Back to blog

Experiencing High Volatility in Your Portfolio? This Stock Could Bring You Stability

In the world of investment, the market environment is normally under constant pressure from various types of risks, with tariffs and geopolitical uncertainty currently being the most important. The interplay of these factors undoubtedly gives wholesale chains a hard time, but Costco is not subject to the broader trend of price increases, and in addition, it constantly confirms that customer trust is the number 1 priority, as evidenced by the performance for the third quarter. What does the stock price say?

Experiencing High Volatility in Your Portfolio? This Stock Could Bring You Stability

Numbers to focus on

Of course, quarterly results cannot do without an evaluation of basic fundamental parameters. The giant's revenue came in at $63.21 billion, beating Wall Street estimates of $63.19 and surpassing the same period last year's $58.52 billion. After deducting all expenses, net profit of $1.90 billion can be found in the earnings list, which is also higher than last year's value of $1.68 billion. The related indicator, earnings per share (EPS), also enjoyed growth, rising to $4.28 from estimates.

What does the company owe to its stable results? In addition to the company's traditional business segments, e-commerce revenues gained attention on their side, growing by a significant 16% year-on-year. This percentage proves that the company is managing to go through digital transformation without the need to take drastic steps, which is undoubtedly positive news.

A tool against sharply falling titles

The aforementioned strong fundamentals of the company have long been reflected in the development of the share price itself. For example, if you own Tesla stock, you faced a decline of almost 60% at the beginning of the year1. In comparison, Costco managed this correction with a drop of only 18%. This is therefore a model example for investors who do not expect hundreds of times profits from their investments in a few months, in exchange for long-term and, above all, stable growth.*

cost_us

Source: Trading Economics*

Costco and changes in U.S. Customs Policy

Comparatively interesting as quarterly numbers are the steps Costco has taken to mitigate the impact of tariff adjustments for U.S. partners. Don't expect a dramatic price increase in the first place. Unlike its competitors, the company has decided that even in crisis situations, it wants to keep its vision of affordable prices, which is more complex planning, but in the end it may be a transfer of customers to Costco.

The company accelerated supplies even before the introduction of new levels of tariffs, redirected supplies from countries with higher customs burdens, and at the same time strengthened its own Kirkland Signature brand in regions with more promising conditions for growth. Gary Millerchip also pointed out on the conference call that imported goods from other countries account for a third of sales, of which only 8% are from China.

Prices policy

As we have already mentioned, instead of a blanket price increase, Costco prefers a differentiated pricing policy. The company has divided the assortment into two key groups. Essential products and complementary ones. In general, staple foods such as butter, eggs and bananas remain affordable, while products such as flowers from Latin America have risen in price to some extent.

Conclusion

During the current situation on the capital market, Costco is a textbook example of how geopolitical and customs challenges can be effectively handled, which also indicates a possible shift of customers from competitors in the future. In addition to logistical changes, the company also recorded steadily growing quarterly results, which go hand in hand with the development of the share price of this player in the field of wholesale. The price is moving in a consistent upward trend, while managing corrections with an overview, which is an aspect that long-term investors should definitely not ignore.

* Historical figures are not a guarantee of future returns.

Warning! This marketing material is not and should not be construed as investment advice. Data relating to the past are not a guarantee of future returns. Investing in foreign currency can affect returns due to fluctuations. All securities trades can lead to both profits and losses. Forward-looking statements represent assumptions and current expectations that may not be accurate or are based on the current economic environment, which is subject to change. These statements do not guarantee future performance. InvestingFox is a trademark of CAPITAL MARKETS, o.c.p., a.s., regulated by the National Bank of Slovakia.

1Tesla stock price performance over the past five years: https://tradingeconomics.com/tsla:us

Resources:

https://www.cnbc.com/2025/05/29/costco-cost-q3-2025-earnings.html

https://www.cnbc.com/2025/05/29/best-buy-bby-q1-2026-earnings-.html

https://www.nasdaq.com/press-release/costco-wholesale-corporation-reports-third-quarter-and-year-date-operating-results-0

InvestingFox is a trademark of CAPITAL MARKETS, o.c.p., a.s., with its registered office at Slávičie údolie 106, Bratislava – Staré Mesto district, 811 02. The company is registered in the Commercial Register of the Municipal Court Bratislava III, Section: Sa, File No.: 4295/B, ID No.: 36 853 054, VAT No.: 2022505419.

CAPITAL MARKETS, o.c.p., a.s. is a securities dealer pursuant to Section 55(1) of Act No. 566/2001 Coll. on Securities and Investment Services and on Amendments to Certain Acts, as amended (hereinafter the “Securities Act”). On October 30, 2007, CAPITAL MARKETS, o.c.p., a.s. was granted, by Decision No. OPK-2297/2007 of the National Bank of Slovakia -PLP, a license to provide investment services pursuant to Section 54(2) in conjunction with Sections 59(2) and (3) of the Securities Act, which was extended in accordance with the provisions of the Securities Act by Decision No. OPK-1830/2008-PLP dated April 21, 2008, Decision No. OPK-11601-1/2008 dated January 28, 2009, Decision No. ODT-5059-3/2012 dated July 23, 2012, and Decision No. ODT-9332/2014-1 dated October 21, 2014.

Read more

Casey’s Beat Expectations, but Shares Plummeted: Strong Earnings Overshadowed by a Slowdown in Sales

Casey’s Beat Expectations, but Shares Plummeted: Strong Earnings Overshadowed by a Slowdown in Sales

Casey’s General Stores kicked off fiscal year 2027 with results that, at first glance, appear very impressive. However, behind the strong numbers lies a story that is significantly more complex and raises more questions than clear answers for investors. The market isn’t just looking at how much the company earned, but also at how it achieved this result and whether it will be able to maintain a similar pace in the coming quarters.

The End of Visionary Dreams: In Autonomous Transportation, It’s No Longer the Cars That Matter, but Logistics

The End of Visionary Dreams: In Autonomous Transportation, It’s No Longer the Cars That Matter, but Logistics

Waymo has entered a phase where it’s no longer just about whether an autonomous car can safely navigate a city. What matters most is how many vehicles the company can deploy, how quickly it can enter new markets, and whether it can keep costs under control in the process. This is precisely where a technological demonstration differs from the real transportation business.

DICK’S Sporting Goods Lost 31% in a Single Day: Foot Locker Goes from a Big Bet to a Big Problem

DICK’S Sporting Goods Lost 31% in a Single Day: Foot Locker Goes from a Big Bet to a Big Problem

DICK’S Sporting Goods released results that, at first glance, appear very impressive. However, behind the significant growth lies a story that is considerably more complex and far less reassuring for investors. Some figures suggest that the company’s major strategic bet is not yet unfolding as expected. The market reacted extremely sharply to this news, and DICK’S Sporting Goods shares plummeted 30.7% to $124.31 following the results, marking the worst trading day in the company’s history.*

Applied Materials Breaks Records, but Shares Fall: Even the Strong AI Boom Is No Longer Enough for Investors

Applied Materials Breaks Records, but Shares Fall: Even the Strong AI Boom Is No Longer Enough for Investors

Applied Materials kicked off earnings season in a way that, at first glance, seems almost flawless. The numbers show strength across the entire business, the outlook suggests the pace may not slow down, and management speaks of demand that extends beyond the usual planning horizon. Despite this, the market reacted to the earnings release in a way that went against most investors’ expectations. [1]