Costco Wholesale CorporationCOST

Consumer Defensive
Neutral

ASignal's systematic analysis rates COST as Neutral. Costco Wholesale Corporation has a market cap of $422.14B, a P/E of 47.95, a 3.0% net margin, and 21.5% year-over-year revenue growth.

Reflects the latest available analysis · analyzed Aug 1, 2026

The case on COST

Bull vs bear, surfaced by ASignal's framework agents from public market data. The precise verdict: ASignal Rank, confidence, and price targets - is in the app.

Bull case
  • Strong year-over-year revenue and earnings growth (21.5% and 45.5% respectively)
  • High return on equity (29.15%) indicating efficient use of shareholder capital
  • Positive free cash flow of $6.95B supporting operational strength
  • MACD histogram expanding above signal line, indicating strengthening momentum
  • Price trading above 20-day SMA and Bollinger Middle band, confirming uptrend
VS
Bear case
  • Elevated valuation metrics: P/E of 47.95x and Forward P/E of 42.03x above sector average
  • PEG ratio of 4.73x suggests significant growth expectations already priced in
  • Low quick ratio (0.56x) indicating limited short-term liquidity
  • Gross margin of 12.88% is modest for the sector despite scale advantages
  • Only 1 Reddit mention, suggesting limited retail investor interest or potential data gap

Key facts

Sector
Consumer Defensive
Market cap
$422.14B
P/E ratio
47.95
Gross margin
12.9%
Net margin
3.0%
Rev growth YoY
21.5%
Price (Aug 1, 2026)
$951.89

Peers

Clustered with COST by analysis-profile similarity.

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See the full verdict on COST

ASignal Rank (1-4), confidence score, Buffett / Ackman / Dalio grades, price targets, and the full reasoning behind the call.

How ASignal analyzes COST

Most investors never get a second opinion, let alone several. ASignal runs COST past a panel of specialized investor-framework agents, each calibrated on a distinct school of investing: Warren Buffett's value discipline, Bill Ackman's activist lens, and Ray Dalio's macro view. They don't just score in isolation, they argue: a dedicated Challenger agent pushes back on every conclusion until the panel settles on a reasoned consensus, weighing fundamentals, macro conditions, market sentiment, and price action together. The kind of cross-examined read that takes a research desk hours, ASignal delivers in under two minutes, refreshed every cycle.

The signal direction and the bull and bear case above are free. The precise read, ASignal Rank, framework grades, price targets, and full reasoning, stays with subscribers.

Costco Wholesale Corporation (COST) Stock Analysis - ASignal rates it Neutral