Costco Wholesale (NASDAQ: COST) has historically been an expensive stock to buy.
The company is so reliable for top performance that the stock’s premium was worth it
However, as it surpassed 60 times trailing 12-month earnings, it was starting to look too pricey. Indeed, the stock is flat since it hit that high, although it’s had ups and downs in the middle. That P/E ratio may have been a signal for a correction.
But at 49 times trailing 12-month earnings, is Costco stock finally cheap enough to buy? Why investors love Costco Costco consistently reports robust growth, and it has some of its best performance when times have been tough. That’s what’s been happening today.