COST
Costco Wholesale Corporation

Costco Wholesale CorporationCOST

Consumer Defensive · Discount Stores
1046.47USD
+2.67%
Nov 05, 2026
COST overview ready
Membership-Based Wholesale Retailer Selling Bulk Goods to Consumers and Businesses
Costco operates a global membership-warehouse retail model, selling a concentrated assortment of food, consumables, general merchandise, gasoline and ancillary services through warehouses and digital channels.
Theme not measured
No economic group is assigned yet.
Consolidating price action
Longer-term context reads established trend, with a near-term setup of daily reclaim.
Demanding valuation
The price embeds expectations that run ahead of what comparable businesses command.
Fundamentals under pressure
Ev / ebitda is weak.
Primary risk
Membership renewal rates decline.
Market Nov 4Filing Aug 30Price action Nov 5Research Oct 6

Conviction Level

Theme Momentum has no canonical measurement for this company — a research-profile dimension, not an input to this score.

PriceAction10.0BusinessPerformance7.0BusinessQuality8.9Valuation2.5ThemeMomentum—Improving — Revenue growth has accelerated across 3 consecutive quarters, rising from +8.3% to +12% year over year. Diluted EPS is up 15% year over year at $4.93. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
No economic group yet — pending research
Price
Loading price history…

Price Action

Consolidating price action
Longer-term context reads established trend, with a near-term setup of daily reclaim.
EntryReset + recovery

The stock remains extended from its long-term weekly base, but the recent reset toward the daily SMA200 aligned with support at the weekly EMA21. Daily structure is recovering above the fast averages, improving the current entry location.

Key Financials

Market Cap
$463.7B
Avg Volume (60D)
2.3M
60 sessions
Revenue Growth YoY
+10.1%
FY2026 vs FY2025
Gross Margin
+12.8%
Trailing twelve months
Operating Margin
+3.9%
Trailing twelve months
Free Cash Flow Yield
+2.0%
P/E
50.3x
EV / EBITDA
31.2x
EV / Sales
1.5x
Market metrics as of Nov 4, 2026
Financial results for the period ended Aug 30, 2026
Filed balance-sheet data as of Aug 30, 2026

Business Performance

Improving

Revenue growth has accelerated across 3 consecutive quarters, rising from +8.3% to +12% year over year. Diluted EPS is up 15% year over year at $4.93.

Latest reported: Q3 FY2026, ended May 10
Revenue growthAccelerating
+12%
$70.5B in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. n/a
  2. +8.3%
  3. +9.2%
  4. +12%
Earnings growthGrowing
+15%
Diluted EPS $4.93 vs $4.28 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. n/a
  2. +11%
  3. +14%
  4. +15%
Operating marginStable
4.0%
-0.0 pp YoY

Business Quality

8.9 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Both valuation perspectives agree this company is expensive.
This company has an Expensive valuation stance because the price embeds expectations that run ahead of what comparable businesses command. It trades at a 2.0% free-cash-flow yield and 31.2x EBITDA, which require sustained delivery to be justified.

Company Research

Thesis
Costco operates a global membership-warehouse retail model, selling a concentrated assortment of food, consumables, general merchandise, gasoline and ancillary services through warehouses and digital channels. Its economics depend on member renewal, traffic, merchandise volume, and membership-fee income.
Opportunity
Moderate opportunity
Consumer migration toward membership-based warehouse formats that combine bulk purchasing, low unit prices, fuel and private-label value, and recurring membership economics.
Key risk
Membership renewal rates decline.

Economic classification

Loading the economic classification…

Business & Markets

Consumer Defensive · Discount Stores
What they do

Costco Wholesale Corporation operates membership-based warehouse clubs across multiple countries, selling a wide range of merchandise in bulk at discounted prices to its members.

How it earns

Revenue is primarily generated through membership subscriptions and sales of merchandise to members.

Products & services
Groceries and sundries
Appliances and electronics
Health and beauty aids
Apparel and furniture
Automotive and seasonal goods
Customers & end markets
Individual consumers
Small businesses
Market position

Costco is a leader in the membership warehouse retail sector with a strong brand and scale advantage.

Demand drivers
Low cyclicality

As a consumer defensive company, it benefits from steady demand for essential goods and bulk purchasing behavior.