Costco Wholesale Corporation COST
Composite 45/100; the shares have moved about 21% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Valuation ranks 20/100 — a strong mark against it.
Growth ranks 60/100 — a slight point in its favour. Quality ranks 57/100 — a slight point in its favour. Balance-sheet strength ranks 54/100 — a slight point in its favour.
Valuation ranks 20/100 — a strong mark against it. Momentum ranks 34/100 — a moderate mark against it. Income ranks 39/100 — a slight mark against it.
What the company does Costco Wholesale operates membership warehouses globally, offering a mix of groceries, sundries, hardlines, softlines, fresh foods, and ancillary services like gasoline, pharmacies, and e-commerce. Its business model emphasizes bulk sales, low margins, and high membership fees, driving strong cash flow and customer loyalty.
Key financials Costco reports robust profitability with ROE 29.1%, ROA 8.7%, and net margin 3.0%. Revenue and EPS growth are 21.5% and 45.5%, respectively, reflecting operational leverage. Gross margin is 12.9%, while operating margin is 3.7%. Debt/equity stands at 0.60, with net debt/EBITDA at -0.07, indicating minimal leverage.
Stock health The stock shows mixed technicals: 3m -7.18%, 6m -3.38%, and 12m -0.83%, with RSI(14) at 47.70. It is -13.95% below its 52-week high, suggesting some near-term weakness. Sideravia’s overall score is 48.0 (Average quality, richly valued), with valuation at the 19.8th percentile.
Price vs fair value COST trades at a **discount of 14.30%** to the analyst mean target of 1076.91. - Costco expands GLP-1 weight-loss prescription offerings (Simply Wall St.) - Gasoline price strategy remains a key customer draw (Moneywise) - Recent tariff refund headlines may shift retail dynamics (24/7 Wall St., Moneywise) - Competitive pressure from peers like Walmart noted (Motley Fool)
Looking forward Forward P/E is 42.73 and PEG 3.15, implying high expectations for future growth. Analysts likely price in continued membership strength and ancillary revenue expansion, though valuation remains rich relative to historical averages.
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Data as of 2026-09-04, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.