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
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.

DON'T BUY
One of the good reads on the economy at large. Model is interesting, as 90% of revenue comes from membership fees. So they can keep margins tight. Trades at 35x earnings, high multiple, but skinny margins, so he wouldn't buy.
HOLD
One of those companies that never seems to fall in share price. Customers are loyal. They just opened in China. It will continue to create profits and will benefit from their growing online presence. It is never cheap, but it is a great operator.
COMMENT

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.

HOLD
Risk is the valuation, and the landscape changes quickly. Discount retailers have done better, and do better in down market environments. Will continue to do well. Not sure there's anything to be concerned about. Wouldn't have a huge position, but wouldn't be in a rush to sell.
BUY

A great retailer. E-Commerce giants like Amazon and Alibaba are taking market share, but Costco is doing well. Their value proposition is great. Their online is working well. Renewal rates for their subscription is at 90%, so it is a good edge they have.

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