Investors are eyeing Walmart and Costco as tariffs may drive up grocery prices. Both retailers are expected to benefit as consumers seek lower prices. Walmart, the larger of the two, has a market cap of $778 billion, while Costco is at $441 billion. Both have seen stock gains over the years.

Walmart and Costco thrive when inflation hits. Walmart kept grocery price increases to 3% during high inflation, while Costco relies on membership fees for profits. In fiscal 2024, Walmart’s revenue reached $648 billion. Costco reported a 10.4% increase in membership fee income in its third quarter of 2025.

Analysts expect Costco’s earnings per share to increase by 10%. Walmart’s recent second-quarter results were slightly disappointing, with adjusted earnings lower than estimates. Rising grocery prices will affect all U.S. retailers, but Costco’s membership model may give it an advantage. Stock prices track earnings growth.

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Read more at Yahoo Finance: Which of These Discount Retailers Is the Better Investment Choice?