The Motley Fool
26 Sept 2026, 21:05 UTC · 2h ago
Verdict
Headline takes no side. We score COST +0.60 across three claims — strongly bullish.
+0.60strongly bullish
More positive than 76% of ticker scores this week
What the story claims
3 claims · scored −1 bearish … +1 bullish · 0 new · 3 priced in
Costco's forward-looking price-to-earnings (P/E) ratio is currently 40.
Priced inanalysis of current share price
So whatA multiple this high leaves little room for error in earnings beats, increasing the risk of a sharp correction if growth slows below 11%.
More negative than 86% of claims this week
Costco's revenue grew 11.2% year-over-year in its recently reported fourth quarter.
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Priced inanalysis of recently reported results
So whatThe 11.2% top-line growth trailed the 15% EPS growth, suggesting margins or share buybacks boosted the bottom line in Q4.
More positive than 66% of claims this week
Costco's diluted earnings per share increased 15% in its recently reported fourth quarter.
Priced inanalysis of recently reported results
So whatMaintaining a 15% EPS growth rate over the next year would be required to justify the current premium valuation.
More positive than 66% of claims this week
Which stocks this story touches
More positive than 76% of ticker scores this week
The author describes it as a wonderful business and a stock worth owning, despite concerns over a steep P/E ratio.
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5h ago
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COST hasn't traded since this ran. Last close $922.76 (Sep 25); the reaction starts at the next open.
COST chart →
