Costco: I'm A Happy Shareholder After Q3 Earnings

(10min)

Summary

  • Costco Wholesale had a great Q3 FY 2025 earnings report, but the stock fell after hours.
  • There are a lot of reasons for this, but the most notable is the high pricing metrics the company carries; its valuation is 'lofty,' as they say.
  • Tariffs remain a key risk for Costco, but they seem to be navigating them well so far. They affect a third of Costco's US sales.
  • Eyes were on e-commerce sales growth, high membership retention, and the threat of low consumer sentiment.
  • COST keeps its buy rating from me because, while I'm not adding to my equity positions currently, it's one of the last ones I'd consider cutting.
  • Looking for a helping hand in the market? Members of Sungarden Investors Club get exclusive ideas and guidance to navigate any climate. Learn More »

Costco Korea Warehouse in Busan

Arnaud Eeckhout

Introduction

I last covered Costco Wholesale (NASDAQ:COST) back in October, when I discussed that the retailer was running out of gold. Don't worry, my understanding is that they're mostly stocked on gold now that they've been

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of COST either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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