Market Volatility Creates Buying Opportunity for Costco and SoFi

Market volatility offers a rare buying opportunity, especially for Costco and SoFi. Costco is witnessing strong sales growth, while SoFi has become sustainably profitable with robust revenue increases.

Date: 12-03-2025

AI Rating: 7

Market Overview
The current market conditions have led to significant volatility, particularly evident in the tech-heavy Nasdaq Composite, which is down over 13% from its high. This presents both challenges and opportunities for investors.

Costco Analysis
Costco appears strong despite its high P/E ratio above 60. The company has reported a 9% revenue growth in the fiscal 2025 second quarter, with comparable-store sales rising by 6.8%. E-commerce is a notable growth driver, boasting a remarkable increase of 21%. The company’s earnings per share have increased from $3.92 to $4.02, showcasing its profitability. With a high renewal rate of 93% among U.S. and Canadian members, Costco has a strong foundation for continued growth.

SoFi Analysis
SoFi has demonstrated significant performance improvements, switching from a net income loss of $301 million to a positive net income of $499 million in the 2024 fourth quarter. This represented revenue growth of 27% year over year. The financial services segment is rapidly expanding, with a remarkable 84% increase in sales in the same quarter. Its growing customer base, primarily young professionals, indicates a promising future for SoFi.

Stocks: COST SOFI