Should I Buy COST Stock in 2026?

Data-driven analysis and honest assessment for Costco Wholesale Corp

Analysis Updated:
CAUTIONSeveral concerns warrant careful consideration

Current Price: $943.08P/E: 49.5

Decision Score

4.3/10

Weak

Based on 6 fundamental factors

Score Breakdown:

Valuation (20%)3/10

High P/E of 49.5 indicates premium

Growth (20%)5/10

Slow growth of 0%

Profitability (20%)4/10

Thin margins (0% net)

Financial Health (15%)5/10

Financial health data limited

Cash Flow (15%)4/10

Low FCF yield of 2.2%

Insider Activity (10%)5/10

Balanced insider activity

Key Investment Metrics

Current Price

$943.08

P/E Ratio

49.51

Revenue Growth

0.1%

Profit Margin

0.0%

Market Cap

$410.6B

Dividend Yield

0.01%

How COST Compares to Competitors

Understanding how COST stacks up against peers helps inform your investment decision.

How COST Compares to Peers

Upcoming Events for COST

+5 Reasons TO Buy COST

1. Large-cap stability and market leadership

moderate

With market cap over $100B, this company has established leadership and resources to weather cycles.

-5 Reasons NOT to Buy COST

1. Thin profit margins of 0.0%

high risk

Low margins provide little cushion against cost increases or pricing pressure.

2. High PEG ratio of 5.2

high risk

PEG above 2 suggests expensive relative to growth rate.

3. Expensive valuation at 50x earnings

medium risk

P/E of 50 is significantly above averages. High expectations leave little room for disappointment.

4. Low gross margins of 13%

medium risk

Margins below 30% indicate commodity-like pricing and input cost vulnerability.

5. Minimal revenue growth

low risk

Growth of 0.1% barely keeps pace with inflation.

Who Should Buy COST?

Investment Profile

Risk Level

Medium

Recommended Holding Period

3-5 years

Best For:

  • Momentum Traders

    High-growth profile attracts momentum

Not Suitable For:

  • Growth Investors

    Limited 0% growth may disappoint

  • Value Investors

    Premium P/E of 50 doesn't fit value criteria

  • Income-Focused Retirees

    Low 0.0% yield

Consider These Alternatives

If you're interested in COST, compare these Consumer Defensive peers:

Pro tip: Compare COST directly with competitors using our comparison tool to see which stock better fits your criteria.

Get the Full Picture

Access AI-powered insights, DCF valuations, insider trading data, and real-time analysis for COST

Frequently Asked Questions

What is COST stock price today?

COST (Costco Wholesale Corp) stock is trading at $943.08 as of the latest market data. Stock prices update in real-time during market hours (9:30 AM - 4:00 PM ET).

Is COST stock going up or down today?

COST stock price movements are influenced by market conditions, news, earnings reports, and investor sentiment. Check our live dashboard for real-time price changes and technical indicators.

Should I buy COST stock now?

The decision to buy COST depends on your investment strategy, risk tolerance, and financial goals. Our AI analysis evaluates fundamentals, valuation metrics, growth prospects, and market conditions to help inform your decision.

Is COST a buy, hold, or sell right now?

Our AI-powered analysis provides buy/hold/sell recommendations for COST based on multiple factors including valuation, growth metrics, technical indicators, and analyst consensus. Visit our dashboard for the latest recommendation.

Is COST stock overvalued or undervalued?

COST currently trades at a P/E ratio of 49.51, which may indicate premium valuation. Our DCF calculator provides intrinsic value estimates to help determine if COST is fairly priced.

What is COST's P/E ratio?

COST has a price-to-earnings (P/E) ratio of 49.51, which measures how much investors are willing to pay per dollar of earnings. Compare this to industry peers and historical averages for context.

What is COST's market cap?

COST (Costco Wholesale Corp) has a market capitalization of $410.61 billion, making it a large-cap stock.

What is COST's price to book ratio?

COST trades at a price-to-book (P/B) ratio of 13.55, which compares the stock price to the company's book value per share. A P/B below 1.0 may indicate undervaluation, while above 3.0 may suggest premium pricing.

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Disclaimer

This analysis is for informational purposes only and should not be considered financial advice. The decision score and recommendations are based on quantitative factors and do not account for all risks, your personal financial situation, or qualitative factors. Always do your own research and consider consulting with a financial advisor before making investment decisions.