1. Costco's shares rose 40% in 2024 and 7% in 2025. 2. Membership fees represent nearly half of operating profit. 3. Valuation at 55 times earnings could indicate vulnerability. 4. Sales growth of 7% in May outpaced broader retail growth. 5. High valuation may limit growth potential and increase volatility.
While strong performance supports Costco's stock, high valuation suggests risks. Historical volatility indicates potential for significant price dips.
The article underscores both growth factors and risk elements, affecting investor sentiment directly.
Current economic conditions could lead to immediate investor reactions to earnings. Historical data reveals that minor decelerations usually trigger volatility.