NASDAQ:COST

Costco Wholesale Corporation (COST)

951.58
+16.55 (1.77%)
as of Jul 27, 2026, 8:00:00 pm Market Open.
653 watching
0
Investor Insights
star iconJul 27, 2026, 12:00 am

This summary was created by AI, based on 51 opinions in the last 12 months.

Costco Wholesale Corporation (COST) is widely recognized as a strong business, with both customers and employees expressing high satisfaction. Analysts note Costco’s capability for long-term growth through continuous store expansion and a successful membership model. However, concerns about its high price-to-earnings (PE) ratio—ranging from 44x to over 50x—dominate discussions, leading many experts to hesitate regarding its current valuation. While some maintain that Costco represents a buy-and-hold opportunity due to its consistency and business model, others emphasize that the high valuation may limit potential returns. Overall, Costco is viewed as a resilient company, navigating through economic challenges while continuing to please its loyal customer base.

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Consensus
Hold
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Valuation
Overvalued
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Similar
Walmart,WMT
DON'T BUY
Memberships make up a lot of their margins. The chart shows lower highs and lower lows since early 2022. March and April is very seasonal, but not now. No strong seasonal support now.
BUY ON WEAKNESS
It has declined. Has always been an expensive retail stock, but their business model is intact. More people will shop here in an economic decline. Add on pullbacks.
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)
BUY ON WEAKNESS
Well off its all-time high, Costco has quietly fallen to 27x PE 2023, which makes it now reasonable. Trade Costco at $425-430.
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.
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.
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.
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.
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.
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.
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.
DON'T BUY
Great company, but valuation always too high for him. Performed well. September sales were up, probably due to both the company and the consumer. 90% of earnings comes straight from membership fees, a successful model.
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.
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TOP 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.
BUY ON WEAKNESS
Is best in show. The street worries about its margins, but that's wrong. Costco believes in sales growth which he expects to be good. People hate these kinds of stocks now.
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