Costco Stock Endures Longest Losing Streak Since 2016 on Valuation Concerns

Costco Wholesale Corp. (COST) shares are in their longest losing streak since 2016, a sign that investors are reassessing the retailer's premium valuation despite its consistent operational performance. The stock's decline highlights a growing tension between the company's solid fundamentals and a market that demands accelerating growth to justify its high price multiple.

Sales Growth Meets Investor Scrutiny

Costco's stock closed at $902.38 on September 10, marking a decline of 4.44% over the preceding month, according to market data. This price movement places the shares near the lower end of their 52-week range of $844.06–$1,096.50.

The pressure on the stock comes even as the company reports robust sales figures. For the four weeks ended August 30, 2026, Costco announced:

• Net sales of $23.7 billion, an increase of 9.9% year-over-year.
• Comparable sales growth of 8.4%.
• A 17.9% rise in digitally enabled sales.

However, investors appear focused on the more moderate comparable sales growth of 5.4% when excluding the impacts of gasoline prices and foreign exchange. This deceleration is a key factor for a stock trading at a high valuation, which the source material noted was near a 56x price-to-earnings multiple.

Technical Indicators Point to Downtrend

Ad

Technical analysis reinforces the bearish sentiment surrounding the stock. According to data from September 10, key indicators suggest the downtrend may have momentum:

• Both daily and weekly signals were rated a "Strong Sell."
• The daily Relative Strength Index (RSI) stood at 34.1, indicating weak momentum approaching oversold territory.
• The Average Directional Index (ADX) was 41.4, signaling a meaningful and strong downtrend is in place.

Based on the data, near-term technical support levels were identified around $897.61 and $892.62, with resistance near $908.41.

Analyst View Remains Cautious

Reflecting the market's cautious stance, DA Davidson recently maintained a Neutral rating on Costco shares with a $1,000 price target, as cited in a September 3 report. While the price target is above the current trading level, the neutral rating suggests limited conviction for significant near-term appreciation.

The current sell-off illustrates the challenge for Costco: its nearly $300 billion in annual revenue and strong membership model support a long-term bull case, but its premium stock price leaves little margin for error if sales growth moderates.