Back Near $1,000, Is Costco Stock a Buy Now?

Core Viewpoint - Costco's stock has risen approximately 15% this year, trading near $1,000, raising questions about whether the stock is undervalued or if its recent rise complicates investment decisions [1] Sales Performance - In January, Costco's net sales increased by 9.3% year over year to $21.3 billion, with net sales for the first 22 weeks of the fiscal year rising 8.5% to $123.2 billion [4] - Comparable sales for January were reported at 7.1%, with a 6.4% increase when excluding gasoline prices and foreign exchange effects [5] - Digitally enabled comparable sales surged by 34.4% in January, or 33.1% when adjusted for gas and foreign exchange, compared to 18.3% growth in December [6] Financial Metrics - For the fiscal first quarter ending November 23, 2025, net sales rose 8.2% year over year to $66.0 billion, while membership fees grew at a rate of 14% [7] - Adjusted comparable sales for the quarter were 6.4% overall and 20.5% for digitally enabled sales [7] Market Position and Valuation - Costco's e-commerce growth is significantly outpacing its core warehouse sales, indicating strong positioning against competitors like Amazon [8] - The stock trades at approximately 53 times earnings, reflecting expectations of exceptional growth without any slowdown [10] - A price around $830 per share is suggested as a more favorable entry point compared to the current price near $1,000, as the current valuation leaves little room for error [10]