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: 995.750
Low
769.00
Averages
1061
High
1205
Current: 995.750
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 Reports 13% Sales Growth in April
- Sales Growth: Costco reported net sales of $23.92 billion for the four weeks ending May 3, 2026, marking a 13% increase from $21.18 billion last year, indicating strong market demand and a recovery in consumer confidence.
- Comparable Sales Performance: During the same period, total comparable sales rose by 11.6%, while excluding the effects of gasoline prices and foreign exchange, the growth was 7.8%, demonstrating robust growth in core operations.
- Impact of Shopping Days: The calendar shift of Easter provided one additional shopping day in April compared to last year, positively impacting total and comparable sales by approximately 1.5% to 2%, further enhancing performance.
- Year-to-Date Sales Data: For the first 35 weeks, net sales reached $197.18 billion, a 9.5% increase from $180.05 billion last year, reflecting the company's competitiveness in a continuously growing retail environment.
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- Coordinated Government Response: The U.S. Department of State is leading a whole-of-government response that includes direct contact with passengers, diplomatic coordination, and engagement with domestic and international health authorities, aiming to effectively address the outbreak and protect public health.
- Expanded Monitoring: Residents in at least three U.S. states are being monitored for potential hantavirus infections, although no signs of illness have been reported, indicating that the risk of virus transmission still requires ongoing vigilance.
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- Costco's Membership Model: Costco boasts a renewal rate exceeding 90% among its members, with digital sales growing 22.6% in the most recent quarter, providing a solid foundation for continued growth, alongside plans to open 28 new locations this year.
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Walmart's Advertising Business Grows 46% in FY 2026
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- Dividend Growth: Walmart raised its quarterly dividend to $0.2475 per share, equating to an annual dividend of $0.99, marking the 53rd consecutive year of increases, which reflects strong cash flow and commitment to shareholders, thereby boosting investor confidence.
- PepsiCo's Market Strategy: PepsiCo has lowered prices on many products by up to 15% in fiscal year 2026 to attract customers, a risky move that appears to be paying off as indicated by positive results in its latest quarterly earnings, showcasing its adaptability in a competitive market.
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- TJX Companies Strong Performance: TJX raised its dividend by 13%, marking the 29th increase in 30 years, with a solid same-store sales growth rate of 5%, demonstrating resilience and sustained growth in a challenging retail environment.
- Costco's Steady Growth: Costco increased its quarterly dividend from $1.30 to $1.47, and while its yield is 0.6%, its history of special dividends enhances investor confidence, indicating strong long-term returns potential.
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See More
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- Sales Model Differences: Walmart's strategy focuses on selling a wide range of products at the lowest prices, reporting $190.7 billion in revenue for the latest quarter, while Costco's more selective model generated $68.2 billion, highlighting Walmart's advantage in market reach and customer demographics.
- Membership Growth and Revenue: Costco boasts 147.2 million cardholders, with 83.1 million paid memberships contributing 2% of total revenue, yet Walmart's faster growth in e-commerce and high-margin sectors indicates a stronger market potential.
- Dividend Stability: Walmart offers a quarterly dividend of $0.2475 and has increased its dividend for 53 consecutive years, earning the title of 'Dividend King', while Costco's dividend has grown 86% over the past five years, but Walmart's stability is more appealing to conservative investors.
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See More
Costco Reports 13% Sales Growth in April
- Sales Growth: Costco reported net sales of $23.92 billion for the four weeks ending May 3, 2026, marking a 13% increase from $21.18 billion last year, indicating strong market demand and a recovery in consumer confidence.
- Comparable Sales Performance: During the same period, total comparable sales rose by 11.6%, while excluding the effects of gasoline prices and foreign exchange, the growth was 7.8%, demonstrating robust growth in core operations.
- Impact of Shopping Days: The calendar shift of Easter provided one additional shopping day in April compared to last year, positively impacting total and comparable sales by approximately 1.5% to 2%, further enhancing performance.
- Year-to-Date Sales Data: For the first 35 weeks, net sales reached $197.18 billion, a 9.5% increase from $180.05 billion last year, reflecting the company's competitiveness in a continuously growing retail environment.
See More
CDC Monitors Hantavirus Outbreak on Luxury Cruise Ship
- Enhanced Monitoring: The CDC is closely monitoring the hantavirus outbreak on the luxury cruise ship MV Hondius, where three passengers have died, including a Dutch couple and a German national, highlighting the outbreak's severity.
- Suspected Infections: According to the World Health Organization, eight individuals, including a Swiss citizen, are suspected of contracting the hantavirus, raising widespread concern about potential virus transmission and its impact on cruise tourism safety.
- Coordinated Government Response: The U.S. Department of State is leading a whole-of-government response that includes direct contact with passengers, diplomatic coordination, and engagement with domestic and international health authorities, aiming to effectively address the outbreak and protect public health.
- Expanded Monitoring: Residents in at least three U.S. states are being monitored for potential hantavirus infections, although no signs of illness have been reported, indicating that the risk of virus transmission still requires ongoing vigilance.
See More
Top Consumer Stocks to Buy in 2026: Walmart and Others
- Walmart's Financial Performance: In fiscal year 2026, Walmart achieved a 4.7% increase in overall revenue, totaling $713 billion, with its global advertising business growing by 46% to $6.4 billion, demonstrating strong growth potential even during economic downturns.
- Costco's Membership Model: Costco boasts a renewal rate exceeding 90% among its members, with digital sales growing 22.6% in the most recent quarter, providing a solid foundation for continued growth, alongside plans to open 28 new locations this year.
- PepsiCo's Strategic Adjustments: PepsiCo has lowered prices on many products by up to 15% under pressure from activist investors, while maintaining a dividend yield of 3.61%, reflecting its commitment to regaining customer loyalty in a competitive market.
- Constellation Brands' Potential: Despite facing challenges, Constellation Brands generated $1.8 billion in free cash flow in fiscal year 2026 and repurchased about $1 billion in shares, indicating growth potential in the premium beer sector, which has attracted the attention of renowned investor Warren Buffett.
See More
Walmart's Advertising Business Grows 46% in FY 2026
- Walmart's Financial Performance: In fiscal year 2026, Walmart reported a 4.7% increase in overall revenue to $713 billion, demonstrating resilience and growth potential amid economic uncertainty, particularly highlighted by a 46% surge in its global advertising business to $6.4 billion.
- Dividend Growth: Walmart raised its quarterly dividend to $0.2475 per share, equating to an annual dividend of $0.99, marking the 53rd consecutive year of increases, which reflects strong cash flow and commitment to shareholders, thereby boosting investor confidence.
- PepsiCo's Market Strategy: PepsiCo has lowered prices on many products by up to 15% in fiscal year 2026 to attract customers, a risky move that appears to be paying off as indicated by positive results in its latest quarterly earnings, showcasing its adaptability in a competitive market.
- Constellation Brands Investment Dynamics: Warren Buffett increased Berkshire Hathaway's stake in Constellation Brands before retiring, highlighting the company's growth potential in the premium beer sector despite challenges, with its stock being reasonably priced and poised for future growth.
See More
Three Major U.S. Companies Announce Dividend Increases
- American Express Dividend Increase: American Express announced a 16% increase in its quarterly dividend to $0.95 per share, yielding 1.2%, while achieving an 11% revenue growth amidst economic pressures, showcasing its stability and growth potential.
- TJX Companies Strong Performance: TJX raised its dividend by 13%, marking the 29th increase in 30 years, with a solid same-store sales growth rate of 5%, demonstrating resilience and sustained growth in a challenging retail environment.
- Costco's Steady Growth: Costco increased its quarterly dividend from $1.30 to $1.47, and while its yield is 0.6%, its history of special dividends enhances investor confidence, indicating strong long-term returns potential.
- Importance of Dividend Growth: These three companies convey their financial health and long-term investment value through significant dividend increases, particularly as stable dividend income becomes a crucial consideration for investors facing inflationary pressures.
See More
Comparative Investment Value of Walmart and Costco
- Sales Model Differences: Walmart's strategy focuses on selling a wide range of products at the lowest prices, reporting $190.7 billion in revenue for the latest quarter, while Costco's more selective model generated $68.2 billion, highlighting Walmart's advantage in market reach and customer demographics.
- Membership Growth and Revenue: Costco boasts 147.2 million cardholders, with 83.1 million paid memberships contributing 2% of total revenue, yet Walmart's faster growth in e-commerce and high-margin sectors indicates a stronger market potential.
- Dividend Stability: Walmart offers a quarterly dividend of $0.2475 and has increased its dividend for 53 consecutive years, earning the title of 'Dividend King', while Costco's dividend has grown 86% over the past five years, but Walmart's stability is more appealing to conservative investors.
- Valuation and Market Performance: As of April 29, Walmart's P/E ratio stands at 45.1, making it more attractive than Costco's 49.4, and with a 33% stock price increase over the past 12 months, Walmart shows stronger market momentum, suggesting greater long-term growth potential.
See More
