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
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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

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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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.
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