Is Costco stock a buy before earnings?

It depends on time horizon and risk tolerance. Long-term investors may accept volatility for a high-quality compounding story. Short-term traders face headline risk, since a premium multiple needs a beat-and-raise to advance. Consider scaling in, using stops near support, or waiting for the post-report trend to confirm.

Why does the COST share price trade at a premium?

Investors prize Costco’s sticky membership model, strong traffic, and efficient operations. Renewal rates are historically high, and inventory turns are best-in-class. These traits support steady cash flow and resilience in varied markets, so the market often assigns a higher multiple versus peers, especially when comps and digital growth hold.

What should Canadians watch in Costco earnings?

Focus on comparable sales, membership renewal, e-commerce growth, and margin mix. Listen for comments on fuel margins, private-label penetration, and any FX impact on Canadian operations. Also note capex plans and new warehouse openings, which guide long-term growth and help judge whether current valuation remains reasonable.

What is a reasonable valuation for Costco stock?

There is no single fair number. A premium to peers is typical due to quality and scale. Many investors compare P/E against expected growth, margin trajectory, and cash generation. If growth slows or margins compress, the multiple can re-rate. If comps and traffic accelerate, the premium can persist.

How does currency affect Canadian investors in COST?

COST trades in U.S. dollars, so returns translate into Canadian dollars. A stronger U.S. dollar can lift CAD returns, while a weaker one can reduce them. Converting currencies may add costs. Registered accounts can mitigate some tax frictions, but tax treatment varies. Consider speaking with a qualified advisor.

Global Market Insights

COST Stock Today: February 21 — $1,000 Test Amid Valuation Debate

ByHuzaifa Zahoor February 21, 2026February 21, 2026

Costco stock tested the US$1,000 mark today as the market debated premium pricing against strong fundamentals. Costco Wholesale (COST) last closed at US$987.82 after trading between US$984.11 and US$1,007.86. With Costco earnings due March 5 after market close, the next move depends on whether traffic, comps, and digital momentum can support a near-50x forward multiple. We review valuation, technical setup, and what Canadian investors should watch, including risks and timing around this round-number level for the COST share price.