NASDAQ:COST
Costco Wholesale Corporation (COST)
961.10
-0.75 (0.08%)
as of Aug 14, 2026, 8:00:00 pm Market Open.
655 watching
Financials 
Technical Analysis 0
Investor Insights
Aug 16, 2026, 12:00 amThis summary was created by AI, based on 52 opinions in the last 12 months.
Costco Wholesale Corporation has garnered significant acclaim for its strong business model, loyal customer base, and consistent growth prospects. Experts highlight Costco's ability to expand its store count and leverage its membership model to maintain steady revenue streams. However, concerns about the stock's high price-to-earnings (PE) ratio, which many analysts suggest hovers around the mid-40s to 50s, are prevalent. Despite its robust performance and favorable market position, the stock is considered to be overvalued, leading to mixed sentiments among investors regarding entry points and potential pullbacks. Overall, while there is appreciation for Costco's operations, the prevailing valuation remains a frequent topic of discussion, causing some investors to advocate for caution.
Consensus
Bullish
Valuation
Overvalued
Similar
Walmart, WMT
BUY
TOP PICK
A durable business that can come out of the slowdown even stronger. Business as usual. Pandemic results are over, but the new members are not going away. Increasing membership fees to match inflation. Balance sheet now ready for another special dividend. Expects it to open 20-30 stores a year for the next decade. Under-penetrated outside NA. People love going there. Groceries are defensive if the economy is slowing. Yield is 0.79%. (Analysts’ price target is $547.86)
Barry SchwartzOwned
department stores
BUY
Allan Tong’s Discover Picks COST stock trades at 36.76x earnings, roughly where it stood on the eve of the pandemic in mid-February 2020. Since then, the PE has dipped to 32-33x, but rode the 48x level a year ago and last winter. In other words, the PE has done a round trip and is back at historic norms within range of a stable stock. Read Steady Eddys: 3 Stable Stocks for our full analysis.
department stores
BUY
Lululemon vs. Costco LULU was overestimated vs. Costo being underestimated. LULu shares were killed today after earnings. There have been constant price target hikes for LULU. Today, Lulu saw strong growth in the US and China. Men's sales are gaining speed. BUT it trades at 38x earnings. Investors expected a flawless quarter, but wasn't. There was a little more inventory than expected, and U.S. sales were a tad light. Main problem is that LULU shares shot up before the quarter, so the market mercilessly sold today. It plunged 12.85% today and will likely sell off another day. Wait to see if selling abates on Tuesday. Costco is the total opposite. It has fallen 15% from its August high. They just delivered a good quarter and met expectations, and will pay a special dividend. Owns a big position in Costco. They provide the best merchandise at the lowest price, and they don't overexpand.
department stores
BUY
Believes stock is very good and owns shares in the company.
Shares recently selling of created a good buying opportunity.
Have outperformed the market over the long term.
Very strong business model with excellent prospects.
Brianne GardnerOwned
department stores
BUY
They have buying power and so can offer products lower than most retailers. Instead of issuing price increases on their products, COST aims for volume growth. The membership fees offset weaker product margins. They reported last month 6% same-store sales growth, which is terrific compared to other retailers.
department stores
BUY ON WEAKNESS
Company is a great business with excellent prospects.
Current share price is very high.
Will wait for shares to fall before investing.
Able to pass on costs to customers via membership.
Jamie Murray No
department stores
BUY ON WEAKNESS
Company is a great business with excellent prospects.
Current share price is very high.
Will wait for shares to fall before investing.
Able to pass on costs to customers via membership.
Jamie Murray No
department stores
HOLD
Has held up well during the downturn. Pay a premium for it. Lots of loyalty. Very efficient for square footage. Well run. May not perform as well in the early part of the cycle.
Stan WongOwned
department stores
BUY
It reports its September sales today. She is less concerned about Costco among the retailers. Consumers switched to Costco during Covid, and Costco has not seen losses since that. They are disciplined in adding new stores. Her biggest concern in retail Best Buy. which she bought early this year. BB managers are good at dealing with tech issues like inventory. She's not excited about consumer discretionary, which faces serious headwinds. Too much inventory is the #1 challenge in all retail.
department stores
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Premium contentTOP PICK
Costco Wholesale Corp. engages in the operation of membership warehouses. Its product categories include food and sundries, hardlines, fresh foods, softlines, and ancillary. It operates through the following segments: Unites States Operations, Canadian Operations, and Other International Operations. The company was founded by James D. Sinegal and Jeffrey H. Brotman in 1983 and is headquartered in Issaquah, WA. Social media mentions are up 600% in the past 24h.
department stores
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Remains above its 200-day moving average. Strong customer renewal rate. Pays only a 1% dividend, but great at selling a limited number of products. Customers buy bulk items. It's the only staples stock he owns, but likes this for its growth.