FELG's Core Assets Suggest a 10% Upside Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 18 2025
0mins
Should l Buy COST?
Source: NASDAQ.COM
ETF Analyst Target Price: The Fidelity Enhanced Large Cap Growth ETF (FELG) has an implied analyst target price of $44.50 per unit, indicating a potential upside of 9.83% from its recent trading price of $40.52.
Notable Holdings with Upside: Key underlying holdings of FELG, such as NRG Energy, Costco Wholesale, and Insulet Corp, show significant upside potential based on analyst target prices, with expected increases of 16.30%, 13.44%, and 11.87% respectively.
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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: 983.860
Low
769.00
Averages
1061
High
1205
Current: 983.860
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's Future Investment Outlook Analysis
- Significant Historical Returns: As of March 26, Costco's stock has generated a total return of 15,480%, becoming a successful choice for investors through store expansion, membership growth, and stable profits, showcasing its strong competitive edge in the retail market.
- Recession-Proof Nature: Costco sells essential items like food and household goods, and despite challenges such as the pandemic and inflation, same-store sales grew by 7.4% in Q2 2026, demonstrating resilience amid economic fluctuations.
- Clear Scale Advantage: With net sales of $270 billion in fiscal 2025, Costco's massive scale positions it dominantly in retail, providing persistent cost advantages that lead to low prices for consumers, enhancing its market competitiveness.
- High Membership Loyalty: The company boasts a nearly 90% global membership renewal rate, and its no-frills shopping environment combined with good customer service ensures high-margin, predictable revenue streams, although future growth potential appears limited.
See More
Costco to Launch Stand-Alone Gas Stations to Alleviate Congestion
- Stand-Alone Gas Station Initiative: Costco plans to launch its first stand-alone gas station in Mission Viejo, California, in June with 40 pumps, aimed at alleviating congestion around its current store locations and enhancing customer experience.
- Exclusive Member Benefits: The new gas stations will be accessible only to members who pay an annual fee of $65 or $130, likely attracting more consumers seeking gas prices that are $0.10 to $0.30 below the U.S. average, thereby increasing membership and company revenue.
- Strategic Value Enhancement: As of the end of fiscal year 2025, Costco operated 747 gas stations worldwide, contributing 10% to the company's net revenue, and the introduction of new stations will further solidify its pricing authority and competitive edge in the market.
- Positive Market Reaction: Costco's stock has risen 15% this year, and although it trades at 48 times forward earnings, the strategy of stand-alone gas stations is viewed positively by shareholders, boosting investor confidence amid geopolitical tensions and recession concerns.
See More
Costco Plans to Expand Stand-Alone Gas Stations for Members
- Stand-Alone Gas Station Initiative: Costco plans to launch its first stand-alone gas station in Mission Viejo, California, featuring 40 pumps and set to open in June, aimed at alleviating congestion at existing store parking lots while attracting more members.
- Member Attraction: Costco's gas prices are typically $0.10 to $0.30 below the U.S. average, allowing members to save approximately $77 annually, making the $65 membership fee a compelling value proposition that drives membership growth.
- Strategic Impact: CFO Gary Millerchip noted that about 50% of gas station customers also shop at the warehouse, indicating that the gas stations not only attract new members but also enhance overall sales and strengthen the company's value proposition.
- Profit Structure: With 70% of Costco's profits derived from membership fees, the gas business, despite its lower margins, plays a crucial role in the company's strategy, alongside other value-added services like $1.50 hot dog combos, helping maintain competitiveness and appeal to defensive investors.
See More
Nebius Signs $27 Billion AI Deal with Meta Platforms
- Major Partnership Agreement: Nebius has signed a $27 billion AI infrastructure deal with Meta Platforms, ensuring that Meta secures sufficient computing power over the next five years to support its AI model development, showcasing Nebius's strong competitive position in the AI cloud computing sector.
- Market Validation: The deal's value exceeds Nebius's previous company valuation, marking a significant recognition of its status as an emerging cloud provider and proving the viability of its business model, which attracts increased investor interest.
- Technological Investment: Nebius will provide Meta with $12 billion worth of computing capacity using Nvidia's latest Vera Rubin chips, a technological choice that will significantly enhance Meta's competitiveness in the AI space, ensuring it stays ahead in technological advancements.
- Strategic Expansion: This agreement not only deepens the collaboration between Nebius and Meta but also complements other significant investments from Nvidia and Microsoft, further solidifying Nebius's critical role in the global AI infrastructure market.
See More
Nebius Signs Major AI Deal with Meta Platforms
- AI Infrastructure Partnership: Dutch company Nebius has signed a significant AI infrastructure deal worth up to $27 billion with Meta Platforms, ensuring Meta has sufficient computing power for its AI model development over the next five years, highlighting Meta's ambitions in the AI space.
- Market Validation: The contract's value exceeds Nebius's valuation from the previous day, solidifying its position as an emerging cloud service provider and demonstrating the viability of its business model, attracting more investor interest.
- Technological Investment: Meta will utilize Nvidia's latest Vera Rubin chips, expected to provide $12 billion worth of computing capacity starting in 2027, which not only enhances Meta's technological capabilities but also presents significant revenue growth potential for Nebius.
- Retail Performance Highlights: Dollar Tree reported $5.5 billion in revenue for Q4 2025, a 9% year-over-year increase, successfully attracting more consumers by introducing higher-priced items (such as $3, $5, and $7), demonstrating its resilience during economic uncertainty.
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Surge in Options Trading Volume for NVIDIA and Amazon
- NVIDIA Options Volume: NVIDIA's options trading volume reached 2.4 million contracts, representing approximately 235.8 million shares, which is about 130.5% of its average daily trading volume over the past month, indicating strong market interest in its future performance.
- High Put Option Activity: Within NVIDIA, the $165 strike put option saw a trading volume of 157,318 contracts today, representing about 15.7 million shares, suggesting investor expectations of potential declines in the stock's price.
- Amazon Options Activity: Amazon's options trading volume stood at 558,537 contracts, involving approximately 55.9 million shares, equating to 123.5% of its average daily trading volume over the past month, reflecting active trading in its stock.
- Call Option Trading: For Amazon, the $202.50 strike call option recorded a trading volume of 39,133 contracts today, representing around 3.9 million shares, indicating investor optimism regarding future price increases.
See More
Costco's Future Investment Outlook Analysis
- Significant Historical Returns: As of March 26, Costco's stock has generated a total return of 15,480%, becoming a successful choice for investors through store expansion, membership growth, and stable profits, showcasing its strong competitive edge in the retail market.
- Recession-Proof Nature: Costco sells essential items like food and household goods, and despite challenges such as the pandemic and inflation, same-store sales grew by 7.4% in Q2 2026, demonstrating resilience amid economic fluctuations.
- Clear Scale Advantage: With net sales of $270 billion in fiscal 2025, Costco's massive scale positions it dominantly in retail, providing persistent cost advantages that lead to low prices for consumers, enhancing its market competitiveness.
- High Membership Loyalty: The company boasts a nearly 90% global membership renewal rate, and its no-frills shopping environment combined with good customer service ensures high-margin, predictable revenue streams, although future growth potential appears limited.
See More
Costco to Launch Stand-Alone Gas Stations to Alleviate Congestion
- Stand-Alone Gas Station Initiative: Costco plans to launch its first stand-alone gas station in Mission Viejo, California, in June with 40 pumps, aimed at alleviating congestion around its current store locations and enhancing customer experience.
- Exclusive Member Benefits: The new gas stations will be accessible only to members who pay an annual fee of $65 or $130, likely attracting more consumers seeking gas prices that are $0.10 to $0.30 below the U.S. average, thereby increasing membership and company revenue.
- Strategic Value Enhancement: As of the end of fiscal year 2025, Costco operated 747 gas stations worldwide, contributing 10% to the company's net revenue, and the introduction of new stations will further solidify its pricing authority and competitive edge in the market.
- Positive Market Reaction: Costco's stock has risen 15% this year, and although it trades at 48 times forward earnings, the strategy of stand-alone gas stations is viewed positively by shareholders, boosting investor confidence amid geopolitical tensions and recession concerns.
See More
Costco Plans to Expand Stand-Alone Gas Stations for Members
- Stand-Alone Gas Station Initiative: Costco plans to launch its first stand-alone gas station in Mission Viejo, California, featuring 40 pumps and set to open in June, aimed at alleviating congestion at existing store parking lots while attracting more members.
- Member Attraction: Costco's gas prices are typically $0.10 to $0.30 below the U.S. average, allowing members to save approximately $77 annually, making the $65 membership fee a compelling value proposition that drives membership growth.
- Strategic Impact: CFO Gary Millerchip noted that about 50% of gas station customers also shop at the warehouse, indicating that the gas stations not only attract new members but also enhance overall sales and strengthen the company's value proposition.
- Profit Structure: With 70% of Costco's profits derived from membership fees, the gas business, despite its lower margins, plays a crucial role in the company's strategy, alongside other value-added services like $1.50 hot dog combos, helping maintain competitiveness and appeal to defensive investors.
See More
Nebius Signs $27 Billion AI Deal with Meta Platforms
- Major Partnership Agreement: Nebius has signed a $27 billion AI infrastructure deal with Meta Platforms, ensuring that Meta secures sufficient computing power over the next five years to support its AI model development, showcasing Nebius's strong competitive position in the AI cloud computing sector.
- Market Validation: The deal's value exceeds Nebius's previous company valuation, marking a significant recognition of its status as an emerging cloud provider and proving the viability of its business model, which attracts increased investor interest.
- Technological Investment: Nebius will provide Meta with $12 billion worth of computing capacity using Nvidia's latest Vera Rubin chips, a technological choice that will significantly enhance Meta's competitiveness in the AI space, ensuring it stays ahead in technological advancements.
- Strategic Expansion: This agreement not only deepens the collaboration between Nebius and Meta but also complements other significant investments from Nvidia and Microsoft, further solidifying Nebius's critical role in the global AI infrastructure market.
See More
Nebius Signs Major AI Deal with Meta Platforms
- AI Infrastructure Partnership: Dutch company Nebius has signed a significant AI infrastructure deal worth up to $27 billion with Meta Platforms, ensuring Meta has sufficient computing power for its AI model development over the next five years, highlighting Meta's ambitions in the AI space.
- Market Validation: The contract's value exceeds Nebius's valuation from the previous day, solidifying its position as an emerging cloud service provider and demonstrating the viability of its business model, attracting more investor interest.
- Technological Investment: Meta will utilize Nvidia's latest Vera Rubin chips, expected to provide $12 billion worth of computing capacity starting in 2027, which not only enhances Meta's technological capabilities but also presents significant revenue growth potential for Nebius.
- Retail Performance Highlights: Dollar Tree reported $5.5 billion in revenue for Q4 2025, a 9% year-over-year increase, successfully attracting more consumers by introducing higher-priced items (such as $3, $5, and $7), demonstrating its resilience during economic uncertainty.
See More
Surge in Options Trading Volume for NVIDIA and Amazon
- NVIDIA Options Volume: NVIDIA's options trading volume reached 2.4 million contracts, representing approximately 235.8 million shares, which is about 130.5% of its average daily trading volume over the past month, indicating strong market interest in its future performance.
- High Put Option Activity: Within NVIDIA, the $165 strike put option saw a trading volume of 157,318 contracts today, representing about 15.7 million shares, suggesting investor expectations of potential declines in the stock's price.
- Amazon Options Activity: Amazon's options trading volume stood at 558,537 contracts, involving approximately 55.9 million shares, equating to 123.5% of its average daily trading volume over the past month, reflecting active trading in its stock.
- Call Option Trading: For Amazon, the $202.50 strike call option recorded a trading volume of 39,133 contracts today, representing around 3.9 million shares, indicating investor optimism regarding future price increases.
See More
