Costco stock has seen significant growth but is considered expensive in March 2025.

From Nasdaq: 2025-03-15 18:07:00

Costco Wholesale (NASDAQ: COST) is known for its low prices, vast selection, and $1.50 hotdog combo. The retailer has been a great investment, with total returns exceeding 150,000% since the 1980s. Costco’s unique business model focuses on selling products at thin margins and making money from membership fees. The company has nearly 900 warehouse stores worldwide and generated $264 billion in revenue over the past four quarters. Despite its success, Costco does not advertise, relying on its strong brand and reputation. Analysts estimate Costco will continue to grow earnings by about 9% annually.

While Costco remains a solid long-term investment, its current valuation is high. With a price-to-earnings ratio of 56 and a PEG ratio of 6.2, the stock is considered expensive. Investors may want to wait for a price decline or faster earnings growth to justify a higher valuation before buying Costco stock. Despite its success, Costco may not be a smart buy at this valuation in March 2025. Consider waiting for a better opportunity.



Read more at Nasdaq: Is Costco Stock a Buy in March 2025?