When consumers look for value, a trip to Costco Wholesale Corp. (NASDAQ: COST) is frequently on the agenda. But as investors have been looking for value in December, COST stock has fallen out of favor. Shares of Costco stock are down about 2.2% for the month as of December 27. However, the stock is down over 6% after hitting a high of around $1,007 prior to the company’s earnings on December 12.
Trading at over 52x forward earnings and with a return on equity of around 33%, investors may be correct in thinking that it’s time to take some profits off the table. Even with the December slide, COST stock is still up about 42% in 2024, which outpaces the S&P 500 index and other retail stocks.
