Wall Street Analysts Think Costco Stock Might Soon Be Overpriced. Are They Right?

Costco Wholesale (NASDAQ: COST) has been one of the hottest stocks over the past few years. Up 78% since 2020, it has blown past the S&P 500 and its 36% gains during that stretch. The business has been booming despite a myriad of economic conditions.

But with its growth slowing, is the party finally over for the stock and its bullish investors? Let's take a look.

Many analysts remain bullish on Costco's stock, but the average price target is just under $549. At that number, it might only rise by less than 5% over the next year, which is how far out analyst estimates normally go. And price targets have been coming down; a year ago, the consensus was around $570.

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Source Fool.com