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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Similar
Walmart,WMT
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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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly COST is a company worth holding during periods of market uncertainty. Recently reported sales were up over 17% over the year and e-commerce sales were up over 105%. It is estimated the company added over $4 billion to its cash position over the year. It pays a small dividend, backed by a 28% payout ratio, but there are often special dividends offered. We would buy this with a stop loss at $285, looking to achieve $405 -- upside potential of about 20%. Yield 0.83% (Analysts’ price target is $400.37)
HOLD

Consumer staple names have fallen off, with trades into cyclicals. Tough to own WMT given the valuation relative to what the growth rates are. You're paying 24x PE for 5-6% growth rate, a bit pricey. Prefers Costco in this space; not cheap, but growth rate is better. COST is doing things well in the e-commerce space.

HOLD
In the next 6 months as rates edge higher, Costo may get lost in the shuffle and go sideways. COST is a consumer staple with high growth expectations, a great company. You'll make money 3-5 years out, but earnings have to catch up to the stock price after COST rallied last year at a high valuation. COST is a market leader and he likes it. Stick with it if you're long term, but a trader may want to move out of this and enter, say, a Canadian bank.
BUY ON WEAKNESS

E-commerce will continue to be a trend this year with Covid; it's here to stay. This will be the year of Walmart and Costco, both of which were crushed today, but that means a buying opportunity.

PARTIAL SELL

He ranks Walmart ahead of Costco, since Walmart is reinventing themselves in e-commerce and healthcare. Has greatly benefitted a lot ffrom the lockdown, but that tailwind won't repeat in 2021. Valuation is now high, in the 30s. Take some profits here and hold onto the rest.

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