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.

consensus icon
Consensus
Hold
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Valuation
Overvalued
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WMT
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.
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.
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