NASDAQ:COST

Costco Wholesale Corporation (COST)

902.38
-0.22 (0.02%)
as of Sep 10, 2026, 8:00:00 pm Market Open.
655 watching
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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
valuation icon
Valuation
Overvalued
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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.

STRONG BUY

What metric did you use to buy this? He bought this in Q4 2008. It wasn't a bargain, but actually went up that year. He bought it because he expected them, as they grew revenues, to eventually get gross margin from merchandise and not only memberships. This took three years to happen and have been making money this way since. They keep growing customers, because they have the lowest mark-ups on Earth. The risk is that Millennials prefer a competitive price vs. the lowest (Amazon) price. Will this switch when they age? COST also owns real estate in wealthy areas, and they run a pristine balance sheet. Workers own a lot of the company stock too. Incredibly managed.

HOLD

Has done very well. Higher highs, higher lows. Keeps pushing above the 200 day MA. Defensive growth name. A bit expensive. Execution online has lagged. Other challenge is attracting millennial traffic. His preference is for Dollar General, but a decent name. Decent dividend of 1%.

HOLD

A fine holding to keep. They have proven their membership and pricing model works and they can even thrive in the digital era -- even against Amazon.

BUY ON WEAKNESS
Its average shopper has one of the highest per capita incomes in the US. He has looked to buy it many times, but it is always a little too expensive in term of multiples.
BUY
Going into the next couple of months, market's missed where the US consumer is right now. Wealth effect is being generated into the next quarters. Thinks consumer numbers will be better, and this will benefit Costco. Expensive, but offers value now.
COMMENT
This is a huge engine that has continued to post strong numbers. They generate a lot of cash. This is a real growth stock. It is difficult to buy this stock at any reasonable valuation. It has never traded below 20X earnings over the last 5 years. It is a very low margin and is all about turnover. They generate about 25% of their revenues from membership fees. The business executes well.
HOLD
One of the few retailers battling against Amazon, due to their loyal customers. They make all their money on memberships -- making only 17% margin on products sold. He likes their business model and expects them to do well even during a prolonged Chinese trade war.
COMMENT
This has hit a new 52 week high. Franchise is fantastic. They make a lot of money off their memberships. It is an expensive stock and has about a 10% growth rate. He prefers more defensive areas such as Dollar Stores. He does like Costco though
HOLD
He is not huge into staples right now. They announced a $4 billion share buyback. Earnings are trending higher. There are others in the space that offer better value for investors. They do things well and will continue to do well. If you are in the space, you should own this.
BUY ON WEAKNESS

A struggle--a retailer competing against Amazon yet thriving through quality merchandise. But COST needs a better entry price. Brilliantly run company

Showing 271 to 285 of 425 entries