Costco Wholesale trades at high valuation amid strong membership growth

Costco Wholesale is currently trading at a high valuation, with a forward price-to-earnings (P/E) multiple in the low- to mid-40s. This places the company among the most expensive stocks in the consumer staples sector, where the S&P 500 average forward P/E is approximately 26.

Despite the high valuation, the company maintains strong financial performance driven by its membership model. In fiscal 2026, Costco reported second-quarter net sales of $68.24 billion, a 9.1% increase year-over-year. Membership fee income continues to grow at a double-digit rate, contributing to a high renewal rate of 92.2% across North America.

While the stock has recently trailed the S&P 500 in short-term returns for 2026, its long-term performance has historically outpaced the broader market. Costco is scheduled to report its 2026 fourth-quarter earnings on September 26, an event that may influence short-term price movements.