Costco Wholesale Corporation AI Price Prediction

The valuation is rich relative to current earnings, with a very high P/E multiple that embeds strong growth and execution expectations. EPS of 12.70 supports the current profitability profile, but the stock price implies investors are paying a substantial premium for Costco’s defensive business model and long-term growth prospects. Without additional evidence of accelerating earnings growth, the risk of multiple compression tempers the otherwise solid fundamental backdrop.

• At a price of $936.58 and EPS of 12.70, the P/E ratio of 73.75 is significantly above typical large-cap retail and market averages, indicating a premium valuation that assumes continued strong growth and resilience.
• Current earnings power (EPS 12.70) confirms Costco is profitable and established, but the earnings level alone does not fully justify the high multiple without sustained double-digit growth and margin stability.
• The combination of high valuation and defensive business model suggests the market views Costco as a high-quality compounder, but also leaves less margin of safety if revenue or earnings growth slows.

The stock has strong positive momentum, trading far above its 200-day moving average and up 8.7% over the last month, indicating strong recent buying interest. However, an RSI of 78.45 places the shares firmly in overbought territory, raising the risk of a near-term pullback or consolidation. The technical picture is positive longer term but stretched in the short term.

• Price at $936.58 versus a 200-day moving average of $600.36 shows an exceptionally extended move above long-term trend, consistent with a strong uptrend but also a large gap from mean levels.
• An 8.7% gain in the last month reflects strong recent momentum and positive sentiment, often driven by earnings optimism or defensive rotation into high-quality names.
• RSI at 78.45 is well above the typical overbought threshold of 70, suggesting the stock may be vulnerable to profit-taking or a period of sideways action even if the longer-term trend remains intact.

Overall, the setup for Costco’s stock appears neutral: fundamentally high quality but already richly valued, with technically extended price action and some softening in alternative data. The long-term story remains attractive, yet the current combination of a very high P/E, overbought technicals, and weakening hiring and app-download trends suggests a more balanced risk-reward in the near term. Investors may need continued strong earnings and operational execution to justify the current premium and sustain further upside.

• High valuation (P/E ~73.75) and overbought technicals (RSI ~78) imply much of the quality and growth story is already priced in, increasing sensitivity to any slowdown in fundamentals.
• Alternative data—especially sharp declines in app downloads and job postings—introduce caution around near-term growth momentum, offsetting the strength in traffic and brand engagement and leading to an overall neutral stance.