Costco Wholesale Corporation (COST) fair value analysis

Fundamentals (4 quarters) how computed

Market cap

$420B

P/E (trailing)

46x

Revenue (TTM)

$303B

Net margin

3.0%

EPS (TTM)

$20.61

Gross margin

27.7%

Debt / equity

0.13

Revenue growth (3-yr avg)

21.9%

Shares outstanding

443M

Derived indicators how computed

Quality grade

C →

Margin trend

Expanding

52-week position

The lower-middle quarter of its range

Technicals how computed

RSI (14-day)

81 · overbought

50-day average

$933.79

200-day average

$966.12

Moving-average state

50-day below 200-day (death cross state); price between the averages

Momentum score

85 · grade A

Positive weeks (of 12)

3

Dividends how computed

Paid, last 12 months

$5.54 per share (4 payments)

Yield on last price

0.59%

Consecutive years of increases

1

Next ex-dividend date

2026-10-30

Last payment date

2026-08-07

Earnings how computed

Next earnings report

2026-12-10

Last 8 quarters vs consensus

6 beat, 2 missed

Quarter by quarter

2026-08 ▲ beat (+1.9%)
2026-05 ▼ miss (-1.0%)
2026-02 ▲ beat (+0.9%)
2025-11 ▲ beat (+5.4%)
2025-08 ▲ beat (+0.9%)
2025-05 ▲ beat (+1.2%)
2025-02 ▼ miss (-5.0%)
2024-11 ▲ beat (+6.3%)

Analyst consensus how computed

This is not TickrTrends' verdict.

Analyst ratings

24 buy · 13 hold · 2 sell (39 analysts)

Consensus lean

Buy-leaning

Consensus price target

$1070

Target vs last price

+13.0%

Recent COST news

TickrTrends' derived news-sentiment signal for COST is currently leaning positive, computed from recent coverage.

• Costco (COST): Can Its Membership Model Travel Further Overseas? (insidermonkey.com, 2026-10-20)
  TickrTrends take: Costco's membership model has proven successful in its established markets, and investors watching valuation metrics will want to monitor whether international expansion can replicate that performance at scale. The Consumer Defensive sector classification reflects the company's stable cash flows from membership fees, which provide predictable revenue that supports the current undervalued designation. Investors should track membership growth rates and renewal penetration in new geographic markets to assess whether the company can justify higher valuations through sustained international revenue contributions.
• Is Trending Stock Costco Wholesale Corporation (COST) a Buy Now? (zacks.com, 2026-10-20)
  TickrTrends take: Costco Wholesale Corporation operates in the Consumer Defensive sector, where stable cash flows and predictable earnings typically support premium valuations. TickrTrends currently assesses COST as undervalued, suggesting the market price may not fully reflect the company's fundamental value or growth prospects. Valuation-focused readers should monitor whether the company's earnings growth and operational metrics can justify sustained price appreciation from these potentially attractive levels.
• Costco (COST) vs. Walmart (WMT): Which Retailing Giant Has a Wider Moat? (insidermonkey.com, 2026-10-18)
  TickrTrends take: Costco operates in the Consumer Defensive sector, a classification that typically includes retailers with stable demand characteristics. TickrTrends currently derives an Undervalued verdict for COST, suggesting the market may not be fully pricing in competitive advantages like membership models that create recurring revenue streams. For valuation-focused readers, competitive moat analysis becomes particularly relevant when assessing whether current pricing reflects the durability of a company's business model relative to peers.

More COST news

• Costco Insider Sells $1.05M Shares as GF Value™ Shows 6.1% Undervaluation (COST) (gurufocus.com, 2026-10-17)
• Costco (COST) Declares Quarterly Dividend of $1.47 per Share (gurufocus.com, 2026-10-14)
• Costco Wholesale Corporation Announces Quarterly Cash Dividend (manilatimes.net, 2026-10-14)
• Walmart vs. Costco: Why the Cheaper Earnings Stock Costs More for Cash Flow (insidermonkey.com, 2026-10-09)
• Costco Wholesale Corporation (COST) is Attracting Investor Attention: Here is What You Should Know (zacks.com, 2026-10-09)
• Costco Wholesale Corporation Reports September Sales Results (manilatimes.net, 2026-10-07)

What people are saying

Follow the COST conversation: Stocktwits · Reddit · X

TickrTrends weekly updates

• 2026-10-19 — TickrTrends' derived indicators for COST showed notable shifts this week. Momentum upgraded from none to A, while the Relative Strength Index zone moved from neutral to overbought. Despite these technical improvements, the stock maintains an undervalued valuation verdict according to the current assessment.
• 2026-10-12 — No material change this week: the verdict, bands and grades all held steady.
• 2026-10-11 — No material change this week: the verdict, bands and grades all held steady.
• 2026-10-10 — # COST Weekly Indicator Summary TickrTrends' derived indicators for COST showed a significant shift this week as the DCF cross-check band moved from an overvalued assessment to none. The stock remains in the Consumer Defensive sector and carries a current valuation verdict of undervalued, indicating potential value for investors based on fundamental analysis metrics.
• 2026-10-06 — TickrTrends' derived indicators for COST showed improvement this week, with the sector discount rank moving from number 38 to number 26. The stock maintains an undervalued valuation verdict within the Consumer Defensive sector.
• 2026-09-28 — This week, COST moved from a Fairly valued to an Undervalued status, reflecting several positive developments across its fundamental indicators. The company's revenue growth band shifted from declining to strong, while its gross-margin trend improved from stable to expanding, and its quality grade rose from F to C. Additionally, COST's sector discount rank improved to number 30 from number 41, though the DCF cross-check band moved into overvalued territory.
• 2026-09-21 — No material change this week: the verdict, bands and grades all held steady.
• 2026-09-17 — No material change this week: the verdict, bands and grades all held steady.

Frequently asked questions

Is COST stock undervalued?

Based on TickrTrends' Forward Fair Value model (updated 2026-10-19), COST is trading at a 10–25% discount to estimated fair value and screens as undervalued. The exact fair value and discount are available to subscribers.

What is COST's TickrTrends verdict?

COST's current verdict is Undervalued, refreshed with every weekly Forward Fair Value run.

How does COST compare to other Consumer Defensive stocks?

COST ranks #19 of 61 Consumer Defensive stocks in TickrTrends' coverage by discount to fair value.

Is COST overbought or oversold?

COST's 14-day RSI is in the overbought zone on TickrTrends' latest weekly data.

Does COST pay a dividend?

Yes. COST paid $5.54 per share over the last twelve months (4 payments), a 0.59% yield on TickrTrends' last price, and has raised the annual total for 1 consecutive year. The next ex-dividend date on file is 2026-10-30.

When does COST report earnings next?

COST's next earnings report is scheduled for 2026-12-10, per the published earnings calendar.

Does COST usually beat earnings estimates?

Over its last 8 reported quarters COST beat the consensus estimate 6 times and missed 2 times, by TickrTrends' comparison of reported and estimated EPS.

What do analysts say about COST?

Of 39 analysts covering COST, 24 rate it a buy, 13 a hold and 2 a sell - buy-leaning, with a consensus price target of $1070 (+13.0% versus TickrTrends' last price). This is the analyst consensus, not TickrTrends' Forward Fair Value verdict.

More in Consumer Defensive

• CPB — The Campbell's Company
• DG — Dollar General Corporation
• DLTR — Dollar Tree, Inc.
• EL — The Estée Lauder Companies Inc.
• FIZZ — National Beverage Corp.
• GIS — General Mills, Inc.
• GO — Grocery Outlet Holding Corp.

All Consumer Defensive fair-value coverage →

Head-to-head comparisons

COST vs ANDE · COST vs APEI · COST vs AVO · COST vs BF-B · COST vs COCO