FELG's Core Assets Suggest a 10% Upside Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 18 2025
0mins
Should l Buy COST?
Source: NASDAQ.COM
ETF Analyst Target Price: The Fidelity Enhanced Large Cap Growth ETF (FELG) has an implied analyst target price of $44.50 per unit, indicating a potential upside of 9.83% from its recent trading price of $40.52.
Notable Holdings with Upside: Key underlying holdings of FELG, such as NRG Energy, Costco Wholesale, and Insulet Corp, show significant upside potential based on analyst target prices, with expected increases of 16.30%, 13.44%, and 11.87% respectively.
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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: 979.650
Low
769.00
Averages
1061
High
1205
Current: 979.650
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.
Rising Gas Prices Boost Costco Sales Potential
- Impact of Rising Gas Prices: As the Iran War drives up gas prices, Costco's member-only gas stations offer fuel at prices often $0.20 per gallon lower than local averages, attracting more customers to refuel and shop, thereby boosting sales.
- Tightening Consumer Budgets: Higher gas prices are prompting consumers to be more budget-conscious, and Costco's lower prices on bulk products are expected to increase sales of essential items while other retailers struggle with discretionary sales.
- Membership Growth Strategy: Despite rising transportation and energy costs, Costco is offsetting these expenses by continually adding more cardholders, maintaining high renewal rates, and opening additional warehouses, with membership numbers increasing by 5% to 147.2 million in the first half of fiscal 2026.
- Enhanced Digital Communication: To stabilize renewal rates, Costco is rolling out more targeted digital communications and promotions, particularly aimed at younger
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Walmart and Costco Start 2026 Strong Amid E-Commerce Growth
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- Market Share Competition: Despite strong e-commerce results, both Walmart and Costco have failed to capture additional market share from Amazon, whose e-commerce market share increased from 34.4% in 2024 to 35.7% in 2025, underscoring its continued dominance.
- Financial Performance Comparison: Walmart and Costco reported overall revenue growth of 5.6% and 7.4%, respectively, which lags behind Amazon's 10% growth in the fourth quarter, reflecting slower growth rates in their retail operations compared to Amazon.
- Investor Sentiment Impact: Although Amazon's cloud computing business faces uncertainties with management planning to invest over $200 billion in AWS expansion in 2026, its stock remains undervalued, suggesting long-term investors may find attractive buying opportunities in both retail and cloud computing sectors.
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- E-commerce Sales Surge: Walmart's U.S. e-commerce sales rose 27% last quarter, marking its eighth consecutive quarter of over 20% growth, which underscores its strong performance in the e-commerce sector and solidifies its market position.
- Advertising Business Expansion: Walmart's acquisition of Vizio has allowed it to enhance its retail media and video content, resulting in a 41% increase in U.S. digital advertising sales last quarter, which not only boosts revenue streams but also strengthens its advertising capabilities in a competitive market.
- Market Share Challenge: Despite strong e-commerce results, both Walmart and Costco have failed to capture market share from Amazon, whose e-commerce market share increased from 34.4% in 2024 to 35.7% in 2025, indicating its continued dominance in the market.
- Valuation Discrepancy: Amazon's enterprise value is only 10.8 times its expected 2026 EBITDA, while Walmart and Costco trade at multiples exceeding 21 and 30, respectively, reflecting investor skepticism about Amazon's cloud computing business, potentially offering a buying opportunity for long-term investors.
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- Tech Stocks Hit Hard: News regarding Anthropic's AI model has severely impacted enterprise software stocks, with CrowdStrike and Palo Alto Networks seeing declines of 6% and over 9%, respectively, reflecting investor concerns about AI potentially replacing traditional software companies and exacerbating market anxiety.
- Meta Platforms Legal Challenges: Meta's stock fell nearly 11.5% after losing two social media addiction lawsuits, raising concerns about the company's short-term performance and long-term legal risks, although analysts believe the company has a strong legal position.
- Costco's Resilience: Despite overall market pressures, Costco's shares rose 1.2% last week, driven by increased customer traffic from higher gas prices and a new standalone gas station initiative, demonstrating the company's ability to find growth opportunities even in challenging conditions.
See More
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- Significant Sales Growth: Celsius reported fourth-quarter revenue of $722 million, a 116% increase from $332.2 million year-over-year, indicating strong performance in the beverage market, although part of this growth was driven by acquisitions.
- Intensified Competitive Pressure: The launch of Costco's Kirkland Signature energy drink, priced 55% lower than Celsius, highlights the fierce competition in the beverage industry, posing a potential threat to Celsius's market share despite Costco accounting for only 11% of its total sales last year.
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- Stock Plunge: Celsius Holdings' shares have fallen 49% from their 52-week high of $66.74, currently trading around $34, indicating market concerns about its growth prospects amid intensifying competition.
- Intensifying Competition: Costco's launch of the Kirkland Signature energy drink, priced 55% lower than Celsius, highlights competitive pressures in the beverage market, which could negatively impact Celsius's profit margins despite Costco accounting for only 11% of its total sales last year.
- Acquisition Impact: The company reported fourth-quarter revenue of $722 million, a 117% increase year-over-year, significantly driven by the acquisition of Alani Nu, which generated $370 million in net sales with a 136% year-over-year growth; however, integration costs led to a decline in gross margin to 47.4%.
- Valuation Risks: Despite Celsius's strong market positioning, its current forward P/E ratio in the twenties suggests that the market is overly optimistic about its growth potential, raising concerns about the risk-reward balance in an increasingly competitive environment.
See More
Rising Gas Prices Boost Costco Sales Potential
- Impact of Rising Gas Prices: As the Iran War drives up gas prices, Costco's member-only gas stations offer fuel at prices often $0.20 per gallon lower than local averages, attracting more customers to refuel and shop, thereby boosting sales.
- Tightening Consumer Budgets: Higher gas prices are prompting consumers to be more budget-conscious, and Costco's lower prices on bulk products are expected to increase sales of essential items while other retailers struggle with discretionary sales.
- Membership Growth Strategy: Despite rising transportation and energy costs, Costco is offsetting these expenses by continually adding more cardholders, maintaining high renewal rates, and opening additional warehouses, with membership numbers increasing by 5% to 147.2 million in the first half of fiscal 2026.
- Enhanced Digital Communication: To stabilize renewal rates, Costco is rolling out more targeted digital communications and promotions, particularly aimed at younger
See More
Walmart and Costco Start 2026 Strong Amid E-Commerce Growth
- E-Commerce Sales Surge: Walmart's U.S. e-commerce sales rose 27% last quarter, marking its eighth consecutive quarter of over 20% growth, indicating strong performance in the e-commerce sector despite a challenging overall market environment.
- Market Share Competition: Despite strong e-commerce results, both Walmart and Costco have failed to capture additional market share from Amazon, whose e-commerce market share increased from 34.4% in 2024 to 35.7% in 2025, underscoring its continued dominance.
- Financial Performance Comparison: Walmart and Costco reported overall revenue growth of 5.6% and 7.4%, respectively, which lags behind Amazon's 10% growth in the fourth quarter, reflecting slower growth rates in their retail operations compared to Amazon.
- Investor Sentiment Impact: Although Amazon's cloud computing business faces uncertainties with management planning to invest over $200 billion in AWS expansion in 2026, its stock remains undervalued, suggesting long-term investors may find attractive buying opportunities in both retail and cloud computing sectors.
See More
Walmart and Costco Show Strong E-commerce Growth
- E-commerce Sales Surge: Walmart's U.S. e-commerce sales rose 27% last quarter, marking its eighth consecutive quarter of over 20% growth, which underscores its strong performance in the e-commerce sector and solidifies its market position.
- Advertising Business Expansion: Walmart's acquisition of Vizio has allowed it to enhance its retail media and video content, resulting in a 41% increase in U.S. digital advertising sales last quarter, which not only boosts revenue streams but also strengthens its advertising capabilities in a competitive market.
- Market Share Challenge: Despite strong e-commerce results, both Walmart and Costco have failed to capture market share from Amazon, whose e-commerce market share increased from 34.4% in 2024 to 35.7% in 2025, indicating its continued dominance in the market.
- Valuation Discrepancy: Amazon's enterprise value is only 10.8 times its expected 2026 EBITDA, while Walmart and Costco trade at multiples exceeding 21 and 30, respectively, reflecting investor skepticism about Amazon's cloud computing business, potentially offering a buying opportunity for long-term investors.
See More
Iran War Effects Widen, Pressuring Stock Markets
- Oil Price Surge Impact: The ongoing war in Iran has led to a 5.5% increase in West Texas Intermediate crude to $99.64 per barrel and a 4.2% rise in Brent crude to $112.57, causing the Dow and Nasdaq to drop 1.7% and 2.2%, respectively, highlighting the market's sensitivity to rising oil prices.
- Tech Stocks Hit Hard: News regarding Anthropic's AI model has severely impacted enterprise software stocks, with CrowdStrike and Palo Alto Networks seeing declines of 6% and over 9%, respectively, reflecting investor concerns about AI potentially replacing traditional software companies and exacerbating market anxiety.
- Meta Platforms Legal Challenges: Meta's stock fell nearly 11.5% after losing two social media addiction lawsuits, raising concerns about the company's short-term performance and long-term legal risks, although analysts believe the company has a strong legal position.
- Costco's Resilience: Despite overall market pressures, Costco's shares rose 1.2% last week, driven by increased customer traffic from higher gas prices and a new standalone gas station initiative, demonstrating the company's ability to find growth opportunities even in challenging conditions.
See More
Celsius Reports Surge in Q4 Sales but Stock Plummets
- Significant Sales Growth: Celsius reported fourth-quarter revenue of $722 million, a 116% increase from $332.2 million year-over-year, indicating strong performance in the beverage market, although part of this growth was driven by acquisitions.
- Intensified Competitive Pressure: The launch of Costco's Kirkland Signature energy drink, priced 55% lower than Celsius, highlights the fierce competition in the beverage industry, posing a potential threat to Celsius's market share despite Costco accounting for only 11% of its total sales last year.
- Declining Profit Margins: Celsius's gross profit margin fell from 50.2% to 47.4% year-over-year, primarily due to increased integration and distribution costs associated with acquisitions, a trend that could impact future profitability and warrants close investor scrutiny.
- Valuation Risks Emerge: Despite Celsius's stock price dropping 49% from its 52-week high to around $34, the market still values it at a relatively high forward price-to-earnings ratio, suggesting that investor expectations for future growth may be overly optimistic.
See More
Celsius Holdings Shares Plummet Amid Competition
- Stock Plunge: Celsius Holdings' shares have fallen 49% from their 52-week high of $66.74, currently trading around $34, indicating market concerns about its growth prospects amid intensifying competition.
- Intensifying Competition: Costco's launch of the Kirkland Signature energy drink, priced 55% lower than Celsius, highlights competitive pressures in the beverage market, which could negatively impact Celsius's profit margins despite Costco accounting for only 11% of its total sales last year.
- Acquisition Impact: The company reported fourth-quarter revenue of $722 million, a 117% increase year-over-year, significantly driven by the acquisition of Alani Nu, which generated $370 million in net sales with a 136% year-over-year growth; however, integration costs led to a decline in gross margin to 47.4%.
- Valuation Risks: Despite Celsius's strong market positioning, its current forward P/E ratio in the twenties suggests that the market is overly optimistic about its growth potential, raising concerns about the risk-reward balance in an increasingly competitive environment.
See More
