Is Costco a buy right now?


Editorial team Published on

Costco is a fantastic business, but the stock is expensive right now at about $919 per share with a high price-to-earnings (P/E) ratio near 44.

The Good Points

  • Loyal customers: Over 92% of North American members renew their yearly cards.
  • Steady sales: Sales keep growing, even when the economy slows down.
  • Analyst view: Most Wall Street experts still rate the stock a buy, with an average price target around $1,088.

The Risks

  • High price: The stock trades at a high valuation compared to its historical average.
  • Slowdown chance: Rising costs and high prices mean the stock could drop if earnings miss expectations.
  • Lower upside: Because the stock is pricey, future gains might be smaller in the short term.

Current Numbers

  • Share Price: ~$919
  • P/E Ratio: ~44 (meaning you pay $44 for every $1 of company earnings)
  • Dividend Yield: 0.60%

You can read more details on the Yahoo Finance analysis. New buyers might want to wait for a larger price drop, while long-term investors can feel okay holding or buying small amounts.