NASDAQ:COST

Costco Wholesale Corporation (COST)

902.38
-0.22 (0.02%)
as of Sep 10, 2026, 8:00:00 pm Market Open.
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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
More economically sensitive, so when the economy's doing well people spend a bit more money.
BUY ON WEAKNESS
Amazing company. He missed it. Not cheap enough for him to step in. He'd need it to fall another 15%. He'd love to own it. Great demographic. Consistent profitability, great execution.
PAST TOP PICK
(A Top Pick Jun 04/21, Up 24%) A great business model because it keeps bringing customers back, and not buying from them online so much. They endured the pandemic pretty well, but should continue to thrive after Covid.
BUY ON WEAKNESS
Believes company is well run and a great business. Lower stock prices are simply a correction. Strong moat and competitive advantage. Waiting for stock price to come down before will buy stock. Buy on weakness.
BUY
Down 12% in the past month. Sells at 37x PE. It's both both a pandemic and non-pandemic play. It is the best retailer in the world and last reported unbelievable numbers.
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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.
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