Costco Wholesale Corporation(COST) - Stock detail

Costco Wholesale Corporation

US
COST
Costco Wholesale Corporation(Listing date: 12/05/1985)

Costco began operations in Seattle, Washington in 1983. The company is primarily engaged in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom (U.K.), Mexico, Japan, South Korea, Australia, Spain, France, Iceland, and China, and operates a subsidiary in Taiwan, China. The company's philosophy for operating membership warehouses is to provide members with a wide selection of national and private brand products at low prices, generating high sales volume and rapid inventory turnover.

AI Rating

Rating methodology
Latest close (chg%)975.69-0.78%
Buy price
935.00
Target price935.00
Sell price946.00
P/E TTM49.34
P/E52.22
Confidence75%
Risk score70/100
AI Summary
Committee decision based on convergence of extreme valuation (P/E 49.34), bearish technical structure (price below key moving averages, negative MACD), and negative price momentum despite strong earnings. The stock fell 5% on blowout earnings indicating valuation correction, with high probability of testing lower support at $935.

Alpha Score

0-10
  • Trend（Score 0/10）

    No summary available

  • Valuation（Score 2/10）

    Costco's stock appears overvalued based on traditional metrics with a P/E ratio of 49.34 and P/B ratio of 13.01, indicating the market is assigning a significant premium for quality and growth consistency. The current price of $975.69 sits within a reasonable near-term fundamental range of $920-$1050 but closer to the upper half.

  • Financial strength（Score 6/10）
    Costco exhibits strong profitability and asset efficiency with ROE of 30.69% and ROA of 11.02%, but carries moderate financial leverage (Debt-to-Asset Ratio of 62.17%) and tight liquidity (Current Ratio of 1.03, Quick Ratio of 0.55) characteristic of inventory-intensive operations.
  • Profitability（Score 8/10）
    Costco demonstrates consistent and robust profitability with steady revenue growth of 8.17% year-over-year to $275.24B for FY2025 and net income growth of 9.94% to $8.10B. Margins are stable with effective cost control within its low-margin business model.
  • Sentiment（Score 4/10）
    Costco's stock faces short-term pressure due to extreme valuation concerns despite strong operational performance, making it a Hold for existing investors and a candidate for staggered entry for new buyers.
Latest price
$975.69-0.78%
Market cap432.7B
P/E TTM49.34
P/E52.22
Volume1.9M
Turnover1.86B