We came across a bullish thesis on Costco Wholesale Corporation on Wonder Stocks’s Substack by Wonder Stocks. In this article, we will summarize the bulls’ thesis on COST. Costco Wholesale Corporation's share was trading at $913.59 as of November 28th. COST’s trailing and forward P/E were 50.17 and 45.25 respectively according to Yahoo Finance. Trong Nguyen/Shutterstock.com Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United State ...

Core Viewpoint - Costco Wholesale Corporation (NASDAQ:COST) is recognized as one of the top stocks for the next three years, with a recent reaffirmation of a Hold rating by Truist Securities and a price target of $1,042 following strong sales performance in August [1]. Sales Performance - In August, Costco's comparable sales in the US increased by 6.7%, excluding the effects of gasoline prices and foreign exchange, marking a slight improvement of 20 basis points from July [2]. - Total sales for August rose by 6.9%, with net sales for the quarter reaching $84.4 billion, reflecting an 8% year-over-year increase and aligning with Truist's estimates [3]. Market Position and Valuation - Truist Securities highlighted Costco's ability to attract value-conscious customers through competitive offerings, but maintains a cautious stance due to valuation concerns, as the stock is trading at approximately 50 times the estimated earnings per share for calendar year 2025 [4]. - Costco operates as a global retailer with a chain of membership warehouses, providing well-known brand products at significantly lower prices compared to traditional wholesale or retail stores [5].