Why I'm Watching Costco Stock Closely Even if the Market Thinks It's Overvalued

Following a monstrous run over the last five years that saw the share price outperform the S&P 500, shares of Costco Wholesale (NASDAQ: COST) have cooled off in 2025. The stock is roughly flat year to date after surging to a 52-week high of $1,078 earlier this year.Costco shares have trailed the bull market rally in recent months. The only thing investors can blame is the stock's high valuation. At a price-to-earnings (P/E) ratio of 50, the stock is the most expensive it's been in 25 years. But sometimes stocks can trade for years at extended valuation levels. Costco's exceptional operating performance and superb leadership certainly are deserving of a premium valuation.While the stock could be in the process of settling at a lower P/E, there are two things about Costco's business that make me interested in the stock even if it's historically expensive.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool