RTH and VDC: Two ETFs That May Perform Strongly Following Walmart's Q3 Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 19 2025
0mins
Should l Buy COST?
Source: TipRanks
Walmart Q3 Earnings Expectations: Walmart is expected to report Q3 earnings of $0.61 per share, a 5.2% increase year-over-year, with revenues projected at $177.14 billion, up 4.5% from the previous year.
ETFs Offering Walmart Exposure: Investors can consider ETFs like RTH and VDC for indirect exposure to Walmart, with RTH holding 9.48% of Walmart and VDC holding 14.26%, providing a diversified investment option in the retail sector.
RTH ETF Performance: The RTH ETF, focused on consumer discretionary stocks, has $253.85 million in assets and a year-to-date increase of 11%, with a Strong Buy consensus rating and a price target suggesting a 22.70% upside.
VDC ETF Overview: The VDC ETF, tracking large-cap consumer staples, has $7.19 billion in assets, a 0.58% year-to-date increase, and a Moderate Buy consensus rating, indicating a 17.03% upside potential.
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Analyst Views on COST
Wall Street analysts forecast COST stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for COST is 1061 USD with a low forecast of 769.00 USD and a high forecast of 1205 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
24 Analyst Rating
19 Buy
4 Hold
1 Sell
Strong Buy
Current: 978.140
Low
769.00
Averages
1061
High
1205
Current: 978.140
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 Stock Soars, But Investors Should Be Cautious
- Stock Performance: Costco's shares surged 16% at the start of 2026, nearing the $1,000 mark as of Monday's close, despite a staggering price-to-earnings ratio of 54, significantly higher than the S&P 500's average of 25, indicating investor optimism about future performance.
- Earnings Expectations: Scheduled to release its latest earnings on March 5, Costco's last report exceeded expectations, yet the stock failed to gain post-release, reflecting market concerns over its high valuation.
- Sales Growth: For the quarter ending November 23, 2025, the company reported an 8.3% year-over-year revenue increase, with a comparable sales growth rate of 6.4%, and a solid 7% growth in comparable sales during the crucial holiday month of December, showcasing its ability to maintain stable growth.
- Investment Advice: Despite Costco's strong performance, analysts advise caution before purchasing the stock ahead of earnings due to its high valuation, suggesting that there are better value investment options available in the market.
See More
Analysis of Norges Bank's Investment Concentration
- Investment Concentration: Norges Bank Investment Management's latest 13F filing reveals that despite holding 1,577 U.S. stocks, nearly one-third of the fund's capital is concentrated in just seven companies, indicating a high level of market leadership concentration.
- Dominance of Giants: Nvidia commands a staggering $62 billion stake, making it the fund's largest single position, while both Apple and Microsoft exceed $50 billion, showcasing the dominance of these tech giants within the investment portfolio.
- Weak Impact of Smaller Holdings: Even with over 1,500 positions, many smaller holdings are valued at only a few million dollars, contributing negligibly to the overall portfolio performance, which reflects a stark market imbalance.
- Investor Insights: This trend of concentration suggests that, although diversification may appear broad, investment performance increasingly relies on a few key stocks, particularly driven by the influence of AI, cloud, and platform giants, prompting investors to reassess their strategies.
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Welspun Living Reports Significant Quarterly Profit Decline
- Significant Profit Decline: Welspun Living reported a consolidated net profit of 2.1 million rupees ($23,178.81) for the quarter ending December 31, sharply down from 1.21 billion rupees in the same period last year, indicating severe profit pressure due to a slowdown in exports triggered by U.S. tariffs.
- Revenue Drop: The company's operational revenue fell by 9% to 22.62 billion rupees, while its EBITDA margin narrowed by 493 basis points to 7.7%, reflecting significant challenges to profitability amid intense market competition and cost pressures.
- One-Time Charge Impact: The results included a one-time charge of 189.7 million rupees related to India's new labor codes, highlighting the additional financial burden faced by the company in adapting to new regulations, which may affect future investment decisions.
- Improving Market Outlook: Despite current challenges, Welspun Living and other Indian textile exporters anticipate better quarters ahead as U.S. President Trump announced a trade deal with India that reduces tariffs on Indian goods, potentially opening new growth opportunities for the company.
See More
Consumer Staples ETF Surges, Attracts Investors
- Passive Income Source: The Consumer Staples Select Sector SPDR ETF has surged 13.2% in 2026, significantly outperforming the S&P 500's 1.3% gain, showcasing the fund's strong potential for providing stable passive income, especially during economic fluctuations.
- Stable Dividend Returns: Major holdings in the ETF include Dividend Kings like Walmart, Costco, and Coca-Cola, which have raised dividends for 50 consecutive years, ensuring reliable returns for investors in uncertain economic environments.
- Shifting Market Dynamics: As investors pivot from high-growth sectors to value stocks, the consumer staples sector has emerged as one of the best-performing segments in 2026, reflecting a market preference for stable income despite ongoing pressures from reduced consumer spending.
- Reasonable Valuation: With a price-to-earnings ratio of 24.1 and a solid yield of 2.6%, alongside a low expense ratio of just 0.08%, the ETF, while not as cheap as at the end of 2025, remains a solid foundational holding for risk-averse investors seeking reliable passive income.
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Discussion on Potential Merger Between SpaceX and xAI
- Merger Prospects: The potential merger between SpaceX and xAI has garnered market attention, particularly with SpaceX's anticipated IPO in 2026, as this merger could attract investor interest and enhance the IPO's appeal.
- Capital Market Competition: Currently, companies like OpenAI and Anthropic are also vying for entry into the capital markets, highlighting the fierce competition among large capital-intensive firms for IPOs, and the merger of SpaceX and xAI could enhance their market attractiveness in this context.
- Investor Confidence: Although the market remains cautious about mergers involving Elon Musk's companies, analysts believe that such a merger could provide these firms with greater resource and capital liquidity, helping them achieve better valuations ahead of their IPOs.
- Technological Integration Potential: If SpaceX and xAI successfully merge, it could create a powerful technological ecosystem that leverages AI to enhance innovation in aerospace and transportation, thereby gaining a competitive edge in future market dynamics.
See More
Costco Accelerates Growth for Emerging Brands
- Startup Accelerator: Costco (COST) has effectively become a de facto accelerator for emerging consumer packaged goods brands, enhancing brand awareness and credibility through short-term tests and stringent operational demands despite lacking a formal startup program.
- Rapid Expansion Opportunity: For instance, non-alcoholic beverage brand Hiyo transitioned from a Southern California test to preparing inventory for 400 warehouses across 47 states, demonstrating Costco's ability to scale concepts quickly when initial feedback is positive, significantly reducing market risk for startups.
- Unique Testing Structure: The limited-duration testing model at Costco is particularly appealing to founders as it provides access to a massive member base without the slow annual reset cycles typical of retailers like Target and Walmart, thereby accelerating product market validation.
- Brand Reinvention Challenge: Costco compels startups to rethink pack architecture and visual identity for a pallet-driven warehouse environment, necessitating mock pallet tests to ensure products stand out in Costco's store layout, thereby enhancing market competitiveness.
See More
Costco Stock Soars, But Investors Should Be Cautious
- Stock Performance: Costco's shares surged 16% at the start of 2026, nearing the $1,000 mark as of Monday's close, despite a staggering price-to-earnings ratio of 54, significantly higher than the S&P 500's average of 25, indicating investor optimism about future performance.
- Earnings Expectations: Scheduled to release its latest earnings on March 5, Costco's last report exceeded expectations, yet the stock failed to gain post-release, reflecting market concerns over its high valuation.
- Sales Growth: For the quarter ending November 23, 2025, the company reported an 8.3% year-over-year revenue increase, with a comparable sales growth rate of 6.4%, and a solid 7% growth in comparable sales during the crucial holiday month of December, showcasing its ability to maintain stable growth.
- Investment Advice: Despite Costco's strong performance, analysts advise caution before purchasing the stock ahead of earnings due to its high valuation, suggesting that there are better value investment options available in the market.
See More
Analysis of Norges Bank's Investment Concentration
- Investment Concentration: Norges Bank Investment Management's latest 13F filing reveals that despite holding 1,577 U.S. stocks, nearly one-third of the fund's capital is concentrated in just seven companies, indicating a high level of market leadership concentration.
- Dominance of Giants: Nvidia commands a staggering $62 billion stake, making it the fund's largest single position, while both Apple and Microsoft exceed $50 billion, showcasing the dominance of these tech giants within the investment portfolio.
- Weak Impact of Smaller Holdings: Even with over 1,500 positions, many smaller holdings are valued at only a few million dollars, contributing negligibly to the overall portfolio performance, which reflects a stark market imbalance.
- Investor Insights: This trend of concentration suggests that, although diversification may appear broad, investment performance increasingly relies on a few key stocks, particularly driven by the influence of AI, cloud, and platform giants, prompting investors to reassess their strategies.
See More
Welspun Living Reports Significant Quarterly Profit Decline
- Significant Profit Decline: Welspun Living reported a consolidated net profit of 2.1 million rupees ($23,178.81) for the quarter ending December 31, sharply down from 1.21 billion rupees in the same period last year, indicating severe profit pressure due to a slowdown in exports triggered by U.S. tariffs.
- Revenue Drop: The company's operational revenue fell by 9% to 22.62 billion rupees, while its EBITDA margin narrowed by 493 basis points to 7.7%, reflecting significant challenges to profitability amid intense market competition and cost pressures.
- One-Time Charge Impact: The results included a one-time charge of 189.7 million rupees related to India's new labor codes, highlighting the additional financial burden faced by the company in adapting to new regulations, which may affect future investment decisions.
- Improving Market Outlook: Despite current challenges, Welspun Living and other Indian textile exporters anticipate better quarters ahead as U.S. President Trump announced a trade deal with India that reduces tariffs on Indian goods, potentially opening new growth opportunities for the company.
See More
Consumer Staples ETF Surges, Attracts Investors
- Passive Income Source: The Consumer Staples Select Sector SPDR ETF has surged 13.2% in 2026, significantly outperforming the S&P 500's 1.3% gain, showcasing the fund's strong potential for providing stable passive income, especially during economic fluctuations.
- Stable Dividend Returns: Major holdings in the ETF include Dividend Kings like Walmart, Costco, and Coca-Cola, which have raised dividends for 50 consecutive years, ensuring reliable returns for investors in uncertain economic environments.
- Shifting Market Dynamics: As investors pivot from high-growth sectors to value stocks, the consumer staples sector has emerged as one of the best-performing segments in 2026, reflecting a market preference for stable income despite ongoing pressures from reduced consumer spending.
- Reasonable Valuation: With a price-to-earnings ratio of 24.1 and a solid yield of 2.6%, alongside a low expense ratio of just 0.08%, the ETF, while not as cheap as at the end of 2025, remains a solid foundational holding for risk-averse investors seeking reliable passive income.
See More
Discussion on Potential Merger Between SpaceX and xAI
- Merger Prospects: The potential merger between SpaceX and xAI has garnered market attention, particularly with SpaceX's anticipated IPO in 2026, as this merger could attract investor interest and enhance the IPO's appeal.
- Capital Market Competition: Currently, companies like OpenAI and Anthropic are also vying for entry into the capital markets, highlighting the fierce competition among large capital-intensive firms for IPOs, and the merger of SpaceX and xAI could enhance their market attractiveness in this context.
- Investor Confidence: Although the market remains cautious about mergers involving Elon Musk's companies, analysts believe that such a merger could provide these firms with greater resource and capital liquidity, helping them achieve better valuations ahead of their IPOs.
- Technological Integration Potential: If SpaceX and xAI successfully merge, it could create a powerful technological ecosystem that leverages AI to enhance innovation in aerospace and transportation, thereby gaining a competitive edge in future market dynamics.
See More
Costco Accelerates Growth for Emerging Brands
- Startup Accelerator: Costco (COST) has effectively become a de facto accelerator for emerging consumer packaged goods brands, enhancing brand awareness and credibility through short-term tests and stringent operational demands despite lacking a formal startup program.
- Rapid Expansion Opportunity: For instance, non-alcoholic beverage brand Hiyo transitioned from a Southern California test to preparing inventory for 400 warehouses across 47 states, demonstrating Costco's ability to scale concepts quickly when initial feedback is positive, significantly reducing market risk for startups.
- Unique Testing Structure: The limited-duration testing model at Costco is particularly appealing to founders as it provides access to a massive member base without the slow annual reset cycles typical of retailers like Target and Walmart, thereby accelerating product market validation.
- Brand Reinvention Challenge: Costco compels startups to rethink pack architecture and visual identity for a pallet-driven warehouse environment, necessitating mock pallet tests to ensure products stand out in Costco's store layout, thereby enhancing market competitiveness.
See More
