Why Costco's Rally May Continue Into 2025
COSTCostco(COST) MarketBeat·2024-12-17 20:15

Highly valued or not, Costco NASDAQ: COST can continue to rally in 2025. The stock is pricey, trading at 55x its current year earnings estimate. Still, it factored in the growing cash balance, the likelihood of special dividends, and the robust growth outlook. The analysts forecast earnings will more than double over the next decade, putting this stock in a more reasonable valuation relative to the long-term outlook. Assuming the analysts are right, Costco trades at less than 25x its forward earnings outloo ...