NASDAQ:COST

Costco Wholesale Corporation (COST)

921.63
+11.29 (1.24%)
as of Oct 1, 2026, 3:38:26 pm Market Open.
656 watching
0
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.

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.
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