Investment Comparison: Walmart vs. Costco
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy WMT?
Source: Fool
- Walmart's Performance Growth: In its fiscal Q4 2026, Walmart reported a 5.6% year-over-year revenue increase, with adjusted earnings per share at $0.74, reflecting over 12% growth, showcasing its ongoing digital transformation and profitability enhancement.
- E-commerce Surge: Walmart's global e-commerce sales soared 24% in the quarter, now representing 23% of total net sales, while its advertising business jumped 37%, indicating a shift towards higher-margin revenue streams that drove a 10.8% increase in operating income.
- Costco's Steady Performance: Costco achieved net sales of $68.2 billion in fiscal Q2 2026, up 9.1% year-over-year, with adjusted comparable sales rising 6.7%, demonstrating strong customer loyalty and a stable revenue stream from membership fees.
- Digital Sales Growth: Costco's digitally enabled comparable sales surged 21.7% in Q2 and maintained a 20.8% growth in February, although its price-to-earnings ratio stands at 54, reflecting the market's high expectations for continued growth.
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Analyst Views on WMT
Wall Street analysts forecast WMT stock price to rise
26 Analyst Rating
25 Buy
1 Hold
0 Sell
Strong Buy
Current: 123.800
Low
119.00
Averages
125.75
High
136.00
Current: 123.800
Low
119.00
Averages
125.75
High
136.00
About WMT
Walmart Inc. is a technology-powered omnichannel retailer. The Company is engaged in the operation of retail and wholesale stores and clubs, as well as eCommerce Websites and mobile applications, located throughout the United States (U.S.), Africa, Canada, Central America, Chile, China, India and Mexico. It operates in three reportable segments: Walmart U.S., Walmart International and Sam's Club U.S. The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce, which includes omni-channel initiatives and certain other business offerings such as advertising services. The Walmart International segment consists of the Company's operations outside of the U.S. through its subsidiaries, as well as eCommerce and omni-channel initiatives. The Sam's Club U.S. segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives.
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.
Investment Comparison Between Walmart and Costco
- Walmart's Performance Growth: In fiscal Q4 2026, Walmart's revenue rose 5.6% year-over-year, with adjusted EPS at $0.74, up over 12%, indicating improved profitability from its digital transformation, and management expects operating income to grow 6% to 8% going forward.
- Costco's Sales Performance: Costco reported net sales of $68.2 billion for fiscal Q2 2026, a 9.1% year-over-year increase, with adjusted comparable sales up 6.7%, reflecting strong customer loyalty and a stable revenue stream from membership fees, which grew 13.6% to $1.36 billion.
- E-commerce and Advertising Growth: Walmart's global e-commerce sales surged 24% in the quarter, now representing 23% of total net sales, while its advertising business jumped 37%, indicating a significant shift towards higher-margin revenue streams that is positively impacting its financial performance.
- Valuation Comparison: While Walmart trades at about 44 times earnings, lower than Costco's 54 times, its diversified revenue streams and growth in advertising make it a more attractive investment in the current market, necessitating careful evaluation of both companies' growth potential against market expectations.
See More
Investment Comparison: Walmart vs. Costco
- Walmart's Performance Growth: In its fiscal Q4 2026, Walmart reported a 5.6% year-over-year revenue increase, with adjusted earnings per share at $0.74, reflecting over 12% growth, showcasing its ongoing digital transformation and profitability enhancement.
- E-commerce Surge: Walmart's global e-commerce sales soared 24% in the quarter, now representing 23% of total net sales, while its advertising business jumped 37%, indicating a shift towards higher-margin revenue streams that drove a 10.8% increase in operating income.
- Costco's Steady Performance: Costco achieved net sales of $68.2 billion in fiscal Q2 2026, up 9.1% year-over-year, with adjusted comparable sales rising 6.7%, demonstrating strong customer loyalty and a stable revenue stream from membership fees.
- Digital Sales Growth: Costco's digitally enabled comparable sales surged 21.7% in Q2 and maintained a 20.8% growth in February, although its price-to-earnings ratio stands at 54, reflecting the market's high expectations for continued growth.
See More
Ross Stores Exceeds Q4 Expectations with Strong Growth
- Significant Sales Growth: Ross Stores reported fourth-quarter sales of $6.6 billion, reflecting a 12% year-over-year increase, indicating strong market demand and a successful holiday shopping season, thereby enhancing the company's competitive position in retail.
- Outstanding Comparable Sales: The company's comparable store sales rose by 9%, a metric that excludes the impact of new and closed stores, showcasing Ross Stores' operational efficiency and customer appeal at existing locations, further solidifying its market standing.
- Earnings Exceed Expectations: With earnings per share reaching $2.00, significantly above the company's guidance range of $1.77 to $1.85, this performance highlights Ross Stores' success in cost management and sales growth, boosting investor confidence.
- Optimistic Future Outlook: The company projects a 7% to 8% increase in comparable store sales for the current quarter, and while its full-year growth forecast is more conservative at 3% to 4%, it still demonstrates Ross Stores' potential to maintain growth amid economic challenges.
See More
Investment Analysis of Walmart and Ross Stores
- Walmart Stock Performance: Walmart (NASDAQ: WMT) has seen its shares rise approximately 190% over the past five years, and while it is considered a quality long-term investment, its elevated valuation presents inherent risks that investors should consider.
- Ross Stores Exceeds Expectations: Ross Stores (NASDAQ: ROST) reported holiday season sales of $6.6 billion, a 12% year-over-year increase, with comparable store sales rising by 9%, indicating strong market performance and consumer demand.
- Future Growth Projections: Ross Stores anticipates comparable store sales growth of 7% to 8% for the current quarter, although its full-year growth outlook is more modest at 3% to 4%, reflecting resilience amid economic challenges.
- Investment Value Comparison: With a price-to-earnings ratio of 33, Ross Stores is more attractively valued compared to Walmart's 45, suggesting that while Walmart offers diverse shopping options, Ross may appeal more to budget-conscious consumers in the current economic climate.
See More
Iran War Pressures Off-Price Retailers Amid Rising Oil Prices
- Oil Price Surge Impact: Since the onset of the U.S.-Iran conflict earlier this month, crude oil prices have surged to levels not seen since 2022, with WTI and Brent crude nearing $120 per barrel, leading to a 70 basis point decline in consumer spending among lower-income shoppers, exacerbating economic pressures.
- Retailer Pressure: According to Wolfe Research, off-price retailers like Dollar General and Walmart, which primarily serve low-income consumers, are expected to face greater pressure as rising oil prices may force these shoppers to tighten their budgets, impacting sales performance.
- Stock Price Declines: Dollar General's shares have fallen 5% over the past week, while Walmart and Advance Auto Parts have seen declines of nearly 3% and 7%, respectively, indicating a market sensitivity to rising energy prices and their impact on consumer confidence.
- Challenges from Import Dependence: Retailers reliant on Chinese imports, particularly in flooring and decor, may face significant headwinds as the Shanghai Containerized Index rises due to logistical issues in Southeast Asian ports, further complicating product shipments to the Middle East.
See More
SPYM ETF 52-Week Price Analysis
- Price Range Analysis: SPYM ETF's 52-week low is $56.6699 and high is $82.1079, with the latest trade at $78.12, indicating significant price fluctuations over the past year that can help investors assess market performance.
- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average provides investors with deeper technical insights, aiding in more informed investment decisions, although the specific 200-day moving average value is not mentioned in the article.
- ETF Unit Trading Mechanism: ETFs trade similarly to stocks, where investors are buying and selling 'units' that can be created or destroyed based on investor demand, providing high liquidity in the market.
- Monitoring Inflows and Outflows: Weekly monitoring of changes in ETF units focuses on notable inflows (new units created) or outflows (old units destroyed), with these dynamics potentially impacting not only the ETF itself but also the individual stocks held within it.
See More
Investment Comparison Between Walmart and Costco
- Walmart's Performance Growth: In fiscal Q4 2026, Walmart's revenue rose 5.6% year-over-year, with adjusted EPS at $0.74, up over 12%, indicating improved profitability from its digital transformation, and management expects operating income to grow 6% to 8% going forward.
- Costco's Sales Performance: Costco reported net sales of $68.2 billion for fiscal Q2 2026, a 9.1% year-over-year increase, with adjusted comparable sales up 6.7%, reflecting strong customer loyalty and a stable revenue stream from membership fees, which grew 13.6% to $1.36 billion.
- E-commerce and Advertising Growth: Walmart's global e-commerce sales surged 24% in the quarter, now representing 23% of total net sales, while its advertising business jumped 37%, indicating a significant shift towards higher-margin revenue streams that is positively impacting its financial performance.
- Valuation Comparison: While Walmart trades at about 44 times earnings, lower than Costco's 54 times, its diversified revenue streams and growth in advertising make it a more attractive investment in the current market, necessitating careful evaluation of both companies' growth potential against market expectations.
See More
Investment Comparison: Walmart vs. Costco
- Walmart's Performance Growth: In its fiscal Q4 2026, Walmart reported a 5.6% year-over-year revenue increase, with adjusted earnings per share at $0.74, reflecting over 12% growth, showcasing its ongoing digital transformation and profitability enhancement.
- E-commerce Surge: Walmart's global e-commerce sales soared 24% in the quarter, now representing 23% of total net sales, while its advertising business jumped 37%, indicating a shift towards higher-margin revenue streams that drove a 10.8% increase in operating income.
- Costco's Steady Performance: Costco achieved net sales of $68.2 billion in fiscal Q2 2026, up 9.1% year-over-year, with adjusted comparable sales rising 6.7%, demonstrating strong customer loyalty and a stable revenue stream from membership fees.
- Digital Sales Growth: Costco's digitally enabled comparable sales surged 21.7% in Q2 and maintained a 20.8% growth in February, although its price-to-earnings ratio stands at 54, reflecting the market's high expectations for continued growth.
See More
Ross Stores Exceeds Q4 Expectations with Strong Growth
- Significant Sales Growth: Ross Stores reported fourth-quarter sales of $6.6 billion, reflecting a 12% year-over-year increase, indicating strong market demand and a successful holiday shopping season, thereby enhancing the company's competitive position in retail.
- Outstanding Comparable Sales: The company's comparable store sales rose by 9%, a metric that excludes the impact of new and closed stores, showcasing Ross Stores' operational efficiency and customer appeal at existing locations, further solidifying its market standing.
- Earnings Exceed Expectations: With earnings per share reaching $2.00, significantly above the company's guidance range of $1.77 to $1.85, this performance highlights Ross Stores' success in cost management and sales growth, boosting investor confidence.
- Optimistic Future Outlook: The company projects a 7% to 8% increase in comparable store sales for the current quarter, and while its full-year growth forecast is more conservative at 3% to 4%, it still demonstrates Ross Stores' potential to maintain growth amid economic challenges.
See More
Investment Analysis of Walmart and Ross Stores
- Walmart Stock Performance: Walmart (NASDAQ: WMT) has seen its shares rise approximately 190% over the past five years, and while it is considered a quality long-term investment, its elevated valuation presents inherent risks that investors should consider.
- Ross Stores Exceeds Expectations: Ross Stores (NASDAQ: ROST) reported holiday season sales of $6.6 billion, a 12% year-over-year increase, with comparable store sales rising by 9%, indicating strong market performance and consumer demand.
- Future Growth Projections: Ross Stores anticipates comparable store sales growth of 7% to 8% for the current quarter, although its full-year growth outlook is more modest at 3% to 4%, reflecting resilience amid economic challenges.
- Investment Value Comparison: With a price-to-earnings ratio of 33, Ross Stores is more attractively valued compared to Walmart's 45, suggesting that while Walmart offers diverse shopping options, Ross may appeal more to budget-conscious consumers in the current economic climate.
See More
Iran War Pressures Off-Price Retailers Amid Rising Oil Prices
- Oil Price Surge Impact: Since the onset of the U.S.-Iran conflict earlier this month, crude oil prices have surged to levels not seen since 2022, with WTI and Brent crude nearing $120 per barrel, leading to a 70 basis point decline in consumer spending among lower-income shoppers, exacerbating economic pressures.
- Retailer Pressure: According to Wolfe Research, off-price retailers like Dollar General and Walmart, which primarily serve low-income consumers, are expected to face greater pressure as rising oil prices may force these shoppers to tighten their budgets, impacting sales performance.
- Stock Price Declines: Dollar General's shares have fallen 5% over the past week, while Walmart and Advance Auto Parts have seen declines of nearly 3% and 7%, respectively, indicating a market sensitivity to rising energy prices and their impact on consumer confidence.
- Challenges from Import Dependence: Retailers reliant on Chinese imports, particularly in flooring and decor, may face significant headwinds as the Shanghai Containerized Index rises due to logistical issues in Southeast Asian ports, further complicating product shipments to the Middle East.
See More
SPYM ETF 52-Week Price Analysis
- Price Range Analysis: SPYM ETF's 52-week low is $56.6699 and high is $82.1079, with the latest trade at $78.12, indicating significant price fluctuations over the past year that can help investors assess market performance.
- Technical Analysis Tool: Comparing the latest share price to the 200-day moving average provides investors with deeper technical insights, aiding in more informed investment decisions, although the specific 200-day moving average value is not mentioned in the article.
- ETF Unit Trading Mechanism: ETFs trade similarly to stocks, where investors are buying and selling 'units' that can be created or destroyed based on investor demand, providing high liquidity in the market.
- Monitoring Inflows and Outflows: Weekly monitoring of changes in ETF units focuses on notable inflows (new units created) or outflows (old units destroyed), with these dynamics potentially impacting not only the ETF itself but also the individual stocks held within it.
See More
