
1205
About COST
Costco Wholesale Corporation (Costco) operates membership warehouses and e-commerce sites that offer a selection of nationally branded and private-label products in a wide range of categories. The Company buys the majority of its merchandise directly from suppliers and route it to cross-docking consolidation points (depots) or directly to its warehouses. It operates 891 warehouses, including 614 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 35 in Japan, 29 in the United Kingdom, 19 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, two in France, and one each in Iceland, New Zealand and Sweden. It also operates e-commerce sites in the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan and Australia. The Company provides wide selection of merchandise, plus the convenience of specialty departments and exclusive member services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Costco Thrives Amid Inflation, Sales Surge
- Inflation-Driven Sales: With inflation hitting 4.2% in May, Costco's low-price strategy has made it an essential part of consumers' lives, driving sales growth and restoring market confidence.
- Fuel Sales Surge: In the fiscal Q3 2026, comparable-store fuel sales grew approximately 20%, while overall comps increased by 9.8%, attracting new users and positioning fuel sales as a long-term growth driver.
- Membership Model Advantage: Costco's membership model attracts a wealthier customer base that demonstrates resilience during economic challenges, thereby driving store sales momentum and ensuring strong performance in any economic climate.
- Oil Price Impact on Sales: While higher oil prices hurt retailers, Costco benefited from inflated fuel prices by about 2.2% in the quarter, showcasing its adaptability and competitive edge amid economic fluctuations.
See More
Rising Fuel Prices Drive Costco's Gas Station Expansion
- Gas Station Expansion: Costco is expanding its gas station network to capitalize on increased customer traffic due to rising fuel prices, which is expected to further drive sales growth and enhance customer loyalty.
- Accelerated Sales Growth: In the fiscal third quarter of 2026, Costco's comparable fuel sales grew approximately 20%, while overall comparable sales increased by 9.8%, indicating a positive impact of high fuel prices on its sales.
- Changing Consumer Spending Patterns: As fuel prices rise, customers tend to increase their in-store spending after refueling at Costco, a trend that is anticipated to become a long-term growth driver, further boosting the company's performance.
- Economic Resilience: Costco attracts a more affluent customer base that demonstrates stronger spending power during economic challenges, allowing the company to maintain robust sales momentum in any economic environment.
See More
Target Shareholder Support Hits Record Low Amid Leadership Criticism
- Declining Shareholder Support: At the recent annual meeting, Target's former CEO and current executive chairman Brian Cornell received only 87.2% support, a 4% drop from last year and significantly below the S&P 500 average of 96.6%, indicating growing investor dissatisfaction with leadership.
- Management Transition Backlash: After stepping down as CEO in February 2023, Cornell's transition to executive chair has been criticized, as despite achieving over 44% sales growth during his tenure, the company has faced declining profits and market share losses, resulting in a nearly 50% drop in stock price since its 2021 peak.
- Investor Opposition: Major public pension funds from Florida and New York voted against Cornell, citing “poor long-term performance,” highlighting significant investor discontent with Target's management, particularly regarding brand reputation and workforce management issues.
- Uncertain Future Outlook: Although Target reported a 5.6% increase in comparable sales in the first fiscal quarter, suggesting early signs of recovery, the CFO acknowledged that spending may decline due to reduced tax refunds, leaving investor confidence in management still fragile.
See More
Target Board Support Declines Significantly Amid Criticism
- Declining Shareholder Support: Brian Cornell, former CEO and current executive chairman of Target, received only 87.2% support during the annual meeting, a 4% drop from last year and significantly below his historical average of 95% and the S&P 500's 96.6%, indicating growing investor dissatisfaction with his leadership.
- Poor Performance: Under Cornell's tenure, Target has faced three consecutive years of declining sales and a 50% drop in share price, leading to diminished investor confidence in the company's strategic direction, particularly amid fierce competition from rivals.
- Pressure for Management Change: While Cornell was re-elected to the board, investor concerns about his continued chairmanship have intensified, with many viewing his retention as a “reward for failure” and calling for a complete overhaul of the management team overseeing the company's struggles.
- Increased Opposition from Investors: Major investors, including public pension funds from Florida and New York, have begun to vote against Cornell, citing poor management and its negative impact on brand and shareholder value, reflecting a strong pushback against Target's leadership.
See More
High Inflation Influences Federal Reserve Policy
- Federal Reserve Policy Shift: Due to persistently high inflation, the Federal Reserve has opted to keep the benchmark federal funds rate unchanged between 3.5% and 3.75%, with half of the meeting participants anticipating at least one rate hike in 2026, which is unwelcome news for investors seeking a more accommodative monetary policy.
- Strong Sales Performance: Despite economic uncertainties, Costco achieved same-store sales growth of 14.4% in fiscal 2022 and 3% in fiscal 2023, demonstrating resilience in a high-inflation environment where consumer demand for low-priced, high-quality goods remains consistent.
- Recent Sales Data Highlights: During the four-week period ending May 31, Costco reported a same-store sales increase of 12.5%, and even excluding changes in gas prices and foreign exchange, this key metric rose by 8%, indicating its ongoing appeal in the current economic climate.
- Valuation Risks: Although Costco's financial performance is stable, the market demands a price-to-earnings ratio of 47.9, suggesting that the stock is highly valued and may lack a margin of safety, prompting caution for investors considering adding to their positions.
See More
Federal Reserve Holds Rates Steady, Costco Remains Resilient
- Fed Rate Decision: In Kevin Warsh's inaugural meeting, the Federal Reserve unanimously decided to keep the benchmark federal funds rate unchanged at 3.5% to 3.75%, with half of the participants expecting at least one rate hike in 2026, which is disappointing news for investors seeking a more accommodative policy.
- Costco Sales Growth: Despite high inflation and rising interest rates, Costco reported same-store sales (SSS) growth of 14.4% and 3% in fiscal years 2022 and 2023 respectively, demonstrating its resilience in uncertain economic conditions, as consumer demand for low-priced, high-quality goods remains strong.
- Pandemic Performance: During the COVID-19 pandemic in 2020, Costco achieved a 7.7% increase in same-store sales, establishing itself as a reliable one-stop shop for households, which highlights its stability and sustained market demand during crises.
- Valuation Risks: Although Costco's stable financial performance keeps its stock price high, with a current price-to-earnings ratio of 47.9, investors should carefully consider whether to add this stock in an uncertain economic environment, as the lack of margin of safety could pose risks.
See More
Costco Thrives Amid Inflation, Sales Surge
- Inflation-Driven Sales: With inflation hitting 4.2% in May, Costco's low-price strategy has made it an essential part of consumers' lives, driving sales growth and restoring market confidence.
- Fuel Sales Surge: In the fiscal Q3 2026, comparable-store fuel sales grew approximately 20%, while overall comps increased by 9.8%, attracting new users and positioning fuel sales as a long-term growth driver.
- Membership Model Advantage: Costco's membership model attracts a wealthier customer base that demonstrates resilience during economic challenges, thereby driving store sales momentum and ensuring strong performance in any economic climate.
- Oil Price Impact on Sales: While higher oil prices hurt retailers, Costco benefited from inflated fuel prices by about 2.2% in the quarter, showcasing its adaptability and competitive edge amid economic fluctuations.
See More
Rising Fuel Prices Drive Costco's Gas Station Expansion
- Gas Station Expansion: Costco is expanding its gas station network to capitalize on increased customer traffic due to rising fuel prices, which is expected to further drive sales growth and enhance customer loyalty.
- Accelerated Sales Growth: In the fiscal third quarter of 2026, Costco's comparable fuel sales grew approximately 20%, while overall comparable sales increased by 9.8%, indicating a positive impact of high fuel prices on its sales.
- Changing Consumer Spending Patterns: As fuel prices rise, customers tend to increase their in-store spending after refueling at Costco, a trend that is anticipated to become a long-term growth driver, further boosting the company's performance.
- Economic Resilience: Costco attracts a more affluent customer base that demonstrates stronger spending power during economic challenges, allowing the company to maintain robust sales momentum in any economic environment.
See More
Target Shareholder Support Hits Record Low Amid Leadership Criticism
- Declining Shareholder Support: At the recent annual meeting, Target's former CEO and current executive chairman Brian Cornell received only 87.2% support, a 4% drop from last year and significantly below the S&P 500 average of 96.6%, indicating growing investor dissatisfaction with leadership.
- Management Transition Backlash: After stepping down as CEO in February 2023, Cornell's transition to executive chair has been criticized, as despite achieving over 44% sales growth during his tenure, the company has faced declining profits and market share losses, resulting in a nearly 50% drop in stock price since its 2021 peak.
- Investor Opposition: Major public pension funds from Florida and New York voted against Cornell, citing “poor long-term performance,” highlighting significant investor discontent with Target's management, particularly regarding brand reputation and workforce management issues.
- Uncertain Future Outlook: Although Target reported a 5.6% increase in comparable sales in the first fiscal quarter, suggesting early signs of recovery, the CFO acknowledged that spending may decline due to reduced tax refunds, leaving investor confidence in management still fragile.
See More
Target Board Support Declines Significantly Amid Criticism
- Declining Shareholder Support: Brian Cornell, former CEO and current executive chairman of Target, received only 87.2% support during the annual meeting, a 4% drop from last year and significantly below his historical average of 95% and the S&P 500's 96.6%, indicating growing investor dissatisfaction with his leadership.
- Poor Performance: Under Cornell's tenure, Target has faced three consecutive years of declining sales and a 50% drop in share price, leading to diminished investor confidence in the company's strategic direction, particularly amid fierce competition from rivals.
- Pressure for Management Change: While Cornell was re-elected to the board, investor concerns about his continued chairmanship have intensified, with many viewing his retention as a “reward for failure” and calling for a complete overhaul of the management team overseeing the company's struggles.
- Increased Opposition from Investors: Major investors, including public pension funds from Florida and New York, have begun to vote against Cornell, citing poor management and its negative impact on brand and shareholder value, reflecting a strong pushback against Target's leadership.
See More
High Inflation Influences Federal Reserve Policy
- Federal Reserve Policy Shift: Due to persistently high inflation, the Federal Reserve has opted to keep the benchmark federal funds rate unchanged between 3.5% and 3.75%, with half of the meeting participants anticipating at least one rate hike in 2026, which is unwelcome news for investors seeking a more accommodative monetary policy.
- Strong Sales Performance: Despite economic uncertainties, Costco achieved same-store sales growth of 14.4% in fiscal 2022 and 3% in fiscal 2023, demonstrating resilience in a high-inflation environment where consumer demand for low-priced, high-quality goods remains consistent.
- Recent Sales Data Highlights: During the four-week period ending May 31, Costco reported a same-store sales increase of 12.5%, and even excluding changes in gas prices and foreign exchange, this key metric rose by 8%, indicating its ongoing appeal in the current economic climate.
- Valuation Risks: Although Costco's financial performance is stable, the market demands a price-to-earnings ratio of 47.9, suggesting that the stock is highly valued and may lack a margin of safety, prompting caution for investors considering adding to their positions.
See More
Federal Reserve Holds Rates Steady, Costco Remains Resilient
- Fed Rate Decision: In Kevin Warsh's inaugural meeting, the Federal Reserve unanimously decided to keep the benchmark federal funds rate unchanged at 3.5% to 3.75%, with half of the participants expecting at least one rate hike in 2026, which is disappointing news for investors seeking a more accommodative policy.
- Costco Sales Growth: Despite high inflation and rising interest rates, Costco reported same-store sales (SSS) growth of 14.4% and 3% in fiscal years 2022 and 2023 respectively, demonstrating its resilience in uncertain economic conditions, as consumer demand for low-priced, high-quality goods remains strong.
- Pandemic Performance: During the COVID-19 pandemic in 2020, Costco achieved a 7.7% increase in same-store sales, establishing itself as a reliable one-stop shop for households, which highlights its stability and sustained market demand during crises.
- Valuation Risks: Although Costco's stable financial performance keeps its stock price high, with a current price-to-earnings ratio of 47.9, investors should carefully consider whether to add this stock in an uncertain economic environment, as the lack of margin of safety could pose risks.
See More
