Overview
- The Motley Fool said Costco "isn't an obvious buy" at current prices and did not include the stock in its Stock Advisor top-10 list.
- Costco reported solid operating results with third-quarter sales up 11.6%, comparable-store sales up about 6.6% excluding gas and currency, and e-commerce growth of 21%.
- Analysts note the shares trade near 47 times trailing earnings, above a roughly 10-year average of 40 and down from about 60 a year earlier.
- Over five years the stock has risen about 110% versus the S&P 500's 73%, but the past year has seen roughly flat performance while the index climbed about 19%.
- The coverage signals a split view where long-term believers point to membership cash flow and expansion while valuation-focused investors may wait for multiple compression to reduce the risk of future underperformance.