Analysts Forecast 11% Growth Potential for SUSA
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 18 2025
0mins
Should l Buy COST?
Source: NASDAQ.COM
ETF Performance Analysis: The iShares ESG Optimized MSCI USA ETF (SUSA) has an implied analyst target price of $144.73, indicating a potential upside of 10.77% from its current trading price of $130.66.
Notable Holdings with Upside: Key underlying holdings in SUSA include Molina Healthcare Inc (MOH), Cisco Systems Inc (CSCO), and Costco Wholesale Corp (COST), each showing significant upside potential based on analyst target prices.
Analyst Target Comparisons: MOH's average target is $195.36 (16.64% upside), CSCO's is $75.06 (13.38% upside), and COST's is $1092.44 (12.39% upside) compared to their recent trading prices.
Investor Considerations: Questions arise regarding the validity of analysts' targets and whether they reflect realistic expectations or are overly optimistic, necessitating further research by investors.
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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 Launches Kirkland Energy Drink Amid Market Dynamics
- New Product Launch: Costco has quietly introduced the Kirkland Signature Sparkling Energy Drink in select stores, featuring three flavors—Tropical, Peach, and Orange—priced at $16.99 for a 24-pack, or about $0.70 per can, indicating the company's intent to expand in the beverage market.
- Positive Market Response: Although no formal announcement was made, social media posts showcasing the drink have generated interest, with early reports suggesting strong sales during its first week on shelves, reflecting consumer interest and demand for the new product.
- Competitive Landscape Analysis: Costco also sells branded energy drinks like Red Bull, Monster, and Celsius, and analysts noted that the recent sell-off in Celsius appears to be an overreaction, as Costco accounts for only about 10% of its sales, and private label brands have historically struggled in this category.
- Future Outlook: TD Cowen analyst suggests that despite the market's overreaction to Celsius, the current stock pullback may present a buying opportunity given strong distribution tailwinds anticipated in 2026, indicating long-term confidence in the energy drink category.
See More
Nasdaq Faces Immense Selling Pressure Amid Growth Stock Rotation
- Market Selling Pressure: In 2026, the Nasdaq Composite has pulled back by 5% as investors rotate out of high-valuation stocks, reflecting a similar market sentiment to 2022, which could lead to further declines.
- Historical Context: In 2022, the Nasdaq index plummeted over 30% due to inflation and rising interest rates, highlighting the vulnerability of growth stocks under market stress and the uneven nature of the sell-off.
- Quality Companies Resilience: Despite the overall market weakness, companies like Microsoft and Apple fell 28% and 26% respectively in 2022, yet their core services' steady demand and high margins demonstrated relative strength, underscoring the importance of fundamentals during economic turbulence.
- Investment Strategy Insights: Current market volatility presents buying opportunities in high-quality blue-chip stocks, as history shows that market drawdowns often lead to new highs, emphasizing the significance of patience and selectivity in investment decisions.
See More
Nasdaq Pullback and Investment Strategies
- Market Pullback: In 2026, the Nasdaq Composite experienced a 5% pullback driven by cooling investor sentiment, shifting interest rate expectations, and selective profit-taking in high-valuation stocks, indicating increased pressure on growth stocks.
- Historical Comparison: This drawdown mirrors the Nasdaq's over 30% decline in 2022, highlighting that during inflation and rate hikes, market confidence in growth stocks can severely wane, emphasizing the importance of focusing on fundamentals rather than mere growth narratives.
- Resilient Company Performance: In 2022, companies like Microsoft and Apple showed relative strength, with Microsoft down only 28% and Apple 26%, demonstrating that firms providing essential services can maintain cash flow and competitive advantages even under economic stress.
- Investment Strategy Insights: Historical trends suggest that high-quality blue-chip stocks often rebound after market pullbacks, encouraging investors to seize opportunities presented by short-term volatility while focusing on long-term growth potential rather than fearing market declines.
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 Launches Kirkland Energy Drink Amid Market Dynamics
- New Product Launch: Costco has quietly introduced the Kirkland Signature Sparkling Energy Drink in select stores, featuring three flavors—Tropical, Peach, and Orange—priced at $16.99 for a 24-pack, or about $0.70 per can, indicating the company's intent to expand in the beverage market.
- Positive Market Response: Although no formal announcement was made, social media posts showcasing the drink have generated interest, with early reports suggesting strong sales during its first week on shelves, reflecting consumer interest and demand for the new product.
- Competitive Landscape Analysis: Costco also sells branded energy drinks like Red Bull, Monster, and Celsius, and analysts noted that the recent sell-off in Celsius appears to be an overreaction, as Costco accounts for only about 10% of its sales, and private label brands have historically struggled in this category.
- Future Outlook: TD Cowen analyst suggests that despite the market's overreaction to Celsius, the current stock pullback may present a buying opportunity given strong distribution tailwinds anticipated in 2026, indicating long-term confidence in the energy drink category.
See More
Nasdaq Faces Immense Selling Pressure Amid Growth Stock Rotation
- Market Selling Pressure: In 2026, the Nasdaq Composite has pulled back by 5% as investors rotate out of high-valuation stocks, reflecting a similar market sentiment to 2022, which could lead to further declines.
- Historical Context: In 2022, the Nasdaq index plummeted over 30% due to inflation and rising interest rates, highlighting the vulnerability of growth stocks under market stress and the uneven nature of the sell-off.
- Quality Companies Resilience: Despite the overall market weakness, companies like Microsoft and Apple fell 28% and 26% respectively in 2022, yet their core services' steady demand and high margins demonstrated relative strength, underscoring the importance of fundamentals during economic turbulence.
- Investment Strategy Insights: Current market volatility presents buying opportunities in high-quality blue-chip stocks, as history shows that market drawdowns often lead to new highs, emphasizing the significance of patience and selectivity in investment decisions.
See More
Nasdaq Pullback and Investment Strategies
- Market Pullback: In 2026, the Nasdaq Composite experienced a 5% pullback driven by cooling investor sentiment, shifting interest rate expectations, and selective profit-taking in high-valuation stocks, indicating increased pressure on growth stocks.
- Historical Comparison: This drawdown mirrors the Nasdaq's over 30% decline in 2022, highlighting that during inflation and rate hikes, market confidence in growth stocks can severely wane, emphasizing the importance of focusing on fundamentals rather than mere growth narratives.
- Resilient Company Performance: In 2022, companies like Microsoft and Apple showed relative strength, with Microsoft down only 28% and Apple 26%, demonstrating that firms providing essential services can maintain cash flow and competitive advantages even under economic stress.
- Investment Strategy Insights: Historical trends suggest that high-quality blue-chip stocks often rebound after market pullbacks, encouraging investors to seize opportunities presented by short-term volatility while focusing on long-term growth potential rather than fearing market declines.
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
