Winter Storm's Significant Impact on GDP and Beneficiary Companies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 26 2026
0mins
Should l Buy COST?
Source: CNBC
- GDP Decline Expectation: According to Bank of America Securities economist Aditya Bhave, Winter Storm Fern is expected to reduce U.S. GDP by 0.5 to 1.5 percentage points in Q1, highlighting the storm's direct economic impact.
- Restaurant Sector Hit: With flight cancellations and restaurant closures, stocks like Darden Restaurants and Restaurant Brands International have collectively declined, indicating the adverse effects of severe weather on related businesses.
- Costco Sales Surge: Historically, Costco benefits from major storms as consumers stock up on essentials, and despite underperforming last year, this trend is expected to boost sales, with Mizuho analysts setting a price target of $1,000.
- Douglas Dynamics Optimistic Outlook: As the largest player in snow and ice removal, Douglas Dynamics anticipates additional gains from the storm, with analysts raising the price target from $37 to $48, implying about a 29% upside.
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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: 997.840
Low
769.00
Averages
1061
High
1205
Current: 997.840
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.
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- Legal Action Dynamics: Major companies like Costco and FedEx have sued the U.S. government to secure timely tariff refunds, while Walmart and Amazon have refrained from litigation, possibly to avoid negative attention from Trump.
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- Dutch Bros.' Rapid Expansion: Dutch Bros. reported a 29% revenue increase in its latest quarter, alongside a 7.7% rise in comparable-store sales, demonstrating its strong appeal among young consumers and significant market potential yet to be tapped.
- Five Below's Strong Performance: Five Below's net sales surged 24% in the latest quarter, matching Dutch Bros.' growth momentum, indicating that under new CEO Winnie Park, the company is regaining market attention and is poised for continued growth in the coming years.
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- Valuation Challenges: With a P/E ratio of 52, Costco's stock price remains high despite slowing growth, reflecting the market's strong recognition of its stability and reliability, which may limit short-term investment opportunities.
- Palantir Contract Value Milestone: Palantir achieved a record total contract value of $4.3 billion in Q4 2025, with a 70% year-over-year revenue increase, driven by a remarkable 137% growth in U.S. commercial contracts, highlighting strong demand in the AI sector.
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See More
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- Oil Price Buffer: While high oil prices increase shipping costs, Costco's gasoline sales attract more customers during price spikes, boosting profits in its fuel division and driving additional traffic to its stores.
- Sales Growth in Staples: Costco's comparable sales, adjusted for gas prices, increased by 6.4% in the first 31 weeks of the fiscal year, outperforming nearly all other retailers, demonstrating its strong performance and competitive edge during economic turmoil.
- High Valuation Reflects Market Confidence: With a price-to-earnings ratio of 52, nearly double that of the S&P 500, Costco, although not typically viewed as a growth stock, continues to deliver strong results, maintaining high demand among investors.
See More
Costco Demonstrates Resilience Amid Market Turmoil
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- Membership Model Advantage: Costco's membership model reduces the importance of retail sales, with membership fees contributing most of its profits, maintaining a retention rate of around 90%, which allows it to attract customers frequently even during economic turmoil.
- Oil Price Impact Mitigation: Although high oil prices can increase shipping costs, Costco benefits from selling gasoline, which not only generates additional profits but also attracts more customers during price spikes, further driving store traffic and sales growth.
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