With many stocks looking overvalued, many investors may be tempted to sell. However, there are several factors to consider before taking profits: Time horizon – when an investor will need the money The availability of better alternative investments Tax ramifications from taking short-term or long-term gains This article only focuses on the first factor. For long-term investors, time is almost always an ally. But that depends on the stock. Blue-chip stocks come to mind. The companies behind these stocks ar ...

Key Points Costco delivered steady revenue and net income growth in fiscal 2025. The company's P/E ratio is well above those of its nearest peers. It's not clear that Costco can or should try to accelerate its expansion. 10 stocks we like better than Costco Wholesale › Costco Wholesale (NASDAQ: COST) just released its earnings for the fourth quarter of fiscal 2025 (ended Aug. 31). For the fiscal year, the company reported impressive net sales growth, particularly given the uncertain economy and co ...

Key Points Costco turned in another strong quarter. However, its stock has not gained any traction this year. A high valuation could keep the stock rangebound. 10 stocks we like better than Costco Wholesale › Costco Wholesale (NASDAQ: COST) once again turned in another strong quarter, but its stock wasn't able to gain any traction. The stock is up about 165% over the past five years, but is flattish year to date. While the retailer has seen a lot of operational momentum, its stock now appears stu ...

Group 1 - The analyst from D.A. Davidson set a price target of $1,000 for Costco, indicating a potential upside of about 6% from its current stock price of $943.31 [1][5] - Costco concluded its fiscal year 2025 with earnings of $5.87 per share, an 11% increase from the previous year, and revenue of $86.2 billion, reflecting an 8% growth [2][5] - The stock is considered expensive, trading at over 52 times forward earnings, which supports a Hold rating due to its high valuation [3][5] Group 2 - Costco's stock price is currently approximately $918.10, a decrease of about 2.67% from the previous session, with a market capitalization around $407.15 billion [4] - The stock has traded between $905.05 and $933.12 during the day, and over the past year, it reached a high of $1,078.23 and a low of $867.16 [4] - The company is experiencing strong membership growth, increasing digital sales, and global expansion, but faces competitive pressures from Aldi and Walmart [3]

Group 1 - Costco Wholesale Corporation is highlighted as a significant retail player with earnings report scheduled after market close on Thursday [1] - Nike Inc. is set to report its earnings after market close next Tuesday [1] - Several IT services companies, including Accenture plc Class A (Ireland), will report earnings on Thursday morning [1] Group 2 - Leisure companies Carnival Corporation and Carnival Plc ADS are scheduled to report pre-market next Monday [1]

Core Insights - Costco Wholesale Corp is set to report its fiscal third quarter results, with analysts predicting earnings per share of $4.24 and revenue of $63.19 billion, amidst a backdrop of a 25% stock gain over the past year but a recent 2% decline in the last month [1][5] Stock Performance - The stock is currently trading at $1009.74, below its eight-day and 20-day simple moving averages, indicating a bearish signal, but remains above the 50 and 200-day SMAs, which is a bullish indicator [2] - The MACD reading is at 9.46, and the RSI is at 52.56, suggesting a moderately bullish trend with noticeable selling pressure [3] Analyst Sentiment - Analysts have a consensus "Buy" rating for Costco stock, with an average price target of $1,034.68, and Telsey Advisory Group projecting a more optimistic target of $1,100, indicating a potential upside of nearly 9% [3] - JPMorgan analyst Christopher Horvers notes that Costco's strong retail positioning and growth characteristics are resonating with NASDAQ-style momentum, providing the stock with some tailwind despite near-term hesitations [4]

Core Insights - Costco Wholesale Corp (NASDAQ:COST) reported worse-than-expected profits for the second quarter due to rising merchandising costs, leading to a 4.9% decline in stock price to $206.63, despite revenue beating estimates [1] - The stock has a year-over-year gain of 26.7% but has pulled back from its record high of $1,078.23 on February 13, breaching a recent support level at $1,020 and falling below the 120-day moving average [2] - The stock may experience its worst trading day since March if losses continue [2] Options Activity - There has been significant options activity with 13,000 calls and 20,000 puts traded, which is six times the typical volume for this time [3] - The most popular option is the weekly 3/7 1,020 call, with new positions being sold to open, set to expire at the close [3] Market Sentiment - The call/put volume ratio for COST at the International Securities Exchange, Cboe Options Exchange, and NASDAQ OMX PHLX is 1.19, indicating a bullish sentiment among options traders over the last 10 weeks, higher than 94% of annual readings [4]

Core Insights - Costco Wholesale has significantly outperformed the S&P 500, with stock performance exceeding the index by nearly 150 percentage points over the past five years and more than tripling the market's return over the last decade [1] Financial Performance - In Q1 of fiscal 2025, Costco reported a 5% increase in comparable-store sales and traffic compared to Q1 2024, contributing to an 8% revenue growth and a 13% net income growth [4][5] - Membership revenue reached $1.2 million in Q2, reflecting an 8% increase from the previous year, with over 77 million paid memberships and 139 million total cardholders as of Q1 2025 [7] Membership Fees and Future Revenue - Costco raised membership fees by 8% in September, a strategy employed every few years, which is expected to enhance revenue in the coming quarters [8] - The current valuation metrics may not fully reflect the future potential due to the delayed impact of the increased membership fees [8] Asset Ownership - As of the end of fiscal 2024, Costco owned 79% of its land and buildings, a factor often overlooked when assessing the stock's valuation [9] Valuation Considerations - Despite the strong financial results, Costco's stock trades at a premium, currently at 62 times trailing earnings, slightly below its 10-year high of 63 [2] - The current price is considered beyond fair value, leading to a cautious initial investment approach, with the potential for future position increases as more compelling value points arise [10][11]