NASDAQ:COST

Costco Wholesale Corporation (COST)

951.58
+16.55 (1.77%)
as of Jul 27, 2026, 8:00:00 pm Market Open.
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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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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 47.8%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with COST is progressing well. We now recommend trailing up the stop (from $380) to $470
HOLD
If a long term investor, hold the stock. Believes company is the best retailer in North America. Valuations may swing up and down, but good to keep owning the stock. Company money is made from membership dues, not from product sales (low margins).
COMMENT
Zero chance that company will compete with Amazon. Valuation is high, but still owns the company. Excessive trading multiples are justified. If you own the stock, stick with it.
BUY ON WEAKNESS
Costco is exceptional business. Valuation relative to peers stands out (higher). Membership basis is very sticky. Prefers Dollar Tree over Costco. Wait to buy on market weakness.
PARTIAL BUY
Always looks expensive, as do all well run and successful companies. Just keeps appreciating in value, subject to the occasional whim of the markets. Great free cashflow generator, good balance sheet, habit of special dividends. Scale into it on dips. Lots of room to run for the long haul.
BUY
The brilliant Charlie Munger praised this recently. Customers trust Costco which has enormous pricing power--it can raise membership prices, but chooses not to in order to please loyal customers. That membership fee is a huge bargain. Munger thinks it's futile to compete with them, and they could rival Amazon online. They narrowly missed their recent quarter, so some Wall Streeters overreacted and sold. Definitely buy this. Long beyond the short term and look long.
BUY
Year-end seasonal trades Travel names and Costco will rally. People are planning vacation 6-9 months out in airplanes and hotels. For cyclicals, but banks if you think interest rates will rise.
HOLD
Beneficiary of the pandemic. Global expansion ahead of it. Solid company to hold for the long-term.
BUY
WMT-N vs. COST-Q. He likes both names. COST-Q has outperformed WMT-N this year. There will be continuing pressure from wages. He likes both going into 2022 and for 2023. He would lean toward COST-Q at this point.
BUY ON WEAKNESS
A phenomenal business, lumped into retail, but they're really a membership business. Their profit and cash flow come from membership and people stay members. An exceptional business model that offers consumers tons of value. His only concern is the high valuation, north of 35x earnings. You won't buy this dirt cheap, but wait for a pullback. He wishes he had bought this earlier. Costco can adopt to current supply constraints; they are efficient and resourceful.
BUY

It's up 23% YTD. They just announced revenue and EPS beats. They're are expanding globally. Input pricing pressure did not spread to consumers, thankfully. A must- own in the big-box retail space. Costco saw upgrades today.

BUY
Big fan. Remarkable run since February. Great company. Doesn't have big swings. Great executor. If economy accelerates a bit, may be a great source of cash. Next reporting will be interesting. He continues to buy.
BUY ON WEAKNESS
It reports Thursday. He doesn't expect good things. True, the stock has been rallying up in a straight line, but the clueless always expect an upside surprise, then sell it when numbers are merely in-line. A great company. He expects the clueless to sell it.
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