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Investor Insights

This summary was created by AI, based on 40 opinions in the last 12 months.

Costco Wholesale Corporation (COST-Q) is recognized as a strong performer in the retail sector, praised for its unique business model centered around membership fees which sustain its profitability. Analysts note the company's consistent growth driven by e-commerce expansion, the popularity of its Kirkland brand, and high membership renewal rates. Despite these strengths, the stock faces concerns regarding its high valuation, trading at significantly elevated price-to-earnings multiples, which some believe limits its attractiveness as a buying opportunity. Additionally, while the company has shown resilience in uncertain markets, there are warnings about potential pullbacks due to market conditions and valuation corrections. Overall, Costco is deemed a solid long-term investment, with a strong market position and growth potential, albeit caution is advised regarding its current price levels.

Consensus
Buy
Valuation
Overvalued
PARTIAL BUY
Are defying Trump's DEI policy

They boast profits and growth, and shares are -12% in the past month, making this a buy. No, it's not rolling over. Buy some now, and buy some next week.

TOP PICK

Profitability is improving; expanding due to e-commerce growth, Kirkland signature, and ad revenue. Reputable brand. Opens 25-30 stores a year. Adding footprint in China. Likes the stability and steady growth. Performs well even in uncertain markets. Impressive membership renewal rate over 90%, and that recurring revenue is a major strength. Sales are still growing from both price and traffic increases. Yield is 0.51%.

(Analysts’ price target is $1067.36)
TOP PICK

Profitability is improving; expanding due to e-commerce growth, Kirkland signature, and ad revenue. Reputable brand. Opens 25-30 stores a year. Adding footprint in China. Likes the stability and steady growth. Performs well even in uncertain markets. Impressive membership renewal rate over 90%, and that recurring revenue is a major strength. Sales are still growing from both price and traffic increases. Yield is 0.51%.

Its stability can weather volatility long term. Expecting 9% EPS growth in both 2025 and 2026. Fundamental score is 9/10.

(Analysts’ price target is $1067.36)
DON'T BUY

A great company based on a fantastic model with nearly all profits covered by membership fees, but trades in the mid-40x PE, which is too high for a retailer, even after this pullback. Great company, but not a great stock.

BUY ON WEAKNESS

They had a terrific quarter, but fell 6% anyway. Is -13% from all-time high of a few weeks ago. But it usually sells off on good quarters, but bounces back, so you must buy it into weakness. Almost always. They reported a revenue beat, but earnings miss. Same-store sales were +6.8%, beating the street. Operating margin barely missed as did EPS. Costco shoppers are still spending, but getting picky about value. Non-food same-store sales growth was around 15%, good. Only one-sixth of their goods come from China, Canada and Mexico, so they are fairly insulated from tariffs; and they can replaced those tariffed items with non-tariffed ones. Shares are hit because it's a high-PE stock and the market is down. Shares now are a buying opportunity.

BUY ON WEAKNESS

It reported excellent numbers last night, but shares still got hammered. Wait till Tuesday when all the sellers will probably be done. It's a major holding of his.

HOLD

High valuation, but paying a premium for a name that has scale and not many competitors. 

BUY

Costco and Walmart offer terrific private label products that appeal to consumer starved for value after products were hiked during Covid. True, private label brands aren't growing much, but they keep all prices--including consumer brands--down. The brands are one reason why  Costco and Walmart keep hitting new highs.

TOP PICK

World's third-largest retailer. Set apart by narrow product offering, lean supply chain, and good procurement clout. High traffic, repeat business, very high retention at 93%. Very strong same-store sales growth, still not a saturated concept. Great sales growth, earnings growth, compound total return. Despite the run, any day that ends in "y" is a good day to buy. Yield is 0.5%.

(Analysts’ price target is $1035.24)
COMMENT
Amazon vs. Costco

Trades at a reasonable valuation. Such a broad company. Their ad business continues to grow and they will remain competitive in data centres (they and Google have the best infrastructure in data centres). Prefers Amazon for its valuation and diversification.

BUY

Is down 7%, but buy it when it does down. Investors worry over its 50x PE, and their special dividend is behind them, so what will move this stock ahead? Well, it's the #1 retailer in the world.

HOLD

The biggest problem is that shares have rallied a lot for a long time and the valuation has climbed too high. Don't buy now, especially considering the weak CAD. You could even take some profits.

PAST TOP PICK
(A Top Pick Aug 07/24, Up 19%)

(Note the short timeframe.)
Chosen on the theme of defensive retailers. Retailers have been mixed since then, but this one's done well. Otherwise, the sector's been steady and showing growth throughout the year.

HOLD
Trim a 14% position?

Well, that's about his position in this name, which he's been holding since ~$300. Now approaching $1000. He trims, but in a minor way. You'd want to wait for a position to top off.

HOLD

Excellent company that continues to dominate. Would recommend holding - no reason to sell. Share price not cheap, but company has earned high valuation. Would wait before investing - but if investing - would recommend holding for the long term. 

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Costco Wholesale Corporation(COST-Q) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 5

Neutral - Hold Signals / Votes : 19

Bearish - Sell Signals / Votes : 19

Total Signals / Votes : 43

Stockchase rating for Costco Wholesale Corporation is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Costco Wholesale Corporation(COST-Q) Frequently Asked Questions

What is Costco Wholesale Corporation stock symbol?

Costco Wholesale Corporation is a American stock, trading under the symbol COST-Q on the NASDAQ (COST). It is usually referred to as NASDAQ:COST or COST-Q

Is Costco Wholesale Corporation a buy or a sell?

In the last year, 43 stock analysts published opinions about COST-Q. 5 analysts recommended to BUY the stock. 19 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Costco Wholesale Corporation.

Is Costco Wholesale Corporation a good investment or a top pick?

Costco Wholesale Corporation was recommended as a Top Pick by on . Read the latest stock experts ratings for Costco Wholesale Corporation.

Why is Costco Wholesale Corporation stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Costco Wholesale Corporation worth watching?

43 stock analysts on Stockchase covered Costco Wholesale Corporation In the last year. It is a trending stock that is worth watching.

What is Costco Wholesale Corporation stock price?

On 2025-04-01, Costco Wholesale Corporation (COST-Q) stock closed at a price of $954.4.