COST

Interested in Mama's Creations, Inc.? Here are five stocks we like better. Strong financial growth: Fiscal Q2 revenue rose 55% to $54.6 million, while net income more than doubled to $2.6 million and adjusted EBITDA increased 68.9% to $5.5 million. Adjusted EBITDA margin expanded to 10.1% from 9.3%. Retail expansion is accelerating: Mama’s launched or secured new placements with Kroger, Costco, Sam’s Club, Albertsons and BJ’s, while its products reached more than 2,300 Walmart stores. Chicken-bottom products accounted for more than 60% of new second-quarter placements. Capacity and acquisition flexibility improved: Bay Shore still has significant available capacity, East Rutherford storage expansion is expected to reduce logistics costs, and the company ended the period with $138.6 million in cash and just $4.8 million in debt to support potential strategic acquisitions. MAMA Says a Fresh High Could Come Before Mid-Year Mama's Creations (NASDAQ:MAMA) reported fiscal second-quarter revenue growth of 55% and said expanded retail distribution, contributions from the Bay Shore acquisition and new product launches helped drive operating leverage and higher profitability. For the quarter, revenue increased to $54.6 million from $35.2 million a year earlier. Net income more than doubled to $2.6 million, or $0.06 per diluted share, from $1.3 million, or $0.03 per diluted share. Adjusted EBITDA, a non-GAAP measure, rose 68.9% to $5.5 million, while adjusted EBITDA margin expanded to 10.1% from 9.3% in the prior-year quarter. → Boarding Call: EHang Secures First-Mover Altitude Chairman and Chief Executive Officer Adam O'Michaels said the results reflected the company's strategy of investing in product launches before realizing greater scale and leverage. “Every single bottom-line metric grew faster than revenue,” O'Michaels said, citing income from operations, adjusted EBITDA and net income. Gross profit rose 49.1% to $13.1 million. Gross margin was 24.0%, compared with 24.9% in the year-ago period but up from 23.6% in the fiscal first quarter. Chief Financial Officer Anthony Gruber said the sequential improvement reflected new packaging technologies and protein form factors moving toward steady-state production following first-quarter launches. → Medtronic’s Stars Are Aligning for a Price Recovery Management said it continues to target corporate gross margins in the mid- to high-20% range. O'Michaels said progress toward that goal will depend in part on increasing sales of chicken “bottom” products, which allow the company to use more of its chicken inputs and reduce trimming costs, as well as further improvement at the Bay Shore facility. Operating expenses rose in dollars to $10.1 million from $7.1 million, largely due to the Bay Shore acquisition, but declined as a percentage of revenue. Operating expenses represented 18.5% of revenue, down 160 basis points from 20.1% a year earlier. → Dutch Bros Sell-Off Creates a Growth Opportunity During the question-and-answer session, O'Michaels said the company intentionally shifted about $500,000 of marketing spending into trade promotions during the quarter because it was seeing stronger returns. He said Mama's spent more than $1 million more on trade activity than it did in the prior-year period. Mama's announced its first launch with Kroger, beginning next month in the retailer's Louisville division. The initial rollout will cover more than 100 stores and include four products, including three chicken-bottom stock-keeping units. O'Michaels said the company plans to begin in one division and expand over time if product performance supports additional distribution. The company also said it was approved for Costco's second-half multi-vendor mailer promotion across all eight U.S. regions. O'Michaels said the promotion is forecast to be larger than the prior-year program and is expected to run around the last two weeks of December or early January, although Costco rotations had already begun in several regions. At Sam's Club, Mama's recently launched a breaded panko chicken breast product in 300 clubs, O'Michaels said. The company also cited new launches or placements at Albertsons, BJ's and more than a dozen other customers. More than 60% of new placements launched during the second quarter used chicken-bottom products, according to management. Walmart remained a key growth driver. O'Michaels said Mama's products are now in more than 2,300 Walmart stores, above the approximately 2,000 stores initially discussed for the rollout. He said grilled chicken products were performing particularly well, while sausage and peppers and meatloaf were showing lower velocities than beef meatballs and cheese-stuffed chicken meatballs. The company said it is reviewing the assortment proactively and may replace slower-moving products with higher-velocity items. Management said the Bay Shore facility was instrumental in supporting recent Walmart and Sam's Club launches. O'Michaels said the site is improving toward gross-margin levels achieved at Mama's East Rutherford and Farmingdale operations as volume increases and fixed costs are absorbed over more production. The company said it still has available capacity at Bay Shore, which is not operating seven days a week or around the clock in all areas. O'Michaels said Mama's could “pretty much double” its business from the prior year using its existing facilities, though he emphasized that product mix and automation will affect capacity utilization. Mama's also completed an expansion at its East Rutherford, New Jersey, site that nearly doubled frozen and refrigerated storage capacity. The company expects the expansion to lower outside storage costs and improve logistics flexibility. It has added two Proseal machines to increase production efficiency, according to O'Michaels. On procurement, management said supplier diversification avoided a potential 12% materials increase for packaging. The company also added three beef suppliers and said changes to supply planning are supporting additional safety-stock levels for its top products. Cash and cash equivalents totaled $138.6 million as of July 31, up from $20 million at the end of fiscal 2026. Gruber said the increase was primarily driven by $108.6 million of net proceeds from a July common-stock offering and $11.9 million of operating cash flow generated during the first six months of the fiscal year. Total debt stood at $4.8 million. O'Michaels said the larger cash balance and low debt give Mama's greater flexibility to pursue acquisitions that add capacity, capabilities or customer access. He said the company is less interested in acquisitions of approximately $25 million in revenue than it may have been previously, given the work required to integrate a business, but stressed that management will remain disciplined on valuation and strategic fit. The company also said it sees seafood as a potential longer-term opportunity, either through internal capabilities or acquisitions, though O'Michaels said Mama's has substantial room to expand its existing beef, chicken and vegetable offerings. Mama's Creations, Inc engages in the marketing, manufacturing, and distribution of beef meatballs with sauce, turkey meatballs with sauce, beef meat loaf, sausage and peppers, chicken parmesan, and other similar meats and sauces. Its products include beef meatballs, turkey meatballs, stuffed meatballs, lasagna roll ups, retail ready meals, bulk deli, single-size pasta bowls, and packaged refrigerated products. Its brands include MamaMancini's, Creative Salads, and The Olive Branch. The company was founded by Daniel Dougherty on July 22, 2009 and is headquartered in East Rutherford, NJ. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Mama's Creations Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

ISSAQUAH, Wash., Sept. 02, 2026 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $23.70 billion for the retail month of August, the four weeks ended August 30, 2026, an increase of 9.9 percent from $21.56 billion last year. For the 16-week fourth quarter, the Company reported net sales of $93.9 billion, an increase of 11.3 percent compared to net sales of $84.4 billion last year. For the 52-week fiscal year ended August 30, 2026, the Company reported net sales of $297.3 billion, an increase of 10.2 percent from $269.9 billion last year. Comparable sales were as follows: Comparable sales excluding the impacts from changes in gasoline prices and foreign exchange were as follows: Labor Day in the U.S. and Canada will occur one week later this year. The shift negatively impacted August total and comparable sales by a little less than 75 bps. Additional discussion of these results is available in a pre-recorded message. It can be accessed by visiting investor.costco.com (click on “Events & Presentations”). This message will be available through 4:00 p.m. (PT) on Wednesday, September 9, 2026. Costco currently operates 939 warehouses, including 647 in the United States and Puerto Rico, 115 in Canada, 43 in Mexico, 37 in Japan, 29 in the United Kingdom, 20 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, three in France, two in Sweden, and one each in Iceland, and New Zealand. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan, Australia, and China. Certain statements contained in this document and the pre-recorded message constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For these purposes, forward-looking statements are statements that address activities, events, conditions or developments that the Company expects or anticipates may occur in the future. In some cases forward-looking statements can be identified because they contain words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. These risks and uncertainties include, but are not limited to, domestic and international economic conditions, including exchange rates, inflation or deflation, the effects of competition and regulation, uncertainties in the financial markets, consumer and small business spending patterns and debt levels, breaches of security or privacy of member or business information, conditions affecting the acquisition, development, ownership or use of real estate, capital spending, actions of vendors, rising costs associated with employees (generally including health-care costs and wages), workforce interruptions, energy and certain commodities, geopolitical conditions (including tariffs and global conflicts), the ability to maintain effective internal control over financial reporting, regulatory and other impacts related to environmental and social matters, public-health related factors, and other risks identified from time to time in the Company’s public statements and reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and the Company does not undertake to update these statements, except as required by law. Comparable sales and comparable sales excluding impacts from changes in gasoline prices and foreign exchange are intended as supplemental information and are not a substitute for net sales presented in accordance with U.S. GAAP. COST-Sales

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Costco (COST). This company, which is in the Zacks Retail - Discount Stores industry, shows potential for another earnings beat. When looking at the last two reports, this warehouse club operator has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 0.53%, on average, in the last two quarters. For the most recent quarter, Costco was expected to post earnings of $4.91 per share, but it reported $4.93 per share instead, representing a surprise of 0.41%. For the previous quarter, the consensus estimate was $4.55 per share, while it actually produced $4.58 per share, a surprise of 0.66%. Thanks in part to this history, there has been a favorable change in earnings estimates for Costco lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Costco has an Earnings ESP of +1.45% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on September 24, 2026. With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. 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 Costco Wholesale Corporation (COST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Walmart is spending billions on a price war, but its latest earnings call revealed the real debate is whether a new profit engine or a one-time windfall is footing the bill. While management raised its guidance for the year, the analyst Q&A kept circling a single, critical question: is the company’s aggressive new price war funded by a durable shift in its profit model, or is it a temporary sugar high from a one-time, $2.9 billion tariff refund? Who Is Paying For This Price War? The central tension is that Walmart (WMT) is using a large windfall to fund an equally large price investment, dramatically increasing its “rollbacks” to 11,000 items. The worry, put squarely to management, is what happens next year when that money is gone. The risk for investors is that the current market share gains are being bought with temporary funds, setting up a painful comparison in 2027. Management’s answer was direct and pointed to a fundamental change in the business. CEO John Furner explained that a new profit engine is kicking in, pointing to the way marketplace, advertising, and membership businesses now reinforce each other. Are The Price Cuts Actually Working? Spending billions to lower prices only works if customers respond, and the question analysts pressed on was whether there's a lag before that response shows up, or whether the investment is paying off in real time. The concern is that in a tough consumer environment, price cuts might not be enough to meaningfully change behavior, making the spending inefficient. Management's response framed the strategy as a long-term play. They acknowledged there is a "lag" before the full "cumulative benefit" of lower prices is felt. The first thing you see is a lift in units and transactions, which the company saw this quarter. The real prize, however, is durable market share gains, particularly in food. Management sounded confident that the share gains they are seeing now will stick, reinforcing the value of their everyday low price model over time. The One Number That Settles The Debate Ultimately, management made a convincing case that its new, more profitable business mix is designed to permanently fund a more aggressive price stance. They answered the “how” with hard numbers on the growth of their advertising and marketplace platforms: global advertising revenue grew 38%, with Walmart U.S. advertising (including VIZIO) also up 38% and Walmart Connect up 43%. We also took a closer look at the premium on WMT stock in a separate piece. What remains open is whether the market share gains will prove as durable as they believe once the shock of the price cuts wears off. The answer will show up in one specific metric. In its guidance, management stated that Walmart U.S. sales growth is expected to improve in the third quarter as the price investments gain traction. If that number accelerates as promised, it will be the strongest evidence yet that the new model is working. If it stalls, the questions about the temporary nature of the tariff-funded price war will only get louder. One step out from the single name: a consumer staples ETF like XLP spreads these company-specific questions across the whole consumer staples group, so no one answer can sink you. It is still a concentrated bet on that one theme, though, which is exactly the gap the portfolio below closes. Pair Sharp Questions With Real Diversification Pressing on the questions management would rather skip is how good investors avoid nasty surprises. But it is a single-stock exercise, and even a sector ETF only widens the bet to a single theme. Real diversification means spreading across sectors, so one industry's bad year does not define yours. The Trefis High Quality (HQ) Portfolio handles that second half: about 30 quality, cash-generative companies drawn from across the market, selected on margins, cash flow, and balance-sheet strength rather than one theme's momentum, then sized and re-balanced with care. The payoff is a track record of outpacing a benchmark that combines the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000. Keep asking the hard questions, without pinning your future to any single answer, or any single industry.

By Sinéad Carew and Avinash P Aug 20 (Reuters) - The three main U.S. equity indexes closed lower on Thursday as rising Treasury yields dented risk appetite while disappointing results from retail bellwether Walmart soured investors on the consumer sector and rallying oil prices fanned inflation worries. Walmart shares tumbled ‌9.2% after the world's largest traditional retailer missed Wall Street expectations for quarterly comparable sales as rising gasoline prices had shoppers reining in spending. The ‌report dragged down the S&P 500 consumer staples and consumer discretionary sectors, which were among the weakest of the benchmark's 11 major industry indexes. Rival retailers such as Costco, Dollar Tree and Albertsons followed Walmart ​lower with losses between 1% and 2.6%. The increase in U.S. crude oil above $87 compounded concerns about the health of the U.S. consumer, according to Mona Mahajan, head of investment strategy at Edward Jones. She noted that investors were already anxious after recent weaker-than-expected retail sales and labor market data for July. "There is some question about how resilient the consumer can be with ongoing elevated gas prices and inflationary pressures," Mahajan said. The strategist also highlighted pressure from rising bond yields on equities. Wall Street indexes had risen on Wednesday ‌after the U.S. Treasury Department said it would spend more ⁠than double the expected amount on buying back bonds in a bid to slow a recent surge in yields. On Thursday, however, stocks declined as yields advanced again. Yields on the 30-year and 10-year bonds pared gains briefly after U.S. Treasury Secretary Scott Bessent said ⁠he may again increase the volume of Treasury bonds the government will repurchase. But yields resumed their upward trend. "There are a couple of headwinds that the markets woke up to today," said Mahajan. "One was a resumption in the increase in bond yields across the curve that came despite yesterday's Treasury move ... it reversed very quickly, within 24 hours." The Dow Jones Industrial Average ​fell 703.84 ​points, or 1.32%, to 52,759.21, the S&P 500 lost 66.82 points, or 0.87%, to 7,641.16 and the ​Nasdaq Composite lost 263.92 points, or 1.00%, to 26,067.17. The S&P ended ‌about 2% below its most recent record close, reached last week, while the Nasdaq was more than 3% below its June 2 record finish. Consumer staples fell 1.93% and was the biggest percentage loser among the S&P 500's major sectors, followed by healthcare, which fell 1.93%. The S&P 500 consumer discretionary sector sank 1.8% with megacap Amazon among its biggest index-point drags. Big percentage decliners in the sector included Royal Caribbean Group and Carnival Corp, which lost more than 4% each as they are sensitive to fuel prices. The S&P 500 energy index rose 0.4% as oil gained for the fifth consecutive session due to stalled U.S.-Iran peace talks and Middle East supply disruptions. Real ‌estate was the only other sector gainer, adding 0.15%. Meanwhile, cryptocurrency-related companies such as Strategy and exchange ​operator Coinbase Global rallied more than 7% a day after U.S. President Donald Trump called on ​Congress to pass a crypto bill. Healthcare's biggest decliner was biotech company Moderna, ​which finished down 23.5% after it surged nearly 177% on Wednesday. Deere shares closed up 6.9% after a full-year net income forecast raise ‌from the world's largest farm-equipment manufacturer. Shares in Coty sank 9.2% after ​the CoverGirl cosmetics brand owner forecast current-quarter earnings ​below expectations and withheld its annual outlook, while Advance Auto Parts tumbled 24.5% after issuing a weaker annual sales forecast. Declining issues outnumbered advancers by a 1.94-to-1 ratio on the NYSE, where there were 156 new highs and 132 new lows. On the Nasdaq, 1,672 stocks rose and 3,217 fell as declining issues outnumbered ​advancers by a 1.92-to-1 ratio. The S&P 500 posted 16 new 52-week ‌highs and 3 new lows while the Nasdaq Composite recorded 67 new highs and 104 new lows. On U.S. exchanges about 9.61 billion shares changed ​hands compared with the 16.64 billion average for the last 20 sessions. (Reporting by Sinéad Carew in New York, Avinash P and Purvi Agarwal ​in Bengaluru, additional reporting by Koyena Das; Editing by Pooja Desai and David Gregorio)

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Costco Wholesale stock has delivered a strong 121.2% total return over the past 5 years, yet its current valuation checks and pricing multiples now point to a share that screens as expensive rather than an obvious bargain. Over the last 5 years, Costco Wholesale has returned 121.2%, which puts recent short term weakness into the context of a longer period of strong shareholder gains. Investor focus includes how Costco Wholesale manages member trust and pricing power as it handles issues like potential tariff refunds, while the ongoing class action and any changes in cost pass through may weigh on how much growth investors are willing to pay for. On Simply Wall St's broader valuation checks, Costco Wholesale currently scores 0 out of 6, which leans expensive rather than suggesting clear value. The issue now is whether Costco Wholesale's premium price still lines up with what investors receive in return. Find out why Costco Wholesale's -2.1% return over the last year is lagging behind its peers. The P/E ratio is a useful way to see how much you are paying for each dollar of Costco Wholesale earnings. Costco Wholesale currently trades on a P/E of 47.8x, which is more than double the Consumer Retailing industry average of 19.9x and also above the peer group average of 24.2x. The fair P/E ratio implied by Simply Wall St's model is 40.0x, which reflects what might be expected given Costco Wholesale's size, margins and risk profile. The current 47.8x is therefore materially higher than that fair level, even as issues like potential tariff refunds and the related class action keep some uncertainty around how much pricing power the business can consistently exercise. On this P/E basis, Costco Wholesale stock appears overvalued relative to both tailored fair value estimates and broader industry benchmarks. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Costco Wholesale pick up where the P/E puzzle leaves off by spelling out which paths for growth, margins and earnings would need to play out for the stock to be worth materially more or materially less than it is today on the market. Each Narrative ties Costco Wholesale's potential catalysts and risks to a specific implied value, so you can track over time which version of the story is actually unfolding. Community views on Costco Wholesale are split, with one camp seeing room for upside and another arguing the stock is already pricing in a lot of good news. Bull case: 12% undervalued Read the full Bull Case to see why Costco Wholesale could be undervalued Bear case: 31% overvalued Read the full Bear Case to see why Costco Wholesale could be overvalued Do you think there's more to the story for Costco Wholesale? Head over to our Community to see what others are saying! Costco Wholesale currently looks overvalued on market multiples, with the P/E well ahead of sector and peer averages and above the tailored fair P/E flag from earlier. That does not mean the stock cannot work from here; however, it does narrow the margin of safety for new capital. The crux for investors now is whether Costco Wholesale can keep justifying this premium through consistent execution on membership loyalty, pricing power and any fallout from tariff and class action issues. The more confidence you have in that support for earnings quality, the easier it is to live with a full looking valuation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include COST. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Costco (NASDAQ:COST) and the best and worst performers in the non-discretionary retail industry. Food is non-discretionary because it's essential for life (maybe not those Oreos?), so consumers naturally need a place to buy it. Selling food is a notoriously tough business, however, as the costs of procuring and transporting oftentimes perishable products and operating stores fit to sell those products can be high. Competition is also fierce because the alternatives are numerous. While online competition threatens all of retail, grocery is one of the least penetrated because of the nature of the product. Still, we could be one startup or innovation away from a paradigm shift. The 4 non-discretionary retail stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.1%. While some non-discretionary retail stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.4% since the latest earnings results. Designed to be a one-stop shop for the suburban consumer, Costco (NASDAQ:COST) is a membership-only retail chain that sells groceries, apparel, toys, and household items, often in bulk quantities. Costco reported revenues of $70.53 billion, up 11.6% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a strong quarter for the company with a solid beat of analysts’ gross margin estimates. Costco achieved the fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 3.5% since reporting and currently trades at $960.76. We think Costco is a good business, but is it a buy today? Read our full report here, it’s free. Due to its differentiated procurement and buying approach, Grocery Outlet (NASDAQ:GO) is a discount grocery store chain that offers substantial discounts on name-brand products. Grocery Outlet reported revenues of $1.19 billion, up 1.1% year on year, outperforming analysts’ expectations by 2.1%. The business had an exceptional quarter with a beat of analysts’ EPS and EBITDA estimates. Grocery Outlet delivered the biggest analyst estimate beat among its peers. The market seems happy with the results as the stock is up 6.9% since reporting. It currently trades at $10.95. Is now the time to buy Grocery Outlet? Access our full analysis of the earnings results here, it’s free. With over 20 well-known grocery banners spanning 34 states, Albertsons (NYSE:ACI) operates food and drug retail stores across the US, offering groceries, pharmacy services, and own-brand products under banners like Safeway, Jewel-Osco, and Vons. Albertsons reported revenues of $24.94 billion, flat year on year, exceeding analysts’ expectations by 0.6%. Still, it was a softer quarter as it posted full-year EBITDA guidance missing analysts’ expectations and a significant miss of analysts’ EBITDA estimates. Albertsons delivered the slowest revenue growth in the group. As expected, the stock is down 14.4% since the results and currently trades at $12.50. Read our full analysis of Albertsons’s results here. Playing on the secular trend of healthier living, Sprouts Farmers Market (NASDAQ:SFM) is a grocery store chain emphasizing natural and organic products. Sprouts reported revenues of $2.33 billion, up 4.7% year on year. This number was in line with analysts’ expectations. More broadly, it was a slower quarter as it recorded EPS guidance for next quarter missing analysts’ expectations significantly and full-year EPS guidance missing analysts’ expectations. Sprouts had the weakest performance against analyst estimates among its peers. The stock is up 5.2% since reporting and currently trades at $83.30. Read our full, actionable report on Sprouts here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

This article first appeared on GuruFocus. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record quarterly revenue of $4.45 million, driven by strong customer execution across all channels. Sam's Club product successfully converted from a one-time rotation to an everyday recurring order, providing a stable revenue base. Industrial ingredient business is expanding, with orders for strawberries and blueberries expected to grow significantly, leveraging seasonal raw material purchasing. Production output is ramping up to 70,000-80,000 kilograms per month, which is expected to improve plant utilization and drive profitability. New product launches and retail expansions, including Target, Costco, and a large retailer test for dried cheese, offer significant growth potential. Gross margin was only 2% in Q3, impacted by off-season raw material costs, air shipping for Sam's Club, and low plant utilization. Cash position is tight at $200,000, with working capital needs requiring continuous recycling of cash into inventory and receivables. Revenue guidance for the full year is uncertain, with potential for some orders to slip into January, possibly resulting in a lower year-end figure. The company may need additional capital, either through debt or equity, to cover working capital requirements, which could dilute shareholders. Dependence on a few large customers like Costco and Sam's Club creates lumpy revenue and operational challenges, as seen with the air shipping issue. Warning! GuruFocus has detected 7 Warning Signs with BOF. Is BOF fairly valued? Test your thesis with our free DCF calculator. Q: As we enter into 2027, how much visibility do you already have into maintaining the $6 to $7 million fourth-quarter revenue level or building from that level going forward?A: Eric Healy (CEO) stated that the company has significantly more visibility than ever before. The new everyday Sam's Club order provides a baseline of approximately $8 million in annual recurring business, which is a new foundation that didn't exist previously. Additionally, the industrial ingredient partners are providing better foresight, with planning capabilities extending six to nine months ahead. While Costco orders remain somewhat unpredictable, the company is starting with a much stronger base business moving into 2027. Q: As you look to double production, can you quantify the gross margin improvement you expect to see as you progress through the rest of the year?A: Eric Healy (CEO) explained that the plant was built assuming full utilization, and this will be the first time it reaches that level. The company has always priced products assuming a 30-40% margin target, and this utilization level will unlock the model as intended. John Delfonsi (CFO) added granularity, noting that raw materials are 50% of costs, and with the new everyday business, they can plan purchases during high season, potentially saving 100% on items like strawberries ($1/kg vs. $2/kg off-season). He also highlighted production flow optimization and bringing packaging in-house, which could save 5-7 points on margins. Q: Can you provide more detail on the packaging opportunity and its potential impact on margins?A: Eric Healy (CEO) revealed that by the end of 2026, the company will have spent approximately $1.5 million on outsourced packaging for retail products. With only $150,000 to $200,000 in CapEx, they can bring all packaging in-house for next year. This is not a technically challenging operation, and the company has focused on dehydration as its core competency, but now feels well-positioned to bring packaging in-house, which is expected to be a significant margin unlock. Q: What were the key drivers behind the record Q3 revenue, and how did they impact margins?A: Eric Healy (CEO) explained that Q3 was a fundamental improvement, highlighted by the Sam's Club product rotation that sold extremely well and converted to an everyday recurring order. However, the quarter included first-time production scale-ups, heavy marketing investments, and rapid shipping costs associated with customer acquisition. Additionally, the industrial ingredient business required off-season strawberry purchases at approximately 2x the normal raw material cost, which negatively impacted margins but secured a much larger recurring business going forward. Q: What is the company's production capacity ramp-up plan, and how does it relate to profitability?A: Eric Healy (CEO) stated that the company has historically averaged 35-45 metric tons per month, representing only about 40-45% plant utilization. With new booked orders, they are ramping up to 70,000 kilograms and have some 80,000-kilogram months coming up before year-end. At these levels, all models indicate the company should reach breakeven or beyond. This includes the recurring Sam's Club order, new industrial ingredient business, new Costco business, and the Target launch with five branded SKUs. Q: Can you provide an update on the Sam's Club business and its growth potential?A: Eric Healy (CEO) stated that the Sam's Club order represents approximately $8 million in recurring annual business based on initial sell-through, and the company is currently only in half of the doors. There is a category review coming up in March, and if performance continues, there is potential to expand door count significantly. Additionally, a second product (tropical mix multi-pack) is going into Sam's Club as a one-time rotation in January, representing a $2 million order that could convert to an everyday item if it performs well. Q: How is the industrial ingredient business growing, and what are the future expectations?A: Eric Healy (CEO) reported that the industrial ingredient business did about $2 million in 2025, is expected to reach close to $7 million this year, and could exceed $10 million next year. The company is seeing significant adoption of its products, particularly strawberries and blueberries, and is working on programs with large CPG customers integrating tropical products into their recipes. The business is growing rapidly and provides better planning visibility. Q: What is the company's full-year revenue guidance, and how should investors think about the fourth quarter?A: John Delfonsi (CFO) stated that the company is a little over $7 million for the first six months, and with two quarters remaining, they expect to produce over $20 million in product in the plant. However, some deliveries may slip into January, potentially resulting in a year-end number closer to $18 million. The fourth-quarter run rate of $6-7 million (possibly higher) clearly puts the company in the $30 million range on an annualized basis. Q: How should investors view the company's balance sheet and capital position?A: John Delfonsi (CFO) explained that while the balance sheet shows only $200,000 in cash, cash, accounts receivable, and inventory should be viewed together as they are recycled into orders. The company has $3.3 million in inventory with turns of less than 90 days, and the $3 million note payable to Kaufman Capital is from a friendly investor who will extend the loan as needed. The company may need some top-off capital strictly for working capital due to growing orders, but has only issued 500,000 shares this year. Q: What new product launches and retail opportunities are on the horizon?A: Eric Healy (CEO) highlighted several exciting developments: an organic apple chip going into Costco in a couple of months, another pineapple chip order for Southeast truckloads, and a first order for a new innovative cheesecake product that Costco committed to for the holidays in the Texas region. Additionally, the company is launching dried cheese products with a large retailer with 9,500 doors testing the product in the next couple of months, which could convert to $4-6 million in annual business if successful. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Costco (NASDAQ: COST) has a forward price-to-earnings (P/E) multiple in the low- to mid-40s, and investors who might want to buy the stock have a fair question on their minds. Should they feel comfortable owning a warehouse club at one of the richest valuations in the consumer staples sector, or should they trim exposure before the math bites? Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » As of mid-August 2026, Costco's trailing price-to-earnings ratio is near 48, and its forward multiple is around 42-44, with a five-year price-to-earnings to growth (PEG) ratio above 4. That sits well above the S&P 500 consumer staples group, where the forward P/E is close to 26, and profit growth expectations hover in the low single digits. Reuters has already flagged Costco and Walmart as the two names driving much of the sector's valuation stretch, with both trading north of 40 times forward earnings. At these levels, Costco will need years of solid earnings expansion and store growth just to hold its ground. I think it will happen. Costco's business has delivered. In fiscal 2026, Costco reported second-quarter net sales of $68.24 billion, up 9.1% from a year earlier, and net income of about $2.04 billion, or $4.58 per diluted share, up from $4.02. Third-quarter net sales rose 11.6% to $69.15 billion dollars, with diluted earnings per share of $4.93 versus $4.28 dollars last year. Membership fee income grew at a double-digit rate and remains one of the highest-quality pieces of the model, since those dollars arrive at minimal cost and signal loyalty to the brand. Return on equity near 29% and strong cash generation give Costco room to keep investing in new warehouses and digital capabilities while supporting dividends and buybacks. Costco's shares hit their all-time high price of $1,094.32 in May. I think by next year, shares will be over $1,200 a pop. I'm not worried about where the stock is trading relative to forward earnings, because Costco's business model has proven remarkably durable. Customers keep renewing their memberships, and the company continues to expand its warehouse base, giving it multiple avenues for continued growth. The valuation is high, but when a company consistently delivers strong growth and has customer loyalty, I'm more willing to pay a premium. If you want a durable consumer exposure with strong execution, Costco stock could still make sense at this premium, especially as a core holding sized with care. Before you buy stock in Costco Wholesale, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Costco Wholesale wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,511!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,960!* Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 216% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 16, 2026. Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Walmart. The Motley Fool has a disclosure policy. Should Investors Be Concerned that Costco Stock Trades at Over 40 Times Forward Earnings? was originally published by The Motley Fool

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. JD.com (NasdaqGS:JD) reported its first year on year quarterly revenue decline since listing, alongside a return to operating profit. Improved results in JD Retail and reduced losses in Food Delivery supported the group level operating profitability. The company announced new partnerships with global brands including Chanel and Costco, adding fresh third party offerings to its platform. For readers looking to explore more companies with a focus on profitability and technology, this curated set is a useful next step: 76 profitable AI stocks that aren't just burning cash. JD.com is a supply chain focused technology and service provider in China and Europe, which positions it differently from pure marketplace platforms that rely more heavily on third party sellers. The company’s scale in logistics and retail operations helps frame how investors might interpret a shift in revenue trends alongside new partnerships with global brands. Beyond the headline: 1 risk and 4 things going right for JD.com that every investor should see. For JD.com investors, this quarter leans into the Narrative catalyst around logistics efficiency and supply chain investment supporting operating margins. A return to operating profit, helped by JD Retail and smaller losses in Food Delivery, aligns with the idea that heavy spend in newer businesses can gradually become less of a drag. Expanded partnerships with brands like Chanel and Costco also speak directly to the Narrative’s focus on higher quality retail and omnichannel reach, although the first year on year revenue decline reminds you that user growth and engagement are not risk free. If we take a look at the community Narrative for JD.com, we can see how this news fits into the bigger investment story. The next test of whether this story holds is how JD.com’s Food Delivery and international segments show up in the next couple of earnings reports, especially their operating loss levels and contribution to group margins over the rest of 2026. For the full picture including more risks and rewards, check out the complete JD.com analysis. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include JD. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]