NASDAQ:COST

Costco Wholesale Corporation (COST)

902.38
-0.22 (0.02%)
as of Sep 10, 2026, 8:00:00 pm Market Open.
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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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COMMENT
Best retailer to invest in. He would hold off in investing in any of them right now. Large cap retailers are capturing market share and growing revenues. However, it's not going to last forever and the valuation has climbed up very quickly. Longer-term they are great retail franchises but expensive right now.
TOP PICK
A great all-weather company. Revenue has always remained stable going back 20 years. The stock cannot lose. The value proposition for customers is hard to argue. The gross margin is very low compared to peer groups. Retention rates are at 90%. Their e-commerce segment is also growing at 75%. (Analysts’ price target is $336.46)
WEAK BUY
Sobeys had an 18% increase in earnings even after the extra cost of front line workers. A lot of people are flocking to local supermarkets. As people become more comfortable wearing masks, visits to Costco will become much more meaningful. Longer term this company is effectively a tax on consumption. He prefers other options and would prefer to see this one a little bit cheaper.
TOP PICK
There is more growth coming as people are scared to go to restaurants. They care about their shareholders and there are years and years of growth ahead for their stores. (Analysts’ price target is $319.28)
TOP PICK

A defensive, low-beta name. COST hasn't participated in the current rally, but are a dominant name. Their membership renewal rates rate 90%. Their strategy is to sell high-quality goods at reasonable prices attracts customers. Also, they carry 3,700 items vs. 147,000 items at Walmart, so Costco can leverage their buying power. In a post-pandemic world, retail heavyweights like this will capture more market share. (Analysts’ price target is $319.28)

COMMENT
How does a supply disruption from China effect them? Good question. Costco works on low margins, and makes their money on memberships. So, there are threats here but Costo can adjust as they did during the tariff war. When they open new stores, it drives memberships.
TOP PICK
Great story. Throwing off almost 3.1B of free cash flow, and this continues to grow. Very good recent numbers. Very well run. Thinks about costs very aggressively. House brand has done incredibly well and continues to grow. Will take away market share from the Metros of the world. Yield is 0.93%. (Analysts’ price target is $321.76)
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It's a Monthly Gems opinion which is available only for Stockchase Premium

Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK
Another safe, long-term buy is Costco. Panicked Americans are loading up on toilet paper and paper during this scare--there's other way to describe the sudden reaction to the coronavirus in the U.S. Costco is already a darling of many analysts like Hap Sneddon who sees steady support at $300, though the price target is $308-315. (It's trading on March 6 around $308.) Costco's membership format builds customers loyalty and profits. However, another technical analyst,Javed Mirza, finds support at $280 and $260. The consensus says to buy on a pullback and during current volatility, investors will find that opportunity.
BUY ON WEAKNESS
He used to own it. It's always been a pricey stock, though COST has always found ways to grow. He likes their business model.
TOP PICK
Consumer spending is holding up. A fantastic chart. Their membership format has built up customer loyalty. Lots of room to expand. Good support around $300. When it bases like this, it lets him hang his hat--good. (Analysts’ price target is $308.24)
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It's a Monthly Gems opinion which is available only for Stockchase Premium

Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK
Analyst Norman Levine isn’t a fan of retail stocks, but cheers this wholesale giant. Costco relies on membership fees (making up 90% of revenue), and members keep coming. In fact, the stock’s five-year chart shows a steady climb, with the price doubling over this period and enduring only occasional pullbacks. In the past 12 months, Costco has shot up 45%, reflecting the strength of the American consumer. Unfortunately, its PE has also climbed, to 35x. Javed Mirza expects a 5-10% correction this month, with support at $260 and $280. It now trades right below $290.
BUY ON WEAKNESS
It's had a great run in 2019, but is now poised for a correction of 5-10%. He predicts a general market pullback in January. Support at $260 and $280; the stock will return to these levels. You can take profits now and buyback later. Wait for that correction.
BUY ON WEAKNESS
He is not a fan of retail stocks, but Costco is in a world of its own. They rely on membership fees for profitability and those numbers keep growing. He would look to buy on weakness.
PAST TOP PICK
(A Top Pick Nov 05/18, Up 31%) He’s still bullish on Costco. The chart looks good. It looks expensive but sometimes buying expensive stocks is your best bet.
COMMENT

Likes it, but prefers Dollar General. Valuation worries him at 34x. PEG ratio is 3.5, which is high for him. Future is very solid.

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