Amazon, Costco Outperform Amid E-Commerce Growth

Recent analyses indicate that Amazon and Costco have significantly outperformed the S&P 500 over the past three years, solidifying their positions as leaders in the U.S. e-commerce and retail sectors. Amazon continues to dominate with its broad market share and expanding Prime services, though concerns persist regarding its capital-intensive operations and the timing of profitability from its investments. Costco is also highlighted as a top performer, contributing to the sustained growth in the sector. Meanwhile, companies such as Polaris, Keysight, Graphic Packaging, and NeoGenomics face declining sales, profitability, and present increased risks for investors due to weakening financial metrics. High-valuation firms like Casella and RXO are now noted for potential overvaluation and dilution risks. Overall, while some leading firms are poised for long-term gains, various stocks across sectors exhibit notable risks tied to fundamental weaknesses and valuation concerns.