Summer Sale
50% off Premium Yearly
Opinions Chris Blumas
Costco Wholesale CorporationCOSTWAITDec 17, 2025
Chris BlumasStock price when the opinion was issued
As of Jun 15, 2026. Market Open.
You might be interested:
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
If you separate the valuation of COST and the business of COST, there aren't too many businesses that are better. Phenomenal business because it creates so much value for its customers, especially in these times of inflation. As for growth potential, still expanding into new markets, so really good growth profile.
Valuation becomes the sticking point. Trading at 40x PE, too rich for the cashflow. Doesn't think it'll get down to 30x PE, but perhaps 35x. For investment success in any stock, you really need to get earnings growth and multiple expansion. Those are the twin engines of your compounding. If you get earnings growth but it's less than expected, the multiple can contract and your gain is zero. Watch and wait on this one.