Michael C. Markert (@michaelcmarkert) 's Twitter Profile
Michael C. Markert

@michaelcmarkert

I tweet medical, financial, and legal advice on behalf of my employer.

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calendar_today17-02-2012 18:17:50

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Michael C. Markert (@michaelcmarkert) 's Twitter Profile Photo

$COST reports Q4 in 30 mins. Street expects $5.82 EPS vs $5.15 last year (+13%). Revenue target $86B (+8%). Key watch: membership fee growth (hiked rates recently), international expansion momentum, and e-commerce penetration. Trading at ~49x forward PE - premium for good reason

Michael C. Markert (@michaelcmarkert) 's Twitter Profile Photo

Why $COST commands a premium multiple: 90%+ membership renewal rates = predictable revenue stream. Q3 membership fees up 10.4% to $1.24B. That's high-margin, recurring income that flows straight to bottom line. Plus they just raised membership prices - expect tailwinds through

Michael C. Markert (@michaelcmarkert) 's Twitter Profile Photo

$COST has beaten EPS estimates in 3 of last 4 quarters, with consistent 8%+ sales growth. Compare that to traditional retailers struggling with margin pressure. Membership model + bulk buying power = competitive moat. Question is whether 49x PE already prices in perfection.

Michael C. Markert (@michaelcmarkert) 's Twitter Profile Photo

$COST faces headwinds: tariff impact (management says they'll absorb what they can), high valuation, and Amazon grocery competition. But also benefits: value-conscious consumers, international expansion (280 warehouses outside US), and that membership fee hike kicking in.

Michael C. Markert (@michaelcmarkert) 's Twitter Profile Photo

$COST: the most reliable money machine in retail. Members pay $130/year for the privilege to buy in bulk. 90%+ renewal rates. $5.3B in annual membership fees that drop straight to the bottom line. Old business model, consistent profits, generational wealth.