2 Key Costco Sales Metrics Just Accelerated, and Investors Love It. Time to Buy Shares?

Core Insights - Costco's December comparable sales rose 7%, with adjusted comparable sales at 6.2%, indicating a slight deceleration from November's 6.4% [1][2] - U.S. adjusted comparable sales increased to 6.3% in December, up from 5.8% in November, suggesting a potential reacceleration in consumer shopping habits [2][5] - Net sales for December reached approximately $29.9 billion, an 8.5% increase year-over-year, surpassing November's 8.1% growth [3][8] Sales Metrics - The company's digitally enabled comparable sales rose 18.3% in December, up from 16.3% in November, indicating strong momentum in e-commerce [7] - Membership fee income increased by 14% year-over-year to $1.33 billion, contributing to overall profit growth [8] Business Model and Valuation - Costco's business model relies on membership fees and low prices, fostering customer loyalty and repeat visits [9] - Despite strong sales growth, Costco's stock is considered overpriced with a price-to-earnings ratio of 49, raising concerns about future valuation sustainability [11][12] - The December sales report reinforces confidence for current shareholders, but the high valuation presents a risk for new investors [12]