COST Stock Recent News

Costco CEO Ron Vachris explained the benefits of the company's new membership card scanners in U.S. stores during the retailer's latest earnings call, and said customers see the pluses.

Costco delivered a solid earnings report after the close Thursday, but its revenue missed the mark. The stock is expensive, trading at a price-to-earnings ratio of 53.

Costco's modest growth does not justify a 50x PE ratio, making it significantly overvalued. Historical averages suggest lower growth and valuation multiples, indicating a potential downside in COST share prices. Costco Wholesale's current high valuations are driven by momentum; a correction is expected as retail investor enthusiasm wanes.

Costco Wholesale Corporation COST shares were down in early trading on Friday, even after the company reported upbeat results for its fiscal fourth quarter.

U.S. stocks traded higher this morning, with the Dow Jones index rising more than 100 points on Friday.

S&P 500 Hits Its 42nd High, Signaling Broad Market Strength With 80% Stocks Above Moving Averages

Costco's current valuation “has become extremely stretched,” says Truist Securities.

Costco's unique business model, acting as a buyer for its members and passing on savings, drives its success and profitability. High membership renewal rates and upfront fees provide Costco with 0% interest financing, aiding in its expansion and financial stability. In this article, we review Costco's earnings and tackle the issue of valuation.

The company continues to grow net sales at robust rates. A recent boost to its annual membership fee should bolster the company's net income growth.

Shelby McFaddin, senior analyst at Motley Fool Asset Management, says customers are in a better place now than they have been for a few years, but continue to look for savings in both staples and discretionary items.