Why Costco Stock Was Sliding Today

Group 1 - Costco's shares fell by 3.9% after reporting May comparable sales that were slightly below estimates [1][4] - In May, Costco's comparable sales increased by 4.3%, or 6% when adjusted for fuel prices and foreign exchange, which was lower than the growth rate of 5.8% for the first 39 weeks of the fiscal year [4] - Overall revenue for the four-week period ending June 1 rose by 6.8%, but this was just below the expected adjusted comparable-sales growth of 6.2% [4][5] Group 2 - Wells Fargo noted that despite the slight miss in sales, Costco continues to perform well but has a high valuation, maintaining an equal weight rating with a price target of $1,000 [5] - Costco's current price-to-earnings ratio is 57, indicating high expectations are already factored into the stock price [7] - The market's reaction to a moderation in growth rates suggests that any further disappointing numbers could lead to additional declines in the stock price [6][7]