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Costco Wholesale CorporationCOSTWATCHSep 09, 2015Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
A leader. Dominant position in US. Buy on any day "that ends in 'y'". Always seems expensive if you look at the high 30s PE ratio. Chart looks stretched. Look for a pullback, perhaps when December seasonality subsides early in the new year. Membership rate increases every couple of years creates earnings power, as there are few good substitutes.
About as good as it gets on long-term buy and hold.
Up 44% this year, 4.5% today. Nobody does it better than them in retail. Last night they reported an amazing quarter: 7% increase in cardholders, member fee income up 8.2%, enjoying lower freight costs and will pay a special one-time dividend to shareholders. Plus, they're controlling shoplifting. One to own forever.
Leans towards AMZN, based on it having retail but also AWS. AI investments should help both AWS and retail customers. More compound potential because of different business streams.
COST has been well developed, but not sure how much more juice there is.
Terrific business. He's also been watching and waiting. Always trades at a high multiple, around 30x earnings. Unique business model with memberships, not a traditional retailer. Strong recently, because it's one of the few ways for consumers to save money. Stock weakness might occur if interest rates ease.
They have done very well and are on her watch list. They are highly valued because they execute well. They are great for the average consumer. It will probably hold up better in a downturn. They are more staple-driven. She is waiting for a pull back. It is a well run company.