Costco Investment Outlook for 2026: Buy, Sell, or Hold?

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Key Facts on Costco’s Performance

Costco Wholesale (NASDAQ: COST) reported solid same-store sales growth of 3.1% for the first quarter of fiscal 2026, which ended on November 23, 2025. Analysts predict the company will achieve a compound annual growth rate of 7.6% in revenue from fiscal 2025 to fiscal 2028, driven by its strategy of expanding its physical footprint, with plans for 28 net new store openings in fiscal 2026.

Currently, Costco shares trade at a price-to-earnings ratio of 52.9, making them 106% more expensive than the S&P 500 index and 18% to 138% more expensive than competitors such as Walmart and BJ’s Wholesale. Despite the current valuation situation, Costco’s strong financial performance suggests that the stock remains a hold for existing shareholders, but it is not recommended as a buy at this time.

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