As of mid-May 2025, Costco’s trailing price-to-earnings ratio (P/E) stood at approximately 60.21, with its forward P/E (based on earnings estimates for the next fiscal year) around 56.87. With Costco’s stock establishing itself above the $1,000 mark, attention naturally turns to its valuation. As of mid-May 2025, Costco’s trailing price-to-earnings ratio (P/E) stood at approximately 60.21, with its forward P/E (based on earnings estimates for the next fiscal year) around 56.87. The beta is 0.99, so Costco’s price volatility has been similar to the market average. Costco’s P/E ratios exceed broad market averages and many retail peers. However, investors often justify this premium due to its consistent growth, predictable earnings, and resilience across economic cycles.
Walmart should ‘eat the tariffs,’ Trump says, after retailer warns of looming price hikes
Costco’s demonstrated ability to manage costs effectively and pass through inflationary pressures further supports this investor confidence. This stock pays an annual dividend of $5.20, which amounts to a dividend yield of 0.51%. The stock’s EV/EBITDA ratio is 36.93, with an EV/FCF ratio of 64.38. The U.S. and China agreed to reduce tariffs on each other’s goods for 90 days, boosting global equity markets and easing trade tensions. U.S. tariffs on Chinese imports will drop from 145% to 30%, whi… In 2024, Costco’s revenue was $254.45 billion, an increase of 5.02% compared to the previous year’s $242.29 billion.
The P/E ratio is a widely used metric to gauge how much investors are willing to ai companies to invest in pay for each dollar of a company’s earnings. Finally, the company’s e-commerce channel has become an increasingly important growth driver. In Q2 FY25, e-commerce comparable sales saw an adjusted increase of 22.2%, indicating successful adaptation to evolving consumer shopping preferences. Costco Wholesale (COST) is set to report its results for the third quarter of fiscal 2025 after the closing bell on Thursday, with analysts generally bearing bullish ratings on the stock but not expecting substantial share-price gains. In addition to retail, the company also provides many services including pharmacy, eye care, food & beverage and auto care centers. The company also operates more than 665 gas stations across its footprint and a robust eCommerce channel.
For valuing profitable companies with steady earnings
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“There’s probably not a lot that can come from this print that will change the market’s perception that Costco is a good place to be,” UBS analysts wrote. “Though, its superior position, levers, and capabilities to manage the upcoming headwinds will probably be more evident as the impact of tariffs become translucent in the coming months.” Copyright © 2025 FactSet Research Systems Inc.© 2025 TradingView, Inc. Stephanie Link, Hightower Advisors chief investment strategist on portfolio manager, joins ‘Squawk Box’ to break down Walmart’s quarterly earnings results, the challenges facing Starbucks, Dick’s Spor… US retail stocks are in focus this week after the Bureau of Labour Statistics said that inflation was up slightly less-than-expected in April.
The company retails branded and private-label merchandise across verticals and categories and at “discounted” or bulk-rate prices. Product categories include grocery and frozen foods, apparel, sporting goods, electronics, auto care, appliances, housewares and even furniture. Nearly 70% of the stores are located in the US with another 13% in Canada and the remainder scattered around the globe.
Is Costco’s $1,000 Price Tag Justified?
While its current market valuation reflects high expectations for continued performance, the company’s fundamentals, strategic growth initiatives, and consistent return of value to shareholders present a compelling narrative. In the second quarter of fiscal 2025, these fees amounted to $1.193 billion. Executives have said Costco should be see the benefits of its membership fee increase, which took effect at the turn of its fiscal year in September, start to positively impact its profit in the second half of its fiscal 2025, and into fiscal 2026. The analysts said that high-margin membership revenue should give Costco more room to absorb the impact of tariffs without raising prices. The bulk of Costco’s warehouses are in North America, and global expansion is a massive opportunity. The company reports earnings later this month, but its comparable-store sales for the 35-week period ended May 4 grew 5.9%.
The retailer is expected to report 79.6 million paying members, up from 78.4 million last quarter. Despite market volatility, I focus on companies with consistent dividend growth, indicating strong financial health and stability, to provide income and total returns. If you’re bullish on COST stock for earnings, you want to see an EPS and revenue beat on Thursday with a strong forecast for the rest of the year. If Costco can offer softening remarks related to tariffs, that could be good for stock price movement to the upside.
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Options, futures, and futures options are not suitable for all investors. Costco has strengthened its position as a retail powerhouse, thanks to its strong membership model, competitive pricing and ability to adapt to evolving market trends. While the stock’s premium valuation might deter some investors, its steady growth, robust financial health and strategic initiatives indicate the potential for further upside. Current investors may consider holding or adding to their positions, while prospective investors could see any dips as a buying opportunity.
However, it is essential to acknowledge the presence of certain headwinds, including underlying inflationary pressures, which may pose challenges. Moreover, margins remain a critical area to monitor, with potential concerns stemming from any deleverage in the SG&A rate. Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. It offers branded and private-label products in a range of merchandise categories. It also operates pharmacies, opticals, food courts, hearing-aid centers, and tire installation centers, as well as 636 gas stations; and offers business delivery, travel, same-day grocery, and various other services online in various countries. It also operates e-commerce websites in the United States, Canada, the United Kingdom, Mexico, South Korea, Taiwan, Japan, and Australia.
Latest COST news
- Affirm is partnering with Costco to offer online shoppers the option to pay over time for transactions.
- Total revenue in 2022 topped $226 billion, the company employs more than 304,000 individuals and it is a member of the S&P 500, the S&P 100 and the NASDAQ 100.
- Costco has witnessed an impressive surge in its stock price over the past year.
- He compares Walmart (WMT) and Target (TGT), noting that WMT has taken “a lot of share from Target and others.
- MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on…
At a price-to-earnings multiple (P/E) of 40, Walmart is more attractively priced, but it’s still trading well above the S&P 500 average P/E of 24. The journey to and beyond this four-digit figure invites a closer look at the foundations of Costco’s success and the strategic considerations for investors attempting to navigate this new chapter. The $1,000 level might also be tested as a new psychological support or resistance area. This phase is typically viewed as a period of price discovery as the market digests the new valuation landscape. The most recent increase brought the quarterly payout to $1.30 per share. The journey to and beyond this four-digit figure invites a closer look at the foundations of Costco’s success and the strategic considerations for investors attempting to navigate this new chapter.
Costco released April sales data on May 7, which showed a 7% increase year-over-year. Strong sales data is a testament to lh crypto broker overview sustainable growth, and this’s what many long-term investors want to see. For me, all of this expected good news from Costco could be what is creating such a low implied volatility environment for the earnings call. Nothing too surprising and nothing too uncertain seems to be the theme for the earnings report. On April 16, Costco raised the quarterly dividend from $1.16 to $1.30, of $5.20 annualized.
Costco’s upcoming Q earnings will reveal how the membership fee hike affects… Costco Wholesale (COST) is set to report its results for the third quarter of fiscal 2025 after the closing bell on Thursday, with analysts generally bearing bullish ratings on the stock but not expec… According to 28 analysts, the average rating for COST stock is “Buy.” The 12-month stock price forecast is $1,032.89, which is an increase of 1.53% from the latest price. Today, Costco is based in Issaquah, Washington and it is among the largest businesses in the world. The company operates as a member-only big-box retailer claiming more than 118 million members, it is ranked #10 on the Forbes Fortune 500 list and is the 5th largest retailer internationally. In terms of scale, it is the largest retailer of choice and prime beef, organic foods and rotisserie chickens.
- Jessica Inskip urges investors to keep tariff volatility in mind when adjusting your portfolio.
- They are massive businesses that can use their strong positions in the market to command low prices from vendors, allowing them to provide good value for their customers.
- The stock’s EV/EBITDA ratio is 36.93, with an EV/FCF ratio of 64.38.
- The journey to and beyond this four-digit figure invites a closer look at the foundations of Costco’s success and the strategic considerations for investors attempting to navigate this new chapter.
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The stock has rallied 24%, outpacing the industry’s rise of 12.5%.COST has outperformed its competitors, including Ross Stores, Inc. ROST, Dollar General Corporation DG and Target Corporation TGT. Shares of Ross Stores, Dollar General and Target have faced declines of 0.3%, 28.7% and 35.9%, respectively. Costco Wholesale’s stock surpassing the $1,000 mark clearly indicates its formidable business model, consistent execution, and enduring appeal to millions of members worldwide. Costco Wholesale’s stock surpassing the $1,000 mark clearly indicates fx choice review its formidable business model, consistent execution, and enduring appeal to millions of members worldwide.
