Back Near $1,000, Is Costco Stock a Buy Now?
The Motley Fool
by newsfeedback@fool.com (Daniel Sparks)February 20, 2026
AI-Generated Deep Dive Summary
Costco’s stock has surged nearly 15% this year, reaching levels near $1,000 and outpacing the S&P 500. Investors are grappling with whether the strong performance indicates undervaluation or if the stock is now overpriced. While Costco has consistently executed well operationally, questions remain about whether its fundamentals justify the current valuation.
Costco’s sales have remained robust, but concerns linger about whether the company can sustain such high growth rates indefinitely. The article highlights that while the retailer continues to perform strongly month after month, there are risks in investing at these elevated prices. Growth stocks like Costco often face challenges when expectations become too high, and even minor misses in earnings could lead to significant stock price declines.
For investors, this matters because they’re seeking opportunities where strong fundamentals align with reasonable valuations. Costco’s ability to maintain its momentum will be crucial, especially as competition in the retail space heats up. While the company has a proven track record, the high valuation leaves little room for error, making it a risky bet at current levels.
Ultimately, the decision to buy Costco stock hinges on whether investors believe the company can continue to justify its premium price tag. If growth continues to outpace expectations, the investment could pay off handsomely, but there’s also a higher potential for disappointment if the stock doesn’t live up to its lofty valuation.
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Originally published on The Motley Fool on 2/20/2026