Costco vs Lowe's

Costco and Lowe's are examined side by side in this page, which compares their business models, financial performance, and market context in clear, accessible terms for readers. By presenting differences and similarities, it aims to inform without judgement and to illuminate how each company operates within its sector. Educational content, not financial advice.

Costco and Lowe's are examined side by side in this page, which compares their business models, financial performance, and market context in clear, accessible terms for readers. By presenting differen...

Comparison Snapshot

Key Financial Metrics

COST

Metric

LOW

$436.43B

Market Cap

$155.23B

3.56%

Potential Profit

-1.52%

Buy

Analyst Rating

Buy

Why It's Moving

Costco Shares Surge to 19-Week High on Robust Q1 Earnings and Analyst Upgrades

Q1 comparable sales hit 6.4% (7.1% excluding gas), driven by broad-based strength in non-foods, foods, and fresh categories, plus 20.5% digitally enabled growth.
Mizuho upgraded to Outperform with $1,000 target, spotlighting accelerating trade-up to premium memberships at 2-3x total adds and adding COST to Top Picks.
Deutsche Bank initiated Buy at $1,044, citing tailwinds like 2026 stimulus despite food disinflation and value-focused spending.

Sentiment:

🐃Bullish

Lowe's Stock Edges Higher Amid Fresh Analyst Upgrades Signaling Sector Optimism.

Gordon Haskett upgraded LOW from Hold to Buy on January 13, citing improved growth prospects in a recovering housing market.
Barclays lifted its rating to Overweight on January 7, pointing to Lowe's competitive edge over peers in cost management.
Stock opened at $278.43 on January 26, up from recent closes around $276-277, buoyed by bullish analyst consensus.

Sentiment:

🐃Bullish

Costco Shares Surge to 19-Week High on Robust Q1 Earnings and Analyst Upgrades

Q1 comparable sales hit 6.4% (7.1% excluding gas), driven by broad-based strength in non-foods, foods, and fresh categories, plus 20.5% digitally enabled growth.
Mizuho upgraded to Outperform with $1,000 target, spotlighting accelerating trade-up to premium memberships at 2-3x total adds and adding COST to Top Picks.
Deutsche Bank initiated Buy at $1,044, citing tailwinds like 2026 stimulus despite food disinflation and value-focused spending.

Sentiment:

🐃Bullish

Lowe's Stock Edges Higher Amid Fresh Analyst Upgrades Signaling Sector Optimism.

Gordon Haskett upgraded LOW from Hold to Buy on January 13, citing improved growth prospects in a recovering housing market.
Barclays lifted its rating to Overweight on January 7, pointing to Lowe's competitive edge over peers in cost management.
Stock opened at $278.43 on January 26, up from recent closes around $276-277, buoyed by bullish analyst consensus.

Sentiment:

🐃Bullish

Investment Analysis

Costco

COST

Pros

Costco has demonstrated consistent revenue growth, with sales reaching $275 billion in 2025, reflecting strong consumer demand and successful international expansion.
The company maintains a robust balance sheet, with over $14 billion in cash and equivalents, supporting ongoing store development and operational resilience.
Costco's membership model delivers high customer retention and recurring revenue, contributing to stable profitability and predictable cash flows.

Considerations

Costco's shares trade at a high valuation, with a trailing P/E ratio above 50, making the stock appear expensive relative to historical and sector averages.
The company faces margin pressure from increasing competition in grocery and general merchandise, as well as rising operating costs.
Costco's growth is increasingly dependent on new store openings, which may slow as the company approaches market saturation in key regions.

Lowe's

LOW

Pros

Lowe's maintains a strong domestic market position in home improvement, benefiting from ongoing demand for renovation and repair projects.
The company offers a relatively attractive dividend yield of over 2%, providing income support for investors in a volatile sector.
Lowe's has a lower valuation compared to peers, with a P/E ratio around 19, suggesting potential for value-oriented investors.

Considerations

Lowe's revenue growth has been modest, with limited international presence and exposure to cyclical swings in the housing market.
The company faces intense competition from rivals like Home Depot and online retailers, which may constrain pricing power and market share.
Lowe's profitability is sensitive to commodity price fluctuations and changes in consumer spending, particularly during economic downturns.

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