Costco's September Comps Impress as Holiday Shopping Season Nears

Costco Wholesale Corporation’s COST U.S. comparable sales rose 5.1% in September, indicating consumer strength and a preference for value heading into the holiday season. The performance suggested solid traffic growth and a strong response to recent operational changes that enhance member convenience and engagement. We note that U.S. comparable traffic and ticket were up 3.5% and 1.5%, respectively, in the fourth quarter of fiscal 2025.The results suggest that U.S. shoppers remain engaged with Costco’s expanding mix of essentials and discretionary goods. A key driver of this has been the strategic enhancement of the shopping experience. Management stated that the recent addition of exclusive morning hours for executive members and an extra hour on Saturday evenings for all members has added approximately one percent to weekly U.S. sales since its implementation on June 30.Costco has adjusted its holiday product mix, leaning into higher-ticket and practical goods like furniture and home improvement items instead of the traditional seasonal lineup. This strategy aims to meet evolving member priorities while sustaining strong sales productivity per warehouse.While tariffs and inflation remain concerns, Costco’s ability to drive comparable sales through both traffic and ticket growth shows that consumer demand remains resilient. The September results highlight continued loyalty from shoppers, suggesting that the company enters the holiday season on a solid footing as members prioritize quality, value and convenience. According to Deloitte, U.S. holiday retail sales are projected to rise between 2.9% and 3.4% during the November-to-January period. What the Latest Metrics Say About CostcoCostco, which competes with Dollar General Corporation DG and Target Corporation TGT, has seen its share rise 4.5% in the past year, outpacing the industry’s growth of 4.2%. While shares of Dollar General have rallied 24.4%, Target has declined 45.9% in the aforementioned period. Image Source: Zacks Investment ResearchFrom a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 46.03, higher than the industry’s ratio of 29.48. COST carries a Value Score of D. Costco is trading at a premium to Target (with a forward 12-month P/E ratio of 10.84) and Dollar General (15.28).  Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 7.7% and 11.1%, respectively.  Image Source: Zacks Investment ResearchCostco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Target Corporation (TGT): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks