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Costco Wholesale Corp

Costco Wholesale Corp

COST
$940.87USD↓-0.50%-4.70 today

MARKET CAP

417.3B

P/E (TTM)

47.3x

FWD P/E

42.0x

DAY RANGE

$934 – $964

52W RANGE

$844
$1,097

AI Summary

Stalk
Buy NowMedium

COST is in a Stage 2 advancing corrective reset with short-term EMAs repaired and price holding a higher-low above the rising 9 EMA and 21 EMA in an oversold context. A stability-oriented approach favors buying near the 9/20 EMA support zone rather than chasing upside extensions.

  • ↑Q3 net income rose to $2.192 B (+15% YoY) on net sales of $69.15 B (+11.6% YoY).
  • ↑Membership fee income climbed 10.7% to $1.373 B; paid members reached 82.9 M (+4.1%).
  • ↓Slipping renewal rates among online members threaten membership stability.
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The case for & against

Bull & Bear analysis

Bullish

Costco Wholesale Corporation (NASDAQ: COST) is a prominent global retailer operating a membership-only warehouse club model, providing a variety of products, including groceries, electronics, and home goods at competitive prices. Positioned within the wholesale retail sector, Costco leverages its purchasing power to offer low-prices that attract a diverse membership base. The company's commitment to quality, innovation through its Kirkland Signature brand, and strategic expansion into new locations globally solidify its status as a leading player in the retail landscape.

Bull says

  • ↑Q3 net income rose to $2.192 B (+15% YoY) on net sales of $69.15 B (+11.6% YoY).
  • ↑Membership fee income climbed 10.7% to $1.373 B; paid members reached 82.9 M (+4.1%).
  • ↑Opened four new warehouses and targets 30+ openings annually to drive expansion.
  • ↑Digital sales jumped 21.5% with AI integration boosting online engagement.
  • ↑Strong profitability and low leverage support resilient financial health.
  • ↑“First to lower, last to raise” pricing strategy preserves market share against rivals.

Bear says

  • ↓Slipping renewal rates among online members threaten membership stability.
  • ↓Gross margin fell to 11.04% as inflation and input costs rose.
  • ↓Higher gas and supply-chain costs risk further margin erosion.
  • ↓Intense competition from Amazon and Walmart pressures pricing power.
  • ↓Negative earnings yield and weak book-to-price metrics signal valuation risk.
  • ↓Modest momentum and low dividend yield raise questions on returns.

Investment themes with COST

Quality↑ +0.54%

Companies with strong fundamentals and stability

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Earnings Call · Q3 2025 · Mgmt. Guidance

Updated 05-29-2026neutral

Transcript signals

Bull points

  • we really are probably less focused than you might think on the individual quarters. We're more really focused on how we manage the business for the long term.
  • we saw some real benefits in fresh productivity and lower spoilage and also some of the benefits of deflation in certain commodities.
  • is that our goal is to continue finding ways to drive value for our members, lowering our prices consistently, and doing that through our global buying, doing that for in-country production, Kirkland Signature growth, as Ron mentioned earlier, and even some of the newer opportunities like e-commerce growth and getting more profitable in e-commerce and building the retail media business.

Bear points

  • So the $130 million charge isn't a charge for the quarter. It's really a true-up for the whole of the year for our estimate of inflation.
  • if inflation stays the same, that's where the $40 million to $50 million incremental charge comes in in the fourth quarter.
  • So if that inflation rate stays the same, if the tariff situation doesn't really change materially, that's our best estimate of what that outcome would be for the year.
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