Should You Buy Costco Stock? These "Magnificent Seven" Stocks Are Cheaper and Growing Faster

Shares of Costco (NASDAQ: COST) are up 54% over the last 12 months, but most of that return was driven by an increase in the price-to-earnings (P/E) multiple that Wall Street is willing to pay for the shares -- not actual growth in the company's earnings per share.Analysts expect Costco to report annualized earnings growth of 9% over the long term, yet the stock trades at a price-to-earnings ratio that is usually reserved for the best growth stocks. Costco's forward P/E of 45 is even more expensive than some of the world's strongest tech companies, including top Magnificent Seven stocks Amazon (NASDAQ: AMZN) and Nvidia (NASDAQ: NVDA), which are expected to grow earnings faster and trade at lower valuations.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool