Costco Stock (COST) Crowned Top Retail Pick for the Rest of 2026 — Here’s Why Shares in wholesale retailer Costco (COST) dipped on Monday despite being named one of Bernstein’s top retail stock picks for the second half of 2026. Analyst Zhihan Ma highlighted Costco’s strong sales growth and long-term potential, even as broader industry challenges persist. The firm’s analysis emphasized the company’s resilience amid ongoing inflationary pressures and shifting consumer behavior. Ma, who selected Costco alongside discount retailer Dollar General (DG) as her top picks for H2 2026, noted that while energy price surges from the Middle East crisis have eased, inflation remains a key concern. She pointed to lingering effects such as higher packaging and fertilizer costs, which have yet to fully impact consumer spending. Additionally, the risk of new tariffs could further strain inflation, disproportionately affecting lower-income households while high-income consumers continue to seek affordable options. Despite these challenges, Ma argued that Costco has performed relatively well year-to-date. Her analysis focused on the company’s recent double-digit growth in comparable sales—sales from stores open for at least a year. This growth was driven by increased traffic to Costco’s fueling stations, where customers sought cheaper gas, and visits to its warehouse-style stores in the same parking lots. Even as gas inflation begins to moderate, Ma expects Costco to maintain 6-7% comparable sales growth, excluding gas and foreign exchange factors. She also cited the prospect of a special dividend as a near-term support for the stock. The analyst further emphasized Costco’s expansion of its international footprint as a key driver of long-term growth.#middle_east_crisis #costco #dollar_general #bernstein #zhihan_ma
Top Bernstein Analyst Has Optimistic Costco Stock Outlook for 2026 Costco Wholesale (COST) shares experienced a slight decline on Monday, June 29, as one of Wall Street’s top retail analysts, Zhihan Ma of Bernstein, delivered a bullish outlook for the company’s stock in the second half of 2026. Ma, who has been a prominent voice in retail analysis, named Costco and Dollar General (DG) as her top retail picks for the period. Her recent analysis included raising Costco’s price target to $1,194 from $1,192, while maintaining her “outperform” rating. This target significantly exceeds the stock’s closing price of $951.67 on Thursday, July 2, despite the stock having already risen over 11% since January. Ma’s optimism is rooted in her belief that Costco can capitalize on ongoing inflationary pressures by turning them into a competitive advantage. While inflation continues to strain household budgets, she argues that Costco’s business model allows it to thrive in such environments. Her analysis highlights how the company’s ability to offer low prices and value-driven products positions it well against broader retail challenges. A key factor in Ma’s outlook is Costco’s performance in the retail sector, particularly its ability to attract customers during periods of economic uncertainty. She points to the company’s recent double-digit sales growth, much of which has been driven by increased traffic at Costco’s gas stations as drivers seek cheaper fuel. Even as gas inflation begins to moderate, Ma expects Costco to maintain a strong growth trajectory, projecting 6-7% comparable sales growth excluding gas and foreign exchange impacts. She also notes the potential for a special dividend to further support the stock’s performance in the near term. Costco’s financial results have reinforced the analyst’s confidence.#costco_wholesale #ron_vachris #dollar_general #bernstein #zhihan_ma
Analysts Reset Sandisk Stock Forecast After Massive Rally Shares of Sandisk Corporation (SNDK) have surged nearly 500% year to date as investors flock to semiconductor and memory-related stocks, driven by heightened demand for high-performance storage solutions tied to AI infrastructure and data center expansion. The stock closed at $1,409.98 on May 6, marking a 100% increase over the previous month, according to Yahoo Finance data. This rally has been fueled by Wall Street’s optimism around AI-driven spending, which has intensified demand for advanced memory products from hyperscalers, cloud providers, and data centers. Options traders have also shown aggressive buying activity in semiconductor stocks, with call buying for memory-related names like Intel and Micron signaling further upside potential. Sandisk’s recent fiscal third-quarter 2026 results, released on April 30, exceeded Wall Street expectations significantly. The company reported revenue of $5.95 billion, a 251% year-over-year increase, and GAAP net income of $3.62 billion, or $23.03 per diluted share. Non-GAAP diluted net income per share reached $23.41, surpassing analyst forecasts by nearly $9. The revenue growth was attributed to stronger pricing power and a shift toward higher-value customers, particularly in the data center segment. Datacenter revenue surged 645% year over year to $1.47 billion, reflecting the sector’s rapid expansion. Sandisk’s CEO, David Goeckeler, highlighted the company’s strategic pivot toward high-value markets, stating, “This quarter marks a fundamental inflection point for Sandisk — where our technology leadership is enabling a deliberate shift in our mix toward the highest value end markets, led by Datacenter.#bank_of_america #sandisk_corporation #bernstein #david_goeckeler #wamsi_mohan
Circle selloff may miss the mark as Clarity Act targets distributors, not issuers: Bernstein Circle’s shares dropped as much as 20% in Tuesday trading amid concerns over proposed stablecoin yield limits, but analysts at Bernstein argue the market is misreading the implications of the Clarity Act. The proposed U.S. rules, which aim to regulate stablecoins, focus on restricting yield on passive balances held by users rather than targeting issuers like Circle. Bernstein’s analysis highlights a critical distinction: the Clarity Act primarily addresses distributors, such as platforms that offer yield to users, rather than issuers like Circle. The firm’s report notes that Circle earns income through its reserve management, investing $80 billion in short-term U.S. Treasurys to back its USDC stablecoin. This model generates about $2.64 billion in annual reserve income, without directly paying yield to token holders. The proposed rules would bar platforms from offering passive yield on stablecoin balances, similar to bank interest rates. However, activity-based rewards tied to trading or payments would still be permissible, with regulators tasked to define boundaries. Bernstein argues that Circle’s business model falls outside these restrictions, as it does not pass yield to users. The analysts suggest that limiting passive yield payouts could even strengthen Circle’s position by reducing competition from platforms offering aggressive yield incentives. Meanwhile, the immediate impact of the rules is expected to fall on intermediaries like Coinbase, which offers around 3.5% yield on USDC balances. Coinbase shares roughly half of USDC reserve income with Circle, and may need to adjust its rewards structure under the new rules.#coinbase #clarity_act #gautam_chhugani #circle #bernstein
