COST

GammaReaper_

I always trade the nearest expiration - in this case, Friday the 16th. I play from both the short and long side. I'll go long when implied volatility appears to be underpricing the potential move and I can structure a trade with a solid reward-to-risk ratio and positive expected value. The short side requires the opposite - last week, for instance, $COST options appeared overpriced heading into the event, so I sold an iron condor and closed it shortly after the open once vol crush was nearly fully realized, booking a solid profit. I look at several metrics to make the decision, including: 1. Vol crush 2. Historical actual moves versus implied move 3. Standard deviation of historical moves 4. EV of the structure's payoff using a PDF using at-the-money IV

CallsOrPutsYES

Calls on Oil, Defense stonks, and COST because its a winner

Such_Coin

My mom just told me she has a bunch of FE stock. She told me a while ago she bought a lot of COST when it was $80 a share. Might have to start asking her for financial advice.

Overall-Fold-9720

>GOOGLE, MICROSOFT, META, AMAZON AND SEVERAL ARTIFICIAL INTELLIGENCE COMPANIES SIGNED A PLEDGE AT THE WHITE HOUSE TO BEAR THE COST OF NEW ELECTRICITY GENERATION TO POWER THEIR DATA CENTERS "Companies pledge billions they don't have, to build a non planned electric grid, for data centers not financed yet, running on models from fundraising startups" That will go well

Current_Animator7546

Bought some more KLG and COST lol.

Current_Animator7546

COST 2012

greenpride32

I don't think you understand what the term bubble means in stocks and finance. It means an asset's value has increased sharply and beyond any reasonable fundamentals, purely based on speculation and lack of supporting instrinsic value. NVDA only added $4t worth of equity value to its shareholders over past 5 years. It passed AAPL last quarter for highest ever quarterly profit for a US public company. NVDA currenlty trades at a lower P/E than WMT and COST. I don't know what you look for in a stock, but doesn't get much better than that.

ThetaFarmingRegard

made about $189 on a COST iron condor for earnings. Now at Costco and just spent $417 what a scam

Crazy_Donkies

The market is absolutely retarded on AMZN.  WMT and COST 45 and 53?  What the absolute fuck.  All 3 should be 30pe.

IllustriousTear1315

Why COST don't move?

Mysterious-Device-53

Looking at COST chart, you wouldn't even know they had earnings today

whodey84

About to be some 5yr bag holders of MCD,COST,WMT etc...

Odd-Block-2998

COST earnings is a nothing burger. -0.30% lmao

WendyDumpsterFire

Rip COST

Odd-Block-2998

COST is a $1,500 stock

Bababoueyyy

Would be fun if COST announce a split

IllustriousTear1315

Why nobody talking about COST?

Rvin16

Imagine if COST increases the hot dog price we would be so fucked

Extension_Dog_8511

Especially with COST earnings tonight

snowdogdb

How worried should I be that COST (Costco) swings more than 3% overnight? (below 954 or above 1050)?

skystarmen

This is a post that would have been way better off if you just copy pasta from Chat GPT since you clearly don't know much about the retail / ecom business or either of these companies WMT has literally the best tech in retail / ecommerce behind AMZN, they've been crushing it in ecommerce, they have stores in virtually every town in the US, Sams has 95% of the same stuff Costco does for a cheaper subscription, they are growing FASTER than COST...I could go on The are both overvalued IMO but you think Costco is justified at a HIGHER PE because "vibes" I guess

AdAny631

Really, since when? I’m relatively heavy in $COST & think they will have great earnings tomorrow. Also when it comes to market rotation it’s best to look at the sector ETFs. I use the [State Street Sector Tracker](https://www.ssga.com/us/en/individual/resources/sector-tracker?WT.mc_id=ps_etf-sec_sectors-funds_us_google_slink_psnb_mf1_lp-sl1_nov25&gclsrc=aw.ds&&_bt=781354252522&_bk=sector%20etf&_bm=p&_bn=g&_bg=70797238455&gad_source=1&gad_campaignid=1939483851&gbraid=0AAAAACz5AuMeFzVDec3wkPP8IE_jIZfOM&gclid=EAIaIQobChMInNHZwPyHkwMVH07_AR2biBf7EAAYASABEgIs0_D_BwE#currentTab=monthThree) and 3 months into the year energy is up 23%, materials 16%, industrials 14% and consumer staples 11%.

AdAny631

I don’t know about that but my Swiss ETF EWL returned ~32% last year and it still is at a 24 P/E. Also, one of the larger emerging market ETFs, IEMG also returned ~32% last year. If the dollar is weak buy emerging markets. This trend may not continue but IEMG is up ~7% YTD. The US government spent all the tariff money and all the companies spearheaded by COST’s 2025 lawsuit want that money back. I have zero confidence in the federal government to reign in spending and prevent hyperinflation. They want another $50 billion for the “not a war” in Iran.

ldmonko

COST is 56x

wanseer18

True. Average Eloncel port: TSLA, WMT, COST. Thats it.

wanseer18

Ngl I've been malding watching WMT and COST not tank at these valuations. I have no idea why regards are still buying these FUCKING SUPERMARKETS at 50x earnings and dumping MSFT at 24. Market is more emotional than my ex

EvolvingDior

The stock market is in a major bubble. Look at the PE for $COST. The people buying these stocks at these prices are bat-shit crazy. However, note that most of the shareholders of these stocks are institutions. Why? Because institutions manage ETFs, such as SPY, VOO, QQQ which all contain WMT. People put alot of their retirement money into index ETFs. They do that blindly, with no thought as to what that is doing to the PE of the constituents. That money has to go somewhere. So it goes into all of them, driving up the price. The more indexes a stock is in, the worse it gets.

Desmater

Same reason as COST. Solid companies that and still growing. Even if not at crazy levels. Do well even in recessions or war.

gocaps777

COST is overvalued at the current price point

Hot-Pop-3250

Not COST

MSined

COST

Glad_Jicama4848

Escort FOR A COST. Did you not read his own words?? This is meant for upper-income countries. It's intended to achieve U.S. foreign policy objectives not some benevolent civilian escort service and specifically for oil whose cost will be passed to consumers. Spin it anyway you want, Trump profits off selling US assets. Ask Jared.

Valkyrie_Skuld

Have to go tomorrow and get groceries. If my full port was COST I’d be so fine tomorrow

LengthObjective2253

What’s the next play? I’m looking at COST 👀

2plus2_equals_5

COST is green!

2AMTrader

!p COST

Doneeb

COST

Disgruntled_FSO

COST is going to absolutely murder earnings.

ahopye

GOOG flat, AMZN, WMT, COST and MRVL up, NFLX mooning

dreggers

Forget Mag7, COST and WMT are the new overlords of the stock market

chimble

COST stock split this time? Dare I dream?

Far-Requirement9180

COST reporting next week

BarbellPadawan

COST Hot dog and Coke still one of the best deals in the Western World.

Crazy_Donkies

These are good things. Let's hope they're buying the tech dip and not more WMT or COST.

CanYouPleaseChill

The P/E is inflated by COST and WMT. The equal-weight S&P 500 consumer staples ETF has a P/E of 18.

vertigo88

Could and would/will are two very different statements. Still have no idea why COST trades at such a premium.

Worried_Quarter469

I like NVIDIA, but it needs to work a little harder for a WMT or COST multiple

Hobojoe-

COST has been trading sideways for an eternity

greenpride32

WMT and COST trading at around double the PE with half the growth of MSFT AMZN GOOGL is pretty wild.

Beneficial-Sail-6139

Sold COST and added AVGO to the port because I ain't no boomer

sirzoop

what else do you want to know? WMT is trading at a 43 forward P/E with 11% EPS growth and Costco is trading at 44 forward P/E with 9% EPS growth. Nvidia is trading at a 24 forward P/E with 67% EPS growth. WMT / COST are overvalued and NVDA is undervalued but wall street thinks the opposite at the moment.

sirzoop

WMT COST They are trading at 40+ forward P/E

CanYouPleaseChill

This has been a very momentum-driven market in both directions. Expensive stocks like COST, WMT, CAT, and DE keep going up despite having P/E ratios of 53, 46, 41, and 36. Then you've got stocks like ADBE and NVO at P/E ratios of 15 and 11. NVO is a long even without obesity treatment at all. Their core diabetes business will continue to grow for decades. ADBE has a buyback yield over 10%. "Mr. Market is there to serve you, not to guide you." - Warren Buffett

Aggravating_Sir_4709

So...are we in a market where valuation is literally irrelevant and stocks like COST and WMT will just go up on slight growth? Is that the gameplan or is this all setting up for a massive rug later in the year?

Sandvicheater

By what WMT or AMZN? There isn't a single competitor that can even touch COST for membership based shopping.

Sandvicheater

I don't know what to even buy anymore except COST that company will outlast everything else.

sailortyx56

WMT and COST are clocking 50X P/E. lol. Incredibly retarded market.

Disgruntled_FSO

COST leaps here? Thinking about setting and forgetting from this circus.

whodey84

Maybe for SaaS but people are buying WMT/COST/MCD at 45 P/E's lol

whodey84

lol Get COST/CAT/MCD too Value Investing!

27onfire

God bless all the retards that show their presence here today. For all you normal people that have happened by may your dollars slip through your fingers into the nether, may your COST hotdog be cold and your DPZ pie be undercooked. Love ya all. Have a good week.

Distinct-Yak-7385

Defensive ETFs often look “expensive” because staples and large caps have run up, that’s pretty normal in drawdowns. If you’re hunting value, consider sector-rotated or equal-weight defensive ETFs rather than market-cap weighted ones, and don’t just look at staples. For example, equal-weight consumer staples or healthcare ETFs tend to trim the big WMT/COST dominance and give broader exposure. Other areas worth a look for defence are utilities and low-volatility strategies (they won’t be as pricey as mega staples now). No magic ticker, but shifting away from market-cap heavy defensive funds toward equal-weight or multi-sector defensive baskets gives a fresher, less concentrated exposure right now.

bigmeatbag

OMG the Mexican drug cartels are burning Costcos trying to destroy my COST calls

bigmeatbag

COST, WMT and AMZN gonna put their foots up Donnie's ass to get their tariff cash back

Outrageous_Tip_2133

I know, infact some retail stocks like WMT, COST in deep red rather than rebounding. Market believes tariffs will stay in some other form.

Outrageous_Tip_2133

The best tariff rebound play was AMZN and furniture stocks, they had been hurting badly due to tariffs. All of them up bigly today. I am surprised WMT and COST arn't up.

daftstar

$COST

liverpoolFCnut

Going by your "genius" explanation, what should we be pricing COST? 100 yrs of "steady growth" ? 1000 yrs of "steady growth" ? Yeah, it is expensive as shit and it is no hyper-growth tech company, deal with it!

3D-spaghetti-monster

I did some research on stocks that tend to do well even during recessions. Some of the companies mentioned were WMT, COST, TJX, and auto parts retailers such as AZO and ORLY.

FalseDiamond7930

The real bubble was WMT and COST all along.

ahopye

I'm completely in agreement. This isn't a proper sector rotation imo, it's temporary refuge. We didn't have big earnings misses, didn't have major negative catalysts, etc. We had a noisy short term macro environment, a higher than expected capex shock, and a technical cascade that's led tech giants to sit firmly in oversold territory. If SPY had dropped significantly, I'd think we were moving to a longer term defensive positioning - we'd see the money flow not just into defensive stocks but other safe haven asset classes. It could unwind quickly from here, or it could consolidate into a drawdown - but I'm heavily betting against an equity drawdown. We've got NVDA earnings coming up, PCE figures, and a potential Supreme Court tariff decision. You've got earnings calls still to come for the likes of WMT, COST, etc - the stocks that the money has shifted to and are now very overcrowded. Earnings could give liquidity for an exit for institutions, as well as a potential "sell the news" effect regardless of results. Once that starts unwinding, and the opportunity to buy into the hyperscalers at exceptionally low P/Es (and with potential for massive growth over the next few years) starts to disappear, we could see a flood re-entering. If we get a cool PCE, it's hard to see how this doesn't play out. Oracle is a bad move though. Shits fucked.

AntoniaFauci

> CNBC reports on stocks after their big moves when we are near short term tops. Where was CNBC talking about $WMT and $COST a year or 2 ago? They weren't. What are you talking about? I will bet your whole portfolio they were.

appletart40

US Large Cap Index - 51.8% NVDA - 13.9% Home Equity - 11.6% Int'l Developed Mkts Index - 9.4% VGT Tech Index - 5.4% AMZN - 2.7% CD & Money Mkt - 0.9% Pension - 0.8% MSFT - 0.7% Brokerage Cash - 0.6% GOOG - 0.5% COST - 0.5% PANW - 0.4% Checking - 0.2% AVGO - 0.2% SNDK - 0.1% High Yield Savings - 0.1%

pachewychomp

The good news is you have until August! TIME TO DOLLAR COST AVERAGE BABY! BUY BUY BUY!

chimble

WMT beats? COST goes down as a competitor. WMT misses? COST goes down in sympathy. I hold COST shares if you couldn’t tell.

drew-gen-x

Relax. Both are great companies. It's just usually CNBC reports on stocks after their big moves when we are near short term tops. Where was CNBC talking about $WMT and $COST a year or 2 ago? They weren't. They were talking whatever tech stock their audience wants to hear them talk about. CNBC is entertainment, not news.

AntoniaFauci

You think CNBC “suckered everyone into buying WMT and COST”? How? Why? Who is “everyone”?

whodey84

COST and WMT are probably at their ATH's for the next 5yrs.

drew-gen-x

CNBC is sure talking up buying Apple as defensive. Didn't they just sucker everyone into buying into $WMT and $COST at ATH's??

MutaliskGluon

oh this question. Well, the thing is, Mag 7 earnings are all bullshit because they arent properly depreciating their assets which pumps their earnings. Also, everything is non GAAP which muddies the water even more. AAPL is stupidly overvalued for example. 35 PE or whatever for their growth over the past 5 years is nonsense. NVDA is paying vendors to buy their chips and many of them arent even hooked up yet because theres no power for them. And now you have things like WMT, COST, etc trading at tech valuations. If you dont think the market is overvalued, thats cool, you are allowed to think that

D74248

COST is crazy. Great company, but P/E 49? So, I trimmed by COST position. My wife turned around and bought the same amount in her IRA. I guess that I am riding this one into the sunset, one way or another.

kerrykingzgo-T

Love when dudes who work at foot locker post on here that NVDA META and COST are trash... damn, I hadn't thought about it like that, guess I should probably sell

Repulsive-Beyond6877

COST is a bit different comparing to the other retailers. Their runway, in my opinion is larger than the others due to membership driving their revenues. They are opening more stores in India, China, and Japan. These are high density markets that COST currently has low levels of exposure to. The others are a bit more saturated in terms of global exposure and access. Comparing to software, COST is less likely to be directly impacted by AI, however, their customer base may deteriorate with the removal of jobs from the workforce. So more chicken and egg there.

InternationalTop2410

Some SaaS companies will be disrupted Market: time to dump the entire software sector and buy WMT and COST barely growing 10%

Spins13

The multiples are unlikely to expand much more. In theory though, 11% earnings growth to infinity could justify any PE level, because over time that 1% over 10% will compound and compress the PE. In practise though, nothing lasts infinitely and it would be way too risky to bet on it. Of the two COST is also the safer bet because they have more pricing power on their subscription than WMT on the sale of goods

greenpride32

I'd agree both WMT and COST valuation is too high to justify buying them as individual stocks, but I'd disagree it's unsustainable. There has always been inbalances in PE ratios and as you said WMT is often viewed as somewhat of a safe haven. But for individual stocks, I'm taking MSFT 17% top line growth (and almost 1/2 the PE) over WMT 7% without hesitation. Also 5 years is really cherry picking dates. Slide back more and WMT isn't pacing MAG7.

favsep

Yea, if financing conditions are tight and there are no meaningful wage increases, consumers do stop shopping groceries and home improvements *or* they just switch to cheaper options in, you know, WMT COST and other retailers that provide cheap wholesale? I don't understand why you are even directly comparing datacenter capex and consumer spending, are you going to compare the PE ratio of Costco and Microsoft?

Scary-Oven8260

They will eventually collapse like TGT. Like TGT can drop 70% because LGBT people don’t go there any more. Then don’t get surprised for whatever stupid reason wallstreat give you for the collapse of WMT and COST

g3tr1ghttt

Right, play a longer game by buying boring ass companies like WMT COST sitting at 45-50 forward PE while MSFT sits at 23. The only reason making sense to me is buy-side wants tech titans for cheaper while sell-side doesn’t want to pay for calls written as they can’t make money when the stock always goes up, there’s no volatility.

g3tr1ghttt

PE is def overstretched on NVDA compared to other top tech stocks excluding TSLA. But still lower than WMT COST. Boring retail stocks command 46-50 froward PE while MSFT sits at 23, man in what Universe does this make any sense. It seems to me that it’s not the “market is taking approach” but rather coordinated effort to trap retail investors into one thing, then move on to another and trap them there, and repeat the cycle over and over. Nothing else can explain the market movements.

g3tr1ghttt

Rise to match what exactly? Defensive sectors where the news tell us institutions repositioned their money? Hyperscalers’ profits must tank at least by 50% to match WMT COST etc. Not even mentioning other financial metrics on most of which these “defensive” companies look extremely overstretched in comparison. WMT might eventually become another Blockbuster once boomers phase out and everyone folds into AMZN contactless shopping experience. Nobody seems to care?

EvolvingDior

We're not going to hit bottom until COST has a reasonable PE.

gopoohgo

Lol wut.   The reason why COST has a higher PE than WMT is a combo of 24% growth in online sales, combined with a wealthy demographic that shops there.   TGT, grocers, Kohls etc all have PEs half that because they haven't pulled off what those two players have.

EveryoneCanWin

I bought WMT a while ago at $47. I bought COST more recently around $920. I don’t go to Walmart often. But we go to Costco often and business seems always good there. I think COST is expensive. But it should be good in the long run.

casey-primozic

COST hot dogs and pizzas are the best, calls on COST

Happy_Discussion_536

COST is run by business prodigies and the 96' Bulls of management hits ATH again. >"People didn't know they needed a 16ft shed until they entered our store." >"We wanted to keep our hot dog at $1.50 so we made our own hot dog plants." >"Our chicken suppliers refused to work with us and make prices reasonable for our customers... so we made our own chicken plants." They exemplify creativity, resourcefulness and value creation by sheer will for customers, employees, all stakeholders.

MarginCuck

Got myself costco flowers and a hotdog this morning Calls on COST

kakadakuhiyyyyya

because some companies are good long term investments? i’m up over 100% with WMT and COST and will probably never sell them. I do hold a large amount of VTI, IDVO and VGT as well.

Keizman55

First thing is I only trade companies that I understand what they do and how they make the majority of their money. Next, I am a Fidelity customer so I use their resources and check what the analysts recommendations are. If they don’t align with my view I try to see what I am missing. I also use their screener to filter on the major variables that others have listed but am not strict on those unless some negative really stands out. I also read or listen to their earnings calls and have alerts set for any news on their tickers. I picked up AMAT a few months ago and had a good understanding of their business and have done really well with it, wish I had trusted myself enough to hold through earnings overnight. My other tickers that I have done well with here and there are V, GS, KO, MA, MSFT, COST. I try to avoid holding through earnings because I got burnt with Costco - was 100% right on fundamentals but earnings call comments killed it (“…something, something, something, expect tariff headwinds…”)

EveryoneCanWin

I have XOM, CVX, ORCL, MSFT, NET, VZ, WMT, COST and a lot of silver and gold.