Costco Q3 Earnings: The Flywheel Is Spinning

The last eight Seeking Alpha calls on Costco were holds or sells. Quant hasn't budged off “hold” in three years. But I'm still bullish. A 53x forward P/E on a wholesale retailer should scare you. I argue it's structural; it's the pricing of intangibles the market can't model otherwise. Q3 beat on revenue at $70.5B and grew EPS 15.2%, even with a few-cent miss. Membership income climbed 10.7% and grew 9.9% ex-FX.