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Costco Wholesale Corporation (COST) Stock Analysis

Breakout setup · Catalyst-Driven edge

SellVALUE-TRAP 1/5Moderate Confidence

Consumer Defensive · Discount Stores

Sell if holding. Analyst target reached at $1013.75 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: U.S. and Canadian operations (86.0%).

Costco operates 914 membership warehouse clubs in 14 countries, selling limited-SKU merchandise at low prices to drive high sales volumes and rapid inventory turnover. Revenue comes from membership fees and merchandise sales, with ~10% from gasoline; U.S. and Canada accounted... Read more

$1013.75+0.1% A.UpsideScore 5.6/10#4 of 9 Discount Stores
Stop $979.39Target $1015.10(resistance)A.R:R -0.5:1
Analyst target$1072.16+5.8%32 analysts
$1015.10our TP
$1013.75price
$1072.16mean
$650
$1315

Sell if holding. Analyst target reached at $1013.75 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: U.S. and Canadian operations (86.0%). Chart setup: Golden cross, above all MAs, RSI 57, MACD bullish. Score 5.6/10, moderate confidence.

Passes 6/8 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 28d clear, semi cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

Thesis

Rewards
Strong earnings beat streak (4/4)
Strong growth profile
Risks
Concentration risk — Geographic: U.S. and Canadian operations (86.0%)
Analyst target reached - limited upside remaining
Near 52-week high (5.0% away)

Key Metrics

P/E (TTM)51.8
P/E (Fwd)44.4
Mkt Cap$443.1B
EV/EBITDA32.8
Profit Mgn3.0%
ROE29.7%
Rev Growth21.5%
Beta0.98
Dividend0.59%
Rating analysts44

Quality Signals

Piotroski F7/9

Options Flow

P/C1.60bearish
IV33%normal
Max Pain$540-46.7% vs spot

Concentration Risks(10-K Item 1A)

  • HIGHGeographicU.S. and Canadian operations86%
    10-K Item 1A: 'our U.S. and Canadian operations, which comprised 86% and 84% of net sales and operating income in 2025'
  • LOWGeographicCalifornia26%
    10-K Item 1A: 'we are highly dependent on our California operations, which comprised 26% of U.S. net sales in 2025'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker·1 ceiling hit

Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static

Ev Ebitda
0.0
Peg Ratio
2.2
Pe
2.4
Forward Pe
2.6
Analyst Target
4.0
Ps
9.3
Forward P/E: 44.4xPEG: 5.50
GatesA.R:R -0.5=NEGATIVEMomentum 5.1<5.5 (soft — BUY_NOW allowed but watch)Momentum 5.1>=4.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 28d clearSEMI CYCLE PEAK CLEARBreakoutSuitability: Moderate
RSI
57 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $966.00Resistance $1035.82

Price Targets

$979
$1015
A.Upside+0.1%
A.R:R-0.5:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeCautious

Risk Alerts

! Target reached (-2.7% upside)
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-05-28 (28d)

Verdict History

reverse chrono — latest first
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Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is COST stock a buy right now?

Sell if holding. Analyst target reached at $1013.75 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Geographic: U.S. and Canadian operations (86.0%). Chart setup: Golden cross, above all MAs, RSI 57, MACD bullish. Prior stop was $979.39. Score 5.6/10, moderate confidence.

What is the COST stock price target?

Take-profit target: $1015.10 (+0.1% upside). Prior stop was $979.39. Stop-loss: $979.39.

What are the risks of investing in COST?

Concentration risk — Geographic: U.S. and Canadian operations (86.0%); Analyst target reached - limited upside remaining; Near 52-week high (5.0% away).

Is COST overvalued or undervalued?

Costco Wholesale Corporation trades at a P/E of 51.8 (forward 44.4). TrendMatrix value score: 3.3/10. Verdict: Sell.

What do analysts say about COST?

44 analysts cover COST with a consensus score of 4.0/5. Average price target: $1072.

What does Costco Wholesale Corporation do?Costco operates 914 membership warehouse clubs in 14 countries, selling limited-SKU merchandise at low prices to drive...

Costco operates 914 membership warehouse clubs in 14 countries, selling limited-SKU merchandise at low prices to drive high sales volumes and rapid inventory turnover. Revenue comes from membership fees and merchandise sales, with ~10% from gasoline; U.S. and Canada accounted for 86% of net sales and operating income in 2025.

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