Costco (COST) Stock Looks Expensive Despite Strong Sales Growth

Costco Wholesale has ridden a powerful multi year run and now trades near US$989 a share, which puts a spotlight on one basic question: Are you paying a sensible price for Costco’s earnings at today’s level, or has the stock moved beyond what its profit stream can reasonably justify? Over the past 5 years the stock has returned 113.0%, which puts a lot of long term optimism into the current valuation debate around its earnings power. Recent news of 13% sales growth in September, paired with...