
NASDAQ:COST
This summary was created by AI, based on 52 opinions in the last 12 months.
Costco Wholesale Corporation has garnered significant acclaim for its strong business model, loyal customer base, and consistent growth prospects. Experts highlight Costco's ability to expand its store count and leverage its membership model to maintain steady revenue streams. However, concerns about the stock's high price-to-earnings (PE) ratio, which many analysts suggest hovers around the mid-40s to 50s, are prevalent. Despite its robust performance and favorable market position, the stock is considered to be overvalued, leading to mixed sentiments among investors regarding entry points and potential pullbacks. Overall, while there is appreciation for Costco's operations, the prevailing valuation remains a frequent topic of discussion, causing some investors to advocate for caution.
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.
Loves it, but prefers the dollar stores. Somewhat recession resilient, though not as much as dollar stores or Walmart. Has done extremely well. Valuation is 35x earnings for 10% growth rate. Concerned about valuation and where we are in the cycle.
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)