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
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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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 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.
DON'T BUY

Sell Costco to buy DLTR? Costco is very well run, but their challenge is always growth. And their forward PE is 35x, which is high. Whereas DLTR trades at 17x, driven by growth and expansion. Long-term, DLTR has earnings growth and multiple expansion and a better total return over 5-7 years than Costco.

TOP PICK

Biggest advantage is in the membership structure. Membership revenue is a big part of their revenues. Comparable to Amazon Prime customers. Very large average customer basket when they leave the store. Growing online footprint. Increasingly will be able to sell furniture and appliances. International growth prospects like in China. 34x PE multiple. Not cheap but good capital allocators with growth. (Analysts’ price target is $405.73)

PAST TOP PICK
(A Top Pick Aug 07/20, Up 15%) Great company. Great value for consumers. Membership fees subsidize cost of goods. Takes a low growth margin to provide great prices to consumers. 90% membership renewal rate. Well positioned going forward. Long-term hold. Consumer staple + cyclical exposure.
WAIT
They report Thursday. Don't buy until you read the numbers. The shares tend to run up before quarters, then sell off immediately.
DON'T BUY

A wonderful place to shop. Relative to earnings, Target or TJ Maxx is more of a bargain than Costco right now with higher growth. The company is great but would suggest others in the retail space.

WAIT
Making a nice move here. Seasonality starts late May. Just because it's run up, doesn't mean you can't do the trade. Costco is in the right place, right time. He'd wait a bit closer to May 26 to step in.
BUY
They're bringing back free samples. Comps vs. last year were spectacular. They continue to open news stories and invest in safety. What's not to like?
BUY
They delivered 17% sales growth, with food, liquor, fresh food and other categories way up. Will consumers continue to stuff their pantries? Yes. Wall Street missed the fact that CST is the last man standing, that smaller peers have closed during the pandemic so there's less competition now. Also, strong membership sign-up numbers helped. Great managers. COST is still growing like crazy, and it's still building its e-commerce operation.
PAST TOP PICK
(A Top Pick Jun 09/20, Up 21%) Performed well during the pandemic, fell off with the rotation to cyclicals, and now rebounding. Long-term, a great company. Leader in efficient real estate use. Trades at a premium 35x earnings, with a 10% growth rate. A premium name.
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