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Opinions David Burrows
Costco Wholesale CorporationCOSTBUYSep 29, 2015
David BurrowsStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Premium contentCostco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. It offers branded and private-label products in a range of merchandise categories. Social media mentions are up 267% in the past 24h.
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.
Retail is another area he really likes. Some of the discounters are really attractive. COST-Q is a strong stock within the group. It is likely to put up good numbers. Technically when you go through a correction like this, you should look for things you want to own. He looks for companies that bottom when the first low takes place but don’t retest it when the rest of the market does.