Costco Wholesale
NASDAQ: COSTKey stats
Price chart
About Costco Wholesale
Retail
Company profile
- IPO date
- Dec 5, 1985
- Website
- www.costco.com
Consumer Staples peers
How COST compares to other large companies in the same sector.
| Company | Price | Today | Market cap | P/E |
|---|---|---|---|---|
 WMT Walmart Inc. | $131.45 | -0.76% | $1.04T | 47.86 |
 KO Coca-Cola Company | $80.82 | +0.46% | $347.73B | 25.38 |
 PG Procter & Gamble | $141.57 | -0.80% | $329.66B | 19.84 |
 PEP PepsiCo Inc. | $149.12 | +0.30% | $203.81B | 23.34 |
 MDLZ Mondelez International | $60.44 | -0.87% | $77.58B | 29.67 |
Wall Street analyst ratings
DollarScout analysis
Editorial, not advice. See our methodology.
Bull case
Costco's competitive moat is substantial, built on its membership model that ensures a steady stream of revenue. With over 800 locations globally, Costco has broad geographic reach and a diverse product lineup that appeals to various consumers. The company's ability to negotiate bulk purchases allows it to pass savings onto customers, a significant advantage in competitive pricing. Analysts are showing strong support, with a consensus rating of 'Strong Buy', likely anticipating Costco's continued growth and market capture. Additionally, Costco's relatively low beta of 0.9752 indicates lower volatility compared to the market, making it an attractive investment for those seeking stability in retail. The bullish trend in its stock price reflects investor confidence in its growth trajectory.
Bear case
The P/E ratio of 51.82 suggests that Costco is trading at a premium relative to its earnings, which could be a red flag for value investors. Its dividend yield of 0.6371% is modest, potentially less appealing for income-focused investors. In the highly competitive retail industry, companies like Walmart and Amazon pose significant threats to market share. Economic downturns could impact consumer spending, affecting Costco's sales volumes despite its staple offerings. The reliance on membership renewals can also be a vulnerability; a decline could impact future revenues. Cost structures are heavily influenced by supplier pricing and logistics, further introducing risks of shrinking margins.
Who should buy COST
Costco is a good fit for long-term investors who are comfortable with a higher valuation and are looking for stability and growth in the retail sector. Those with a moderate risk tolerance and at least a 5-10 year horizon could benefit from Costco's market resilience and global expansion efforts.
Key risks
- High P/E ratio indicating overvaluation. - Competitive pressure from larger retail players. - Economic downturn impacting consumer spending. - Dependence on membership renewals for stable revenue streams.
Where to buy COST
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Recent COST news
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'Mad Money' host Jim Cramer reacts to the day's market action.
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