Costco clearly offers great value for its customers. But what about investors?
This question looms large for potential buyers of the stock, which now boasts a price-to-earnings ratio more than double that of the S&P 500, even outpacing the glamorous stock. netflix. Specifically, it’s 15% more expensive than its own not-modest 10-year average. That encompasses high expectations and could partly explain why, despite better-than-expected earnings, Costco shares fell 2.4% after the market closed Thursday following its earnings call.