Stockchase Opinions

Brianne Gardner Costco Wholesale Corporation COST-Q TOP PICK Mar 19, 2025

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)
$904.050

Stock price when the opinion was issued

department stores
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

You might be interested:

BUY

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. 

BUY

Great stock. Incredible compounder of shareholder value over 4 decades. Recurring revenue from memberships, narrow assortment, and sharp pricing. Always looks expensive, but any day that ends in "y" is a good day to buy.

DON'T BUY

Great operation. Steady membership and store buildout growth. Very expensive; 45-47x PE last time he checked. Too high of a bar for him as a value investor. Risks of supply chains, labour, inventory, tariffs. 

TOP PICK

The PE is high, they can add 20-30 stores a year for 20-30 years. A huge runway worldwide. They do all they can for employees and shareholders. One of the best businesses in the world.

(Analysts’ price target is $1071.56)
TOP PICK

The PE is high, they can add 20-30 stores a year for 20-30 years. A huge runway worldwide. They do all they can for employees and shareholders. One of the best businesses in the world.

(Analysts’ price target is $1071.56)
TOP PICK

The PE is high, they can add 20-30 stores a year for 20-30 years. A huge runway worldwide. They do all they can for employees and shareholders. One of the best businesses in the world.

(Analysts’ price target is $1071.56)
TOP PICK

The PE is high, they can add 20-30 stores a year for 20-30 years. A huge runway worldwide. They do all they can for employees and shareholders. One of the best businesses in the world.

(Analysts’ price target is $1071.56)
TOP PICK

The PE is high, they can add 20-30 stores a year for 20-30 years. A huge runway worldwide. They do all they can for employees and shareholders. One of the best businesses in the world.

(Analysts’ price target is $1071.56)
WAIT

Has maintained a premium valuation for a long time. If you're a growth investor, you could buy this one, but he's not wild about the valuation. Wait for a market correction.

DON'T BUY

Likes the company, but has never owned the stock. It's always been screened out because of valuation. Trading today at 53x PE on this year's earnings. Great business model, and the street recognizes that.

You have to look at these companies in terms of what can go wrong. If you go into a sustained, negative economic period, there's going to be a lot of hurt on a company like this.