Is It Time To Buy Costco Stock

Is It Time To Buy Costco Stock by Ashly Chole last updated on March 03, 2026

Is It Time To Buy Costco Stock?

The Costco Wholesale stock price moved lower in the past 12 months. However, the Costco stock has done well since the start of this year.

But if we look around, the increase in the Costco stock price is not driven by news. Other retail stocks like Target and Walmart are also green, which suggests that the overall sector is doing well.

Costco Enjoys High Membership Renewal Rate

A quick look at Costco shows it is a popular choice for both investors and customers. Also, the membership renewal rate of Costco is 92%, which means it has a loyal user base.

Costco also has a lot of loyal investors who have bought & held the stock for decades. For example, Costco stock was one of the holdings of Berkshire Hathaway when the famous Warren Buffett was in charge.

When we talk about Costco, it should be kept in mind that it is not one of those high-growth companies. But still, the revenue of Costco increased 6% during Q1 FY2026, and net income jumped 11% higher during the same period.

Another thing that is going well for Costco's warehouses is international expansion. That's the part where most competitors have failed, but Costco is a rare exception. Costco has managed to find success in the European and Asian markets, while Walmart didn't have such a good run.

However, the P/E ratio of Costco is 52, which is a lot higher than that of Amazon, Target, and Walmart. In simple words, Costco stock is overvalued as the growth doesn't justify this high valuation.

So, the bottom line is that Costco is a good choice for those who are already holding the stock for the long term. However, those who are new and are looking to buy Costco stock should look elsewhere.

But if the earnings of Costco improve and the P/E becomes more reasonable, then a case for buying the Costco stock can be made.