Home›Earnings›Previews›Costco and Waste Management positioned as inflation be…

Costco and Waste Management positioned as inflation beneficiaries

MarketBeat Ratings highlights Costco’s membership fee revenue, which tops $5 billion annually, and Waste Management’s cost pass-through contracts.

Reported · Written up by our desk · Previews

With geopolitical tensions contributing to sticky inflation, MarketBeat Ratings says investors are looking for businesses that can withstand higher prices or even benefit from them. The outlet points to Costco Wholesale and Waste Management as two distinct examples of “inflation protection,” each tied to a different part of its business model.

For Costco, the bullish case centers on consumer behavior during tighter household budgets, shoppers become more deliberate rather than stopping purchases, and they tend to gravitate toward bulk-buy value. MarketBeat Ratings also cites Bernstein’s raised price target and links the argument to Costco’s membership model, including membership renewal rates consistently above 90% and annual membership-fee revenue of more than $5 billion.

Waste Management’s inflation resilience, according to MarketBeat Ratings, is built more formally into how its services are priced. The outlet describes that the company uses contracts designed to pass rising costs to customers, framing it as a different kind of hedge versus Costco’s consumer demand and fee structure.

More like this

Sources