NASDAQ:COST

Costco Wholesale Corporation (COST)

902.38
-0.22 (0.02%)
as of Sep 10, 2026, 8:00:00 pm Market Open.
655 watching
0
Investor Insights
star iconSep 10, 2026, 12:00 am

This summary was created by AI, based on 48 opinions in the last 12 months.

Costco Wholesale Corporation (COST) is widely regarded by experts as one of the best retailers globally, primarily due to its strong business model, consistent growth, and loyal customer base. Many analysts appreciate its recurring membership fees and the impressive ~92% retention rate, alongside its procurement power leading to solid gross margins. However, there is a consensus that the stock is trading at historically high valuation multiples, often cited in the range of 44x to 53x PE, raising concerns about its sustainability amid a potentially slowing growth trajectory. Analysts generally recommend buying on pullbacks, as they expect long-term growth despite current high valuations. The key takeaway is that while Costco is an exceptional company, prospective investors should be cautious of the lofty price and ensure they are buying at opportune levels.

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Consensus
Hold
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Valuation
Overvalued
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WMT
BUY ON WEAKNESS

He doesn't consider them big-box retail, because they have a unique brand. Can't see more competition coming besides Walmart. He'd loved to buy it when the PE declines, like to 25x. Incredible management.

HOLD
Missed on revenues and same-store sales

SS sales are still up 5%, but they missed on large discretionary items which is consistent with Walmart. Member renewal rates are still over 90% globally though. Management's execution commands a premium multiple.

RISKY

It reports Thursday. It has a bad habit of declining on any news, even good, and it will be worse because we're in a retail bear market. Strong stomachs can buy this if shares fall after the quarter.

DON'T BUY

Great company, but has always been expensive with a multiple in the low-mid 30s. Membership fees haven't been raised, and they don't want to shock the consumer during weak economic times. 

BUY

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.

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.
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