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
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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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Walmart,WMT
TOP PICK
If you own this and Amazon, you're covered in retail--online and brick/mortar. Their membership model is genius--customers keeps coming back. As Costco grows, their international footprint expands. (Analysts’ price target is $567.81)
BUY
A Covid winner with staying power It peaked in April then got hit hard on recessionary fears. But that was a buying opportunity and is now coming back. It's ridiculous it was considered a Covid play, because Costco offers great discounts from being in bulk. Fine for a recession.
TOP PICK
Expecting company to benefit from pricing power during inflationary time. Stickiness of membership is very strong element of the company. Strong business model with excellent management. Slowing economy will present opportunity as more customers shop for low priced goods.
HOLD
Likes consumer staples when the economy decelerates. COST is different from WMT and TGT, in that its membership renewal rate is very high. Tightly controlled selection means they can demand lower pricing for volume.
BUY
Sales were up 20% in June and traffic up 10% though trading at a slightly pricey 36x.
TOP PICK
Has picked it before. They boast $225 billion revenues are expected in the US this year; they continue to build that revenue, despite the pandemic. They enjoy strong loyalty; 92% membership renewal rate. Efficient, clean stores encourage high store traffic. They sell a concentrated number of items vs. other retailers. Customers are higher-income. This offers growth and defence. (Analysts’ price target is $557.81)
BUY ON WEAKNESS
Valuation in mid-30s has always been outside his comfort zone. One misstep creates a lot of air beneath it. Great model, as 90% of earnings come from membership fees. He'd buy on a lower multiple. Confidence in long-term leadership.
SELL
Model price of $255, negative 42%. No history of stock splits. Would have to get back to $277 before he'd be even remotely interested. Consumer discretionary will get hurt in a recession. A lot of air will come out. Earnings today after the close.
WATCH
It reports next week. He's watching it closely, but it's a fragmented market with operator working differently. He expects good numbers.
WATCH
75% of their business is recurring membership fees that may rise this summer. A stellar company with a good balance sheet. It's on her list. Trades at 31x and down 27% YTD, so it's getting interesting.
BUY
They get a lot of foot traffic for gas; revenues are sustainable. They could report better next week than expected.
WAIT
Best in class. Not cheap for a value investor. Would be on his radar screen if it came down another 10-15%. Brilliant management, great company.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Feb 25/21, Up 55.3%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with COST has triggered its stop at $520. To remain disciplined we recommend covering the position at this time.
TOP PICK
Dominant name in the mass merchant space. Strong loyalty in both US and Canada, renewal rates of 90%. Clear leader in cost leverage, procurement strength, and store efficiency. Rising fuel costs and inflation make the name more attractive to customers. A bit pricey, but a great name for the valuation. Yield is 0.67%. (Analysts’ price target is $598.17)
BUY ON WEAKNESS
Believes is an excellent company with great execution. 39x trading multiple is hard to justify investment. Would wait to buy on weakness. Good stock to hold on the long term.
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