This Potential Stock-Split Stock Could Make You Rich
CostcoCostco(US:COST) Yahoo Finance·2026-01-22 17:05

Core Viewpoint - Costco Wholesale (NASDAQ: COST) is highlighted as a potential investment opportunity, despite the general indifference towards stock splits, which do not affect the overall value of investments [1][7]. Company Performance - Costco has historically provided significant returns to investors, averaging annual gains of approximately 21% over the past decade [4]. - The company has effectively balanced the interests of its three main stakeholders: employees, customers, and shareholders, by offering competitive wages, reasonable pricing, and solid long-term gains [4]. Stock Valuation - Currently, Costco's stock is considered richly valued, with a forward-looking price-to-earnings (P/E) ratio of 47, which exceeds its five-year average of 41 [5]. - Investors are advised to consider waiting for a price pullback before investing, or to buy shares incrementally if they are eager to invest [5]. Stock Split Speculation - There is speculation that Costco may conduct a stock split in 2026, but investors are cautioned not to place too much importance on this event [7]. - The focus should remain on the company's valuation rather than the potential for a stock split [7].

This Potential Stock-Split Stock Could Make You Rich - Reportify