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Opinions Danesh Rohinton
Costco Wholesale CorporationCOSTWAITJul 25, 2024
Danesh RohintonStock price when the opinion was issued
As of Jun 16, 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
Like an oasis in the consumer desert. Its value proposition is that it's the cheapest scale-buyer, and passes savings along to the consumer. A unit growth story. Trades at almost 50x earnings.
When you think of growth stocks, think of their PEG ratios. This one is definitely on the upper end. Though quality of the business is about as good as it comes, there's a better entry point to be had.
There are 2 or 3 smaller brands that do the same thing, such as Sam's Club. COST used to trade in the 30s, but now it's closer to 50x. So if you own it today, you have to be ready for the 20-30% drawdown on just mean reversion on the multiple.