Actionable news
0
All posts from Actionable news
Actionable news in COST: Costco Wholesale Corporation,

Costco didn’t get all that cheap

Amazon’s purchase of Whole Foods put a highly discussed dent in all the retail grocery stocks, of which Costco is perhaps the most highly regarded. It’s probably an overreaction, but time will tell.

In the meanwhile, the stock really hasn’t gotten all that cheap on this recent slide.

Below, the share price in blue versus the trailing twelve month price/earnings ratio in orange. PE is still 28, a substantial premium to the sector as well as the overall stock market, which itself sells at a historically high multiple:

Below, the trailing PEs for the biggest names in the space. Costco shares are still very much getting the benefit of the doubt, relatively speaking:

Fundamental investors would point out that this premium multiple is still justified given...


More