NASDAQ:COST

Costco Wholesale Corporation (COST)

921.63
+11.29 (1.24%)
as of Oct 1, 2026, 3:38:26 pm Market Open.
656 watching
0
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.
PAST TOP PICK
(A Top Pick Aug 07/20, Up 33%) Every time he sees a press release, they are beating numbers. They are just getting started in China. They take extremely low margins in order to offer customer extremely good value and that is why retention is so high. They also give an element of reopening since they also have gas, food courts and travel. It is a company that has done well no matter what is the macro.
HOLD
He was about to sell this at a big gain, because the buzz on the street is that the economy is so hot that the Fed will raise interest rates sooner than later, so this relatively retail stock will go lower. Mistake! Jay Powell is doing a fine job under tough circumstances and he will not raise rates. The street is wrong about the Fed!
PAST TOP PICK
(A Top Pick Jun 15/20, Up 44%) He admired it for years but never bought it because it was too expensive. He bought it in the meat of the pandemic because it had done nothing and pulled back. It was at a reasonable price and has now done well. Same store sales continue to grow month after month. He would wait for a pull back before buying more.
BUY

COST-Q vs. FB-Q. COST-Q is a great retailer which he used to own. You don't need to be looking for a reason to sell it. FB-Q is still in the early innings of monetizing the electronic advertising market and getting more and more into E commerce. He thinks there is more upside in FB-Q. You can't go wrong either way.

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PAST TOP PICK
(A Top Pick Feb 25/21, Up 21%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with COST has achieved its $405 objective. To remain disciplined, we recommend covering 50% of the position now and trailing up the stop (from $285) to $380. If triggered, this would all but guarantee an net investment return of 17%.
HOLD
Continue to hold it. One of those long-term, secular success stories. Great business model. Revenue stream hinges on adding new stores in a controlled and disciplined manner, which brings in new memberships. Huge cashflow generator, exceptional management. Can continue to build out in NA and globally.
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