How Global Expansion Is Shaping Costco's Long-Term Profile
This international push is making a substantial contribution to Costco's top line. In the third quarter, the Other International and Canada segments reported adjusted comparable sales growth of 8.5% and 7.8%, respectively. While foreign exchange fluctuations created a minor 1.2% headwind, Costco continues to leverage its global scale and operational discipline to strategically manage supply-chain dynamics.
Beyond sales figures, global expansion is playing a key role in enhancing Costco's operational efficiency. The company is localizing supply chains for its Kirkland Signature brand to better serve regional markets. For example, sourcing Kirkland Signature Ultra Clean Laundry products directly from Asia for APAC warehouses has resulted in a 40% reduction in member prices within the region. This localization strategy not only mitigates tariff-related costs but also strengthens Costco's ability to deliver member value through competitive pricing.
Costco's global expansion is reshaping it into a more resilient, efficient and member-focused retailer. By blending regional relevance, Costco is driving higher volumes, stronger renewal rates and greater supply-chain agility.
Costco's Price Performance, Valuation and Estimates
Costco stock has been a standout performer, with shares rallying 11.2% in the past year, outpacing the industry 's growth of 4.6%. The company has also comfortably outperformed key peers, such as Target Corporation TGT and Dollar General Corporation DG. During the same period, Target shares have tumbled 32.4%, while Dollar General has fallen 10.7%.
From a valuation standpoint, Costco's forward 12-month price-to-earnings ratio stands at 48.07, higher than the industry's ratio of 31.61. COST carries a Value Score of D.
Costco is trading at a premium to Dollar General (with a forward 12-month P/E ratio of 17.79), and Target (12.99).
The Zacks Consensus Estimate for Costco's current financial-year sales and earnings per share implies year-over-year growth of 8.1% and 11.6%, respectively.
Costco currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
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
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CBC
24 minutes ago
- CBC
Nova Scotia Power temporarily shut off power in part of Cape Breton to carry out repairs
A power outage affecting over 3,000 customers in the Whycocomagh area of Cape Breton was expanded for two hours at noon AT on Sunday as Nova Scotia Power carried out repairs. But as of 3:30 p.m. AT Sunday the utility's outage map showed that power had been restored to all affected areas. On Saturday night, over 9,000 customers were affected by the outage, which also included Chéticamp, Inverness, Mabou and Baddeck. Sunday's planned outage included customers in the areas that previously had their power restored. In a post on X, the utility said the additional outage was being done to ensure power could be safely restored to all areas. At one point, Sunday more than 11,000 customers were without electricity. Asked what the cause of the initial outage was, a Nova Scotia Power spokesperson said the company is focused on restoring power. Bonny MacIsaac, warden for the Municipality of the County of Inverness, said the outage coincided with the busy Inverness Gathering weekend. She said some businesses had to close as a result of the outage and haven't reopened. This includes the only grocery store in the community of Inverness, said MacIsaac.
CTV News
41 minutes ago
- CTV News
$500K lotto win a ‘big blessing' for Vancouver woman
Rowena Ibusca is shown in this photo provided by the B.C. Lotto Corporation. A Vancouver woman burst into tears after receiving life-changing news in a drug store earlier this month. Rowena Ibusca won a $500,000 LottoMax jackpot in the July 11 draw, splitting the Maxmillions prize with another lucky ticket holder in Ontario, according to a statement from the B.C. Lottery Corporation. 'When I scanned, I first thought it said $500, but then I scanned it again and just started crying. The first thing I said was, 'Is this true?'' Ibusca told the BCLC. When she went home and told her daughter, the tears of joy kept on flowing. 'We were both jumping and crying,' Ibusca said, recalling the moment she shared the news. Ibusca told the BCLC she still hasn't decided what to do with the windfall but described it as a 'big blessing' and a 'big help.' The odds of winning the Maxmillions prize are 3 in 99,884,400. Ibusca bought the winning ticket at the Point Grey Pharmacy on West 10th Avenue.
CTV News
41 minutes ago
- CTV News
The Canadian passport continues to lose power, global ranking report suggests
The new Canadian passport is unveiled at an event at the Ottawa International Airport in Ottawa on Wednesday, May 10, 2023. THE CANADIAN PRESS/Sean Kilpatrick Canada's passport continues to lose power compared to other countries, according to the latest global passport ranking data. At last tally by the Henley Passport Index (HPI), a Canadian passport scored 184 points, meaning it allows travellers to visit that many global destinations out of a possible 227 without needing a visa. Canada is tied with Estonia and the United Arab Emirates for the eighth-strongest passport in the world, down from seventh, when the index was last updated. Since the beginning of the year, Canada's passport dropped an additional point, now totalling four points lost in the last decade, according to the index. The HPI regularly ranks 199 passports globally, drawing on data from the International Air Transport Association (IATA). Alongside Venezuela, the United States, Vanuatu and the United Kingdom — Canada is among the countries with the fastest falling scores, according to the latest data published on July 22. According to a release from Henley and Partners, who manages the index, this represents a broader trend. 'Traditional mobility champions are losing ground in an increasingly multi-polar world,' the release notes. 'As emerging economies liberalize their visa regimes and invest in diplomatic capital, legacy powers like the U.K. and the U.S. appear to be retreating behind more restrictive entry policies.' The U.K. and U.S. have also dropped a ranking each in the global passport leaderboards since January, to sixth and 10th, respectively. The two countries were once the most powerful passports in the world — with the U.K. taking the top spot in 2015 and the U.S. doing so the year before. Now, the U.S. is on the verge of exiting the top 10 list for the first time in the index's 20-year history. Singapore, Japan and South Korea are currently in the top three spots, with 15 European countries following after. According to the report, the Asia-Pacific region is a leading driver of global travel. Demand for air travel saw 5.8 per cent growth over the first five months of 2025 worldwide, with some regional variations, while Asia-Pacific airlines saw 9.5 per cent growth, they note. 'Your passport is no longer just a travel document — it's a reflection of your country's diplomatic influence and international relationships,' Dr. Juerg Steffen, Chief Executive Officer at Henley & Partners, said in the release. 'In an era of growing inequality and mounting geopolitical uncertainty, strategic mobility and citizenship planning are more critical than ever.'
