Question: Is Costco Overvalued?

Is Costco stock overpriced?

Costco Wholesale Corporation (NASDAQ: COST) awarded investors over the past few years, but is now overvalued by “pretty much every measure,” according to Bernstein.

Shares of Costco traded lower by 2.44% Thursday morning to $285.29.

Is Costco stock a good investment?

The company boasts a membership renewal rate of over 90%, so even when sales are depressed it has a decent and predictable cushion of revenue. That’s good for investors who have already bought in, but it means that Costco’s shares are never really priced low.

Why Costco stock is going down?

Shares of Costco (NASDAQ:COST) took a hit on Friday. The stock declined as much as 7.5% and finished the trading day down about 4.1%. The warehouse club stock’s decline was likely primarily due to growing fears about the COVID-19 coronavirus’ impact on the global economy.

Does Costco stock pay dividends?

Dividends — and maybe something special? In addition to being a solid stock on its own merits, Costco also pays a dividend. It has steadily raised that payout each quarter from $0.10 a share in 2004 (when it first paid a dividend) to $0.65 in August of 2019.