Source Post

Costco: Still a Top Quality Growth Stock?

Playing FTSEMay 31, 2026

The creator discusses Costco (COST), highlighting its unique membership-based model where fees subsidize low merchandise margins, creating a strong value proposition. Despite a recent 8% drop and mixed Q3 results with slower comparable sales growth when excluding gas and FX, the company's gas business saw extraordinary performance due to widened price gaps, attracting new customers who tend to spend more and renew memberships at higher rates. The creator notes the stock is trading around $950.

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AAPLNeutralLow ConvictionResearch Only

Apple is used as a benchmark to illustrate how expensive Costco appears at its current valuation.

COSTNeutralMedium ConvictionSignal-backedPrimary

Costco (COST) is a quality growth stock with a unique membership model, but its valuation is difficult to assess, and recent results showed slower growth excluding gas and FX.

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