Picking Up More Shares of Our Membership Warehouse Holding
Multiple signs point to the company continuing to take consumer wallet share.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
COST | Buy | 18 | $988 | 205 | 3.85% |
After you receive this alert, the Portfolio will buy 18 shares of Costco COST at or near $988. Following the trade, the Portfolio will own 205 COST shares, roughly 3.85% of its assets.
Following our recent rating upgrade to One for COST shares, we are using Wednesday night’s June revenue report from Costco as a springboard to pick up more shares for the Portfolio. For June, the membership-driven warehouse company posted an 8% rise in monthly net sales to $26.44 billion, with total comp sales excluding gasoline prices and forex impact up 6.2% for June. Adjusted U.S. comp sales grew 5.5% year over year for the month, while e-commerce sales rose more than 11%. That continues the calendar Q2 2025 trend of mid-single digit U.S. comp sales growth but also double-digit e-commerce sales.
On their own, those figures are impressive, but compared against new figures from ConAgra CAG and Buckle BKE, they are even more so. For its June quarter, frozen food and snack company ConAgra reported that its sales for the quarter fell 4.3% with organic net sales down 3.5% year over year. For June, Buckle’s comp sales rose 3.8%. Both figures point to Costco winning consumer wallet share. And if we need further confirmation of that, we can compare Costco’s adjusted U.S. comp sales figures against the 3.2% adjusted comp sales figures reported by Kroger KR for its May quarter.
Those findings mesh with the signals and other data we’ve been sharing with you about consumers tightening their belts and looking for ways to stretch their spending dollars. Amid renewed trade and tariff uncertainty, and its potential impact, we see that continuing. For the same reason, we continue to favor shares of Amazon AMZN as well as our newest Portfolio holding, TJX Companies TJX.
For now, we will reiterate our $1,200 price target for COST shares, but should we continue to see signs the company is taking consumer wallet share hand over fist, we may need to, once again, revise it higher. Another factor that could lead us to tweak our COST price target would be greater membership price increase realization in the high-margin membership fee revenue line.
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the “+” next to the position’s ticker to sort Purchase and Date data.)
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At the time of publication, TheStreet Pro Portfolio was long COST and AMZN.
