U.S. Stocks Rise as Fear Index Eases Slightly
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 05 2026
0mins
Source: Benzinga
- Fear Index Update: The CNN Money Fear & Greed Index slightly increased to 37.3 on Wednesday, remaining in the 'Fear' zone, indicating a modest improvement in market sentiment while cautioning against potential risks ahead.
- Stock Market Performance: U.S. stocks rose broadly on Wednesday, with the Nasdaq Composite gaining over 1% to close at 22,807.48, primarily driven by optimism surrounding potential U.S.-Iran diplomatic talks, reflecting a rebound in investor sentiment.
- Earnings Impact: Abercrombie & Fitch Co. (NYSE:ANF) saw its shares fall approximately 4% after disappointing fourth-quarter earnings, while Latham Group Inc. (NASDAQ:SWIM) surged 12% due to better-than-expected results and FY26 sales guidance, highlighting a divergence in market reactions to corporate performance.
- Employment and Economic Data: U.S. private businesses added 63,000 jobs in February, the highest since July, exceeding market expectations of 50,000, signaling strong economic recovery, while the ISM services PMI rose from 53.8 to 56.1, further bolstering confidence in economic growth.
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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: 968.590
Low
769.00
Averages
1061
High
1205
Current: 968.590
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 Strong Q3 Earnings Amid Rising Oil Prices
- Accelerating Sales Growth: Costco reported a 14.5% year-over-year revenue increase and a 12.5% rise in same-store sales for Q3 2026 (ended May 10), marking the highest growth since 2021, although concerns over persistent inflation led to a decline in stock price.
- Strong Membership Metrics: Membership increased by 4.1%, with adjusted membership fees up 7%, and renewal rates remained robust at 92.2% in North America and 89.7% globally, indicating significant progress in attracting younger members and enhancing long-term growth potential.
- Digital Sales Surge: Digital sales grew by 21.5% year-over-year in Q3, as Costco leveraged its buy online, in-store pickup model and partnered with third-party platforms for same-day grocery deliveries, improving customer experience and driving sales growth.
- Oil Price Impact on Loyalty: Rising oil prices have led more customers to utilize Costco's gas stations, with the CEO noting that this will likely enhance customer loyalty, as members who use the gas stations typically spend more in the warehouse, potentially increasing overall business engagement in the future.
See More
Costco Quietly Cuts Prices to Reinforce Customer-Friendly Policy
- Pricing Strategy: Costco has quietly reduced prices on several Kirkland Signature items across food, home goods, and sporting goods, with cuts of at least 10%, aiming to reinforce its customer-centric business philosophy.
- Product Range: The price reductions include Kirkland Signature Crispy Wings, Milk Chocolate Almonds, Golf Balls, and King Size Sheets, which, while modest, carry symbolic significance in demonstrating the company's responsiveness to consumer needs.
- Management Commitment: CEO Ron Vachris stated during the recent earnings call that the company aims to be 'the first to lower prices and the last to raise them,' a commitment that could enhance consumer loyalty and drive sales performance.
- Market Reaction: Costco's shares edged up 0.3% in Monday trading to $974.75, and despite differing analyst ratings, the overall market sentiment remains optimistic about the company's future performance.
See More
Target Shareholders Reject Proposal to Separate Chair and CEO Roles
- Shareholder Vote Outcome: Target shareholders rejected a proposal at Wednesday's annual meeting to separate the roles of chair and CEO, allowing former CEO Brian Cornell to remain as executive chair despite increasing investor pressure for a more independent leadership structure.
- Failed Proposals: A proposal to publish reports on pesticide use in private-label products and efforts to reduce microfiber emissions also failed, indicating shareholders' concerns about corporate governance and environmental responsibility were not addressed.
- Market Value Decline: Target has lost approximately half of its market value since 2021, primarily due to inflation-driven consumers gravitating towards lower-priced competitors like Walmart and Costco, which has negatively impacted the company's sales and margins.
- Strategic Investment Plans: New CEO Michael Fiddelke is investing $2 billion this year to ensure well-stocked merchandise and adjust pricing to better compete with Walmart, Amazon, and off-price retailers, although the macroeconomic environment remains challenging.
See More
Costco Stock Price Fluctuations Raise Investor Concerns
- Significant Sales Growth: Costco reported a 14% year-over-year increase in May sales, reaching $24 billion, with net sales up 10% for the first 39 weeks, indicating strong market demand and an expanding customer base.
- Strong Digital Sales: Digital sales surged 21% year-over-year in May and maintained the same growth rate through the first 39 weeks, showcasing the company's excellent performance in e-commerce, which contributes positively to overall sales figures.
- Stock Price Fluctuation Reasons: Despite strong sales and earnings reports, Costco's stock price briefly rose to $997 on June 5 after the sales report, but then fell back to around $960 due to an overall market sell-off, raising investor concerns about high valuations.
- Gross Margin Decline: Although the results were impressive, the overall gross margin dropped by 21 basis points, partly due to price reductions on key items and rising transportation costs, which raised market concerns about future profitability.
See More
Costco Reports Strong Q3 Earnings Amid Valuation Concerns
- Significant Sales Growth: Costco reported May sales of $24 billion, a 14% increase year-over-year, while net sales for the first 39 weeks of the fiscal year rose 10%, indicating strong performance in the retail market.
- Strong Digital Sales: Digital sales surged 21% year-over-year in May and maintained the same growth rate through the first 39 weeks, showcasing the company's ongoing success in e-commerce, despite a 21 basis point drop in overall gross margin due to rising costs.
- Stock Price Volatility: Despite robust earnings, Costco's stock price fell from $997 to around $960 on June 5, primarily influenced by a broader market sell-off and investor concerns over high valuations, reflecting a cautious market sentiment regarding future growth.
- Cautious Investor Sentiment: With a price-to-earnings ratio of 49 and a forward P/E of 43, investors may be taking profits amid concerns about potential economic challenges, even though the company's long-term outlook remains optimistic.
See More
Costco Stock Correction Sparks Investor Interest
- Strong Sales Growth: Costco reported an 11.6% year-over-year sales increase in its fiscal Q3 2026 (ending May 10), with comparable sales up 9.4%, demonstrating the company's resilience even amid rising costs and economic challenges.
- Earnings Per Share Increase: The company's earnings per share rose from $4.28 to $4.93, showcasing its ability to maintain profitability, which bolsters investor confidence in its future performance.
- Stable Membership Model: Costco's membership model generates reliable recurring revenue through its low prices and high customer loyalty, with a $65 annual membership fee providing consistent cash flow, attracting investors despite high stock prices.
- Market Volatility Expectations: With a P/E ratio of 49, close to the three-year average of 52, and a 13% decline in stock price this year, the market anticipates volatility, potentially offering long-term investors a buying opportunity at the current price level.
See More
Costco Reports Strong Q3 Earnings Amid Rising Oil Prices
- Accelerating Sales Growth: Costco reported a 14.5% year-over-year revenue increase and a 12.5% rise in same-store sales for Q3 2026 (ended May 10), marking the highest growth since 2021, although concerns over persistent inflation led to a decline in stock price.
- Strong Membership Metrics: Membership increased by 4.1%, with adjusted membership fees up 7%, and renewal rates remained robust at 92.2% in North America and 89.7% globally, indicating significant progress in attracting younger members and enhancing long-term growth potential.
- Digital Sales Surge: Digital sales grew by 21.5% year-over-year in Q3, as Costco leveraged its buy online, in-store pickup model and partnered with third-party platforms for same-day grocery deliveries, improving customer experience and driving sales growth.
- Oil Price Impact on Loyalty: Rising oil prices have led more customers to utilize Costco's gas stations, with the CEO noting that this will likely enhance customer loyalty, as members who use the gas stations typically spend more in the warehouse, potentially increasing overall business engagement in the future.
See More
Costco Quietly Cuts Prices to Reinforce Customer-Friendly Policy
- Pricing Strategy: Costco has quietly reduced prices on several Kirkland Signature items across food, home goods, and sporting goods, with cuts of at least 10%, aiming to reinforce its customer-centric business philosophy.
- Product Range: The price reductions include Kirkland Signature Crispy Wings, Milk Chocolate Almonds, Golf Balls, and King Size Sheets, which, while modest, carry symbolic significance in demonstrating the company's responsiveness to consumer needs.
- Management Commitment: CEO Ron Vachris stated during the recent earnings call that the company aims to be 'the first to lower prices and the last to raise them,' a commitment that could enhance consumer loyalty and drive sales performance.
- Market Reaction: Costco's shares edged up 0.3% in Monday trading to $974.75, and despite differing analyst ratings, the overall market sentiment remains optimistic about the company's future performance.
See More
Target Shareholders Reject Proposal to Separate Chair and CEO Roles
- Shareholder Vote Outcome: Target shareholders rejected a proposal at Wednesday's annual meeting to separate the roles of chair and CEO, allowing former CEO Brian Cornell to remain as executive chair despite increasing investor pressure for a more independent leadership structure.
- Failed Proposals: A proposal to publish reports on pesticide use in private-label products and efforts to reduce microfiber emissions also failed, indicating shareholders' concerns about corporate governance and environmental responsibility were not addressed.
- Market Value Decline: Target has lost approximately half of its market value since 2021, primarily due to inflation-driven consumers gravitating towards lower-priced competitors like Walmart and Costco, which has negatively impacted the company's sales and margins.
- Strategic Investment Plans: New CEO Michael Fiddelke is investing $2 billion this year to ensure well-stocked merchandise and adjust pricing to better compete with Walmart, Amazon, and off-price retailers, although the macroeconomic environment remains challenging.
See More
Costco Stock Price Fluctuations Raise Investor Concerns
- Significant Sales Growth: Costco reported a 14% year-over-year increase in May sales, reaching $24 billion, with net sales up 10% for the first 39 weeks, indicating strong market demand and an expanding customer base.
- Strong Digital Sales: Digital sales surged 21% year-over-year in May and maintained the same growth rate through the first 39 weeks, showcasing the company's excellent performance in e-commerce, which contributes positively to overall sales figures.
- Stock Price Fluctuation Reasons: Despite strong sales and earnings reports, Costco's stock price briefly rose to $997 on June 5 after the sales report, but then fell back to around $960 due to an overall market sell-off, raising investor concerns about high valuations.
- Gross Margin Decline: Although the results were impressive, the overall gross margin dropped by 21 basis points, partly due to price reductions on key items and rising transportation costs, which raised market concerns about future profitability.
See More
Costco Reports Strong Q3 Earnings Amid Valuation Concerns
- Significant Sales Growth: Costco reported May sales of $24 billion, a 14% increase year-over-year, while net sales for the first 39 weeks of the fiscal year rose 10%, indicating strong performance in the retail market.
- Strong Digital Sales: Digital sales surged 21% year-over-year in May and maintained the same growth rate through the first 39 weeks, showcasing the company's ongoing success in e-commerce, despite a 21 basis point drop in overall gross margin due to rising costs.
- Stock Price Volatility: Despite robust earnings, Costco's stock price fell from $997 to around $960 on June 5, primarily influenced by a broader market sell-off and investor concerns over high valuations, reflecting a cautious market sentiment regarding future growth.
- Cautious Investor Sentiment: With a price-to-earnings ratio of 49 and a forward P/E of 43, investors may be taking profits amid concerns about potential economic challenges, even though the company's long-term outlook remains optimistic.
See More
Costco Stock Correction Sparks Investor Interest
- Strong Sales Growth: Costco reported an 11.6% year-over-year sales increase in its fiscal Q3 2026 (ending May 10), with comparable sales up 9.4%, demonstrating the company's resilience even amid rising costs and economic challenges.
- Earnings Per Share Increase: The company's earnings per share rose from $4.28 to $4.93, showcasing its ability to maintain profitability, which bolsters investor confidence in its future performance.
- Stable Membership Model: Costco's membership model generates reliable recurring revenue through its low prices and high customer loyalty, with a $65 annual membership fee providing consistent cash flow, attracting investors despite high stock prices.
- Market Volatility Expectations: With a P/E ratio of 49, close to the three-year average of 52, and a 13% decline in stock price this year, the market anticipates volatility, potentially offering long-term investors a buying opportunity at the current price level.
See More
