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Costco (COST) Stock Analysis

Consumer Defensive Updated August 25, 2026
$971.85
52W $844.06 – $1096.50
61/100
$430.80B
48.8
0.86
AI Committee Verdict
Buy
61/100
Conviction: Moderate · 60% agreement · 5 analysts
+2.8%
-1.1%
2.68:1
Moderate

Is COST Bullish or Bearish?

Bullish. Innellis AI committee rates Costco (COST) Buy with a composite score of 61/100 , based on 5 analysts with 60% agreement. Last updated August 25, 2026.

What Would Change This View

Upgrade to Strong Buy
Requires a committee score of 75.0 — +14.39 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Watch
Requires the score to fall below 55.0 — -5.61 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The committee sees neither a compelling opportunity nor a clear risk at this stage. Conditions remain neutral — patience is warranted.

Bull & Bear Case

Bull Case
  • Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
  • Weekly trend (sideways) confirms the daily trend -- multi-timeframe agreement — Technical
Bear Case
  • 2 consecutive earnings misses -- execution concerns — Growth
  • MACD histogram negative -- bearish momentum — Technical
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of August 25, 2026
Overall Committee Score
61/100
Agreement
60%
Analysts
5
Conviction
Moderate
Sector Rank
Top 31%
of 72 Consumer Defensive peers
Growth Analyst neutral
52 / 100 · Moderate confidence
Moderate growth -- present but not remarkable
+ Quarter-over-quarter growth rate is ACCELERATING, not just positive
− 2 consecutive earnings misses -- execution concerns
Technical Analyst neutral
54 / 100 · High confidence
Mixed or range-bound price action
+ Weekly trend (sideways) confirms the daily trend -- multi-timeframe agreement
− MACD histogram negative -- bearish momentum
Risk Analyst bullish
70 / 100 · Low confidence
Risk profile is manageable -- leverage, volatility, and event exposure all look contained
Macro Analyst bullish
65 / 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst bullish
62 / 100 · Low confidence
News flow and recent filings/analyst actions are net positive
Portfolio Manager neutral
45 / 100 · High confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− Sector concentration is already high (HHI 3063.01)
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Investment Thesis Evolution

Committee score moved marginally from 58.8 to 60.6.

Analyst-level changes:
  • Growth Analyst: score 48->52 (+4).
  • Risk Analyst: score 75->70 (-5).
  • Value Analyst abstained (was neutral at 49).

Comparing 2026-08-24 to 2026-08-25 (1 day apart).

Technical Analysis

RSI (14)
62.4
Neutral
MACD Histogram
0.913
Bullish Momentum
Trend Direction
Sideways
Weekly: Sideways
Market Structure
Lh Ll
Support
$961.68
Resistance
$999.20
Bollinger %B
0.94
Inside Bands
Price vs Moving Averages
EMA 9
$954.54 Above
EMA 21
$951.85 Above
EMA 50
$955.41 Above
EMA 200
$962.67 Above

Fundamental Analysis

Valuation
0
Growth
53
Profitability
54
Financial Health
61
Cash Flow
70
Valuation
P/E Ratio 48.8×
P/B Ratio 12.87×
PEG Ratio 3.85
Dividend Yield 0.57%
52W High $1096.50
52W Low $844.06
Quality & Growth
ROE 2777.0%
ROA 1050.5%
Gross Margin 1287.6%
Operating Margin 382.3%
Revenue Growth YoY
Debt / Equity 0.25
AI Fundamental Assessment
P/E ratio of 48.8 (rich relative to a 15-40x range); Price-to-book of 12.9x; PEG ratio of 3.8 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 27.8%; Return on assets of 10.5%; Net margin of 3.0%; Gross margin of 12.9%; Current ratio of 1.07 (tight short-term liquidity); Debt-to-equity of 0.25; Free cash flow per share is positive (19.84); Most recent quarter missed estimates by 1.9%; 2 consecutive earnings misses; EPS growth accelerating (+1.8% -> +7.6% QoQ); Analyst estimates rising over recent quarters
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