Costco's stock has shown recent pullback after strong returns, potential for recovery uncertain.

From Yahoo Finance: 2025-04-18 03:15:00

Costco Wholesale’s stock has shown strong returns in recent years, but has recently pulled back, nearing correction territory. The company’s success is reflected in its rising stock price, with questions arising about its potential recovery or further selling in the next year. Costco has a network of 897 warehouses globally, with plans for 29 new locations in fiscal 2025, showing room for continued growth. Despite its success, Costco’s stock trades at a high P/E ratio, leading to questions about its valuation and potential for underperformance compared to indexes. Analysts forecast 8% revenue growth for Costco in the coming year, but with a high P/E ratio, the stock’s performance remains uncertain. Investors may want to wait for a lower P/E ratio before adding more Costco shares. The Motley Fool Stock Advisor team did not include Costco in their list of 10 best stocks to buy now, citing the potential for monster returns from other picks. Stock Advisor has a total average return of 791%, outperforming the S&P 500 significantly. Will Healy, the author, has positions in Berkshire Hathaway, with The Motley Fool also holding positions in and recommending Berkshire Hathaway, Costco Wholesale, Home Depot, and Walmart.



Read more at Yahoo Finance: Where Will Costco Stock Be in 1 Year?