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
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

BUY
Safe place to be. Constantly produces high single digit growth. Good balance sheet. They treat their employees well and that counts in the long term. They haven't been Amazoned yet.
COMMENT
As a long-term hold? A great company that keeps producing results. Trades at a high multiple in the retail space. If you own a lot of this in your portfolio, say over 10%, then take some money off the table.
DON'T BUY
A great business model driven by memberships which mostly makes up their $3 billion net profit. A very good company. But it trades at 27x earnings, which has always puzzled him--why so high? This makes COST risky. So, any misstep can be costly.
HOLD
They continue to thrive against Amazon and he likes their business model. Upside in the stock price will depend on the health of consumer spending. A good core holding.
COMMENT
It's done very well, but its valuation is high at 27X forward earnings with an 11% growth rate. Strong same-store sales and membership renewals (at 90%). Their sales are twice as high as their competitors. Long-term, they must have more of an online presence and service to compete. Also, in the future will millennials buy memberships?
DON'T BUY
Doesn't like retail, because where's the advantage coming from? But it would be better than a Nordstrom, for example. What price do you want to pay based on its valuation? What kind of growth are you going to get?
WATCH
It is a great model because of the annual membership fee. There is not a lot of competition with on-line. The time to buy was December. If it checked back a bit he would add it to portfolios.
BUY ON WEAKNESS
Class action lawsuit? He was not aware of any class action lawsuit. He likes the membership revenues as it creates a competitive advantage over Walmart and others. The valuation is always a little to rich for him. He is not sure that expansion to Europe will be wildly successful. He is ambivalent, but would look to buy on weakness -- at better valuation metrics.
WAIT
A great company. The only question is what are you willing to pay for it. For him, it is just too expensive at this price. He would wait for a pull back.
TOP PICK

He just bought it recently. From a sector and size perspective it looks good. (Analysts’ price target is $242.60)

BUY

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.

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