Costco: Strong Business, But Its Earnings Multiple Can't Expand Forever
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Costco's Q2-2025 earnings report revealed strong revenue growth but a slight EPS miss, causing a 1.2% stock dip in after-hours trading. The company's high valuation and P/E ratio limit future multiple expansion, potentially affecting returns.

March 07, 2025 | 2:15 pm
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Costco's Q2-2025 earnings report showed strong revenue growth but a slight EPS miss, leading to a 1.2% stock dip in after-hours trading. The high valuation and P/E ratio limit future multiple expansion, potentially affecting returns.
The slight EPS miss and subsequent 1.2% stock dip indicate a negative short-term impact. The high valuation and P/E ratio suggest limited room for future multiple expansion, which could further pressure the stock price if growth expectations are not met.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100