Costco Stock: A Sound Investment or Overpriced?

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Costco Stock Analysis

Costco Wholesale Corp (NASDAQ: COST) reported a membership revenue of $1.7 billion for Q4 of fiscal 2025, accounting for 65% of its pure profit. The company’s U.S. and Canada renewal rates stood at 92%. Costco’s stock trades at a price-to-earnings (P/E) ratio of 52, which is significantly higher than Walmart’s P/E of 39.

Despite the high valuation, Costco remains resilient with 5.7% comparable sales growth in the latest quarter. The company aims to leverage international expansion and e-commerce growth, with only 914 warehouses globally, indicating potential for further growth in high-density markets.

Long-term investors are encouraged to consider Costco for its consistent performance and strong member loyalty, despite its premium stock price.

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