An entry written while the outcome is still unknown. It will be scored by what the market does next, and it will never be edited to look cleverer than it was.
In plain words · Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, Chin…
VERDICT
The label
Distribution
read at $935.03
Costco holds its Distribution at $935.03.
PHPhase · the trend structure carries the Distribution label
INInsiders · no filings inside 60 days, left as found
POPositioning · no disclosures inside 60 days, left as found
OPOptions · no verdict drawn today, left as found
SCScreen · passes the values gate
edge confirmed
edge broken
edge forming
Each arm is one independent read. Conviction is not a single call, it is how many edges converge.
INVESTOR
The investor read · the season, not the day
As held on the ledger · 2026-07-24
Phase
Distribution · caution
Quantitative state
Consolidating, no directional conviction, held for 2 days
Price
$935.03
Valuation
46.96 trailing · 41.29 forward price to earnings
Values screen
PASS· score 89.3
Beta
0.87
OPPORTUNITY
The opportunity · what the numbers say it is worth
Our framework reads OVERVALUED — it trades above our $776.47 fair value estimate, weak competitive moat, 21.50% revenue growth.
Read at
$935.03
46.96 P/E · 41.29 fwd
Our fair value
$776.47
17% premium
Analyst target (avg)
$1,100.00
+18% to current
Target low $740.00Analyst target rangeTarget high $1,315.00
▲ current $935.03 · | average target
Price history & projections · where it has been, where the models see it going
The valuation journey · where the price sits against fair value and the Street
Current
$935.03
you are here
Conservative
$666.00
-29%
Analyst avg
$1,100.00
+18%
Our fair value
$776.47
-17%
Analyst high
$1,315.00
+41%
Green marks levels above today's price, red below; the shaded band is the gap between the price and our fair value.
Reading the gap · Our more conservative model reads it as fully-to-richly valued here, while the Street is more bullish — a quality-at-a-fair-price name rather than a deep-value one.
Revenue growth
21.50%
Profit margin
3.01%
Debt to equity
60.26
Analyst consensus
Buy · 35 covering
Fair value and rating are our own model estimates; target range reflects third-party analyst estimates. Analysis, not advice.
SCREEN
The values screen, explained · five checks, plain English
This company clears both standards. There are two widely recognised ways to check whether a company is suitable for a Muslim investor. Here is how it did on each:
The common standard· AAOIFI Used by most halal investing apps✓ PASSES
Our stricter standard· asset-based The one Titan applies✓ PASSES
Business activityIts core business isn't built on prohibited lines — no gambling, alcohol, tobacco, weapons, or interest-based lending.Pass
Debt loadInterest-bearing debt is just 10.6% of its assets, well under the one-third ceiling — it does not run on borrowed money.Pass
Interest-bearing cashCash held in interest-bearing accounts and securities is 1.5% of assets, under the one-third limit.Pass
ReceivablesMoney owed to the company is 22.5% of assets, under the 49% limit.Pass
Revenue purityOnly 0.2% of revenue comes from non-compliant sources — under the 5% line.Pass
Every security is read against two recognised standards: our stricter asset-based screen (ratios measured against total assets) and the more widely used market-value standard (measured against market capitalisation). Where they agree we say so plainly; where they part ways — almost always on the debt check — we show both readings and mark it, because that disagreement is the finding, not a fault. We report the score; you and your scholar make the call.
PLAIN
The business, in plain words · what the numbers mean
Bulk Buys Draw Crowds Yet Price Tags Bite
Picture families pushing oversized trolleys through a warehouse, grabbing everything from toilet rolls to salmon fillets in one trip. That steady footfall keeps Costco busy, yet the shares sit 18 percent above our fair value at 940 dollars against 776 dollars. Forward earnings trade at 41.5 times while the moat stays weak, even with 22 percent revenue growth and a 29 percent return on equity.
We pass because the numbers do not support the premium. A 3 percent profit margin and limited competitive edge leave little room for error when the market already prices in perfection. Analyst targets may sit near 1100 dollars, but our valuation shows the gap, not an opportunity.
The main risk is simple overpayment. High multiples on a business without strong defences can unwind quickly if growth slows or margins face pressure. Ethical checks clear, yet the price still fails our test.
Screened names in the same industry · explore each on its own page.
TRADE
Where & how to trade · wherever in the world you are
COST trades on a US exchange. As a US-listed security it is accessible through almost any international broker offering US markets. New to this, or investing from outside the US? Our guide to accessing global markets covers brokers, currencies and the practical steps.
TRADER
The trader read · the latest dated commentary
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 3.8% since our last review. Ethical screening: PASS with strong ethical credentials. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 5% above its long-term trend line with momentum reading neutral. Over the past year the shares are down 2%. Our forward projection puts the odds of a 10% gain over the next month near 12%. The street (32 analysts) rates it buy, with a mean price target of $1077. Insiders have been net sellers over the past quarter. Entered 2026-07-25 · Markup
JOURNAL
The dated journal · newest first, never edited
2026-07-25Markup$935.03-3.8%Entry 4
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 3.8% since our last review. Ethical screening: PASS with strong ethical credentials. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 5% above its long-term trend line with momentum reading neutral. Over the past year the shares are down 2%. Our forward projection puts the odds of a 10% gain over the next month near 12%. The street (32 analysts) rates it buy, with a mean price target of $1077. Insiders have been net sellers over the past quarter.
2026-07-18Markup$971.87+0.0%Entry 3
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with strong ethical credentials. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 5% above its long-term trend line with momentum reading neutral. Over the past year the shares are down 2%. Our forward projection puts the odds of a 10% gain over the next month near 12%. The street (32 analysts) rates it buy, with a mean price target of $1077. Insiders have been net sellers over the past quarter.
2026-07-03Markup$971.87+0.0%Entry 2
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with strong ethical credentials. The risk-adjusted return profile shows good risk-adjusted returns.
2026-07-02Markup$971.87Entry 1
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: PASS with strong ethical credentials. The risk-adjusted return profile shows good risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
