Costco Stock Rated as Hold Approaching Upgrade

about 1 month ago

"So again, right now the stock looks overvalued even after the decrease in share price this year. Even though it's trading near its 52-week low at $860, the 52-week low is $8.44. The intrinsic value per share I calculated is just over $700. So I'm keeping Costco stock rated as a hold, but it's approaching an upgrade. It's closer to an upgrade than it's been in a very long time for me. As I mentioned, I've only had Costco stock rated as a buy in brief moments over the several years I've been following the company because of its persistently expensive valuation."

The speaker analyzes Costco's current underperformance and expensive valuation, noting that despite a drop in share price, the intrinsic value remains lower than current levels. He cites strong fundamentals such as store expansion and revenue growth, explaining that the stock is rated as a hold but is nearing a point where it could be upgraded given its improving valuation relative to its historical premium. This presents a potential shift in sentiment for long-term investors.

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