Costco Stock: A Good Buy or Overvalued?
Despite High PE, Costco Continues to Perform Well
Despite its high price-to-earnings (PE) ratio, Costco Wholesale Corporation (COST) stock has been on a tear. In the past year, the stock has gained over 50%. This has prompted some analysts to question whether the stock is overvalued.
However, other analysts believe that Costco's strong fundamentals justify its high PE. Costco is a well-run company with a loyal customer base. The company has a history of consistent growth, and its earnings are expected to continue to grow in the coming years.
Analysts Bullish on Costco
A recent survey of analysts found that 17 analysts rate Costco as a "buy" and 5 recommend a "hold." No analysts recommend selling the stock.
Analysts are bullish on Costco for a number of reasons. First, they believe that the company's strong fundamentals will continue to drive growth. Second, they believe that Costco is undervalued relative to its peers.
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