NASDAQ:COST
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Nervous markets await NvidiaThis summary was created by AI, based on 42 opinions in the last 12 months.
Costco Wholesale Corporation (COST-Q) is recognized as a dominant player in the retail sector, boasting a highly effective business model that blends membership income with traditional retail sales. The company's strength is evident through exceptional customer loyalty, with renewal rates exceeding 90%. Despite its impressive performance and consistent revenue growth, experts note that the stock's valuation is quite high, with a P/E ratio around 50x, leading to mixed sentiments about its current investment potential. Many analysts highlight the company's resilience during economic fluctuations, citing its ability to thrive in challenging markets and growth in e-commerce as significant factors for continued success. Overall, while the company is lauded as a fantastic investment with long-term stability, prevalent concerns about its elevated stock price suggest caution for potential investors.
In addition to the 200-day MA, he looks at peaks and troughs. Look at the last low and the last high. The next high hit the previous high, so that's two relatively similar peaks. The stock may be below the 200-day MA (1st rule to sell), but it hasn't dropped below the last trough (2nd rule to sell). As long as it holds above the last trough, you're safe.
Don't go into full panic right now. Hold for now; if it breaks that second rule, then get out.
COST is a large consumer staples name, but it trades at a high valuation of 49X forward earnings. Recently, we have been seeing large-cap names, particularly more stable and defensive names, being sold for higher-growth stocks, which helps to explain why the consumer staples, utilities, and healthcare sectors have been underperforming recently. We continue to like COST for a long-term holding, despite its high valuation, given its subscription model, consistency and execution. It may underperform in a strong bull market, but over a long-period of time, it has performed exceptionally.
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Growth is driven by steady cadence of new-store expansion. Good traffic. About 9% compounded rate of sales growth over the last decade. Earnings have grown ~13%. Always looks expensive compared to peers, but that reflects its enduring, sustainable competitive advantage. Any day that ends in "y" is a good day to buy. Yield is 0.52%.
(Analysts’ price target is $1080.45)Wonderful business, though not a good valuation (and that's the orange flag). PE ratio is in the 40s if not the 50s, lots of growth already priced in. Even 30x PE is probably a bit rich. Fantastic job increasing cashflow per share. If you own it, hold on (again, from Charlie Munger, "do not interrupt compounding unnecessarily").
Managed to combine recurring revenue (membership fees) with traditional retail. Business model is still the best in the retail space. Big push toward lower-cost merchandisers. Second to none in its ability to not only survive, but thrive, in what could be a difficult economic environment. Yield is 0.48%.
(Analysts’ price target is $1063.88)Profitability is improving; expanding due to e-commerce growth, Kirkland signature, and ad revenue. Reputable brand. Opens 25-30 stores a year. Adding footprint in China. Likes the stability and steady growth. Performs well even in uncertain markets. Impressive membership renewal rate over 90%, and that recurring revenue is a major strength. Sales are still growing from both price and traffic increases. Yield is 0.51%.
(Analysts’ price target is $1067.36)Profitability is improving; expanding due to e-commerce growth, Kirkland signature, and ad revenue. Reputable brand. Opens 25-30 stores a year. Adding footprint in China. Likes the stability and steady growth. Performs well even in uncertain markets. Impressive membership renewal rate over 90%, and that recurring revenue is a major strength. Sales are still growing from both price and traffic increases. Yield is 0.51%.
Its stability can weather volatility long term. Expecting 9% EPS growth in both 2025 and 2026. Fundamental score is 9/10.
Costco Wholesale Corporation is a American stock, trading under the symbol COST-Q on the NASDAQ (COST). It is usually referred to as NASDAQ:COST or COST-Q
In the last year, 30 stock analysts published opinions about COST-Q. 16 analysts recommended to BUY the stock. 6 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Costco Wholesale Corporation.
Costco Wholesale Corporation was recommended as a Top Pick by on . Read the latest stock experts ratings for Costco Wholesale Corporation.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
30 stock analysts on Stockchase covered Costco Wholesale Corporation In the last year. It is a trending stock that is worth watching.
On 2025-07-23, Costco Wholesale Corporation (COST-Q) stock closed at a price of $941.19.
Great company, a staple. Pullback lately. Membership renewal has been great, and she's watching that. Ranks 10/10 on fundamentals. She'd buy. Upside potential still 13-14% from here.