Is Now a Good Time to Buy Costco Stock?

Costco stock has doubled over the past five years, outperforming the S&P 500 by 35 percentage points. Despite a high P/E ratio of 48 (above its 10-year median of 38), the company continues to execute well with strong member retention (90% renewal rate), membership growth of 4% to 84.1 million, and consistent warehouse expansion. The analyst recommends buying and holding Costco for long-term investors, arguing that paying a premium valuation for a profitably growing company is preferable to cheaper valuations for weaker prospects.