COSTNASDAQ— Costco Wholesale Corp Price & Analysis

Costco Wholesale Corp

CONSUMER DEFENSIVE — DISCOUNT STORES

$915.74

-$9.67-1.04%

Market Cap: $410.40B; Mega Cap
P/E Ratio: 46.57; Fwd: 41.49
EPS (TTM): $19.87
Div. Yield: 0.58%

Technical Summary

RSI (14)38.07Neutral

SMA (50)$943.57Bearish

SMA (200)$959.19Bearish

MACD-5.9225Bearish

Bollinger$919.46 – $974.92Lower

Stochastic10.60Oversold

Theo Outlook

Costco Wholesale Corp presents a bullish thesis with a $406.1B market cap, trailing P/E of 46.09, forward P/E of 40.82, TTM EPS of $19.87, and 21.5% YoY quarterly revenue growth to $293.6B TTM, supported by strong membership renewal rates and scale advantages in the discount retail sector. The stock trades at a premium valuation reflecting consistent profitability with 3.01% net margins and 29.1% ROE, positioning it for continued outperformance amid resilient consumer spending on essentials. Paragraph 2: Key catalysts include ongoing warehouse expansion, e-commerce growth, and earnings momentum from the May 2026 quarter showing 45.5% YoY EPS growth, alongside new product categories and international market penetration driving revenue per share of $661.29. Paragraph 3: Risks encompass intense competition from Amazon and Walmart, potential regulatory scrutiny on retail pricing practices, and macro headwinds from inflation or recessionary pressures that could slow membership growth; mitigations involve Costco's low-cost model, high customer loyalty, and diversified revenue streams that have historically buffered volatility. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

Analysis generated by HeyTheo AI on Sep 7, 2026.

Company Overview

Costco Wholesale Corporation (doing business as Costco Wholesale and also known simply as Costco) is an American multinational corporation which operates a chain of membership-only (needing a membership to shop there) big-box retail stores. As of 2020, Costco was the fifth largest retailer in the world, and the world's largest retailer of choice and prime beef, organic foods, rotisserie chicken, and wine as of 2016.

Fundamental Snapshot

Revenue: $293.59B
EBITDA: $13.79B
Gross Profit: $37.80B
Operating Margin: 3.7%
Profit Margin: 3.0%
ROE: 29.1%
Book Value: $37.28
Beta: 0.86
52-Wk High: $1,094.80
52-Wk Low: $840.35
Avg Volume: 335.00K
PEG Ratio: 4.56

Frequently Asked Questions

What is Costco's business model?

Costco operates a membership-only warehouse club model requiring annual fees, generating high-volume sales of discounted goods with 3.01% profit margins and $293.6B TTM revenue. This drives recurring income from 443.5M shares outstanding and strong 29.1% ROE.

What are Costco's primary revenue sources?

Revenue primarily comes from merchandise sales across categories like groceries and electronics totaling $293.6B TTM, supplemented by $5.37 annual membership fees per share and ancillary services, with 21.5% YoY quarterly growth.

What are Costco's key competitive advantages?

Costco benefits from massive scale, 0.855 beta for stability, and a loyal membership base yielding 0.58% dividend yield, plus efficient operations reflected in 46.09 trailing P/E and $19.87 EPS that outpace peers.

What are the main risks for Costco investors?

Key risks include retail competition and macro inflation pressures, though mitigated by diversified global operations, 40.82 forward P/E suggesting earnings resilience, and upcoming dividend date of August 7, 2026.

What is Costco's growth outlook?

Analysts target $1,072.20 with strong buy ratings, driven by 21.5% revenue growth, international expansion, and EPS momentum; the stock's 52-week range of $840.35-$1,094.80 supports continued upside from current levels near the 50-day moving average of $943.57.