COST stock verdict - Avoid
COST
Costco Wholesale Corporation
AVOIDConsumer Defensive
$961.10
Fundamentals below bar
$961.10
Heavy$496.52Buy$662.02Fair$827.53Exit$993.04
FUNDAMENTAL50
TECHNICAL70
TRUST SCORE
100High
confidence in this read — data completeness, earnings quality & coverage
Uptrend · EMA20 950.0 · EMA50 955.77 · EMA200 963.24 · RSI 55.5 · MACD above signal
PROS
- Strong return on equity of 26.9% (TTM)
- Conservative balance sheet — debt-to-equity of 0.24
- Price is in an uptrend — above key moving averages with positive momentum
CONS
- Expensive on trailing earnings (P/E 48.3×)
- Thin net margin of 2.8% (3-yr avg)
✳ Pros and cons are machine-generated from the latest fundamentals and technicals.
EARNINGS QUALITY · we check the accounting so you don't have to
✓Operating cash flow is 165% of net income — profit is backed by real cash
✓Low accruals — reported profit tracks the cash actually generated
✓Receivables growing in line with sales
Analysis as of 2026-08-16 · price live, fundamentals from latest filings
Congress Trading — last 90 days
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FAQ
Why is COST rated Avoid?
COST (Costco Wholesale Corporation) is rated Avoid because the model combines fundamentals, price action, and earnings-quality checks. The current signal is Fundamentals below bar. Strong return on equity of 26.9% (TTM) and Conservative balance sheet — debt-to-equity of 0.24
Is COST overvalued right now?
COST is trading at $961.10 versus an estimated fair value of $827.53. That puts the stock in avoid territory on this framework. Expensive on trailing earnings (P/E 48.3×) and Thin net margin of 2.8% (3-yr avg)
What should I watch before acting on COST?
Watch the trust score of 100, the earnings-quality checks, and any red flags. Expensive on trailing earnings (P/E 48.3×) and Thin net margin of 2.8% (3-yr avg)