Costco, AT&T, and Coca-Cola: Recession-Resistant Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 20 2026
0mins
Should l Buy COST?
Source: NASDAQ.COM
- Costco's Stability: Costco has only failed to achieve annual revenue growth once in the past 33 years, and even during the 2009 recession, its revenue dipped only 1.5%, demonstrating its resilience across various economic climates.
- AT&T's Market Position: As one of the largest wireless carriers in the U.S., AT&T offers a 4% dividend yield; despite experiencing revenue declines in four of the past six years, analysts expect positive growth in the coming years, highlighting its appeal during market fluctuations.
- Coca-Cola's High Margins: Known as a 'Dividend King' with 64 consecutive years of dividend increases, Coca-Cola's high-margin business model ensures stable cash flow even in tough economic times, catering to ongoing consumer demand for beverages.
- Investor Considerations: While Costco is viewed as a safe stock, it was not included in Motley Fool's current list of top investment picks, suggesting that investors should be cautious and seek high-return opportunities when making investment decisions.
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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: 1012.060
Low
769.00
Averages
1061
High
1205
Current: 1012.060
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.
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
Trade Desk Faces Publicis Challenge Amid Earnings Miss
- Publicis Controversy Impact: Trade Desk's Q1 2026 earnings miss led to a 13.11% drop in pre-market trading, primarily due to Publicis's concerns over pricing and transparency, which could result in client losses and significantly impact Q2 and Q3 revenues.
- Margin Pressure: The company targets a full-year adjusted EBITDA margin of 40%, yet reported only 30% in Q1, necessitating substantial revenue growth or aggressive cost control in the second half, with management failing to provide a clear strategy, thus increasing market uncertainty.
- Long-Term Outlook Remains Positive: Despite short-term challenges, Trade Desk's long-term strategies, including open internet principles, retail media, and AI search, remain attractive, with Jeff Green's $150 million stock purchase reflecting confidence in the company's future.
- Cautious Market Reaction: Although Publicis's audit found no issues, the market's response to Trade Desk remains cautious, with heightened investor concerns about future profitability and market share, indicating a strong focus on the company's near-term performance.
See More
Costco vs. McDonald's: A Dividend Comparison
- Costco Sales Growth: Costco reported a 13% year-over-year increase in net sales for April, reaching approximately $24 billion, and even after excluding gasoline price changes, comparable sales rose 7.8%, indicating strong market demand and customer loyalty.
- Dividend Increase: The board approved a quarterly dividend increase from $1.30 to $1.47 per share in April, marking 22 consecutive years of dividend hikes, and while the yield is only 0.6%, the stable membership income provides robust support for this payout.
- McDonald's Revenue Analysis: McDonald's first-quarter revenue rose 9% to $6.52 billion, but only grew 4% in constant currencies, indicating a growth rate significantly lower than Costco's, despite a 6% increase in net income to $1.98 billion.
- Dividends and Buybacks: McDonald's pays a quarterly dividend of $1.86, annualized to $7.44, yielding 2.6%, and repurchased 1.3 million shares for $393 million in the quarter, demonstrating strong capital return capabilities, although it faces risks from weakening consumer demand.
See More
Costco Continues to Win the Inflation Battle
- Strong Sales Growth: Costco reported a sales increase of 13% to $23.92 billion for April, reflecting continued consumer preference for value offerings, particularly amid rising gas prices, which solidifies its market position.
- Membership Renewal Concerns: Despite strong sales, declining membership renewal rates have captured market attention, with updates expected in the fiscal Q3 report on May 28, indicating that online sign-ups renew at lower rates than in-store shoppers, potentially impacting future revenue.
- Increased Traffic: Total traffic in Costco warehouses rose 4.2% year-over-year, with U.S. traffic up 3.8%, and average transaction values increased by 7.1%, demonstrating strong consumer demand for discounted products, which drives overall sales growth.
- Special Dividend Potential: Analysts suggest Costco may issue a special dividend in the future, given its cash reserves exceeding $17 billion, with a historical pattern of issuing special dividends every 2.5 to 3 years, further attracting investor interest in its long-term value.
See More
Clorox Boosts Dividend for 48th Year, Yield Hits Multi-Decade High
- Dividend Growth Commitment: Clorox successfully raised its dividend for the 48th consecutive year last July, and despite market challenges, it is on track to achieve the milestone of becoming a Dividend King by 2027, demonstrating the company's long-term commitment to shareholders.
- Market Share Pressure: Although private labels like Costco's Kirkland Signature and Walmart's Great Value are gaining traction, Clorox's CEO noted that private label market share remained flat in the quarter, indicating that consumers still prefer high-quality brands, which provides Clorox with competitive opportunities.
- Sales Forecast Downgrade: Clorox now forecasts a 9% decline in organic sales for fiscal 2026, down from the previous guidance of 5% to 9%, reflecting the operational challenges faced amid intense competition and promotional pressures.
- ERP System Upgrade: Clorox completed a $580 million ERP system upgrade, which, despite being a complex transition affecting the supply chain, is expected to enhance overall operational efficiency and lay the groundwork for future business growth.
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
Trade Desk Faces Publicis Challenge Amid Earnings Miss
- Publicis Controversy Impact: Trade Desk's Q1 2026 earnings miss led to a 13.11% drop in pre-market trading, primarily due to Publicis's concerns over pricing and transparency, which could result in client losses and significantly impact Q2 and Q3 revenues.
- Margin Pressure: The company targets a full-year adjusted EBITDA margin of 40%, yet reported only 30% in Q1, necessitating substantial revenue growth or aggressive cost control in the second half, with management failing to provide a clear strategy, thus increasing market uncertainty.
- Long-Term Outlook Remains Positive: Despite short-term challenges, Trade Desk's long-term strategies, including open internet principles, retail media, and AI search, remain attractive, with Jeff Green's $150 million stock purchase reflecting confidence in the company's future.
- Cautious Market Reaction: Although Publicis's audit found no issues, the market's response to Trade Desk remains cautious, with heightened investor concerns about future profitability and market share, indicating a strong focus on the company's near-term performance.
See More
Costco vs. McDonald's: A Dividend Comparison
- Costco Sales Growth: Costco reported a 13% year-over-year increase in net sales for April, reaching approximately $24 billion, and even after excluding gasoline price changes, comparable sales rose 7.8%, indicating strong market demand and customer loyalty.
- Dividend Increase: The board approved a quarterly dividend increase from $1.30 to $1.47 per share in April, marking 22 consecutive years of dividend hikes, and while the yield is only 0.6%, the stable membership income provides robust support for this payout.
- McDonald's Revenue Analysis: McDonald's first-quarter revenue rose 9% to $6.52 billion, but only grew 4% in constant currencies, indicating a growth rate significantly lower than Costco's, despite a 6% increase in net income to $1.98 billion.
- Dividends and Buybacks: McDonald's pays a quarterly dividend of $1.86, annualized to $7.44, yielding 2.6%, and repurchased 1.3 million shares for $393 million in the quarter, demonstrating strong capital return capabilities, although it faces risks from weakening consumer demand.
See More
Costco Continues to Win the Inflation Battle
- Strong Sales Growth: Costco reported a sales increase of 13% to $23.92 billion for April, reflecting continued consumer preference for value offerings, particularly amid rising gas prices, which solidifies its market position.
- Membership Renewal Concerns: Despite strong sales, declining membership renewal rates have captured market attention, with updates expected in the fiscal Q3 report on May 28, indicating that online sign-ups renew at lower rates than in-store shoppers, potentially impacting future revenue.
- Increased Traffic: Total traffic in Costco warehouses rose 4.2% year-over-year, with U.S. traffic up 3.8%, and average transaction values increased by 7.1%, demonstrating strong consumer demand for discounted products, which drives overall sales growth.
- Special Dividend Potential: Analysts suggest Costco may issue a special dividend in the future, given its cash reserves exceeding $17 billion, with a historical pattern of issuing special dividends every 2.5 to 3 years, further attracting investor interest in its long-term value.
See More
Clorox Boosts Dividend for 48th Year, Yield Hits Multi-Decade High
- Dividend Growth Commitment: Clorox successfully raised its dividend for the 48th consecutive year last July, and despite market challenges, it is on track to achieve the milestone of becoming a Dividend King by 2027, demonstrating the company's long-term commitment to shareholders.
- Market Share Pressure: Although private labels like Costco's Kirkland Signature and Walmart's Great Value are gaining traction, Clorox's CEO noted that private label market share remained flat in the quarter, indicating that consumers still prefer high-quality brands, which provides Clorox with competitive opportunities.
- Sales Forecast Downgrade: Clorox now forecasts a 9% decline in organic sales for fiscal 2026, down from the previous guidance of 5% to 9%, reflecting the operational challenges faced amid intense competition and promotional pressures.
- ERP System Upgrade: Clorox completed a $580 million ERP system upgrade, which, despite being a complex transition affecting the supply chain, is expected to enhance overall operational efficiency and lay the groundwork for future business growth.
See More
