The analysis of Costco is updated and rated Weak Buy / hold. I would put emphasis on the Hold. It is a fantastic company but it is expensive at 40 times trailing earnings. And after a long string of same-store earnings growth it could always experience a slow-down. Those holding it should probably continue to do so. I hold it and if it does happen to fall down close to $400 I will add to my position. Selling this company due to its high P/E ratio has proven to be a mistake in the past. At the same time it is expensive and so this does not seem like a good time to buy. Or if buying for the first time, start out with a small position and be prepared to add on any dip.
Costco is up 20% this year. I (and I think also the market to some extent( had expected it to struggle to show same-store growth as it started to lap the start of the pandemic which had boosted sales last year. Instead, same-store sales accelerated even more in the last six months.
This is a great company to own for the long term . It’s a simple to understandable business. We are all familiar with it. It would be hard to walk into a store and fail to realize that it is a very profitable business.
Whenever a new store opens, you know there will a traffic jam on opening day and that’s without basically any advertising. How many retailers could say that?