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