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: 1012.790
Low
769.00
Averages
1061
High
1205
Current: 1012.790
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.
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
Comparative Growth Analysis of Walmart and Costco
- Membership Revenue Dominance: Costco boasts 147.2 million cardholders, with 83.1 million paid memberships contributing 50% of its operating income, highlighting its reliance on membership fees for profitability.
- Sales Model Differences: Walmart reported $190.7 billion in revenue for the latest quarter compared to Costco's $68.2 billion, with Walmart's omnichannel strategy allowing it to reach a broader customer base, enhancing its competitive edge.
- Dividend Stability: Walmart's quarterly dividend stands at $0.2475, having increased for 53 consecutive years, while Costco's dividend of $1.47, although growing faster, lacks the same level of stability, reflecting differing shareholder return strategies.
- Valuation and Growth Potential: As of April 29, Walmart's P/E ratio is 45.1, more attractive than Costco's 49.4, and Walmart's stock has risen 33% over the past 12 months, indicating stronger market momentum.
See More
Costco Shareholders Receive Significant Dividend Increase
- Dividend Growth: Costco has announced a 13% increase in its dividend, consistent with the 12% average annual growth over the past decade, demonstrating the company's commitment to shareholder returns and attracting dividend growth investors.
- Revenue Structure Analysis: For the first half of fiscal 2026, Costco generated revenues of $136.9 billion, with membership fees making up less than 2% but contributing nearly $2.7 billion in income, highlighting the importance of its membership model to profitability.
- Membership Renewal Rate: The global membership renewal rate stood at 89.7% in Q2 of fiscal 2026, down from 90.5% in the same quarter last year, yet still indicating customer satisfaction with the Costco shopping experience and reflecting the stability of its business model.
- Market Competitive Advantage: Costco's reliance on membership fees allows it to be more aggressive with product pricing, maintaining lower margins despite rising costs from geopolitical tensions, thereby supporting long-term growth.
See More
Costco Announces 13% Dividend Increase, Reflecting Strong Financial Health
- Significant Dividend Increase: Costco has announced a 13% increase in its dividend, aligning with the average annual growth rate of 12% over the past decade, demonstrating the company's ongoing profitability and commitment to shareholder returns.
- Revenue Structure Insight: In the first half of fiscal 2026, Costco generated $136.9 billion in revenue, with membership fees making up less than 2% but contributing nearly $2.7 billion to income, which exceeds half of the company's gross profit, highlighting the profitability potential of its membership model.
- Stable Membership Renewal Rate: Although the global membership renewal rate was 89.7% in Q2 of fiscal 2026, down from 90.5% in the same quarter of 2025, it still indicates customer satisfaction with the Costco shopping experience, reflecting the resilience of its business model.
- Market Valuation Considerations: Costco's price-to-earnings ratio stands at 51x, significantly higher than the retail industry's average of 18x, and with a dividend yield of only 0.6%, investors should carefully assess the risks associated with its high valuation.
See More
Costco Introduces Bottled Water Option in Hot Dog Combo
- Menu Change: Costco has made its first adjustment to the iconic $1.50 hot dog combo in over 40 years by allowing customers to choose a 16.9-ounce Kirkland bottled water instead of a 20-ounce soda, reflecting a growing demand for healthier options among consumers.
- Positive Customer Reaction: Social media feedback indicates that many customers prefer bottled water over soda, which not only enhances customer loyalty but may also attract more health-conscious shoppers to the store.
- Profit vs. Traffic Balance: Despite incurring nearly $300 million in losses annually from the hot dog deal, Costco views this pricing strategy as crucial for driving store traffic and membership renewals, ultimately enhancing brand equity in the long run.
- Historical Commitment: Since its introduction in 1984, the hot dog combo has become a hallmark of the Costco shopping experience, with management pledging to maintain the $1.50 price, underscoring the company's dedication to customer trust and perceived value.
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
Comparative Growth Analysis of Walmart and Costco
- Membership Revenue Dominance: Costco boasts 147.2 million cardholders, with 83.1 million paid memberships contributing 50% of its operating income, highlighting its reliance on membership fees for profitability.
- Sales Model Differences: Walmart reported $190.7 billion in revenue for the latest quarter compared to Costco's $68.2 billion, with Walmart's omnichannel strategy allowing it to reach a broader customer base, enhancing its competitive edge.
- Dividend Stability: Walmart's quarterly dividend stands at $0.2475, having increased for 53 consecutive years, while Costco's dividend of $1.47, although growing faster, lacks the same level of stability, reflecting differing shareholder return strategies.
- Valuation and Growth Potential: As of April 29, Walmart's P/E ratio is 45.1, more attractive than Costco's 49.4, and Walmart's stock has risen 33% over the past 12 months, indicating stronger market momentum.
See More
Costco Shareholders Receive Significant Dividend Increase
- Dividend Growth: Costco has announced a 13% increase in its dividend, consistent with the 12% average annual growth over the past decade, demonstrating the company's commitment to shareholder returns and attracting dividend growth investors.
- Revenue Structure Analysis: For the first half of fiscal 2026, Costco generated revenues of $136.9 billion, with membership fees making up less than 2% but contributing nearly $2.7 billion in income, highlighting the importance of its membership model to profitability.
- Membership Renewal Rate: The global membership renewal rate stood at 89.7% in Q2 of fiscal 2026, down from 90.5% in the same quarter last year, yet still indicating customer satisfaction with the Costco shopping experience and reflecting the stability of its business model.
- Market Competitive Advantage: Costco's reliance on membership fees allows it to be more aggressive with product pricing, maintaining lower margins despite rising costs from geopolitical tensions, thereby supporting long-term growth.
See More
Costco Announces 13% Dividend Increase, Reflecting Strong Financial Health
- Significant Dividend Increase: Costco has announced a 13% increase in its dividend, aligning with the average annual growth rate of 12% over the past decade, demonstrating the company's ongoing profitability and commitment to shareholder returns.
- Revenue Structure Insight: In the first half of fiscal 2026, Costco generated $136.9 billion in revenue, with membership fees making up less than 2% but contributing nearly $2.7 billion to income, which exceeds half of the company's gross profit, highlighting the profitability potential of its membership model.
- Stable Membership Renewal Rate: Although the global membership renewal rate was 89.7% in Q2 of fiscal 2026, down from 90.5% in the same quarter of 2025, it still indicates customer satisfaction with the Costco shopping experience, reflecting the resilience of its business model.
- Market Valuation Considerations: Costco's price-to-earnings ratio stands at 51x, significantly higher than the retail industry's average of 18x, and with a dividend yield of only 0.6%, investors should carefully assess the risks associated with its high valuation.
See More
Costco Introduces Bottled Water Option in Hot Dog Combo
- Menu Change: Costco has made its first adjustment to the iconic $1.50 hot dog combo in over 40 years by allowing customers to choose a 16.9-ounce Kirkland bottled water instead of a 20-ounce soda, reflecting a growing demand for healthier options among consumers.
- Positive Customer Reaction: Social media feedback indicates that many customers prefer bottled water over soda, which not only enhances customer loyalty but may also attract more health-conscious shoppers to the store.
- Profit vs. Traffic Balance: Despite incurring nearly $300 million in losses annually from the hot dog deal, Costco views this pricing strategy as crucial for driving store traffic and membership renewals, ultimately enhancing brand equity in the long run.
- Historical Commitment: Since its introduction in 1984, the hot dog combo has become a hallmark of the Costco shopping experience, with management pledging to maintain the $1.50 price, underscoring the company's dedication to customer trust and perceived value.
See More
