Costco Stock Down 9.4%: Could This Mean ‘Buy’?
Costco (COST) stock has fallen 9.4% in the past month. Much of this decrease followed the company’s fiscal 2018 fourth-quarter earnings release, during which management warned of “material weakness in internal control.” Whereas we believe the market overreacted slightly (Costco did clarify that there weren’t any misstatements in the financials), we have also warned investors about Costco’s high valuation suggesting a pullback.