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Opinions Kash Pashootan
Costco Wholesale CorporationCOSTCOMMENTMar 14, 2017
Stock price when the opinion was issued
As of Jun 11, 2026. Market Open.
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High valuation but is growing double digits, which it should do so for years. They have the lowest prices of products compared to peers. A lot of room to expand location. A great business model. He will hold this forever.
Barry Schwartz
A buy-and-hold forever. Omnichannel retailer, as it's increasingly seeing acceleration in e-commerce and delivery channels.
Brian MaddenHe wrote an in-the-money call at $985. It was trading over $1,000 yesterday down to $950 today. He covered half the position and just closed it out at $5. He netted a $22 profit. Earnings were good, as expected. You can add to it at these levels, despite the high PE.
Kevin Simpson
Both great companies, but both very expensive. COST is over 50x PE, and WMT's in the 40s. Fairly low-margin model. Reliant on the consumer, and everyone's affected when that consumer is struggling.
WMT reported today. Earnings were OK, but projections on future quarters were tough. High fuel prices were highlighted.
No valuation concerns, as it's been expensive every day he's looked at it over 30 years. Compounded shareholder total return of 17.5% since its IPO. Third-largest retailer in the world. Procurement clout and supply-chain efficiencies produce gross margins of 11%. Still expanding store count. Periodically increases membership fees. Superior same-store sales performance driven by traffic and basket size.
Lots of ways to win. Yield is 0.59%.
Brian MaddenThe only consumer staples he owns are COST and KO, which are still growing.
Barry Schwartz
A good name to hold in consumer staples when people panic about market volatility, recession, or the like. Defensive plus steady growth. Runup since January, now trending sideways. Business model is what makes it stand out.
Sees ~11-12% upside from here. Of course, that could change. Ranks 10/10 for her.
Brianne Gardner
One of the leaders in the low-cost space. Their margins run at about half of what their competitors do. That model only works if there is high turnover of your products. They have been successful in picking the right products, pricing them and moving them very quickly. The risk is, if you do get into a slowdown, there really isn’t any room to cut prices. They generate about 25% of revenue from membership fees, and with so many members, it is difficult to grow revenue. Membership fees are going up, which is a way to have that side of the business stay strong. Trading at about 29X Price to Earnings. For him, the dividend trajectory growth is not there, and trades too rich for him. Dividend yield of 1.1%.