Investors uncertain due to tariffs, S&P 500 down 9%, Costco shares 16% lower

From Nasdaq: 2025-03-21 03:52:00

Investors are feeling the effects of uncertainty in the market due to recent tariff announcements by the Trump administration. The S&P 500 is trading around 9% lower than its peak in February. Even strong businesses like Costco have seen a dip, with shares 16% below their February record.

Costco has shown consistent growth in same-store sales, with a 6.8% increase in comps for the second quarter of fiscal 2025. This growth has translated into profit gains, with diluted EPS increasing at a compound annual rate of 11.5% over the past decade.

Costco’s scale and strong position in the market make it a durable investment, with $62.5 billion in net sales and 78.4 million membership households. Despite competition from Amazon, Costco’s growth in revenue and EPS shows its resilience in the retail sector.

While Costco has been a great investment in the past, its current high valuation with a price-to-earnings ratio of 52.6 may not make it a millionaire-maker stock. Investors should keep an eye on Costco and wait for a further drop in valuation before considering buying the stock.

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Read more at Nasdaq: Can Buying Costco Stock on the Dip Help Make You a Millionaire?