Should I Buy Costco Stock in 2025? Expert US Insights
Is it the right time to buy Costco?
ScoreCostco Wholesale Corporation (COST) remains a standout in the US consumer defensive sector, offering resilient performance even in shifting macroeconomic climates. As of July 2025, Costco’s stock is trading around $985 with an average daily trading volume of approximately 2.29 million shares, reflecting robust investor interest. The company continues to post impressive revenue growth (+8% year-over-year for the latest quarter), with net income and earnings per share exceeding analyst expectations. Recent developments include the legal dispute with Lululemon, manageable in scope, and the smooth transition to new CEO Ron Vachris, ensuring management continuity. Notably, Costco’s plan to open 27 new warehouses in 2025 and its ongoing global expansion demonstrate long-term growth drivers. The company’s business model—anchored by recurring membership fees and high consumer loyalty—provides considerable stability. Market sentiment is moderately optimistic, as investors recognize Costco’s defensive positioning and capacity to weather inflationary pressures, though near-term margin vigilance remains prudent. In the current environment, the consensus target price among 12 major national and international banks is $1,280.50, suggesting meaningful upside potential for investors seeking steady performance in the retail sector.
- ✅Consistent revenue and earnings growth, outpacing many retail peers.
- ✅Resilient membership-based model with high renewal rates and predictable income.
- ✅Continued global expansion with over 27 new warehouses planned in 2025.
- ✅Strong brand loyalty and extensive presence in 16 countries.
- ✅Diverse revenue streams including pharmacy, fuel, and e-commerce services.
- ❌High valuation with a PER of 55.72 well above sector average.
- ❌Short-term margin pressures in a persistent inflationary environment.
Score- ✅Consistent revenue and earnings growth, outpacing many retail peers.
- ✅Resilient membership-based model with high renewal rates and predictable income.
- ✅Continued global expansion with over 27 new warehouses planned in 2025.
- ✅Strong brand loyalty and extensive presence in 16 countries.
- ✅Diverse revenue streams including pharmacy, fuel, and e-commerce services.
Is it the right time to buy Costco?
- ✅Consistent revenue and earnings growth, outpacing many retail peers.
- ✅Resilient membership-based model with high renewal rates and predictable income.
- ✅Continued global expansion with over 27 new warehouses planned in 2025.
- ✅Strong brand loyalty and extensive presence in 16 countries.
- ✅Diverse revenue streams including pharmacy, fuel, and e-commerce services.
- ❌High valuation with a PER of 55.72 well above sector average.
- ❌Short-term margin pressures in a persistent inflationary environment.
Score- ✅Consistent revenue and earnings growth, outpacing many retail peers.
- ✅Resilient membership-based model with high renewal rates and predictable income.
- ✅Continued global expansion with over 27 new warehouses planned in 2025.
- ✅Strong brand loyalty and extensive presence in 16 countries.
- ✅Diverse revenue streams including pharmacy, fuel, and e-commerce services.
- What is Costco?
- What is the price of Costco stock?
- Our full analysis of Costco stock
- How to Buy Costco Stock in the US
- Our 7 tips for buying Costco stock
- The latest news about Costco
- FAQ
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the performance of Costco for over three years. Every month, over a million users in the US trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Costco.
What is Costco?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | U.S.-based retailer with a global presence and membership focus. |
| 💼 Market | NASDAQ | A key Consumer Defensive stock, frequently included in major indices. |
| 🏛️ ISIN code | US22160K1051 | Unique identifier for Costco shares, facilitating international trading. |
| 👤 CEO | Ron M. Vachris | New leadership since Jan 2024, bringing continuity and operational experience. |
| 🏢 Market cap | $436.97 billion | Large-cap status offers stability and liquidity for investors. |
| 📈 Revenue | $268.78 billion (2024) | Steady revenue growth driven by strong membership renewals and expansion. |
| 💹 EBITDA | $11.53 billion (2024 estimate) | Healthy profitability from economies of scale and efficient operations. |
| 📊 P/E Ratio (Price/Earnings) | 55.72 | Valuation is high compared to sector averages, reflecting growth expectations. |
What is the price of Costco stock?
The price of Costco stock is rising this week. Currently, Costco is trading at $985.00, with a 24-hour gain of $2.64 and a market capitalization of $436.97 billion. Over the past week, the stock has shown steady performance with average daily volume over the past three months at 2.29 million shares. Costco has a P/E ratio of 55.72, a dividend yield of 0.53%, and a beta of 0.99, suggesting relative stability compared to most equities. As the company continues to expand its footprint, investors should consider both the premium valuation and Costco’s history of defensive growth.
Our full analysis of Costco stock
Having closely reviewed Costco’s latest quarterly financials and stock performance over the past three years, we have also integrated a broad range of market data, technical signals, peer benchmarking, and valuation metrics using proprietary analysis algorithms. The findings reveal a company that continues to display robust top-line growth, operational strength, and unmatched customer loyalty—despite a complex macroeconomic backdrop. So, why might Costco stock once again become a strategic entry point into the consumer defensive sector in 2025?
Recent performance and market context
Costco’s stock has exhibited remarkable resilience, with the share price climbing to $985.00 as of July 2025—up 7.5% over the past six months and 14.2% over the last year, despite intermittent volatility in broader equity markets. The company recently announced a solid Q2, delivering $63.21 billion in revenue (+8% year-on-year) and outperforming analyst consensus on earnings per share. Costco’s ongoing international expansion, addition of 27 new warehouses in 2025, and disciplined operational execution have fostered investor confidence. The defensive consumer sector’s historical ability to withstand periods of economic uncertainty provides a favorable macro backdrop, further supported by robust US consumption trends even amid a shifting rate environment. Growing demand for bulk-value retail, especially during periods of inflation or consumer caution, cements Costco’s status among US households and investors alike.
Technical analysis
From a technical standpoint, Costco’s chart signals an optimistic undertone for buyers. The RSI (14 days) sits at 43.19—neutral yet perched above key oversold thresholds, suggesting the stock is consolidating after prior gains with further upside potential. MACD momentum (+6.47, buy signal) supports the prospect of renewed bullish action. Long-term moving averages—led by the 200-day average at $960.77—have transitioned into new support territories, a classically positive development for medium- to long-term positioning. Shorter-term averages (5, 20, 50 days) have recently flashed sell signals, indicating some near-term consolidation, which often precedes a new trend reversal at a healthy technical base. The key support level stands at $974.69, and resistance lies in the $1,000-$1,078 zone, aligned with recent 52-week highs. The confluence of these factors hints at a stock primed to move decisively as upcoming catalysts unfold.
Fundamental analysis
In fundamental terms, Costco’s performance remains stellar. Annual revenue reached $268.78 billion in 2024, driven by high renewal rates and an expanding global membership base, which now exceeds 131 million. Net income for the fiscal year stood at $7.84 billion, translating into a healthy diluted EPS of $17.58. Notably, executive memberships account for 73% of total sales, illustrating superior customer loyalty and pricing power. Costco’s capital-light membership model—where annual membership fees contribute approximately 2% directly to operating income—helps shelter margins and provides a layer of stability that most competitors can only envy. While valuation is elevated (P/E ratio at 55.72, significantly above its sector average of 28.34), the premium is justified by Costco’s robust growth trajectory, operational efficiencies, and unrivaled economies of scale. The smaller dividend yield (0.53%) is more than compensated by the company’s underlying long-term growth, prudent capital allocation, and a history of special dividend payments that reward patient shareholders. Costco’s brand, digital transformation, and cost leadership consolidate its status as the gold standard in global discount retail.
Volume and liquidity
Costco shares enjoy strong market liquidity, trading at an average daily volume of 2.29 million shares. This sustained activity highlights ongoing institutional interest and retail participation, which together contribute to pricing efficiency and low bid-ask spreads. With 443.48 million shares outstanding and a robust public float, investors benefit from dynamic trading conditions without the risk of excessive volatility driven by illiquidity. Such volume patterns underscore widespread confidence in Costco’s long-term stability and growth narrative, creating favorable conditions for both active traders and long-term holders.
Catalysts and positive outlook
Looking ahead, Costco’s multi-pronged strategic plan offers numerous bullish catalysts. The ongoing rollout of 27 new warehouses—including meaningful expansion in international markets—will bolster top-line growth and further diversify geographic risk. Continued focus on omnichannel capabilities (including e-commerce platforms, pharmacy services, fuel, and optical centers) positions the company to capture evolving consumption habits. The executive membership model not only stabilizes revenue but provides recurring, high-margin cash flows. Costco’s embrace of technology—from supply chain digitization to AI-driven inventory optimization—drives efficiency gains that translate directly into shareholder value. Additionally, the company’s defensive posture and commitment to operational excellence make it an attractive choice for investors seeking steadiness in uncertain economic environments. Lengthening membership tenures, strong customer satisfaction scores, and increasing penetration in new product and service categories point to enduring competitive advantages.
Investment strategies
Investors considering Costco today can develop strategies tailored to diverse risk and time horizons:
- Short-term traders: May find technical pullbacks to key support around $974.69 as tactical buying opportunities, especially if supported by renewed momentum signals.
- Medium-term investors: Can target positions ahead of major catalysts—such as quarterly earnings or store opening announcements—leveraging Costco’s historical tendency to surprise to the upside.
- Long-term buy-and-hold approaches: Remain valid given the company’s resilient business model, global market penetration, and habit-forming customer base.
- Income-focused strategies: May focus on the value of special dividends and ongoing yield as part of an income portfolio, recognizing Costco’s commitment to rewarding patient shareholders.
- Diversification-oriented positioning: Costco’s defensive orientation and historic outperformance during market corrections make it an ideal core portfolio holding for downside mitigation.
The combination of technical and fundamental strengths suggests Costco is well positioned at current levels, whether for initial accumulation or tactical additions.
Is it the right time to buy Costco?
In summary, Costco offers a compelling mosaic of strengths—exceptional revenue growth, a unique recurring revenue model, operational resilience, and a proven ability to adapt and thrive across economic cycles. The company’s aggressive yet measured expansion, digital transformation, and focus on membership loyalty continue to generate consistent value for shareholders. While valuation remains elevated, the fundamentals more than justify renewed interest, especially given Costco’s capacity to weather volatility and capitalize on emerging retail trends. The alignment of technical support, market liquidity, and robust medium-term catalysts suggests that the stock may be entering a new bullish phase.
For investors seeking a blend of stability, growth, and strategic optionality within the global consumer sector, Costco seems to represent an excellent opportunity at this juncture. Continued outperformance in revenue, membership, and innovation supports a positive outlook, and the stock is distinctly well prepared to be a core holding in forward-looking, diversified portfolios. As catalysts for further upside gather pace—ranging from expansion to digital innovation—Costco stands out as one of the most promising opportunities among large-cap defensive stocks in today’s market environment.
How to Buy Costco Stock in the US
Buying Costco stock online is simple and secure with a regulated US broker. Investors can choose between two main approaches: buying the shares directly (spot buying), which means owning the stock outright, or trading using CFDs (Contracts for Difference), which allows for leveraged positions and short-term strategies. Both methods are accessible from most online brokers in the US, each with its own cost structure and risk profile. For a detailed broker comparison, see the section further down this page.
Spot buying
A cash purchase of Costco stock means you own the shares outright and benefit from any rise in share price or dividends paid out. Brokerages usually charge a fixed commission per order, typically around $5 per US trade.
Example of a gain scenario
For example: If the Costco share price is $985, you can buy around 1 share with a $1,000 stake, including a brokerage fee of about $5.
✔️ Gain scenario: If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, or +10% return on your investment.
Trading via CFD
CFD trading on Costco shares lets you speculate on the price movement without owning the underlying stock. Fees typically apply in the form of a spread (the difference between the buy and sell price) and overnight financing costs if you hold the position for more than a day.
CFD Leverage Example: Gain Scenario
For example: You open a CFD position on Costco shares with 5x leverage, giving you market exposure of $5,000 for a $1,000 investment.
✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain on a $1,000 stake (excluding fees).
Final advice
Before you start, it’s essential to compare the fees and conditions of different brokers to find the most suitable platform for your needs. The best choice depends on your investment goals, time horizon, and risk tolerance. See our broker comparison further down the page to help guide your decision.
Check out the USA's best brokers!Compare brokersOur 7 tips for buying Costco stock
| 📊 Step | 📝 Specific tip for Costco |
|---|---|
| Analyze the market | Evaluate current retail industry trends and Costco’s position as a defensive consumer stock with steady growth. |
| Choose the right trading platform | Opt for a US-regulated broker that offers Nasdaq access and transparent fees for buying Costco shares. |
| Define your investment budget | Decide on an amount that fits your portfolio, as Costco’s share price is high and best suited to thoughtful sizing. |
| Choose a strategy (short or long term) | Given Costco's history of stable returns and member loyalty, consider a long-term buy-and-hold approach. |
| Monitor news and financial results | Regularly review Costco’s quarterly earnings, updates on warehouse expansion, and key executive announcements. |
| Use risk management tools | Employ stop-loss orders to protect your investment, especially with Costco’s relatively high valuation. |
| Sell at the right time | Reassess your position during periods of strong price rallies or before anticipated sector shifts affecting Costco. |
The latest news about Costco
Costco’s stock reached a new 52-week high of $985 following strong investor sentiment. This performance reflects growing confidence in the company’s US strategy and steady membership-driven revenue, as Costco benefits from its robust business model geared toward American consumers and households seeking value in a volatile economic climate.
Costco’s Q2 2025 earnings surpassed analyst profit expectations, with revenue matching guidance. The retailer reported a net profit of $1.90 billion and earnings per share of $4.28, which exceeded analyst estimates, while total revenue came in line with consensus. This solid financial showing has reinforced positive market momentum for the stock among US investors.
Costco announced plans to open 27 new US warehouses during the 2025 fiscal year. This continued nationwide expansion strengthens the retailer’s market footprint, improves logistics, and brings the Costco experience to a broader segment of the American population, driving sales growth and supporting share price resilience.
The company’s executive membership segment remains strong, contributing 73% of total US sales. A high renewal rate and an expanding membership base signal exceptional customer loyalty and recurring revenue, positioning Costco as a stable choice for investors aligned with the US consumer defensive sector.
Technical indicators for Costco stock show a neutral RSI and an improving MACD buy signal. The 14-day RSI stands at 43.19, considered neutral, while the MACD has shifted into a buy zone, indicating the potential for further upward movement in the share price. These signals may contribute to renewed optimism among US market participants.
FAQ
What is the latest dividend for Costco stock?
Costco currently pays a dividend. The most recent annual dividend is $5.20 per share, typically distributed in quarterly installments. At the current share price, this represents a modest yield, reflecting Costco’s focus on regular shareholder returns and financial stability. Over the past several years, Costco has a strong track record of maintaining and occasionally raising its dividend, supported by its resilient business model and cash flow.
What is the forecast for Costco stock in 2025, 2026, and 2027?
Projected prices for Costco stock are $1,280.50 at the end of 2025, $1,477.50 by the end of 2026, and $1,970.00 for the end of 2027. These forecasts reflect Costco’s defensive sector status, ongoing warehouse expansion, and robust sales growth. Many analysts remain optimistic due to the company’s commitment to membership value and geographic expansion in the U.S. and internationally.
Should I sell my Costco shares?
Holding on to Costco shares can be a strategic move, given the company’s proven resilience, high membership renewal rates, and sustained growth in revenue and profits. The stock’s historically strong performance and favorable position in the consumer staples sector support a long-term perspective. Many investors value Costco for its steady dividends and expansion strategy, so maintaining your position may be well-suited to mid- and long-term goals based on current fundamentals.
Are Costco shares eligible for U.S. retirement accounts such as a 401(k) or IRA?
Yes, Costco shares are eligible to be held in U.S. retirement accounts like 401(k) plans and Individual Retirement Accounts (IRAs). Any dividends or capital gains in these accounts are generally tax-deferred until withdrawal. If held in a taxable brokerage account, dividends are subject to federal income tax, and capital gains depend on your holding period and individual tax bracket.
What is the latest dividend for Costco stock?
Costco currently pays a dividend. The most recent annual dividend is $5.20 per share, typically distributed in quarterly installments. At the current share price, this represents a modest yield, reflecting Costco’s focus on regular shareholder returns and financial stability. Over the past several years, Costco has a strong track record of maintaining and occasionally raising its dividend, supported by its resilient business model and cash flow.
What is the forecast for Costco stock in 2025, 2026, and 2027?
Projected prices for Costco stock are $1,280.50 at the end of 2025, $1,477.50 by the end of 2026, and $1,970.00 for the end of 2027. These forecasts reflect Costco’s defensive sector status, ongoing warehouse expansion, and robust sales growth. Many analysts remain optimistic due to the company’s commitment to membership value and geographic expansion in the U.S. and internationally.
Should I sell my Costco shares?
Holding on to Costco shares can be a strategic move, given the company’s proven resilience, high membership renewal rates, and sustained growth in revenue and profits. The stock’s historically strong performance and favorable position in the consumer staples sector support a long-term perspective. Many investors value Costco for its steady dividends and expansion strategy, so maintaining your position may be well-suited to mid- and long-term goals based on current fundamentals.
Are Costco shares eligible for U.S. retirement accounts such as a 401(k) or IRA?
Yes, Costco shares are eligible to be held in U.S. retirement accounts like 401(k) plans and Individual Retirement Accounts (IRAs). Any dividends or capital gains in these accounts are generally tax-deferred until withdrawal. If held in a taxable brokerage account, dividends are subject to federal income tax, and capital gains depend on your holding period and individual tax bracket.
