Costco is updated and now rated Sell at $167.22
Costco is an exceptionally strong company and will certainly continue to grow its earnings per share over the years. But it’s trading at almost 32 times trailing earnings and that is very expensive. It is essentially pricing in most of the earnings growth that we might reasonably expect over the next five years. That does not leave much room for earnings to outperform expectations. At this price I would sell.
Costco almost always seems at least somewhat expensive. But there are occasional dips where the price is more reasonable although not cheap. Last August 24 I reported grabbing some shares at $125 on a panicky day in the markets. I sold those October 22 at $154.90. This May it briefly dipped to $141.