Costco's 682% Return Over 10 Years: A Strong Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 31 2026
0mins
Should l Buy COST?
Source: Fool
- Significant Investment Returns: As of January 27, Costco has achieved a total return of 682% over the past decade, meaning a $100 initial investment is now worth $782, significantly outperforming the S&P 500 index and highlighting its strong investment appeal.
- Warehouse Growth: Over the last ten years, Costco has expanded its warehouse count, which has driven merchandise sales growth and an increase in its loyal membership base, resulting in a substantial rise in net income that reflects its robust fundamental performance.
- Market Performance Analysis: Currently, Costco has a market capitalization of $417 billion, with shares priced at $940.10 and a price-to-earnings ratio of 52, indicating its expensive nature as an investment opportunity, necessitating careful evaluation by investors.
- Investment Advice: Despite Costco's impressive historical performance, experts recommend that investors wait for a significant pullback in stock price before considering adding to their positions to avoid the risks associated with buying at high levels.
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Analyst Views on COST
Wall Street analysts forecast COST stock price to rise
24 Analyst Rating
19 Buy
4 Hold
1 Sell
Strong Buy
Current: 1041.250
Low
769.00
Averages
1061
High
1205
Current: 1041.250
Low
769.00
Averages
1061
High
1205
About COST
Costco Wholesale Corporation (Costco) operates membership warehouses and e-commerce sites that offer a selection of nationally branded and private-label products in a wide range of categories. The Company buys the majority of its merchandise directly from suppliers and route it to cross-docking consolidation points (depots) or directly to its warehouses. It operates 891 warehouses, including 614 in the United States and Puerto Rico, 108 in Canada, 40 in Mexico, 35 in Japan, 29 in the United Kingdom, 19 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, two in France, and one each in Iceland, New Zealand and Sweden. It also operates e-commerce sites in the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan and Australia. The Company provides wide selection of merchandise, plus the convenience of specialty departments and exclusive member services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Consumer Sentiment Declines, Costco Thrives Amid Economic Uncertainty
- Consumer Confidence Decline: Recent data from the University of Michigan indicates a significant drop in consumer sentiment, with inflation soaring 3.8% year-over-year in April following the outbreak of the Iran war, leading consumers to be more cautious with discretionary spending, which poses serious challenges for retailers and restaurants.
- Costco Sales Growth: Despite the unfavorable economic climate, Costco reported net sales of $23.92 billion in April, a 13% increase from $21.18 billion last year, while comparable sales rose 7.4% year-over-year in the latest quarter, demonstrating strong market performance amid economic uncertainty.
- Consumer Focus on Value: Costco's CFO noted that members are increasingly focused on quality and value, and as prices rise, the company's low-price strategy and unique shopping experience have attracted more consumers, driving repeat visits and larger transaction sizes.
- Kirkland Brand Advantage: Costco's Kirkland Signature private-label brand offers budget-conscious shoppers high-quality alternatives at 15% to 20% lower prices than national brands, which helps Costco attract a large customer base even under economic pressure, further solidifying its market position.
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- Market Dynamics: CNBC's Jim Cramer emphasized that the bond market currently dictates stock market movements, warning that any robust stock performance could be undermined by bond volatility ahead of key earnings reports, necessitating investor caution.
- Oil Prices and Inflation: Following President Trump's tough stance on Iran, oil prices surged, leading to rising Treasury yields, with Cramer noting that inflation concerns have diminished hopes for interest rate cuts from the Federal Reserve, further increasing stock market uncertainty.
- IPO Risk Warning: Cramer highlighted signs of speculative excess in recent IPOs, urging investors to adopt a cautious stance toward equities; while a market crash isn't imminent, he stressed the importance of protecting gains against potential risks.
- Earnings Report Outlook: Cramer expressed caution regarding upcoming earnings reports, particularly for Home Depot and Nvidia, although he remains optimistic about Nvidia's long-term prospects, suggesting that the company will need to deliver a perfect quarter to see significant stock price increases.
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- Market Dynamics: Cramer emphasizes that the bond market's volatility can significantly impact the stock market, especially ahead of key earnings reports, urging investors to remain vigilant to avoid losses due to bond market fluctuations.
- Oil Prices and Inflation Concerns: Trump's tough stance on Iran has led to rising oil prices and Treasury yields, with Cramer noting that stock market growth hinges on a decline in oil prices, highlighting increasing market concerns over inflation.
- IPO Market Risks: Cramer warns that speculative excess in recent IPOs could heighten risks in the stock market, suggesting that while a crisis hasn't emerged yet, investors should protect their gains and adopt a cautious approach.
- Upcoming Earnings Reports: Cramer expresses caution regarding upcoming earnings reports, particularly for Home Depot and Nvidia, although he remains optimistic about Nvidia's long-term prospects, stating it will need a perfect quarter to drive further stock price increases.
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Regency Silver Appoints Alejandro Sucre to Board
- New Board Member: Alejandro Sucre has been appointed to the Board of Regency Silver Corp., effective immediately, and his capital markets and impact investing experience will significantly support the advancement of the Dios Padre project.
- Capital Markets Background: Sucre is the founder and General Partner of the Venezuela Oil, Gas and Mining Fund and has served as Chairman of Inversiones Crecepymes C.A., which launched Venezuela's first impact-investment IPO fund, showcasing his deep expertise in capital markets.
- Successful Operational Experience: From 2017 to 2025, he built BlueHouse Organics into Canada's top organic broccolini producer, establishing B2B partnerships with major retailers like Costco, Loblaw, and Sobeys, demonstrating his capability in business expansion.
- Stock Option Grant: In connection with the appointment of new directors, the company has granted a total of 2,500,000 incentive stock options at an exercise price of C$0.125 per share for a term of five years, aligning the board members' interests with the company's long-term growth objectives.
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Costco Acquires 55-Acre Site in Fort Myers for $55 Million
- Expansion Strategy: Costco's acquisition of a 55-acre site in Fort Myers for approximately $55 million marks one of the largest and highest-value land sales in Southwest Florida history, underscoring the brand's strong market demand and commitment to expansion.
- Sales Growth: Over the first 35 weeks of its current fiscal year, Costco reported a 6.5% increase in comparable sales adjusted for fuel prices and foreign currency, with overall sales rising 9.5% to $197.2 billion, reflecting the positive impact of new store openings and rising gas prices.
- Increase in Store Count: The number of Costco warehouses worldwide grew from 890 to 914, representing a modest annual growth rate of about 3%, indicating significant potential for expansion in the U.S. and other high-demand markets despite the relatively low growth rate.
- Future Outlook: The company plans to open approximately 30 new stores annually over the next five to ten years, and while its e-commerce business remains limited, Costco's membership model and low-price strategy are expected to drive stable growth even during uncertain economic times.
See More
Investment Outlook: Walmart vs. Costco
- Stock Performance Comparison: Over the past five years, Walmart's stock has risen approximately 190%, while Costco's has increased by 175%, both outperforming the S&P 500's 82% gain, indicating strong resilience in fluctuating economic conditions.
- Valuation and Market Cap Analysis: Walmart's market cap has reached $1 trillion, while Costco stands at around $450 billion; despite both appearing overvalued, Walmart's P/E ratio is 53, compared to Costco's 48, reflecting high market expectations for both companies.
- Growth Potential Assessment: Although both retailers are experiencing single-digit growth, Costco's growth rate typically exceeds Walmart's, particularly when consumer spending appetite increases, highlighting its potential advantage in economic recovery scenarios.
- Market Positioning Differences: Walmart focuses more on essentials, while Costco encourages higher discretionary spending; as economic conditions improve, Costco's growth potential may be greater, especially in e-commerce and new market expansions.
See More
Consumer Sentiment Declines, Costco Thrives Amid Economic Uncertainty
- Consumer Confidence Decline: Recent data from the University of Michigan indicates a significant drop in consumer sentiment, with inflation soaring 3.8% year-over-year in April following the outbreak of the Iran war, leading consumers to be more cautious with discretionary spending, which poses serious challenges for retailers and restaurants.
- Costco Sales Growth: Despite the unfavorable economic climate, Costco reported net sales of $23.92 billion in April, a 13% increase from $21.18 billion last year, while comparable sales rose 7.4% year-over-year in the latest quarter, demonstrating strong market performance amid economic uncertainty.
- Consumer Focus on Value: Costco's CFO noted that members are increasingly focused on quality and value, and as prices rise, the company's low-price strategy and unique shopping experience have attracted more consumers, driving repeat visits and larger transaction sizes.
- Kirkland Brand Advantage: Costco's Kirkland Signature private-label brand offers budget-conscious shoppers high-quality alternatives at 15% to 20% lower prices than national brands, which helps Costco attract a large customer base even under economic pressure, further solidifying its market position.
See More
Rising Bond Yields Threaten Stock Market Rally
- Market Dynamics: CNBC's Jim Cramer emphasized that the bond market currently dictates stock market movements, warning that any robust stock performance could be undermined by bond volatility ahead of key earnings reports, necessitating investor caution.
- Oil Prices and Inflation: Following President Trump's tough stance on Iran, oil prices surged, leading to rising Treasury yields, with Cramer noting that inflation concerns have diminished hopes for interest rate cuts from the Federal Reserve, further increasing stock market uncertainty.
- IPO Risk Warning: Cramer highlighted signs of speculative excess in recent IPOs, urging investors to adopt a cautious stance toward equities; while a market crash isn't imminent, he stressed the importance of protecting gains against potential risks.
- Earnings Report Outlook: Cramer expressed caution regarding upcoming earnings reports, particularly for Home Depot and Nvidia, although he remains optimistic about Nvidia's long-term prospects, suggesting that the company will need to deliver a perfect quarter to see significant stock price increases.
See More
Bond Market Dominates Stock Trends, Cramer Issues Warning
- Market Dynamics: Cramer emphasizes that the bond market's volatility can significantly impact the stock market, especially ahead of key earnings reports, urging investors to remain vigilant to avoid losses due to bond market fluctuations.
- Oil Prices and Inflation Concerns: Trump's tough stance on Iran has led to rising oil prices and Treasury yields, with Cramer noting that stock market growth hinges on a decline in oil prices, highlighting increasing market concerns over inflation.
- IPO Market Risks: Cramer warns that speculative excess in recent IPOs could heighten risks in the stock market, suggesting that while a crisis hasn't emerged yet, investors should protect their gains and adopt a cautious approach.
- Upcoming Earnings Reports: Cramer expresses caution regarding upcoming earnings reports, particularly for Home Depot and Nvidia, although he remains optimistic about Nvidia's long-term prospects, stating it will need a perfect quarter to drive further stock price increases.
See More
Regency Silver Appoints Alejandro Sucre to Board
- New Board Member: Alejandro Sucre has been appointed to the Board of Regency Silver Corp., effective immediately, and his capital markets and impact investing experience will significantly support the advancement of the Dios Padre project.
- Capital Markets Background: Sucre is the founder and General Partner of the Venezuela Oil, Gas and Mining Fund and has served as Chairman of Inversiones Crecepymes C.A., which launched Venezuela's first impact-investment IPO fund, showcasing his deep expertise in capital markets.
- Successful Operational Experience: From 2017 to 2025, he built BlueHouse Organics into Canada's top organic broccolini producer, establishing B2B partnerships with major retailers like Costco, Loblaw, and Sobeys, demonstrating his capability in business expansion.
- Stock Option Grant: In connection with the appointment of new directors, the company has granted a total of 2,500,000 incentive stock options at an exercise price of C$0.125 per share for a term of five years, aligning the board members' interests with the company's long-term growth objectives.
See More
Costco Acquires 55-Acre Site in Fort Myers for $55 Million
- Expansion Strategy: Costco's acquisition of a 55-acre site in Fort Myers for approximately $55 million marks one of the largest and highest-value land sales in Southwest Florida history, underscoring the brand's strong market demand and commitment to expansion.
- Sales Growth: Over the first 35 weeks of its current fiscal year, Costco reported a 6.5% increase in comparable sales adjusted for fuel prices and foreign currency, with overall sales rising 9.5% to $197.2 billion, reflecting the positive impact of new store openings and rising gas prices.
- Increase in Store Count: The number of Costco warehouses worldwide grew from 890 to 914, representing a modest annual growth rate of about 3%, indicating significant potential for expansion in the U.S. and other high-demand markets despite the relatively low growth rate.
- Future Outlook: The company plans to open approximately 30 new stores annually over the next five to ten years, and while its e-commerce business remains limited, Costco's membership model and low-price strategy are expected to drive stable growth even during uncertain economic times.
See More
Investment Outlook: Walmart vs. Costco
- Stock Performance Comparison: Over the past five years, Walmart's stock has risen approximately 190%, while Costco's has increased by 175%, both outperforming the S&P 500's 82% gain, indicating strong resilience in fluctuating economic conditions.
- Valuation and Market Cap Analysis: Walmart's market cap has reached $1 trillion, while Costco stands at around $450 billion; despite both appearing overvalued, Walmart's P/E ratio is 53, compared to Costco's 48, reflecting high market expectations for both companies.
- Growth Potential Assessment: Although both retailers are experiencing single-digit growth, Costco's growth rate typically exceeds Walmart's, particularly when consumer spending appetite increases, highlighting its potential advantage in economic recovery scenarios.
- Market Positioning Differences: Walmart focuses more on essentials, while Costco encourages higher discretionary spending; as economic conditions improve, Costco's growth potential may be greater, especially in e-commerce and new market expansions.
See More
