Robust Performance | Costco outperforms expectations with strong Q3 results, showcasing resilience in challenging economic conditions and gaining market share across trade categories. |
Digital Transformation | Explore Costco's e-commerce expansion and digital initiatives, including partnerships with platforms like Uber, enhancing its omnichannel presence and future growth potential. |
Membership Strength | Delve into Costco's high renewal rates and steady membership growth, underpinning its unique business model and providing a stable revenue stream. |
Valuation Concerns | Analysts debate Costco's lofty valuation, with price targets ranging from $750 to $875, as the stock trades at a multi-decade high P/E ratio of 54x forward earnings. |
Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories. It offers merchandise, such as sundries, dry groceries, candies, coolers, freezers, deli, liquor, and tobacco; appliances, electronics, health and beauty aids, hardware, lawn and garden, sporting goods, tires, toys and seasonal products, office supplies, automotive care products, postages, tickets, apparel, small appliances, furniture, domestics, housewares, special order kiosks, and jewelry; and meat, produce, service deli, and bakery products. The company also operates gasoline, pharmacies, optical, food courts, hearing-aid centers, and tire installation centers; and offers business delivery, travel, grocery, and various other services online. It also operates e-commerce websites. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.
Metrics to compare | COST | Sector Sector - Average of metrics from a broad group of related Consumer Cyclicals sector companies | Relationship RelationshipCOSTPeersSector | |
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P/E Ratio | 53.5x | 20.1x | 11.6x | |
PEG Ratio | 3.15 | 1.63 | 0.03 | |
Price/Book | 16.7x | 2.7x | 1.5x | |
Price / LTM Sales | 1.5x | 0.4x | 0.9x | |
Upside (Analyst Target) | 6.9% | 30.6% | 18.0% | |
Fair Value Upside | Unlock | 1.5% | 8.9% | Unlock |