
NASDAQ:COST
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.
A terrific business providing value for consumers. There's square-footage growth for Costco. There's opportunity here. A little expensive now, but the demand is there, as seen when they recently opened in France. When Amazon bought
Whole Foods, Costco sold off last year, but he thinks Costco is resistent to Amazon.
He has owned this in the past. It defies Amazon and the internet because people love the shopping experience at Costco. Its price keeps rising--this is not a value stock and so it is not for him and his clients, but it is an amazing retailer. This is a stock that someone who likes growth companies can own because it executes its business fabulously. They make their money on the memberships rather than on the margin on the merchandise they sell.
Pretty expensive right now. This segment of US retail doing well. Difficulty is that Costco is defensive, and the multiple is high for that at 32x earnings. Really have to execute every quarter. If you have a positive view on US consumer, look at Couche-Tard or Dollar Tree. (Analysts’ price target is around $212.)
At start of year, dropped in January with rest of market. Has since made new highs. Sideways motion over past 3 years, lot of struggling. Breaking into a new phase again. Use a 30-40-50 day moving average as an exit point, then move on to something else. Have to be cautious with a stock like this. Good fundamentally compared to the industry.