The report on Costco is updated and rated (lower) Sell at $558. Given the fantastic quality of this company I hesitated to put any kind of Sell rating on it. Historically, selling Costco has been a mistake. But I find its current price earning ratio of 38 to be very rich in the face of higher interest rates. And its same-store sales growth while still growing has been softening in recent months.
I hold some and I think a reasonable approach would be to Sell a quartet to a half of my shares and hope to buy back cheaper. On the other hand it might also be reasonable to simply continue holding – and, if funds permit, add to the position if the price drops to about the $500 level or below. Holding Costco for the long term will work out well.
They may soon announce a special dividend and if so and if it were to jump a little on that news, then that might be an opportune time to reduce the position.