Investors who put $100 into Costco a decade ago would now see a value exceeding $350, outpacing the S&P 500’s roughly 230% return over the same period, driven by consistent same-store sales gains averaging 6% annually and Kirkland Signature’s contribution of 29% to total revenues. Despite this outperformance, the stock trades at 51 times trailing earnings and a price-to-sales ratio near 1.5, levels above its five-year historical average, leading many strategists to advise current investors to wait for a valuation pullback before adding to positions.

In the latest session, shares closed at $940.25, down 1.33% from the prior day, underperforming the broader market’s flat performance. Trading volume reached 1.8 million shares, 20% above the 30-day average. This pullback coincided with profit-taking following a 5% rally over the previous two weeks, as sector rotation favored consumer discretionary names with lower price multiples.

During the fiscal third quarter, the company reported earnings per share of $4.34, outstripping consensus estimates by $0.07, on revenue of $67.31 billion, up 8.3% year-over-year and surpassing forecasts by $280 million. Net margin improved to 2.96%, while return on equity climbed to 29.35%. Membership fee income rose 9%, with renewals at 91% for the 12 months ended December.

Institutional ownership stands at 68.5%, though Alpha Cubed Investments trimmed its stake by 1.7% in Q3, reducing holdings by 560 shares to 31,946 shares worth $29.6 million. Insiders sold 9,315 shares valued at $8.55 million over the past three months, representing 0.10% of outstanding shares. The board declared a quarterly dividend of $1.30 per share (annualized yield of 0.5%), with a payout ratio of 27.85% and an ex-dividend date of January 30. Among 34 analysts covering the stock, 21 rate it a buy, 12 a hold and one a sell, with a consensus price target of $996.