RTH and VDC: Two ETFs That May Perform Strongly Following Walmart's Q3 Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 19 2025
0mins
Should l Buy COST?
Source: TipRanks
Walmart Q3 Earnings Expectations: Walmart is expected to report Q3 earnings of $0.61 per share, a 5.2% increase year-over-year, with revenues projected at $177.14 billion, up 4.5% from the previous year.
ETFs Offering Walmart Exposure: Investors can consider ETFs like RTH and VDC for indirect exposure to Walmart, with RTH holding 9.48% of Walmart and VDC holding 14.26%, providing a diversified investment option in the retail sector.
RTH ETF Performance: The RTH ETF, focused on consumer discretionary stocks, has $253.85 million in assets and a year-to-date increase of 11%, with a Strong Buy consensus rating and a price target suggesting a 22.70% upside.
VDC ETF Overview: The VDC ETF, tracking large-cap consumer staples, has $7.19 billion in assets, a 0.58% year-to-date increase, and a Moderate Buy consensus rating, indicating a 17.03% upside potential.
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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: 973.820
Low
769.00
Averages
1061
High
1205
Current: 973.820
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 Leverages Gas Prices to Attract Members
- Gas Price Strategy: Costco strategically sets gas prices about $0.20 to $0.30 below competitors, attracting new members and encouraging renewals, thereby enhancing membership value during economic stress.
- Significant Membership Growth: In Q2 of fiscal 2026, paid membership increased by 4.8% year-over-year, while comparable sales (excluding gas) rose by 6.7%, indicating robust membership expansion and the positive impact of gas pricing.
- Impact of Oil Price Volatility: The ongoing conflict in Iran has caused global oil price fluctuations; however, Costco's gas pricing strategy allows it to maintain a competitive edge, converting volatility into a stable source of membership revenue.
- Long-term Investment Value: Costco's gas pricing strategy not only mitigates the impact of rising energy costs but also provides predictable value for shareholders, making it one of the few retailers effectively managing cost increases in the current market.
See More
Costco Leverages Gas Prices to Boost Memberships
- Membership Growth Strategy: Costco's strategy of pricing gasoline approximately $0.20 to $0.30 per gallon below competitors attracts new members and encourages renewals, which is expected to enhance its competitiveness in the retail market.
- Economic Pressure Response: With national average gas prices nearing $4 per gallon, the value proposition of Costco becomes increasingly apparent, leading consumers under economic stress to invest in memberships, thereby boosting membership numbers.
- Sales Growth Metrics: As of the second quarter of fiscal 2026, Costco's paid membership grew by 4.8% year-over-year, while comparable sales (excluding gas) increased by 6.7%, indicating that the membership base is expanding even amidst rising gas prices, further enhancing the company's profitability.
- Stable Business Model: Costco's gasoline pricing strategy transforms a volatile commodity into a stable membership driver, providing a unique risk mitigation capability in the retail sector and establishing itself as a reliable source of value for investors.
See More
Costco's Gas Pricing Strategy Attracts Members
- Gas Price Competitive Edge: Costco's gas prices are approximately $0.20 to $0.30 lower than competitors, currently at $3.60 per gallon, which attracts more members and enhances market competitiveness.
- Significant Membership Growth: As of Q2 of fiscal 2026, paid membership grew by 4.8% year-over-year, while comparable sales (excluding gas) increased by 6.7%, indicating steady expansion of the membership base.
- Strategic Price Adjustments: Costco quickly raises gas prices when costs increase but lowers them more slowly when costs fall, ensuring competitiveness while protecting margins, which enhances the company's resilience in volatile markets.
- Value Proposition Under Economic Pressure: During economic stress, consumers are more likely to invest in Costco memberships, as savings on gas can fully cover the $65 membership fee, further solidifying the company's revenue streams.
See More
Costco's New Energy Drink Launch Has Limited Impact on Celsius
- Product Launch: Costco's Kirkland Signature brand has introduced a new 'Sparkling Energy Drink' that closely resembles Celsius in can size, caffeine content, and flavors, potentially exerting short-term pressure on Celsius's market performance.
- Stock Volatility: Following the launch of the new drink, Celsius Holdings saw its shares drop by 7%, indicating market sensitivity to new competitive products, although analysts believe that long-term sales will not be significantly impacted.
- Retail Investor Sentiment: According to Stocktwits data, retail investor chatter around Celsius surged by 4200% in the past 24 hours, reflecting a significant increase in investor interest, with sentiment shifting from 'neutral' to 'extremely bullish'.
- Analyst Ratings Remain Positive: Despite the new competition, Stifel maintains a 'Buy' rating on Celsius, with 18 out of 22 analysts covering CELH stock rating it 'Buy' or higher, indicating strong market confidence in Celsius's future growth prospects.
See More
Costco Shares Snap Losing Streak, Plans First Standalone Gas Station
- Stock Rebound: Costco (COST) shares rose 0.8% to $973.68 on Tuesday, breaking a six-session losing streak, although the stock is down 1% over the past month, it has gained over 12% year-to-date, indicating resilience compared to the broader market.
- New Business Expansion: The company plans to open its first standalone gas station in Mission Viejo, California, in June, which is expected to enhance its service network and potentially attract more members, further driving sales growth.
- Profitability Analysis: According to Seeking Alpha, Costco delivers superior revenue and net income per employee, with higher ROE and top-line growth, making it more attractive for long-term investors despite similar forward P/E multiples due to its higher growth potential.
- Analyst Ratings: On Wall Street, 23 analysts rated Costco as Buy or better, while 12 recommended Hold and two suggested Strong Sell, reflecting a divergence in market sentiment regarding its future performance.
See More
Target's New CEO Instills Confidence for Turnaround
- Retail Struggles: Since the end of the pandemic, Target's stock has plummeted 30% and is down over 50% from its all-time peak, reflecting vulnerabilities amid theft, inflation, and stiff competition.
- New CEO's Strategy: New CEO Michael Fiddelke has quickly implemented strategies, including the upcoming Target Circle Deal Days from March 25-27, which will offer discounts of up to 40% to regain customer trust.
- Loyalty Program Enhancement: The introduction of Target Circle aims not only to attract customers back but also to increase membership by offering a 15% discount on one shopping trip, thereby enhancing customer loyalty and improving sales performance.
- Future Outlook: Despite Target's comparable sales decline over the last four quarters, Fiddelke's goal is to achieve sales growth, and if the company raises its sales guidance, it could signal a buy opportunity for investors, indicating the turnaround is taking effect.
See More
Costco Leverages Gas Prices to Attract Members
- Gas Price Strategy: Costco strategically sets gas prices about $0.20 to $0.30 below competitors, attracting new members and encouraging renewals, thereby enhancing membership value during economic stress.
- Significant Membership Growth: In Q2 of fiscal 2026, paid membership increased by 4.8% year-over-year, while comparable sales (excluding gas) rose by 6.7%, indicating robust membership expansion and the positive impact of gas pricing.
- Impact of Oil Price Volatility: The ongoing conflict in Iran has caused global oil price fluctuations; however, Costco's gas pricing strategy allows it to maintain a competitive edge, converting volatility into a stable source of membership revenue.
- Long-term Investment Value: Costco's gas pricing strategy not only mitigates the impact of rising energy costs but also provides predictable value for shareholders, making it one of the few retailers effectively managing cost increases in the current market.
See More
Costco Leverages Gas Prices to Boost Memberships
- Membership Growth Strategy: Costco's strategy of pricing gasoline approximately $0.20 to $0.30 per gallon below competitors attracts new members and encourages renewals, which is expected to enhance its competitiveness in the retail market.
- Economic Pressure Response: With national average gas prices nearing $4 per gallon, the value proposition of Costco becomes increasingly apparent, leading consumers under economic stress to invest in memberships, thereby boosting membership numbers.
- Sales Growth Metrics: As of the second quarter of fiscal 2026, Costco's paid membership grew by 4.8% year-over-year, while comparable sales (excluding gas) increased by 6.7%, indicating that the membership base is expanding even amidst rising gas prices, further enhancing the company's profitability.
- Stable Business Model: Costco's gasoline pricing strategy transforms a volatile commodity into a stable membership driver, providing a unique risk mitigation capability in the retail sector and establishing itself as a reliable source of value for investors.
See More
Costco's Gas Pricing Strategy Attracts Members
- Gas Price Competitive Edge: Costco's gas prices are approximately $0.20 to $0.30 lower than competitors, currently at $3.60 per gallon, which attracts more members and enhances market competitiveness.
- Significant Membership Growth: As of Q2 of fiscal 2026, paid membership grew by 4.8% year-over-year, while comparable sales (excluding gas) increased by 6.7%, indicating steady expansion of the membership base.
- Strategic Price Adjustments: Costco quickly raises gas prices when costs increase but lowers them more slowly when costs fall, ensuring competitiveness while protecting margins, which enhances the company's resilience in volatile markets.
- Value Proposition Under Economic Pressure: During economic stress, consumers are more likely to invest in Costco memberships, as savings on gas can fully cover the $65 membership fee, further solidifying the company's revenue streams.
See More
Costco's New Energy Drink Launch Has Limited Impact on Celsius
- Product Launch: Costco's Kirkland Signature brand has introduced a new 'Sparkling Energy Drink' that closely resembles Celsius in can size, caffeine content, and flavors, potentially exerting short-term pressure on Celsius's market performance.
- Stock Volatility: Following the launch of the new drink, Celsius Holdings saw its shares drop by 7%, indicating market sensitivity to new competitive products, although analysts believe that long-term sales will not be significantly impacted.
- Retail Investor Sentiment: According to Stocktwits data, retail investor chatter around Celsius surged by 4200% in the past 24 hours, reflecting a significant increase in investor interest, with sentiment shifting from 'neutral' to 'extremely bullish'.
- Analyst Ratings Remain Positive: Despite the new competition, Stifel maintains a 'Buy' rating on Celsius, with 18 out of 22 analysts covering CELH stock rating it 'Buy' or higher, indicating strong market confidence in Celsius's future growth prospects.
See More
Costco Shares Snap Losing Streak, Plans First Standalone Gas Station
- Stock Rebound: Costco (COST) shares rose 0.8% to $973.68 on Tuesday, breaking a six-session losing streak, although the stock is down 1% over the past month, it has gained over 12% year-to-date, indicating resilience compared to the broader market.
- New Business Expansion: The company plans to open its first standalone gas station in Mission Viejo, California, in June, which is expected to enhance its service network and potentially attract more members, further driving sales growth.
- Profitability Analysis: According to Seeking Alpha, Costco delivers superior revenue and net income per employee, with higher ROE and top-line growth, making it more attractive for long-term investors despite similar forward P/E multiples due to its higher growth potential.
- Analyst Ratings: On Wall Street, 23 analysts rated Costco as Buy or better, while 12 recommended Hold and two suggested Strong Sell, reflecting a divergence in market sentiment regarding its future performance.
See More
Target's New CEO Instills Confidence for Turnaround
- Retail Struggles: Since the end of the pandemic, Target's stock has plummeted 30% and is down over 50% from its all-time peak, reflecting vulnerabilities amid theft, inflation, and stiff competition.
- New CEO's Strategy: New CEO Michael Fiddelke has quickly implemented strategies, including the upcoming Target Circle Deal Days from March 25-27, which will offer discounts of up to 40% to regain customer trust.
- Loyalty Program Enhancement: The introduction of Target Circle aims not only to attract customers back but also to increase membership by offering a 15% discount on one shopping trip, thereby enhancing customer loyalty and improving sales performance.
- Future Outlook: Despite Target's comparable sales decline over the last four quarters, Fiddelke's goal is to achieve sales growth, and if the company raises its sales guidance, it could signal a buy opportunity for investors, indicating the turnaround is taking effect.
See More
