Market Cap: 410.688B; Mega Cap
P/E Ratio: 46.72; Fwd: 40.98
EPS (TTM): $19.82
Div. Yield: 0.58%

COSTNASDAQ— Costco Wholesale Corp Price & Analysis

Costco Wholesale Corp

CONSUMER DEFENSIVE — DISCOUNT STORES

$935.03

+$8.97+0.97%

Market Cap: 410.688B; Mega Cap
P/E Ratio: 46.72; Fwd: 40.98
EPS (TTM): $19.82
Div. Yield: 0.58%

Technical Summary

RSI (14)46.56Neutral

SMA (50)$969.75Bearish

SMA (200)$955.49Bearish

MACD-9.6200Bullish

Bollinger$909.13 – $960.44Mid

Stochastic36.02Neutral

Theo Outlook

Costco Wholesale (COST) presents a bullish thesis supported by its $417.26B market capitalization, trailing P/E of 47.4, TTM EPS of $19.85, and robust 21.5% year-over-year quarterly revenue growth to $293.59B. The premium valuation reflects strong membership-driven margins and consistent earnings momentum in the discount retail sector. Investors are paying for proven scalability in a high-volume, low-margin model that continues to deliver above-peer profitability.

Key catalysts include ongoing warehouse expansion, e-commerce integration, and sustained membership fee growth, with quarterly revenue momentum accelerating to 21.5% YoY. Recent earnings transcripts highlight strength in private-label goods and international markets, while analyst consensus targets $1,077 per share with 22 buy/strong-buy ratings. Operating margin of 3.67% and return on equity of 29.1% underscore operational efficiency driving further expansion.

Risks center on elevated competition from Amazon and Walmart, potential regulatory scrutiny on membership pricing, and macro headwinds from consumer spending slowdowns amid inflation. Mitigation comes from Costco's sticky membership base (renewal rates >90%), diversified revenue streams, and conservative balance sheet with low leverage. The 0.57% dividend yield and August 7, 2026 ex-dividend date provide income stability during volatility. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

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: 293.587B
EBITDA: 13.79B
Gross Profit: 37.802B
Operating Margin: 3.7%
Profit Margin: 3.0%
ROE: 29.1%
Book Value: $37.28
Beta: 0.872
52-Wk High: $1.0948K
52-Wk Low: $840.35
Avg Volume: 1.5712M
PEG Ratio: 4.499

Frequently Asked Questions

What is Costco's business model?

Costco operates a membership-only warehouse club model requiring annual fees for access to bulk discounted goods. With 443.48M shares outstanding and $293.59B TTM revenue, the model generates high-volume sales at low margins plus recurring membership income.

What are Costco's primary revenue sources?

Revenue comes mainly from merchandise sales ($293.59B TTM) across groceries, electronics, and private-label items, supplemented by membership fees. The 21.5% YoY quarterly revenue growth and 3.67% operating margin highlight the scale of its discount retail operations.

What competitive advantages does Costco have?

Costco's advantages include its massive $417.26B market cap scale, 29.1% return on equity, and loyal membership base driving 21.5% revenue growth. High barriers from warehouse economics and exclusive deals differentiate it from competitors like Walmart.

What are the key risks for Costco investors?

Key risks include intense competition, regulatory pressures on pricing, and macro consumer weakness. The 47.4 P/E ratio reflects growth expectations, but a slowdown could pressure the stock; mitigation lies in its 0.57% dividend yield and strong balance sheet.

What is Costco's growth outlook?

Analysts project continued expansion with a $1,077 target price and 22 buy ratings. Growth drivers include new warehouses, e-commerce, and international markets, supported by 21.5% revenue growth and $19.85 EPS, with next earnings around the August 2026 period.

Trading Data

Open: $925.01
Previous Close: $926.06
Day Range: $921.28 – $936.66
Volume: 1.5721M
Shares Outstanding: 443.479M
Analyst Target: $1.0769K

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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: 293.587B
EBITDA: 13.79B
Gross Profit: 37.802B
Operating Margin: 3.7%
Profit Margin: 3.0%
ROE: 29.1%
Book Value: $37.28
Beta: 0.872
52-Wk High: $1.0948K
52-Wk Low: $840.35
Avg Volume: 1.5712M
PEG Ratio: 4.499

Theo Outlook

Costco Wholesale (COST) presents a bullish thesis supported by its $417.26B market capitalization, trailing P/E of 47.4, TTM EPS of $19.85, and robust 21.5% year-over-year quarterly revenue growth to $293.59B. The premium valuation reflects strong membership-driven margins and consistent earnings momentum in the discount retail sector. Investors are paying for proven scalability in a high-volume, low-margin model that continues to deliver above-peer profitability.

Key catalysts include ongoing warehouse expansion, e-commerce integration, and sustained membership fee growth, with quarterly revenue momentum accelerating to 21.5% YoY. Recent earnings transcripts highlight strength in private-label goods and international markets, while analyst consensus targets $1,077 per share with 22 buy/strong-buy ratings. Operating margin of 3.67% and return on equity of 29.1% underscore operational efficiency driving further expansion.

Risks center on elevated competition from Amazon and Walmart, potential regulatory scrutiny on membership pricing, and macro headwinds from consumer spending slowdowns amid inflation. Mitigation comes from Costco's sticky membership base (renewal rates >90%), diversified revenue streams, and conservative balance sheet with low leverage. The 0.57% dividend yield and August 7, 2026 ex-dividend date provide income stability during volatility. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

Frequently Asked Questions

What is Costco's business model?

Costco operates a membership-only warehouse club model requiring annual fees for access to bulk discounted goods. With 443.48M shares outstanding and $293.59B TTM revenue, the model generates high-volume sales at low margins plus recurring membership income.

What are Costco's primary revenue sources?

Revenue comes mainly from merchandise sales ($293.59B TTM) across groceries, electronics, and private-label items, supplemented by membership fees. The 21.5% YoY quarterly revenue growth and 3.67% operating margin highlight the scale of its discount retail operations.

What competitive advantages does Costco have?

Costco's advantages include its massive $417.26B market cap scale, 29.1% return on equity, and loyal membership base driving 21.5% revenue growth. High barriers from warehouse economics and exclusive deals differentiate it from competitors like Walmart.

What are the key risks for Costco investors?

Key risks include intense competition, regulatory pressures on pricing, and macro consumer weakness. The 47.4 P/E ratio reflects growth expectations, but a slowdown could pressure the stock; mitigation lies in its 0.57% dividend yield and strong balance sheet.

What is Costco's growth outlook?

Analysts project continued expansion with a $1,077 target price and 22 buy ratings. Growth drivers include new warehouses, e-commerce, and international markets, supported by 21.5% revenue growth and $19.85 EPS, with next earnings around the August 2026 period.