Costco Stock: What's the Real Price Today?

[Generated Title]: Costco's Stock Dip: Bargain or Burning Money?

Okay, so Costco's stock is down 15% from its high. Everyone's screaming, "Buy the dip!" But let's be real for a second. Are we actually getting a deal, or are we just catching a falling knife? Because sometimes, "opportunity" just means "sucker trap."

The Cult of Costco

Costco, man. It's like a religion. People lose their minds over bulk toilet paper and discounted rotisserie chickens. And yeah, their business model is slick. Membership fees keep prices down, and the "treasure hunt" experience turns every trip into an impulse-buying frenzy. Waiting or thinking over a purchase at Costco can result in missing out on it entirely the next time you're there. It's genius, I'll give them that.

But "resilient" doesn't equal "invincible." Just because people are flocking to Costco to save a few bucks during inflation doesn't mean their stock deserves a free pass. This ain't some charity; it's a business. And businesses need to justify their valuations.

Overvalued Hype Machine

Here's the thing that gets my goat: the P/E ratio. Even after the dip, Costco's trading at a P/E of over 50. That's insane! The stock has averaged a five-year P/E of around 45, and at its peak, its P/E topped 60. We're talking tech-bubble levels of delusion here. People are paying a massive premium for… what, exactly? The privilege of buying in bulk?

I mean, don't get me wrong, Costco's a solid company. They rake in billions, their membership renewal rate is insane (almost 90%!), and analysts are predicting decent EPS growth. But is that growth really worth 50 times earnings? Give me a break.

And Jim Cramer saying he'd never sell it? That's great for him and his charitable trust, but I ain't Jim Cramer. Costco’s (COST) Been A Disappointment but I’d Never Sell It, Says Jim Cramer. The shares are down by 6.7% over the past month. I'm looking out for my own wallet, and right now, Costco's stock smells like overhyped desperation.

The Millionaire Mirage

Oh, and let's not forget the "Can Costco make you a millionaire?" nonsense. Please. One article even mentioned Costco shares producing a total return of more than 16,000% since 1995. Yeah, that's ancient history. If you bought in back then, congrats, you're probably already loaded. But buying now hoping for another 16,000% return? That's not investing; that's a lottery ticket with extra steps.

Wall Street analysts see EPS rising at an annualized clip of 10.6% between fiscal 2025 and fiscal 2028. And sure, Costco has a wide economic moat thanks to its buying power and membership model. But let's be real, expecting that kind of growth to turn a modest investment into millions? It ain't gonna happen. It's also important to avoid putting all your eggs in one basket in an attempt to get rich.

Maybe I'm being too harsh. Maybe Costco will defy gravity and keep climbing. But I'm not betting my retirement on it, offcourse. There are plenty of other stocks out there trading at saner valuations. Amazon stock, Nvidia stock, Tesla stock, Apple stock, Meta stock, Google stock, Walmart stock, AMD stock and Microsoft stock all present different risk/reward profiles.

Still Too Rich for My Blood

Costco's a great store. But the stock? Nah. I'm good.