COST – Market expectations are for record-high Uniform ROA, but management has concerns about growth and market trends

• Costco Wholesale Corporation (COST:USA)currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 27.5x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about growth and market trends
• Specifically, management might have concerns about the sustainability of top- and bottom-line growth, and might have concerns about the sustainability of tailwinds related to gasoline and FX trends. Furthermore, they might have concerns about their ability to sustain returns to shareholders, and about potential headwinds related to vendor shifts