Research

Costco delivered double-digit revenue and EPS growth, but margins and quarterly cash flow did not improve. The business remains exceptional; the valuation still leaves little room for error.

Aetna’s margin recovery lifted profit and full-year guidance. At $95.29, however, CVS already discounts much of the repair while medical costs and leverage keep the thesis conditional.

GameStop’s sales contracted sharply, but operating margin tripled from a year ago and EPS rose 64.5%. The unresolved issue is whether those margins can survive continued revenue erosion.

Home Depot delivered double-digit sales growth, but EPS rose only 4.1% as operating margin contracted. At $305.69, the shares already reflect much of the recovery.

GameStop’s retail turnaround is real, but its eBay stake, Bitcoin exposure and dilution now drive the outcome. A $17.50 base value leaves no clear margin of safety.

Lowe’s delivered a clear sales rebound, but none of the growth reached per-share earnings. At $196.59, the stock already reflects a balanced recovery case.

Lowe’s returned to meaningful sales growth, but EPS stayed flat as margins and free cash flow declined. The mixed quarter leaves our $195 fair value unchanged.

Revenue, EPS and pre-tax margin all improved in Q2 FY2026. That strengthens the earnings case, but $39.86 billion of debt limits how much multiple expansion the shares deserve.