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
0
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
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.
PAST TOP PICK
(A Top Pick Mar 12/20, Up 33%) It's down slightly for the year, given the reopening rally, but COST will emerge as a post-Covid winner. Memberships provide strong revenue to make up weakness in other parts of their business. Their signature brand, Kirkland, is doing very well. They boast the best traffic growth among retailers. He expects a rise in membership fees that will increase revenues. COST has excelled during the pandemic and will continue. They've done a fine job in e-commerce.
COMMENT
Today, analyst Larry Williams Both deserve to be your in your portfolio.
BUY

Last week, analyst Larry Williams advised buying Walmart and Costco before Easter, because both tend to do well this time of year. the stocks moved up, though remember that these are "essential retailers" so their move up came at the expense of the non-essential stores. We're robbing Peter to pay Paul. Both have been punished recently for being unfashionable lockdown stocks and both deserve to be your in your portfolio.

BUY
A long-term winner. Drives revenue growth year after year. Expects double digit growth going forward. One of his favourites, and he would be comfortable owning it.
WATCH
Great company, has gained market share. Benefitted from Covid. Very strong same store sales for 2020. Probably not repeatable for 2021, so stock's pulled back. Not cheap. Watch and see how it performs as the economy opens. Consumer spending patterns might change.
PARTIAL BUY

If it hits his target price he would love to own them. The Kirkland brand has a captive audience. The stock has come off. You could put a half position on now and wait to see if it drops another 10-15%. They are an excellent company.

BUY ON WEAKNESS
Yesterday, COST reported a mixed quarter despite 15% sales growth. The valuation is ridiculously cheap now, but current market turbulence doesn't matter as investors bail on stocks like this. Costco is good for the long term, though. Keep buying as this falls.
TOP PICK
Benefited from pandemic. Membership fees growth. Signature product continues to grow. Not just a pandemic story. Yield is 0.87%. (Analysts’ price target is $394.13)
BUY ON WEAKNESS
Allan Tong’s Discover Picks Costco boasts a loyal customer base that feels relatively safe shopping in stores, which has been spending on safety measures right from the start of the pandemic. These necessary measures drove up costs, but ensured customer spending while all else was closed. Costco sales rose 17% over the year, and e-commerce sales soared 105%. EPS for Costco stock is $9.74, marking an increase of 18.44% over the past year and landing well beyond its peers. Read Battle of the Stocks: 2021 Consumer Staples Stocks for our full analysis.
WAIT
They report Thursday. Everyone is selling this. It's been clobbered since they paid their $10 special dividend and has had no momentum. A great company he likes, but this always sells off right after a report, so wait before buying.
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