For the first time in years, the creator is upgrading Costco to a buy rating as its fair value is now close to the market price, presenting a rare opportunity.
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Massive Update for Costco Stock Investors
Sep 23, 2026
Costco's stock has seen a significant decline of about 20% from its highs, trading below $900 after previously being near $1100. The creator analyzes Costco's sales figures, online performance, and compares its revenue per store to competitors like Walmart and Target. The company's business model, which prioritizes low prices and high membership renewal rates, results in thin profit margins but strong returns on invested capital. Despite the recent sell-off, the stock appears to be trading at a fair valuation, with its forward P/E ratio near historical lows and close to Walmart's. A discounted cash flow model also suggests a fair value close to the current market price.
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Home Depot is mentioned as a competitor to Costco, with Costco showing superior returns on invested capital.
Target is mentioned as a competitor to Costco, with lower sales per store despite having more locations in the US.
Walmart is mentioned as a competitor to Costco, with a similar forward P/E ratio, suggesting a fair valuation for both.
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COSTbuy opened Sep 23, 2026
+9.33%