The Zacks Analyst Blog Highlights Target and Costco Wholesale

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• Costco stands out as the stronger investment candidate, supported by its membership-based business model, high customer loyalty and consistent operational efficiency

  80% confidence

• On-shelf availability for key items improved more than 150 basis points year over year, reflecting stronger inventory forecasting and in-stock execution

  80% confidence

• Digital initiatives are helping the company better monetize its product mix, particularly in non-food and big-ticket categories, while still enhancing and not replacing the in-store shopping experience

  80% confidence

• Both Target and Costco currently carry a Zacks Rank #3 (Hold)

  80% confidence

• The Zacks Consensus Estimate for Costco's current fiscal-year sales and EPS suggests year-over-year increases of 7.5% and 11.7%, respectively

  80% confidence

• Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year with average gains of +48.4%, +50.2% and +56.7% per year

  80% confidence

• The Zacks Consensus Estimate for Target's current fiscal-year sales and EPS implies year-over-year declines of 1.6% and 17.7%, respectively

  80% confidence

• Meaningful productivity gains from pre-scan technology improved checkout speed in warehouses

  80% confidence

• Target plans to increase capital expenditure 25% to $5 billion in fiscal 2026 to support store remodels, larger-format locations, expanded fulfillment and major floor-pad upgrades

  80% confidence