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Investor Insights

This summary was created by AI, based on 37 opinions in the last 12 months.

Costco Wholesale Corporation, with its membership warehouse model and strong brand loyalty, continues to show strong revenue growth and solid performance. Experts are generally bullish on the long-term potential for the company, citing factors such as stable business, strong management, and a loyal customer base. However, there are concerns about high valuation and stretched PE ratio, indicating that the stock may be expensive. Overall, Costco is seen as a strong long-term investment despite its high valuation.

Consensus
Bullish
Valuation
Overvalued
BUY
Stock split on the horizon?

Doesn't know if they're going to split, and it's not important to him. Valuation expensive, but worth paying up for (see his upcoming podcast on Monday for why). Everything they do is to improve the business long term -- cares about employees, tries to add value for members, great balance sheet.

Best retail business in the world bar none. 10K Walmarts globally, but fewer than 900 Costco stores and they're all busy. Goal is to open 20-30 new stores a year for multi-decades. Business model is very certain. Doing everything right.

department stores
BUY ON WEAKNESS

Great performer, hitting all-time highs, continues to like it. Combination of steady earnings with good secular growth. No meaningful competition. Charts don't get better than this, a series of higher highs and higher lows for the last couple of years. 200-day MA trending higher, and price is above that. Overbought at 77 RSI, so not buying for new clients.

Earnings are pretty steady. 10% growth rate, decent. Member loyalty is astounding, price has been increased slowly over time. Pricing power is so powerful because they have fewer different items, but in higher volumes.

(Analysts’ price target is $835.00)
department stores
TOP PICK

Great business model. Wide moat. Lots of potential in foreign markets. Could come back to the $600 level. Everyone should own some at some point. Yield is 0.6%.

(Analysts’ price target is $787.13)
department stores
BUY

It reports Thursday. He owns a big position and expects an excellent quarter. Wait because this stock tends to decline after it reports, then rallies several days later.

department stores
BUY

Excellent business. One of the top ten positions in portfolio. Stock price very high. Consumer discretionary spending down, but company offers compelling value. Many shoppers shifting spending trends to Costco with rising interest rates. Business has very strong business model. Would recommend holding for the long term. 

department stores
DON'T BUY

Fabulous company and great investment. Always too rich for him, trading in mid-30s. It would have been an uncomfortable ride for him, as it's a retailer with all that air underneath its lofty multiple. Unique business model.

department stores
BUY

A blue chip stock.

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PAST TOP PICK
(A Top Pick Jan 04/23, Up 61%)

Shares ran up too far. Their business plan is simple: likely open 30 stores a year given insane demand. They just opened one in Shenzen, China. Are only 870 Costco stores vs. 10,000 Walmarts, so there's room to grow. PE isn't cheap, but 10 years from now you will be happy owning this.

department stores
COMMENT

It is a stable company which makes its money on volume and membership fees. The Kirkland brand itself generates a huge amount of revenue. However its valuation is quite stretched at 45X earnings.

department stores
PARTIAL SELL

She trimmed it before it declined last week after earnings. Really likes it, but Costco is expensive now.

department stores
PARTIAL BUY

Shares are down 7% after a mixed quarter after a slight miss on the top and a beat on the bottom; some softness in discretionary spending which is a little concerning. The street was expecting better from membership numbers. They have runway ahead and remain the best big-box retailer.

department stores
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS of $3.92 beat estimates of $3.62; revenue of $58.44B missed estimates by 1%. Costco's same-store sales growth remains solid as consumers continue to appreciate value. In-store traffic is the main driver, outpacing gains in average transaction size, a trend likely to persist in fiscal 3Q. Strength in food and sundries is a bright spot, though discretionary spending on some big-ticket items is slowly improving. This is helping drive e-commerce revenue gains, which skew to higher-priced items. Improvements to the mobile app and better advertising campaigns are also aiding digital-sales growth. Inflation is moderating in some categories, letting the company lower prices and reinforce its value proposition, helping to drive robust membership-renewal rates. Merchandise gross margin may slightly expand in 3Q on lower supply-chain related costs. The stock dropped on concern on lower margins, and lack of near-term catalysts, but a planned membership price hike (being considered) may change this. But nothing in the release gives us any real concern, though the stock does remain premium priced. 
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department stores
WATCH

Retail advantage: low prices due to its club membership model. They report tomorrow. Also, they have such scale, they can collect massive data and harness that data using AI to better predict their business.

department stores
BUY ON WEAKNESS

Excellent business, but valuation of stock price is high. Amazing management of business with own processes that keep prices low for customers. Is excellent for long term holders to buy (5+ years). Membership fee allows company to weather ups and downs of retail. 

department stores
COMMENT

New managers in early March will focus on raising digital sales, which are only 7% of overall now. COST is a permanent compounder.

department stores
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Costco Wholesale Corporation(COST-Q) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 28

Neutral - Hold Signals / Votes : 2

Bearish - Sell Signals / Votes : 3

Total Signals / Votes : 33

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, 33 stock analysts published opinions about COST-Q. 28 analysts recommended to BUY the stock. 3 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?

33 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 2024-06-13, Costco Wholesale Corporation (COST-Q) stock closed at a price of $845.81.