Costco clearly brings great value to its customers. But what about investors?
That question poses to potential buyers of the stock, which currently has a price-to-earnings ratio more than twice that of the S&P 500 index, and even outstrips the alluring stock. Netflix. What’s more, it’s 15% more expensive than its own no-nonsense 10-year average. That includes high expectations and may be part of the reason why, though better than expected earnings, Costco’s stock fell 2.4% after the market close on Thursday following its earnings call.