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%)999.89+1.28%
Buy price
1035.00
Target price1135.00
Sell price970.00
P/E TTM51.89
P/E52.22
Confidence70%
Risk score65/100
AI Summary
Hold existing positions but do not initiate new buys due to extreme valuation (P/E 51.23) conflicting with exceptional business quality. Use defined price range ($970-$1,020) for risk management, with triggers at $970 (sell) and $1,035 (buy) to resolve uncertainty.

Alpha Score

0-10
  • Trend（Score 4/10）

    COST is in a conflicted post-peak consolidation phase with a positive medium-term trend structure but bearish short-term indicators, favoring a Hold stance for existing shareholders and waiting for clearer signals for new buyers.

  • Valuation（Score 2/10）

    Costco's stock is substantially overvalued based on traditional earnings-based metrics, trading at a P/E of 51.23 and a P/B of 13.65, which are very high multiples. The current price of $999.89 is above even optimistic fair value estimates derived from a 40x P/E multiple.

  • Financial strength（Score 6/10）
    The company's financial health shows a mixed picture with tight liquidity ratios typical for a retailer but strong profitability and cash flow generation providing a buffer, along with a moderate level of financial leverage.
  • Profitability（Score 9/10）
    Costco demonstrates exceptionally strong and consistent profitability with high returns on equity and assets, steady revenue growth, and stable profit margins intrinsic to its low-price, high-volume business model.
  • Sentiment（Score 8/10）
    Costco's 13.1% dividend increase, strong March sales, positive analyst revisions, and strategic operational investments create a bullish narrative supporting a favorable outlook for the stock.
Latest price
$999.89+1.28%
Market cap443.6B
P/E TTM51.89
P/E52.22
Volume2.34M
Turnover2.33B