
NASDAQ:COST
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.
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.
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.