Costco Nearing All-Time High: Buy, Sell or Hold?

Costco operates 942 warehouses worldwide under a paid-membership model, generating $1.35 billion in membership fee income last quarter. The business has 82.1 million paid members and a 89.7% worldwide renewal rate, supported by Kirkland Signature private-label scale. Q2 FY26 results show EPS of $4.58 on $69.60 billion revenue, with comparable sales growth of 7.4% and e-commerce comps up 22.6%. Membership fee income rose 13.6% year over year, executive members now account for 75.8% of sales, and operating cash flow increased 43.8% year over year in Q1. Despite strong fundamentals, the stock trades at high earnings and EV/EBITDA multiples, with a 0.5% dividend yield and margin risks from tariffs and wages.

"Costco trades at 53 times trailing earnings and 47 times forward earnings, with a PEG of 5 and EV/EBITDA of 32. The dividend yield is 0.5%. For a company posting 2.99% net margins, that is a software-like multiple on a grocery-thin business."

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