Costco Wholesale stock is currently trading at approximately 50 times earnings, a valuation significantly higher than its retail competitors. The company reported revenue of over $67 billion in fiscal Q1, an 8% increase from the previous year, with net income rising 11% to $2 billion. This performance aligns with its fiscal 2025 profit growth of 10%, described as solid but moderate.
Amazon trades at 35 times earnings, while Walmart, the parent of Sam's Club, has a P/E ratio of 40. Target is available at 13 times earnings, despite declining sales. Costco's lowest historical P/E ratio was 14 in 2009.
The Motley Fool Stock Advisor analyst team identified 10 stocks they consider better investments than Costco Wholesale. They noted that Netflix, recommended in 2004, would have turned a $1,000 investment into $482,209, and Nvidia, recommended in 2005, would have yielded $1,133,548. Stock Advisor's total average return is 968%, compared to 197% for the S&P 500.
As of the end of the first quarter of fiscal 2026, Costco operated 921 warehouses across 14 countries. The stock earned no net gains over the past year. Analysts suggest investors may find better opportunities elsewhere unless a market downturn reduces its premium.