Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>Costco Wholesale Corporation reported its financial results for the third quarter of fiscal 2026, ending May 10, 2026, reflecting a combination of growth drivers and margin pressures amid a complex macroeconomic environment.</li><li>The company saw net income rise by 15% year-over-year to $2.192 billion, or $4.93 per diluted share, supported by an 11.6% increase in net sales to $69.15 billion.</li><li>Comparable sales growth stood at 9.8%, with a 6.6% increase after adjusting for gasoline price inflation and foreign exchange impacts.</li></ul>

Costco Wholesale Corporation reported its financial results for the third quarter of fiscal 2026, ending May 10, 2026, reflecting a combination of growth drivers and margin pressures amid a complex macroeconomic environment.The company saw net income rise by 15% year-over-year to $2.192 billion, or $4.93 per diluted share, supported by an 11.6% increase in net sales to $69.15 billion.Comparable sales growth stood at 9.8%, with a 6.6% increase after adjusting for gasoline price inflation and foreign exchange impacts.

Costco’s Margin Squeeze — Gasoline, E-Commerce & Pharmacy Mix Hit Profitability!

Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<ul>
  <li>Costco's unique membership-based warehouse model continues to drive strong financial performance, with membership fees accounting for the majority of operating income, enabling the company to offer merchandise at razor-thin margins.</li>
  <li>The company demonstrates consistent growth in revenue, net income, and membership, supported by high customer loyalty and renewal rates, which exceed 90% in the U.S. and Canada.</li>
  <li>While the business model is resilient and has a wide economic moat, the stock trades at a significant valuation premium compared to its retail peers, reflecting market confidence but posing a risk for value-oriented investors.</li>
</ul><p><em>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.</em></p>


  Costco's unique membership-based warehouse model continues to drive strong financial performance, with membership fees accounting for the majority of operating income, enabling the company to offer merchandise at razor-thin margins.
  The company demonstrates consistent growth in revenue, net income, and membership, supported by high customer loyalty and renewal rates, which exceed 90% in the U.S. and Canada.
  While the business model is resilient and has a wide economic moat, the stock trades at a significant valuation premium compared to its retail peers, reflecting market confidence but posing a risk for value-oriented investors.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: Costco Wholesale (COST US) - Apr 2026

<ul><li>Costco Wholesale Corporation reported its second-quarter fiscal 2026 results, showcasing a series of upsides and challenges.</li><li>The quarter ended with net income rising to $2.035 billion, translating into $4.58 per diluted share, marking a near 14% increase from the previous year.</li><li>This growth was underpinned by a 9.1% rise in net sales, reaching $68.24 billion, alongside a 7.4% increase in comparable sales when adjusted for gasoline prices and foreign exchange impacts.</li></ul>

Costco Wholesale Corporation reported its second-quarter fiscal 2026 results, showcasing a series of upsides and challenges.The quarter ended with net income rising to $2.035 billion, translating into $4.58 per diluted share, marking a near 14% increase from the previous year.This growth was underpinned by a 9.1% rise in net sales, reaching $68.24 billion, alongside a 7.4% increase in comparable sales when adjusted for gasoline prices and foreign exchange impacts.

Why Costco Faces Tariff Volatility Despite Strong Membership Growth?

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>We will stay near-term bullish as long as crucial support levels of 6780-6824 on SPX and $255-$257 on IWM continue to hold</li>
<li>We see deterioration in market dynamics, and while we still expect a period of consolidation/pullback, aforementioned support levels need to break to give us confidence that the pullback has begun.</li>
<li>We are upgrading Staples (XLP) to overweight, and we are downgrading Services to underweight</li>
</ul>


We will stay near-term bullish as long as crucial support levels of 6780-6824 on SPX and $255-$257 on IWM continue to hold
We see deterioration in market dynamics, and while we still expect a period of consolidation/pullback, aforementioned support levels need to break to give us confidence that the pullback has begun.
We are upgrading Staples (XLP) to overweight, and we are downgrading Services to underweight


Upgrading Staples to Overweight; Downgrading Services. Still Cautious; Market Dynamics Deteriorating

<ul><li>Costco Wholesale Corporation's first-quarter earnings report for fiscal year 2026 presented a mix of growth strategies, operational advancements, and financial outcomes that together outline the company's current market position and future trajectory.</li><li>Here are some critical highlights from the earnings call: From a growth perspective, Costco continues to expand its physical footprint with eight new warehouses opened in Q1, bringing their total to 921 worldwide.</li><li>Expansion efforts are particularly focused on optimizing real estate investments.</li></ul>

Costco Wholesale Corporation's first-quarter earnings report for fiscal year 2026 presented a mix of growth strategies, operational advancements, and financial outcomes that together outline the company's current market position and future trajectory.Here are some critical highlights from the earnings call: From a growth perspective, Costco continues to expand its physical footprint with eight new warehouses opened in Q1, bringing their total to 921 worldwide.Expansion efforts are particularly focused on optimizing real estate investments.

Costco Wholesale Corporation Is Quietly Expanding Its Footprint — And the Opportunity Is Massive!

United States

Costco Wholesale Corporation operates wholesale membership warehouses in multiple countries.  The Company sells all kinds of food, automotive supplies, toys, hardware, sporting goods, jewelry, electronics, apparel, health and beauty aids, as well as other goods.

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Costco Wholesale (COST US)

Costco’s Margin Squeeze — Gasoline, E-Commerce & Pharmacy Mix Hit Profitability!

Costco Wholesale Corporation reported its financial results for the third quarter of fiscal 2026, ending May 10, 2026, reflecting a combination of...

Baptista Research

Primer: Costco Wholesale (COST US) - Apr 2026

Costco's unique membership-based warehouse model continues to drive strong financial performance, with membership fees accounting for the...

αSK Primers

Why Costco Faces Tariff Volatility Despite Strong Membership Growth?

Costco Wholesale Corporation reported its second-quarter fiscal 2026 results, showcasing a series of upsides and challenges. The quarter ended...

Baptista Research

Upgrading Staples to Overweight; Downgrading Services. Still Cautious; Market Dynamics Deteriorating

Upgrading Staples $XLP to Overweight; Downgrading Services. Cautious $SPX $QQQ; Market Dynamics Deteriorating as Defensives Take the Lead $XLU...

Vermilion Research

Costco Wholesale Corporation Is Quietly Expanding Its Footprint — And the Opportunity Is Massive!

Costco Wholesale Corporation's first-quarter earnings report for fiscal year 2026 presented a mix of growth strategies, operational advancements,...

Baptista Research

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