The Zacks Analyst Blog Highlights Costco Wholesale, Dollar General, Ross Stores and Target

Zacks Equity Research

Fri, Jul 18, 2025, 9:47 AM 7 min read

Chicago, IL – July 18, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Costco Wholesale Corp.’s COST, Dollar General Corp. DG, Ross Stores, Inc. ROST and Target Corp. TGT.

Here are highlights from Thursday’s Analyst Blog:

Costco Wholesale Corp.‘s June sales results provide fresh insights into the retail giant’s performance. Known for its steady growth and leadership in the warehouse club space, Costco continues to attract long-term investors. However, the latest figures could influence the stock’s near-term trajectory. Here’s a closer look at the results to assess whether Costco stock is a buy, hold or sell after the June sales update.

Costco’s membership-driven model remains a core strength, with high renewal rates ensuring a dependable revenue stream. Its efficient supply chain and bulk purchasing power enable competitive pricing, reinforcing its strong market position. This combination of customer loyalty and operational efficiency continues to give Costco an advantage in a competitive retail landscape.

For the five weeks ended July 6, 2025, Costco reported a 5.8% year-over-year increase in total company comparable sales. Regionally, comparable sales rose 4.7% in the United States, 6.7% in Canada and 10.9% in Other International markets. E-commerce also remained a bright spot, with comparable sales surging 11.5%. (Read: Costco’s June Sales Climb on Robust 11.5% E-Commerce Growth)

As a result, Costco’s net sales for June increased 8% to $26.44 billion, up from $24.48 billion in the same period last year. This follows a sales improvement of 6.8% and 7% reported in May and April, respectively, reflecting a strong and consistent sales performance over the past few months.

Costco continues to deliver strong revenue growth, showing its ability to adapt steadily to changing economic conditions. The increase in membership fee income, driven by a high renewal rate of 92.7% in key markets like the United States and Canada, emphasizes the company’s effective customer retention strategies and high member engagement.

With a large base of paid household members and an increasing share of executive memberships, Costco maintains stable membership fee income. As of the third quarter of fiscal 2025, the retailer reported 79.6 million paid household members, a 6.8% increase year over year. Executive memberships — Costco’s more profitable tier — grew 9% to 37.6 million, now accounting for 47.3% of total paid members and making up 73.1% of global sales.