Cosco Wholesale

Has Costco Wholesale’s Stock Peaked?

The retail stock is down around 10% from its 52-week high of $1,078.

Since 2020, shares of Costco Wholesale (COST -2.55% ) have risen by 230%. It has been one of the best retail stocks to own in recent years. The business has proven to be incredibly versatile, growing under a myriad of circumstances and economic conditions. Whether they love the treasure hunt experience or saving by buying items in bulk, consumers don’t appear to be running out of reasons to go to their local Costco, at least not yet.

But just because a business is good doesn’t mean that the stock is a good buy at any price. Valuation matters, and if you ignore it, you could set yourself up for disappointing returns in the future. And lately, it appears that shares of Costco have been losing steam, perhaps due to its inflated valuation. Has the stock finally hit a peak?

Image source: Getty Images.

Costco’s valuation is monstrous

When a stock is rising rapidly in value, it’s inevitable that its valuation will get out of control. And with a market cap of $430 billion, Costco is no exception. The stock is now trading at a trailing price-to-earnings multiple of 55. The S&P 500 average is just 25. Costco’s stock has been at elevated levels for some time, and investors, for the most part, have been willing to pay a premium to own a piece of the business.

But over the past six months, Costco’s stock has declined by about 8%. It could be the stock hitting more than $1,000 earlier this year that finally made investors think twice about Costco’s valuation. However, there’s clearly been less excitement around the business of late.

Could the stock be due for a correction?

Costco’s business is continuing to grow, but whether it’s growing fast enough to justify its steep valuation is the big question. For the month of July, the company’s comparable sales growth topped 6%. That’s a decent single-digit growth rate you might expect from a large retailer. And it’s particularly impressive at a time when there’s a pullback on discretionary spending due to challenging macroeconomic conditions. But that’s arguably not the growth rate you’d expect from a stock that’s trading at such a high premium.

The risk is that if there’s a slowdown in the economy this year due to tariffs, that could result in more tepid growth from Costco, which may put significant pressure on its high-priced stock. While there has been a bit of a decline in recent months, the stock’s valuation remains incredibly high with respect to earnings, and there may be much more room for the retail stock to fall in the future.

Why I’d avoid Costco stock right now

Costco has a fantastic business, but it’s dangerous to fall in love with a stock because of the company without worrying about valuation and underlying fundamentals. I think that’s what investors have done, and that’s why the stock has such a grossly inflated valuation.

Shares of Costco have started to slide in recent months, which could be an early sign that investors are growing apprehensive about it and that it may have indeed reached a peak, at least for the foreseeable future. The company sells day-to-day necessities and groceries, but discretionary spending is a big part of its business. The economy is still in the early stages of dealing with the effects of tariffs, and as costs rise and budgets need tightening, consumers could cut back on Costco trips.

And that could be a big problem because at such a high valuation, investors are effectively expecting Costco to continue to do well in the face of virtually any kind of adversity. I wouldn’t count on that happening, and that’s why I’d hold off on investing in Costco, as it has a long way to fall if its performance falls short of expectations.

About the Author

David Jagielski, CPA, has been a contributing Motley Fool stock market analyst covering healthcare, consumer staples, consumer discretionary, and technology stocks since 2017. David has more than 10 years of experience in finance roles across businesses of different sizes and sectors. He holds a Certified Public Accountant designation in Canada.

David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

I’m a Food Writer—Here Are 7 Costco Freezer Finds I Can’t Live Without

Frank joined the food world as a full-time food video producer at BuzzFeed Tasty NY and is currently a contributor to Simply Recipes.

Published August 18, 2025

I’ve shopped at Costco for as long as I can remember. Growing up, my family made monthly trips for the bulk deals. I was less concerned with cost then, and more interested in waiting in line for free samples on Sunday afternoons.

I eagerly tried whatever was being featured that week. I was not picky—whatever it was, I had an open mind and an empty stomach. In many ways, I credit Costco for helping me become an adventurous eater.

Over the years, my love for Costco has made its way into my food writing. I’m especially loyal to the $4.99 rotisserie chicken and, of course, the frozen food section.

At this point, I’ve practically memorized every aisle and freezer door. It’s like a mental game of spot-the-difference, tracking which items have stayed and which have been replaced. While some frozen finds come and go, these are the evergreen staples I keep stocked in my freezer, along with how I use them to make cooking at home a little easier.

1. Kirkland Signature Italian-Style Beef Meatballs

Rolling homemade meatballs into perfect spheres, searing them on all sides, and simmering in a Sunday sauce takes time—and mental energy. Kirkland Signature meatballs, which come in a six-pound bag for $24.87, are fully cooked, already seasoned, and ready to heat up whenever pasta night happens.

I also like to break them up and use them as a shortcut for cooked ground beef in other recipes, like quick weeknight sauces and stuffed peppers.

2. Kirkland Stir-Fry Vegetable Blend

This is my go-to shortcut for weeknight stir-fries. The hefty resealable bag ($12.43) makes it easy to portion out what I need, and it saves me from tracking down a long list of vegetables. Inside the bag, you’ll find onions, red bell peppers, mushrooms, orange and yellow carrots, sugar snap peas, water chestnuts, and broccoli. If I were to shop for all these individually, it’d take a chunk of time and fridge space. With this mix, dinner’s halfway done before I even start cooking.

3. Ling Ling Potstickers

These dumplings have been a family staple for as long as I can remember. They’re individually frozen, which means I can make just a few or a full tray. In the rare case that they do clump, I boil them, and they will taste just as good. I’ve also pan-fried, steamed, and air-fried them, and they come out great every time.

My favorite method is pan-searing the dumplings in a circle, then adding a cornstarch or flour slurry to create a crispy, lacy skirt for crunch and color. I usually pair them with a homemade dipping sauce of soy sauce, sesame oil, garlic, cilantro, and a touch of sugar.

If Ling Ling sells out, I’ll go for Bibigo mandu. You can also cook them however you like, steaming, pan-frying, and deep-frying, but with Korean flavors.

4. Kirkland Signature Thin-Sliced Chicken Breasts, Boneless Skinless

If I miss the rotisserie chicken cutoff at Costco (you know the 6 p.m. drill), this 10-pound freezer find ($32.90) is the next best thing. The chicken breasts are lightly seasoned, fully cooked, and endlessly versatile. They save me from the mess of prepping raw chicken and give me a head start on lunch or dinner. I usually add a few slices to my salad and call it a day, no cooking required.

I must confess, I sometimes choose Kirkland’s signature thin-sliced chicken breasts over the prep chaos involved in butchering that rotisserie chicken!

5. Pasta Prima Spinach and Mozzarella Ravioli

Even though I love to cook, there are days when I want a frozen meal that I can put my own spin on. These ravioli ($14.29) are perfect for that. If I’m feeling ambitious, I’ll layer them with red sauce and mozzarella in a lasagna-style bake. Other times, I’ll keep it simple with a brown butter drizzle, a crack of pepper, and freshly grated cheese.

6. Kirkland Signature Cheese Pizza

Every loyal Costco member knows the food court pizza is legendary. Dare I say iconic? This frozen version ($14.67) lets you bring a slice of that experience home. The crust is thin yet bread-y enough to hold the sauce and cheese without getting soggy.

While it may not beat the fresh slice at the warehouse, it’s a solid freezer staple. I like to load it up with leftover odds and ends from the week—half an onion, extra scallions, stray bell peppers, or even leftover rotisserie chicken.

7. Kirkland Signature Three Berry Blend

Fresh berries are delicious, but they bruise, mold, and spoil fast, especially raspberries and blackberries. This 4-pound frozen berry blend ($13.30) solves that problem. I keep it on hand for yogurt-based smoothies and love that it adds natural sweetness (and fiber) without extra sugar. Zero waste, no stress.

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