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.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy COST?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 1006.740
Low
769.00
Averages
1061
High
1205
Current: 1006.740
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 Q2 Earnings Beat Expectations with Strong Revenue Growth
- Strong Earnings Performance: Costco's Q2 GAAP EPS of $4.58 exceeded expectations by $0.04, indicating a sustained enhancement in profitability and reflecting robust performance in the retail market.
- Significant Revenue Growth: The reported revenue of $69.6 billion, representing a 9.2% year-over-year increase, surpassed market expectations by $280 million, demonstrating strong consumer demand driving overall sales growth.
- Expanding Store Network: Currently, Costco operates 924 warehouses globally, with 634 in the U.S. and Puerto Rico, and 114 in Canada, showcasing its dominant position in the North American market while steadily expanding internationally.
- Robust Comparable Sales: The comparable sales growth rate for Q2 was 7.4%, with U.S. growth at 5.9%, Canada at 10.1%, and international at 13.0%, indicating strong performance across all markets and enhancing confidence in future growth.
See More
Costco Reports 9.2% Sales Growth in Q2 Earnings
- Significant Sales Growth: Costco's total sales reached $69.6 billion in Q2, reflecting a 9.2% year-over-year increase, surpassing major retailers like Walmart and Target, which underscores its strong market competitiveness.
- Outstanding Comparable Sales: Comparable sales rose 7.4%, exceeding analysts' expectations of 6.7%, with the U.S. market growing 5.9%, Canada 10.1%, and international markets 13.0%, indicating a robust global business recovery.
- Increased Membership Revenue: Membership fee income hit $1.36 billion, a 14.3% increase from $1.19 billion a year ago, reflecting an expanding membership base and enhanced customer loyalty, which further strengthens the company's profitability.
- Strong E-commerce Sales: E-commerce sales surged 22.6%, not only meeting consumer demand for convenient shopping but also providing new growth momentum for the company, especially in an increasingly competitive global e-commerce landscape.
See More
Costco Q2 Earnings Preview Highlights Strong Sales Growth
- Strong Sales Growth: Costco is expected to see stronger sales growth than its retail peers in Q2, reflecting its competitive position in the market and increased consumer loyalty, which is likely to positively impact overall performance.
- Membership Income Focus: With a continuous increase in membership numbers, membership income is becoming a crucial driver of Costco's performance, expected to further enhance profitability and market position.
- Optimistic Earnings Outlook: Analysts generally hold an optimistic view on Costco's earnings, believing that its strong sales performance and stable membership base will lay a solid foundation for future growth, boosting investor confidence.
- Market Competitive Advantage: Costco's business model is viewed as attractive for long-term investors, particularly in comparison to competitors like Amazon, with its P/E ratio being deemed rational, thereby enhancing investor confidence.
See More
Costco Q2 Earnings Preview: Strong Sales Growth Ahead
- Sales Growth Expectations: Costco is expected to achieve strong sales growth in FQ2, surpassing its retail peers, reflecting its robust business model and sustained market demand.
- Membership Income Focus: With an increase in membership income, Costco's profitability is likely to improve further, enhancing customer loyalty and laying the groundwork for future expansion.
- Significant Competitive Advantage: Costco's P/E ratio is twice that of Amazon, yet this valuation is not seen as irrational; rather, it demonstrates investor confidence in its long-term growth potential.
- Strong Market Performance: The upcoming earnings report will highlight Costco's same-store sales performance, which is expected to further solidify its leadership position in the retail market.
See More
Costco Reports Q2 Sales Below Expectations Despite Earnings Growth
- Earnings Growth: Costco's Q2 net income reached $4.58 per diluted share, marking a 13.9% increase from $4.02 last year and surpassing analyst expectations of $4.55, indicating enhanced profitability.
- Sales Miss: Despite a 9.1% year-over-year increase in net sales to $68.24 billion, the figure fell short of the $69.32 billion forecast, reflecting challenges from intensified market competition and slowing consumer spending.
- Same-Store Sales: Adjusted same-store sales rose 6.7% after excluding gasoline price and foreign exchange impacts, suggesting that the core business retains growth momentum, even as overall sales disappointed.
- Stock Reaction: Following the earnings report, Costco's shares dipped 0.5% in after-hours trading after a 2.4% decline during regular trading, reflecting investor disappointment over the sales figures.
See More
Costco Reports Q2 Earnings Exceeding Expectations
- Revenue Beat: Costco's second-quarter revenue reached $69.60 billion, surpassing analyst expectations of $69.29 billion, indicating robust performance in the membership retail market and reinforcing its market leadership.
- Earnings Per Share Growth: The company reported earnings of $4.58 per share, slightly above the analyst estimate of $4.57, reflecting ongoing improvements in profitability that are expected to positively impact shareholder returns.
- Year-over-Year Sales Growth: Net sales increased by 9.1% year-over-year, with U.S. sales up 5.9%, Canadian sales up 10.1%, and other international sales up 13%, showcasing strong sales momentum across various regions.
- Membership Fee Revenue Increase: Membership fee revenue was approximately $1.36 billion, up from $1.19 billion in the prior year, indicating success in attracting and retaining members, which further strengthens the company's revenue base.
See More
Costco Q2 Earnings Beat Expectations with Strong Revenue Growth
- Strong Earnings Performance: Costco's Q2 GAAP EPS of $4.58 exceeded expectations by $0.04, indicating a sustained enhancement in profitability and reflecting robust performance in the retail market.
- Significant Revenue Growth: The reported revenue of $69.6 billion, representing a 9.2% year-over-year increase, surpassed market expectations by $280 million, demonstrating strong consumer demand driving overall sales growth.
- Expanding Store Network: Currently, Costco operates 924 warehouses globally, with 634 in the U.S. and Puerto Rico, and 114 in Canada, showcasing its dominant position in the North American market while steadily expanding internationally.
- Robust Comparable Sales: The comparable sales growth rate for Q2 was 7.4%, with U.S. growth at 5.9%, Canada at 10.1%, and international at 13.0%, indicating strong performance across all markets and enhancing confidence in future growth.
See More
Costco Reports 9.2% Sales Growth in Q2 Earnings
- Significant Sales Growth: Costco's total sales reached $69.6 billion in Q2, reflecting a 9.2% year-over-year increase, surpassing major retailers like Walmart and Target, which underscores its strong market competitiveness.
- Outstanding Comparable Sales: Comparable sales rose 7.4%, exceeding analysts' expectations of 6.7%, with the U.S. market growing 5.9%, Canada 10.1%, and international markets 13.0%, indicating a robust global business recovery.
- Increased Membership Revenue: Membership fee income hit $1.36 billion, a 14.3% increase from $1.19 billion a year ago, reflecting an expanding membership base and enhanced customer loyalty, which further strengthens the company's profitability.
- Strong E-commerce Sales: E-commerce sales surged 22.6%, not only meeting consumer demand for convenient shopping but also providing new growth momentum for the company, especially in an increasingly competitive global e-commerce landscape.
See More
Costco Q2 Earnings Preview Highlights Strong Sales Growth
- Strong Sales Growth: Costco is expected to see stronger sales growth than its retail peers in Q2, reflecting its competitive position in the market and increased consumer loyalty, which is likely to positively impact overall performance.
- Membership Income Focus: With a continuous increase in membership numbers, membership income is becoming a crucial driver of Costco's performance, expected to further enhance profitability and market position.
- Optimistic Earnings Outlook: Analysts generally hold an optimistic view on Costco's earnings, believing that its strong sales performance and stable membership base will lay a solid foundation for future growth, boosting investor confidence.
- Market Competitive Advantage: Costco's business model is viewed as attractive for long-term investors, particularly in comparison to competitors like Amazon, with its P/E ratio being deemed rational, thereby enhancing investor confidence.
See More
Costco Q2 Earnings Preview: Strong Sales Growth Ahead
- Sales Growth Expectations: Costco is expected to achieve strong sales growth in FQ2, surpassing its retail peers, reflecting its robust business model and sustained market demand.
- Membership Income Focus: With an increase in membership income, Costco's profitability is likely to improve further, enhancing customer loyalty and laying the groundwork for future expansion.
- Significant Competitive Advantage: Costco's P/E ratio is twice that of Amazon, yet this valuation is not seen as irrational; rather, it demonstrates investor confidence in its long-term growth potential.
- Strong Market Performance: The upcoming earnings report will highlight Costco's same-store sales performance, which is expected to further solidify its leadership position in the retail market.
See More
Costco Reports Q2 Sales Below Expectations Despite Earnings Growth
- Earnings Growth: Costco's Q2 net income reached $4.58 per diluted share, marking a 13.9% increase from $4.02 last year and surpassing analyst expectations of $4.55, indicating enhanced profitability.
- Sales Miss: Despite a 9.1% year-over-year increase in net sales to $68.24 billion, the figure fell short of the $69.32 billion forecast, reflecting challenges from intensified market competition and slowing consumer spending.
- Same-Store Sales: Adjusted same-store sales rose 6.7% after excluding gasoline price and foreign exchange impacts, suggesting that the core business retains growth momentum, even as overall sales disappointed.
- Stock Reaction: Following the earnings report, Costco's shares dipped 0.5% in after-hours trading after a 2.4% decline during regular trading, reflecting investor disappointment over the sales figures.
See More
Costco Reports Q2 Earnings Exceeding Expectations
- Revenue Beat: Costco's second-quarter revenue reached $69.60 billion, surpassing analyst expectations of $69.29 billion, indicating robust performance in the membership retail market and reinforcing its market leadership.
- Earnings Per Share Growth: The company reported earnings of $4.58 per share, slightly above the analyst estimate of $4.57, reflecting ongoing improvements in profitability that are expected to positively impact shareholder returns.
- Year-over-Year Sales Growth: Net sales increased by 9.1% year-over-year, with U.S. sales up 5.9%, Canadian sales up 10.1%, and other international sales up 13%, showcasing strong sales momentum across various regions.
- Membership Fee Revenue Increase: Membership fee revenue was approximately $1.36 billion, up from $1.19 billion in the prior year, indicating success in attracting and retaining members, which further strengthens the company's revenue base.
See More
