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Friday, June 12, 2026

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Costco Wholesale Corp. (COST), Lam Research Corp. (LRCX) and KLA Corp. (KLAC), as well as two micro-cap stocks Blue Ridge Bankshares, Inc. (BRBS) and AXIL Brands, Inc. (AXIL). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

Ahead of Wall Street

The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market's open and attempts to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.

You can read today's AWS here >>> SpaceX IPO Crowds Pre-Market Sentiment

Today's Featured Research Reports

Shares of Costco have gained +13.7% over the past six months against the Zacks Retail - Discount Stores industry’s gain of +14%. The company remains well-positioned due to its differentiated membership-based warehouse model, strong value proposition and loyal customer base. It continues to benefit from recurring membership income, high renewal rates and growing engagement from higher-value members.

Costco’s focus on offering quality merchandise at competitive prices supports steady traffic and reinforces customer loyalty. Costco is also enhancing its digital ecosystem through e-commerce, personalization tools, AI-driven product discovery and convenient fulfillment options, helping improve the member experience.

Also, the company is expanding its warehouse footprint and investing in productivity-enhancing initiatives to support long-term growth. Backed by a strong balance sheet, Costco is well-positioned to strengthen its market leadership and drive sustainable growth over time.

(You can read the full research report on Costco here >>>)

Lam Research’s shares have outperformed the Zacks Electronics - Semiconductors industry over the past six months (+120.9% vs. +50%). The company is benefiting from AI-driven increases in demand for deposition and etch tools across memory, foundry and advanced packaging industries.

Management lifted its calendar year 2026 WFE outlook and sees growth continuing into 2027 as customers work through capacity and cleanroom constraints. Record Q3 results and a higher Q4 outlook reflect momentum in leading-edge foundry and HBM-driven DRAM, while NAND conversion activity is being pulled forward.

Customer Support is scaling with a larger installed base and new productivity services that can lift output and yield. Strong cash flow and an aggressive shareholder return policy are other positives. However, global spending on mature nodes is likely to remain soft in the near term. Growing trade and tariff tensions between the United States and China are a concern.

(You can read the full research report on Lam Research here >>>)

Shares of KLA have outperformed the Zacks Electronics - Miscellaneous Products industry over the past six months (+97.4% vs. +51.7%). The company continues to benefit from AI-driven spending in leading-edge foundry/logic, high-bandwidth memory and advanced packaging, supporting market share gains in process control and steady services growth that helps anchor cash generation.

Management expects its advanced packaging portfolio revenue to rise to about $1 billion in 2026 and sees wafer equipment demand strengthening into 2027, with June quarter guidance calling for another step up in revenue. A high free cash flow profile supports ongoing dividends and repurchases, including a higher quarterly dividend and a new $7 billion authorization.

However, KLAC’s prospects remains balanced for now given export control and tariff uncertainty, customer concentration, and gross margin sensitivity to elevated DRAM-related system costs expected to persist through at least 2026.

(You can read the full research report on KLA here >>>)

Blue Ridge Bankshares’ shares have outperformed the Zacks Banks - Northeast industry over the past year (+41.6% vs. +40%). This microcap company with a market capitalization of $298.51 million is transitioning to a traditional community banking model post-completion of its regulatory remediation efforts. Capital remains above regulatory requirements despite a large special dividend, while liquidity is strong and credit quality continues to improve.

The exit from fintech-related activities has simplified operations, while brokered deposit reduction and expense controls support a leaner model. Yet, earnings remain pressured by balance-sheet contraction, lower loan yields and reduced revenue diversification. Profitability still relies partly on non-core items, while the loan portfolio remains concentrated in real estate.

The valuation reflects investor caution toward earnings recovery. While the successful execution of growth and profitability initiatives could drive upside, failure to rebuild sustainable core earnings may limit shareholder returns.

(You can read the full research report on Blue Ridge Bankshares here >>>)

Shares of AXIL Brands have outperformed the Zacks Consumer Products - Staples industry over the past year (+24.4% vs. -7.5%). This microcap company with a market capitalization of $44.18 million sees its investment thesis driven by its core hearing enhancement and protection business, supported by expanding retail and online distribution.

AXIL Brands is building a more diversified revenue base by complementing its direct-to-consumer model with a growing wholesale presence. Despite tariff-related pressure and elevated marketing spending, AXIL has remained profitable while investing in growth, reflecting disciplined execution. The emerging marketing services segment provides a potential high-margin, complementary revenue stream by leveraging existing digital marketing capabilities.

Additionally, the hair and skin care business offers strategic optionality, with corporate actions creating flexibility for future value-maximizing opportunities while management remains focused on scaling the core hearing platform.

(You can read the full research report on AXIL Brands here >>>)

Other noteworthy reports we are featuring today include Kinder Morgan, Inc. (KMI), Chipotle Mexican Grill, Inc. (CMG) and Cytokinetics, Inc. (CYTK).

Mark Vickery Senior Editor

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>

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Today's Must Read

Decent Comparable Sales Run to Fuel Costco's (COST) Top Line

Lam Research (LRCX) is gaining from AI-driven Demand for WFE Products

Strong Demand for HBM and Advanced Packaging Aids KLA (KLAC)

Featured Reports

Kinder Morgan's (KMI) Take-or-Pay Contracts Support Stable Cash Flows Per the Zacks analyst, Kinder Morgan's earnings and cash flows are anchored by long-term take-or-pay contracts, which protect it from commodity price swings and other macro headwinds.

Chipotle (CMG) Banks on Strategic Initiatives, High Costs Ail Per the Zacks analyst, Chipotle's focus on Recipe for Growth strategy, unit expansion and Zipline pilot bode well. However, the uncertain macro environment and high costs pose concerns.

Myqorzo Approval Fuels Cytokinetics (CYTK), Regulatory Setbacks a Woe Per the Zacks analyst, the FDA approval of Myqorzo is a significant boost for Cytokinetics given the market potential. However, regulatory setbacks are a major concern for other pipeline candidates.

Tenant Demand, Strategic Acquisitions Support Vornado's (VNO) Growth Per the Zacks analyst, Vornado benefits from strong tenant demand for premium office space, strategic acquisitions and adequate liquidity despite New York assets concentration and competition.

Key Acquisitions, Rising Air Travel Demand Boost AAR Corp. (AIR) Per the Zacks analyst, AAR Corp. is expected to see strong growth in its parts supply business, supported by rising air travel demand. Disciplined acquisition strategy will also boost its growth.

Tissue Reconstruction Momentum Aids Integra (IART), FX Woes Stay The Zacks analyst is impressed with Integra LifeSciences' robust Tissue Reconstruction performance, led by Integra Skin, DuraSorb and the PriMatrix launch. Adverse currency impacts may hurt results.

AEG Buyout Enhances ICF's (ICFI) Offerings Amid High Costs Per the Zacks analyst, Applied Energy Group's (AEG) suite of technology and advisory services to electric and gas utilities improves ICF's offerings. Rising costs are an overhang.

New Upgrades

Credit Sales, Receivables Growth Drive Bread Financial (BFH) Per the Zacks analyst, Bread Financial is set to grow on credit sales growth driven by existing partners, as well as new product and brand partner additions. Yet, high expenses weigh on margins.

Central Garden & Pet (CENT) Benefits From Digital and Cost Initiatives Per the Zacks analyst, Central Garden & Pet is expanding through e-commerce growth, innovation, and cost efficiencies. The Cost and Simplicity program is streamlining operations.

Helen of Troy (HELE) Gains on Strength in Leadership Brands Per the Zacks analyst, Helen of Troy is benefiting from strong performance in its Leadership Brands, with growth in key categories, improved pricing and continued innovation supporting its outlook.

New Downgrades

Weak Demand & Cost Pressures Ail International Paper (IP) The Zacks analyst is concerned that weak demand in end markets coupled with higher input costs and maintenance outage expenses will continue to impact International Paper's results.

Plexus (PLXS) Faces Near-Term FCF Pressure Amid Growth Push Per the Zacks analyst, the free cash flow outlook cut and healthcare softness add near-term risk for Plexus even as strong program wins and demand support a strong outlook.

Lower IT Spending to Hurt DXC Technology's (DXC) Prospects Per the Zacks analyst, DXC Technology's growth prospects might be hurt by soft IT spending as organizations are pushing back their large IT investment plans amid the macroeconomic headwinds.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report

KLA Corporation (KLAC) : Free Stock Analysis Report

Lam Research Corporation (LRCX) : Free Stock Analysis Report

Costco Wholesale Corporation (COST) : Free Stock Analysis Report

Kinder Morgan, Inc. (KMI) : Free Stock Analysis Report

Cytokinetics, Incorporated (CYTK) : Free Stock Analysis Report

Blue Ridge Bankshares, Inc. (BRBS): Free Stock Analysis Report

AXIL Brands, Inc. (AXIL): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

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Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE.

Costco Wholesale (NasdaqGS:COST) has issued a recall of Lactantia UltraPur Milk due to a food safety risk. The company is also seeking dismissal of a lawsuit that challenges advertising claims related to its rotisserie chicken. Both developments focus attention on Costco's product quality controls, consumer protections, and marketing practices.

For a warehouse club retailer like Costco, where members often buy food in bulk, any recall tied to a food safety issue goes straight to the heart of customer trust. At the same time, a legal dispute over rotisserie chicken advertising puts a spotlight on how the company describes and markets its private label offerings. Together, these issues sit at the intersection of product standards, legal risk, and member expectations.

For investors tracking NasdaqGS:COST, these events are relevant beyond short term headlines because they speak to Costco's approach to risk management and transparency when problems arise. The way the company handles recalls and defends its advertising could shape how customers perceive reliability, which in turn may influence member loyalty and long term brand strength.

Wall Street's queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab's valuation page.NasdaqGS:COST 1-Year Stock Price Chart

Is Costco Wholesale's balance sheet strong enough for future acquisitions? Dive into our detailed financial health analysis.

For you as an investor, the key thread across both the Lactantia UltraPur milk recall and the rotisserie chicken lawsuit is operational and regulatory discipline. The recall stems from higher than intended levels of vitamins A and D, which is a quality control and supplier oversight issue rather than a broader demand problem. The lawsuit over "preservative free" claims is about how Costco interprets and presents ingredient information, with the company signaling it will seek dismissal based on existing labeling rules. Neither item changes Costco's recently reported sales of US$24.01b for May or US$221.19b year to date, but they do sit alongside that growth story as reminders that a large food business has to keep regulatory, labeling, and recall processes tight.

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How This Fits Into The Costco Wholesale Narrative

The recall response and lawsuit defense both speak to Costco's focus on member trust, which ties back to the narrative that a strong membership model and perceived value can support long-term traffic and renewal rates. If recalls or advertising disputes became more frequent or expensive, they could work against the narrative that Costco can manage costs, regulatory changes, and supply chain complexity while keeping margins steady. The narrative around tariffs, fuel, pricing, and store expansion does not explicitly factor in recurring legal or recall costs, even though regulatory and food safety issues can influence how much Costco spends on compliance and quality assurance.

Knowing what a company is worth starts with understanding its story.Check out one of the top narratives in the Simply Wall St Community for Costco Wholesale to help decide what it's worth to you.

The Risks and Rewards Investors Should Consider

⚠️ Food safety recalls and labeling disputes can lead to higher compliance costs, potential fines, or tighter oversight, especially if regulators focus more on Costco's private label food ranges versus peers like Walmart and Target. ⚠️ If customers view the recall or the rotisserie chicken lawsuit as signs of weaker quality control or unclear marketing, that could weigh on perceived reliability and eventually on member loyalty. 🎁 Costco's established recall playbook, which includes direct member notifications and refunds, can help limit reputational damage and support the view that the company acts quickly when issues surface. 🎁 Successfully defending its advertising practices or clarifying labeling standards could give Costco more confidence when marketing future products, while keeping legal and settlement costs contained.

What To Watch Going Forward

From here, watch how broad or narrow the Lactantia UltraPur recall ultimately is, any updates on regulatory findings, and whether Costco discloses material recall or legal costs in upcoming quarterly reports. Track progress of the rotisserie chicken lawsuit, including whether the court accepts Costco's bid for dismissal or allows the claims to proceed. It is also worth noting how often future recalls or labeling disputes occur versus other large food retailers, because a rising pattern could change how investors think about Costco's risk controls, brand strength, and the cost of running a large private label food business.

To ensure you're always in the loop on how the latest news impacts the investment narrative for Costco Wholesale, head to the community page for Costco Wholesale to never miss an update on the top community narratives.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include COST.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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(Bloomberg) -- US plastic suppliers say they are running out of room to absorb high costs of raw materials, raising the prospect of price increases for consumer goods ranging from groceries to cars later this year.

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A gauge of wholesale prices of plastic resins and materials jumped by 14% to an almost four-year high last month as the Iran war choked off supplies of key components. For producers like Shawn Gross, whose Corry, Pennsylvania-based company supplies molded parts used in automotive and heating systems, the squeeze is reaching a breaking point.

“We are going to need to pursue the price increases with our customers more aggressively,” said Gross, chief executive officer of Viking Plastics. “What the world needs to understand is there is going to be a real impact that is not even yet felt.”

Plastics are everywhere — from snack packaging to refrigerator parts — and about 98% of it is made of fossil fuels. One reason why US consumers haven’t felt the full impact of the war-driven price increases in petrochemicals like polyethylene that are used in everyday products is because costs move slowly through supply chains.

Gross, whose suppliers include Dow Inc. and clients include Ford Motor Co., is at the center of it all. Prices for some polyethylene inputs used by Viking have risen more than 40% this year, he said.

Petrochemical prices have retreated from their highs in recent weeks as demand has softened and oil prices fell below $100 a barrel, but they remain well above their pre-conflict levels. Much of the damage is already done anyway, according to Gross.

Producers like Dow have already pushed through price hikes to businesses that convert plastic resins into packaging and other products. As those costs are passed from one company to the next, higher prices ultimately make their way to consumers.

“You need to get the dollars and cents out of the customer, and that’s going to trickle into the price of vehicles being higher,” Gross said. “It’s going to be every industry.”

Manufacturers in Asia and Europe were the first to come under strain because they depend largely on naphtha, a crude-derived feedstock that is used to make ethylene and propylene. Shortages of naphtha-derived ink materials even forced a Japanese snack maker to temporarily switch some products to black-and-white packaging.

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The US was relatively spared because many petrochemical plants run on ethane from shale gas — a cheaper alternative to naphtha that has been less affected by the Middle East conflict.

But as Asian and European buyers compete for supplies, raw materials are starting to run short in the US too, prompting companies to hoard inventory and putting additional pressures on costs.

Edward Dominion, founder of consumer-goods packaging firm D6 Inc., said raw material costs for his Sulphur Springs, Texas-based company have doubled alongside increases in freight, fuel and transportation. He, too, is already working to pass on the costs to customers.

Some buyers are receiving only about 70% of the resin they need, he said, while lead times for certain materials have stretched from one to three months. Fresh-food packaging — for products like produce, bakery goods, meat and cheese — will get hit first.

If shortages persist, shoppers could begin seeing gaps on shelves by August and September, he said.

“It gets real when somebody wants to go to the shelf and buy something and it’s not there,” Dominion said.

Lowe’s, Whirlpool

In earnings calls, large corporations across industries are warning about the rise in plastics costs.

Lowe’s Cos., the home-improvement chain, said in May that it was working with suppliers to mitigate the impact of higher prices in commodities including resin and “sharing in that burden.”

Whirlpool Corp., whose refrigerators, dishwashers and washing machines contain dozens of plastic components, expects higher resin prices to drive up raw material costs in the second half, CEO Marc Bitzer told investors last month.

Restaurant chain Cava Group Inc. told investors it has built higher energy-related costs into its annual guidance, including pressure from fuel surcharges, utilities and polyethylene expenses tied to food, beverage and packaging.

Meanwhile, Costco Wholesale Corp. flagged rising costs across parts of its supply chain as petroleum-derived inputs become more expensive.

“We are anticipating further inflation in a number of non-food categories as higher resin costs start to flow into cost-of-goods,” Chief Financial Officer Gary Millerchip said during the retailer’s quarterly earnings call. “Particularly if oil prices remain at elevated levels, it’s likely to see some increases in items that have sort of plastic components or polyester or cotton because of the impact of higher resin costs.”

Consumers are already paying more for necessities, from fuel to food, and household savings buffers have thinned since the last major inflation surge in 2022. The consumer-price index jumped 4.2% in May, the highest inflation rate in over three years, mainly because of energy costs.

As the plastics shock moves closer to consumers, it will likely add more challenges for President Donald Trump and Republicans ahead of midterm elections in the fall.

In a recent impromptu conversation at a local Pennsylvania restaurant, Gross, the molding-company executive, said he tried to explain as much to his local Republican congressman.

“I told him, I believe Republicans will suffer in the midterms because of this inflation, and it’s detrimental to our business,” said Gross. “It’s going to put pressure on us through the rest of the year. Whether they can do anything about it, I have no idea.”

--With assistance from Christopher Charleston and Devika Krishna Kumar.

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©2026 Bloomberg L.P.

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Is AFRM a good stock to buy? We came across a bullish thesis on Affirm Holdings, Inc. on r/investing_discussion by Variant_Invest. In this article, we will summarize the bulls' thesis on AFRM. Affirm Holdings, Inc.'s share was trading at $65.11 as of June 9th. AFRM's trailing and forward P/E were 59.22 and 32.57 respectively according to Yahoo Finance.DLocal (DLO) Climbs 9.4% as Revenues Break Past $1 Billion

Affirm Holdings, Inc. (AFRM) is increasingly positioning itself as a scaled payments and commerce infrastructure platform rather than a speculative buy now, pay later lender. The company has continued to strengthen its merchant ecosystem through a long-term extension with Amazon, a renewed partnership with Shopify, and new enterprise relationships with Apple and Costco. These partnerships challenge the longstanding bear thesis centered around merchant concentration risk, as Affirm is no longer reliant on a narrow set of partners or discretionary consumer spending categories.

Read More: 15 AI Stocks That Are Quietly Making Investors Rich

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The addition of Costco and Apple is particularly notable because both companies operate highly trusted ecosystems and cater to broad, financially stable customer bases, suggesting that Affirm's platform has evolved beyond the perception of being tied primarily to high-APR impulse purchases. The company's growing scale is also improving its competitive positioning through better underwriting capabilities.

As Affirm becomes more deeply integrated into merchant checkout systems, it gains access to transaction-level data that enhances risk assessment and loan performance over time. This creates a compounding advantage, as stronger underwriting can lower loss rates and improve unit economics, while years of accumulated transaction data become increasingly difficult for newer competitors to replicate.

Despite these developments, the stock continues to trade more like a volatile fintech company than a strategic payments platform with meaningful switching costs and enterprise-grade partnerships. The disconnect between market perception and the company's evolving business model creates a potentially attractive long-term setup, particularly for investors with a multi-year investment horizon who believe Affirm can continue expanding its role within digital commerce and embedded payments infrastructure.

Previously, we covered a bullish thesis on Block, Inc. by Long-Term Pick in February 2025, which highlighted the company's expanding fintech ecosystem, improving profitability, strong free cash flow generation, and growth across Square and Cash App. XYZ's stock price has appreciated by approximately 4.57% since our coverage. Variant_Invest shares a similar view but emphasizes on Affirm's merchant diversification, enterprise partnerships, and data-driven underwriting advantages within digital payments infrastructure.

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Affirm Holdings, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held AFRM at the end of the first quarter which was 63 in the previous quarter. While we acknowledge the risk and potential of AFRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AFRM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None.

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Quick Read

COST's 92% U.S. renewal rate and $1.37 billion in quarterly membership fees convert a bulk retailer into a high-margin recurring-revenue machine. Costco's beta of 0.87 and 30-plus annual warehouse openings make it a defensive compounder built to grow through any economic cycle. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Costco didn't make the cut. Grab the names FREE today.

Costco (NASDAQ:COST) is structured for multi-decade compounding because its membership fee engine turns a low-margin grocery business into a recurring-revenue compounder that gets stronger every cycle.Sheryl M. / Yelp

If you are in your 50s or 60s and tired of being whipsawed by trend trades, this is the kind of holding you can buy, file away, and let work. The case rests on a structure that pays whether the consumer is panicking, splurging, or somewhere in between.

Pillar 1: A business model designed to outlast you

Costco effectively rents access to its warehouses to 82.1 million paying members, then uses bulk-buying power to deliberately undercut local chains so those members feel compelled to keep showing up to "get their money's worth." The high-margin, recurring revenue generated by its more than 80 million paying members is the real engine, well beyond the razor-thin margin on bulk goods.

The durability shows up in the renewal data. The worldwide renewal rate sat at 89.7% in the most recent quarter, with U.S. and Canada at 92.1%. Subscription software companies dream about retention like that. Add Kirkland Signature, which CFO Gary Millerchip described as offering "15% to 20% value compared to the national brand alternative with equal or better quality," and the moat widens every year.

Pillar 2: The high-margin secret weapon that compounds

Membership fees compound earnings over time. Fiscal Q3 2026 membership fee income hit $1.37 billion, up 10.7% year over year, on top of $1.355 billion in Q2, which grew 13.6%. That income drops to the bottom line at a far higher rate than retail merchandise. Net income rose 13.81% in Q2 and 15.2% in Q3, while operating cash flow ran at $13.34 billion for fiscal 2025.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Costco didn't make the cut. Grab the names FREE today.

For an income-minded retiree, Costco pays a modest quarterly dividend with a per-share annual rate of $5.37, plus a history of special dividends. The yield is small, but the growth rate of the cash funding it is robust.

Pillar 3: Why it survives every cycle

Costco trades as a Consumer Defensive name with a beta of 0.868, meaning it tends to move less than the broader market. In inflation, members chase its undercut pricing. In deflation, management leans into lower shelf prices and watches traffic rise. In recessions, the value proposition tightens loyalty rather than loosening it. Traffic still grew 3.1% globally in Q2, and the company plans roughly 30-plus new openings per year for the next decade.

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The scenario where it underperforms

Costco trades at a trailing P/E of 49 and a forward multiple of 43. In a sharp value rotation, deeper-discount or low-multiple names will beat it for a stretch. Over the past year the stock is down 3.19%. That does not change the thesis, because the membership base, the renewal rate, and the warehouse pipeline keep compounding regardless of what multiple the market is willing to pay this quarter. Over the past five years, shares are up 166.83%.

For long-term investors, Costco's renewal engine continues to do the heavy lifting regardless of quarterly noise.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Costco didn't make the cut. Grab the names FREE today.

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(Bloomberg) -- DoorDash Inc. introduced an in-app artificial intelligence chatbot to help customers make restaurant and grocery orders, and suggested the technology could also be used to unlock new enterprise revenue streams.

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Users can launch the new Ask DoorDash tool via the "Ask" button in the app's search bar, where they can interact with the chatbot using voice, written prompts or visual inputs. In addition to text responses, the answers include buttons that let users directly add items to their cart.

Recommendations are based on DoorDash customers' past purchase behavior, as well as internet sources like social media reviews and blog posts. For grocery-related inquiries, the chatbot confirms with the user what pantry staples they already have before adding ingredients to the cart. It works on Apple Inc.'s iOS and is available in select markets. Initially, Ask DoorDash will be set up for restaurant search and grocery shopping. In the coming weeks, the assistant will expand to more users in the US and gain the ability to make restaurant reservations.

Early user tests of the chatbot point to tangible business gains, according to co-founder Andy Fang. "We're seeing customers trying out new restaurants much more frequently through this experience than anything else we've tried to do in the app when it comes to ordering from restaurants," he said in an interview. Nearly half of all takeout orders made with the tool were from a place the customer had never ordered from before, the company said.

"On the grocery side, we're seeing significant increases in subtotals and that customers are actually able to build their cart five times faster using this experience than through the app," Fang added. Grocery baskets built with the tool are more than 35% larger than typical grocery orders, DoorDash said.

Fang suggested the company is ready to sell its AI technology, including the chatbot, for corporate customers to use under their own brands. That sets up DoorDash for further competition with Instacart, which has been adding enterprise offerings for grocers like Kroger and Costco.

"Given all the technology that we've invested to making this work well, we're also really excited to partner directly with grocers, restaurants, retailers to help them power their own agentic experiences as well," Fang said.

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DoorDash, the biggest food delivery app by US market share, is the latest among its peers to leverage existing data on restaurant menus, grocery items, stock levels and customer order history to better identify what users are likely to need. In April, Uber Technologies Inc. introduced an updated search bar that can interpret natural language and more flexibly show rides and takeout options, rather than defaulting to ride destinations.

Uber Eats also has an AI-based Cart Assistant to help people build their grocery carts through text or image queries. Instacart similarly accepts natural language search in its app, and its conversational cart-building product is available within the ChatGPT and Claude apps, as well as on other grocery sites.

DoorDash began working on a chatbot as early as 2023, Bloomberg previously reported. But the company didn't release any such tool then because AI models at the time "weren't capable enough" to make conversational ordering compelling for customers, Fang said. Today's models have gotten a lot better, he added. "We just feel good now about the experience both in terms of the responsiveness of the product and also its ability to understand what you're talking about and give you compelling suggestions."

Ask DoorDash uses a combination of AI models from OpenAI, Anthropic PBC and Alphabet Inc.'s Google, as well as some open-source models to help reduce costs, according to Fang. "We feel confident it is going to pay for itself over time," he said.

DoorDash's other artificial intelligence experiment, the standalone social app Zesty, allowed the company to understand the types of questions that customers ask, while testing "the latest models in a way that was much faster" than if done within the flagship app, Fang said. DoorDash wound down Zesty in April, as it began integrating the chat features into the main app.

There is still merit in keeping the traditional keyword search, not least because it's where DoorDash is using sponsored listings to boost its advertising business.

Searching using simple phrases is still an adequate experience for people who know exactly what they want, but Fang said "we're going to work towards a solution where you don't have to think about it ideally as a customer." He added that users are already typing longer queries into the search box with the expectation that it can process their questions like AI chatbots, which can handle more nuanced queries.

"Certainly, we need to think about how ads fit into this ecosystem," Fang said, addressing the tension between advertisers and customers using the ad-free AI search. "It is a complicated set of things for us to navigate, to be honest. The internet is changing underneath our feet, so we're just trying to figure out how to move to where the puck's going."

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Kroger and Costco both want to use cheap gas to get customers to their stores because gas prices have reached a tipping point that has impacted consumer spending.

With gas prices averaging more than $4 per gallon, BMO Capital Markets Senior Economist Sal Guatieri explained that most Americans will have to spend less in other areas.

"Apart from undermining confidence, the increase will erode spending power, particularly for lower-income households. Gasoline and other fuels account for 2% of U.S. personal consumption, so the price increase, if sustained, could cut annual spending by about 0.7%. That works out to more than $1,000 for the average American household," he wrote.

An American Automobile Association (AAA) report from 2022, the last time the national average price for a gallon of gasoline was over $4, backs Guatieri's comments.

"Americans may have reached a tipping point. Over half (59%) said they would make changes to their driving habits or lifestyle if the cost of gas rose to $4 per gallon," AAA shared.

The high price of gas has been a foot-traffic driver for Costco. Now, Kroger wants to leverage its fuel rewards to do the same thing, and perhaps even steal some traffic from the warehouse club.

Related: Struggling women's clothing retailer shutters 171 stores

Kroger makes customers a generous gas offer

Consumers are looking to save money on gas, and high gas prices are forcing them to cut back in another area, according to a Numerator survey of more than 1,000 U.S. consumers. Key findings included:

93% of drivers are trying to save money on gas. 36% choose stations based on price over convenience. 61% say gas prices are impacting ability to afford other expenses.

Kroger's fuel promotion is aimed squarely at those behavior shifts, turning rising gas sensitivity into store traffic.

Kroger shared a new 4X Fuel Points promotion on June 8.

"Customers can earn 4X Fuel Points on every dollar spent every Friday from June 12 through July 24, as well as July 1-4, when they clip the digital coupon in the Kroger app or on Kroger.com and shop in-store, through pickup or via delivery," the company shared in a press release.

Customers earn one Fuel Point for every $1 spent on groceries, but under the 4X promotion, they will earn four points for every dollar spent.

Every 100 points saves you $0.10 per gallon, up to $1 per gallon with a maximum of $35 in savings.

You do not need to be a member or pay to join Kroger's program, but you do have to register for it.

The real difference between Kroger's and Costco's fuel strategies

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TheStreet retail advisor and RTMNexus CEO Dominick Miserandino thinks Costco's gas proposition will beat out Kroger's.

"Wall Street looks at Kroger's headline 'Save up to $35' fuel promo and thinks it's a direct threat to Costco, but that completely misjudges the psychology of the modern consumer," he said. "Costco wins because its value proposition is completely frictionless: you show your card, and you get the lowest price in town immediately."

The grocery chain has made its process too many steps, he explained.

"Kroger's model requires digital coupon clipping, tracking specific calendar windows like '4X Fridays,' and monitoring point balances. In a tight economy, convenience-fatigued consumers eventually reject complex loyalty gamification," he said.

Industry analysts make a similar point, but focus more on pricing itself.

"It doesn't matter whether gas prices are $4 or $2 per gallon, consumers still want to find the best price possible. Retailers are constantly fighting to attract price-sensitive drivers to their stores, especially given that 35% of gas customers say that they also go inside the store after fueling," Jeff Lenard, a long-time National Association of Convenience Stores (NACS) executive, said in a press release.Costco's gas stations do not take cash.Shutterstock

Gas has been a driver for Costco

Costco reported record gas sales by volume during its third-quarter earnings call.

"All 3 4-week fiscal periods of the quarter set successive all-time company volume sales records with the final 5 weeks of the quarter becoming our top 5 volume weeks ever. Our gas team performed exceptionally well to manage this unprecedented demand, which requires multiple daily gas deliveries to many locations," CEO Ron Vachris said.

He shared that higher gas prices nationally drove shoppers to Costco.

"The high consumer price sensitivity, which fueled these record volumes, also drove many members to use our gas stations for the very first time in the third quarter. We believe this will drive even greater loyalty with these members in the future as members who use our gas stations typically spend more with us in the warehouse," he added.

Costco credit card holders get 5% cash back on gasoline purchased at the warehouse club on the first $7,000 spent, according to Citi, the company's credit card partner.

As a consumer, I'm always tempted to make the drive to Costco when low on gas, but its distance from my house makes that impractical, even if I want to shop the warehouse club. That usually drives me to pick the next cheapest option, and that's where Kroger may win some market share from the warehouse club.

Kroger has two edges over Costco

Costco's gas prices may be lower than Kroger's, but you can only use Costco's pumps with a $65 Gold membership or a $130 Executive membership.

Kroger also has a massive size advantage, since the grocery chain operates more than 1,700 gas stations.

As of late May 2026, Costco operates 931 warehouses worldwide, including 639 in the U.S. and Puerto Rico. Costco also reported operating 747 gas stations at the end of fiscal 2025, according to Costco investor relations.

Kroger fuel centers' proximity to the company's supermarkets helps Kroger draw in shoppers and provide robust fuel benefits as part of its loyalty program, Ken Fenyo, a former Kroger executive who is now managing partner of Pine Street Advisors, told C-Store Dive.

"I think the various incentives they have make you more likely to go to a Kroger fuel center, but then also really [provide] an incentive to spend more with Kroger because you're going to get that fuel discount on the back end," Fenyo said.

Over the past three years, Kroger has tripled the number of gas stations it operates, according to its annual report.

Related: Beloved brewery abruptly closes, files Chapter 11 bankruptcy

This story was originally published by TheStreet on Jun 10, 2026, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.

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Costco Wholesale Corporation (NASDAQ:COST) was among the stocks Jim Cramer discussed during Mad Money, as he highlighted a difficult backdrop for stocks. A caller asked what the ideal entry price for the stock would be as a long-term investment, considering current consumer financial challenges. Cramer replied:

Okay… I think that you buy some here, it's at 47 times earnings, and then you hope it goes to 45. Now, I know people say, what do you mean, buy some and then hope it goes lower, but that's how I work. I want value just like I want value at a store. And I think if you start Costco and you let it come in a little, well, that's the way to play it. The worst that happens is it flies right out, 974 to 1025, and you have to kick it out. Let's do it that way so that we don't get caught up at one level because nobody's that good.

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Costco Wholesale Corporation (NASDAQ:COST) operates membership warehouses and provides groceries, fresh food, household goods, electronics, and more. In addition, the company offers various services through pharmacies, gas stations, optical centers, and e-commerce options.

While we acknowledge the potential of COST as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years

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Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Russell 1000 Growth ETF (Symbol: IWF) where we have detected an approximate $168.3 million dollar outflow -- that's a 0.3% decrease week over week (from 261,100,000 to 260,400,000). Among the largest underlying components of IWF, in trading today Alphabet Inc (Symbol: GOOGL) is up about 0.4%, American Tower Corp (Symbol: AMT) is up about 0.4%, and Deere & Co. (Symbol: DE) is lower by about 1.9%. For a complete list of holdings, visit the IWF Holdings page » The chart below shows the one year price performance of IWF, versus its 200 day moving average:

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Looking at the chart above, IWF's low point in its 52 week range is $217.0904 per share, with $311.95 as the 52 week high point — that compares with a last trade of $240.45. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».

Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.

Click here to find out which 9 other ETFs experienced notable outflows »

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St.

Costco Wholesale CEO Ron Vachris is set to receive the Muriel F. Siebert Leadership Award from 50/50 Women on Boards. The award recognizes his role in advancing women in leadership and corporate governance at Costco. This recognition highlights board diversity as a growing ESG focus for investors watching NasdaqGS:COST.

For investors watching NasdaqGS:COST, this recognition adds an ESG and governance angle alongside the usual focus on earnings, traffic, and membership trends. Costco shares recently closed at $968.59, with the stock up 13.4% year to date and 166.3% over 5 years. Over the past year the stock is down 3.3%, which gives this governance story added relevance as investors weigh both performance and corporate responsibility.

Attention on Costco's board diversity record may influence how some shareholders think about long term risk, reputation, and stewardship. For ESG focused investors in particular, independent recognition from 50/50 Women on Boards could factor into how Costco is viewed relative to other large retailers on governance quality and board composition.

Wall Street's queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab's valuation page.NasdaqGS:COST 1-Year Stock Price Chart

Does the team leading Costco Wholesale have what it takes? See our full breakdown of the management team's track record and compensation.

Quick Assessment

⚖️ Price vs Analyst Target: At US$968.59, Costco trades about 10.5% below the US$1,082 consensus target, with analysts ranging from US$740 to US$1,315. ❌ Simply Wall St Valuation: Simply Wall St flags the stock as trading about 220% above its estimated fair value. ❌ Recent Momentum: The share price has fallen 4.0% over the past 30 days.

There's only one way to know the right time to buy, sell or hold Costco Wholesale. Head to Simply Wall St's company report for the latest analysis of Costco Wholesale's Fair Value.

Key Considerations

📊 The leadership award for board diversity reinforces Costco's governance profile, which some ESG focused investors use as a signal of long term stewardship. 📊 Watch how proxy voting trends, board composition disclosures, and any ESG fund flows into or out of Costco respond to this recognition. ⚠️ With the stock flagged as overvalued and recent returns under pressure, any shift in sentiment around governance or growth expectations could add to volatility.

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Dig Deeper

For the full picture including more risks and rewards, check out the complete Costco Wholesale analysis. Alternatively, you can check out the community page for Costco Wholesale to see how other investors believe this latest news will impact the company's narrative.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include COST.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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