Core Viewpoint - Costco Wholesale has demonstrated significant long-term shareholder rewards, with a total return of 216% over the past five years, outperforming the market despite current stock trading 9% below its record high from February 2023 [1][2]. Group 1: Company Performance - For fiscal 2025 Q3, Costco reported net sales of $62 billion, making it the world's third-largest retailer [3]. - The company's membership model fosters strong customer loyalty and generates recurring revenue, contributing to its robust sales performance [3]. Group 2: Competitive Advantage - Costco's business model is difficult to disrupt due to its substantial cost advantages, allowing it to purchase inventory at favorable prices and pass savings onto customers, which encourages increased spending [4]. Group 3: Valuation Concerns - Despite its strong historical performance and a market capitalization of $433 billion, Costco's stock is currently trading at a price-to-earnings ratio of 55.3, nearing its highest valuation in the last 25 years [5]. - The current high valuation suggests that Costco may not be an obvious buying opportunity at this time, even though it remains a strong business to monitor [6].