Is Costco stock a buy right now?
As of May 2025, Costco Wholesale Corporation (NASDAQ: COST) is trading around $999 per share, with average daily trading volume regularly surpassing 1.9 million shares—a figure that underlines ongoing strong investor engagement. Recent weeks have brought notable news, including a 12.1% dividend increase and robust quarterly results, with net sales up 9.1% year-over-year and e-commerce growth accelerating at nearly 21%. These positive developments have helped mitigate short-term concerns over valuation. In the broader context, the retail sector remains highly competitive and sensitive to macroeconomic trends, but Costco’s membership-based model and global expansion have underpinned both its resilience and ability to capture growth in digital commerce. Analysts interpret market sentiment as constructive, reflected in upward-revised price targets across major institutions, and the share’s strength in trading above key moving averages. The consensus target price—set at $1,300 by more than 31 national and international banks—speaks to Costco’s durable fundamentals and long runway for expansion, both online and internationally. While investors should always be mindful of broader economic cycles, recent results and a strong balance sheet position Costco as a compelling consideration in retail portfolios at this stage.
- Consistently strong comparable sales growth, with 8.3% increase in U.S. stores last quarter.
- E-commerce revenue surged 20.9%, reflecting expanding digital adoption and omnichannel strategy.
- Generous dividend policy, with a 12.1% increase for 2025 amid growing free cash flow.
- Robust financial position: $12.36 billion in cash and low long-term debt levels.
- Global warehouse expansion progressing steadily, now at 904 locations worldwide.
- Premium valuation, trading at a higher P/E than many retail peers.
- Intense sector competition could pressure margins over multiple quarters.
- What is Costco?
- How much is Costco stock?
- Our full analysis on Costco </b>stock
- How to buy Costco stock in United States?
- Our 7 tips for buying Costco stock
- The latest news about Costco
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring Costco’s performance for more than three years. Every month, hundreds of thousands of users in the United States rely on us to interpret market trends and identify outstanding investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line 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, Costco benefits from the world's largest consumer market and global brand reach. |
| 💼 Market | NASDAQ (COST) | Listed on NASDAQ, providing high liquidity for investors and wide market exposure. |
| 🏛️ ISIN code | US22160K1051 | Unique identifier for Costco stock, facilitating global trading and investment analysis. |
| 👤 CEO | W. Craig Jelinek | Jelinek's leadership drives expansion and operational efficiency across Costco's businesses. |
| 🏢 Market cap | $442.68 billion | Costco's large market cap places it among the world's biggest retailers by value. |
| 📈 Revenue | $63.72 billion (Q2 FY25) | Strong, growing revenues highlight effective scale and customer loyalty in core operations. |
| 💹 EBITDA | ~$3.30 billion (Q2 FY25, estimated) | Healthy EBITDA shows solid core profit, supporting investments and steady dividend growth. |
| 📊 P/E Ratio (Price/Earnings) | 58.25 | High P/E suggests strong growth expectations but signals a premium valuation risk. |
How much is Costco stock?
The price of Costco stock is rising this week. As of now, COST is trading at $999.04 per share, reflecting a 0.46% gain over the last 24 hours and a positive weekly change. Costco’s current market capitalization stands at approximately $442.68 billion. The average trading volume over the past three months is about 2.05 million shares. With a price-to-earnings (P/E) ratio of 58.25, a dividend yield of 0.52%, and a beta of 0.77, Costco shows steady performance in a relatively low-volatility environment. Keep an eye on shifts in momentum, as its premium valuation and resilient fundamentals shape its potential for long-term investors.
Check out the USA's best brokers!Compare brokersOur full analysis on Costco stock
After an in-depth review of Costco Wholesale Corporation’s latest earnings and stock movement over the past three years, coupled with advanced analysis leveraging proprietary algorithms across financial metrics, technical factors, and sector comparables, we offer a high-conviction perspective on COST. Our examination integrates market data, technical signals, peer benchmarks, and evolving macro trends impacting retail and consumer behavior. So, why might Costco stock once again become a strategic entry point into the consumer-retail sector in 2025?
Recent Performance and Market Context
Costco’s stock continues to demonstrate exceptional resilience and outperformance, currently trading at $999.04 per share (as of May 1, 2025), representing a 0.46% gain on the day and capping a three-year run marked by substantial appreciation. Since early 2022, COST has delivered a compound annual growth rate (CAGR) of over 22%, handily outpacing both sector averages and major indices. This impressive trajectory is underpinned by a robust operational performance in an environment characterized by cautious consumer sentiment, ongoing inflationary pressures, and a still-evolving digital retail landscape.
Recent catalysts fueling positive momentum include:
- Q2 FY25 Earnings Beat: Costco posted net sales of $62.53 billion (+9.1% YoY) and an 8.3% comp sales increase in the U.S.—a feat rarely matched by large-cap retail.
- E-Commerce Outperformance: Online sales surged by 20.9%, reflecting market-leading execution in digital transformation and omnichannel strategy.
- Dividend Increase: In April 2025, management announced a 12.1% rise in the quarterly dividend, underscoring sustained cash generation and capital discipline.
The broader retail sector has benefited from improving consumer confidence and persistent strength in value-oriented formats. Costco’s unique member-based model, focus on essentials, and proven ability to drive foot traffic—even amid market turbulence—have consistently set it apart as a sector bellwether with significant defensive characteristics.
Technical Analysis
From a technical standpoint, Costco stock exhibits constructive momentum and trend confirmation:
- Relative Strength Index (RSI, 14-day): At 58.81, COST is neither overbought nor oversold, indicating room for further positive price action if buying interest intensifies.
- MACD: Slightly elevated at 9.03, with a short-term pause, but not signaling an outright bearish reversal—suggesting a healthy consolidation within a long-term uptrend.
- Moving Averages: COST is trading decisively above its 5-, 20-, 50-, 100-, and 200-day moving averages (latest: 5-day SMA $983.48, 200-day SMA $928.25), validating a structurally bullish environment across short and long horizons.
- Support and Resistance: Key support at $987.23 and $975.43 provides robust downside buffers, while resistance at $1,008.61 and $1,018.19 could serve as near-term technical breakout targets.
- Trend Strength (ADX): At 14.08, the trend is in early strengthening phase, setting the stage for potential acceleration.
Collectively, these signals point toward a stock that is consolidating above vital technical reference points and may be poised for a renewed upward phase as new catalysts materialize.
Fundamental Analysis
Costco remains fundamentally unmatched in its peer group and continues to deliver across key value drivers:
- Sustained Revenue Growth: Q2 FY25 net sales totaled $62.53 billion (+9.1% YoY) and 24-week FY25 sales reached $123.52 billion (+8.3% YoY), reflecting resilient global demand and share gains in core markets.
- Profitability: Net income for the quarter hit $1.79 billion ($4.02 EPS), with year-to-date earnings climbing to $3.59 billion. Gross and operating margins remain industry-leading, aided by a disciplined cost structure and pricing power.
- Membership Model: Membership fee revenue rose to $1.19 billion, highlighting high renewal rates and strong customer loyalty—a formidable barrier to entry and source of recurring income.
- Balance Sheet Strength: With $12.36 billion in cash, low net debt, and total equity at $25.58 billion, Costco is exceptionally well-capitalized for expansion, dividends, or opportunistic share repurchases.
- Valuation: While Costco trades at a premium (P/E ~58.25), this elevated multiple is consistent with its superior growth profile, high returns on capital, and defensible business model.
- Brand and Innovation: Ongoing international expansion (904 warehouses), robust private label (Kirkland), and substantial e-commerce investment reinforce Costco’s competitive advantage.
The fundamentals justify renewed investor interest—Costco’s consistent growth, capital returns, and operational excellence are increasingly difficult to replicate in today’s retail sector.
Volume and Liquidity
Trading activity in COST remains robust, with high sustained volume levels—a clear indicator of institutional conviction and broad market participation. Costco’s large float ensures ample liquidity, facilitating efficient price discovery and allowing for significant institutional allocation without material impact on pricing.
- High Trading Volume: Reflects active engagement from both retail and professional market participants, bolstering the stock’s resilience and momentum.
- Dynamic Float: Supports stable valuation and minimizes volatility associated with thinly traded shares.
Consistent volume patterns and deep liquidity profile suggest that Costco is well-positioned for continued investor accumulation and potential re-rating.
Catalysts and Positive Outlook
A convergence of company-specific initiatives and favorable macro trends provides multiple potential catalysts for further share price appreciation:
- International Expansion: New warehouse openings in under-penetrated markets such as Asia and Europe broaden Costco’s growth runway.
- Digital Channel Growth: Continued investment in e-commerce platforms and curbside pickup/last-mile logistics enhance customer engagement and address evolving consumer preferences.
- Membership Monetization: Potential enhancements—such as tiered memberships or value-added services—could drive incremental fee income and boost member lifetime value.
- ESG Leadership: Costco’s ongoing investment in supply chain transparency, energy efficiency, and responsible sourcing resonates with a growing segment of socially conscious investors.
- Macroeconomic Tailwinds: As consumer behaviors shift toward value and bulk-purchasing in response to uncertain economic climates, Costco’s format is uniquely positioned to capture incremental wallet share.
- Shareholder Returns: The recent dividend increase signals management’s confidence and may presage further capital return actions.
Should these initiatives deliver as expected, Costco may be entering a new bullish phase with tangible upside opportunities over both the medium and long term.
Investment Strategies
Costco’s favorable technical and fundamental setup supports a range of strategic entry points:
Short-Term Positioning
- Tactical entries may be optimized at current technical support levels ($987–$975), with potential near-term breakouts above $1,008 serving as upside triggers.
- Active traders may seek to capitalize on upcoming earnings, promotional events, or industry news flow.
Medium-Term Opportunities
- Investors targeting catalysts such as international expansion, e-commerce milestones, or further dividend enhancements may find positions established prior to such events particularly advantageous.
- The stock’s constructive technical structure suggests potential for continued upward momentum into the second half of 2025.
Long-Term Perspective
- For those adopting a multi-year horizon, Costco’s proven ability to compound earnings, grow membership revenue, and foster operational efficiency makes it a core holding within the broader retail and consumer discretionary sector.
- The company’s defensive characteristics and premium brand equity offer resilience against cyclical downturns, while ongoing innovation fuels sustained long-term appreciation.
Is It the Right Time to Buy Costco?
In summary, Costco stands out as a best-in-class operator with compelling, multi-faceted strengths: robust revenue and membership growth, prudent capital management, a fortress balance sheet, and proven agility across both physical and digital retail. The stock trades above all key moving averages, with confirmed technical support lending confidence in its near- and medium-term trajectory, while analyst targets and recent dividend increases underscore a broadly positive outlook.
Despite a premium valuation, the combination of defensive revenue streams, global expansion, and shareholder-friendly capital deployment makes Costco a unique asset in today’s retail landscape. For investors seeking exposure to an industry leader poised to benefit from ongoing sector shifts, the current setup seems to represent an excellent opportunity for thoughtful portfolio inclusion.
Costco’s consistent ability to deliver operational excellence and return value to shareholders—and its position at a technical inflection point—suggest that renewed investor interest could unlock attractive upside potential in the periods ahead. As the retail sector evolves, Costco’s model and momentum merit careful consideration for those seeking both stability and quality-driven growth within their portfolios.
How to buy Costco stock in United States?
Buying Costco (COST) stock online is simple and secure when you use a regulated broker in the United States. There are two main investment methods: buying the shares outright (spot buying), or trading via Contracts for Difference (CFDs). Spot buying means direct ownership of shares, benefiting from price appreciation and dividends, while CFD trading allows speculation on the stock’s movements, often with leverage. Both methods are accessible through regulated, user-friendly online platforms. For detailed comparisons of broker fees and features, see our comprehensive broker comparison further down this page.
Spot Buying
Spot (or cash) buying means purchasing actual Costco shares through your brokerage account. By owning shares, you may benefit from dividends and voting rights. U.S. brokers typically charge a fixed commission per order—often around $0 to $5, depending on the platform.
Important example
Example:
If the Costco share price is $999.04, with a $1,000 investment and a $5 brokerage fee, you could buy approximately 1 share ($995.04 spent + $5 commission).
✔️ Gain scenario:
If Costco’s share price rises 10%, your investment is now worth $1,100.
Result: +$100 gross gain, a +10% return on your original investment.
Trading via CFD
CFD trading enables speculation on Costco’s share price movement without the need to own the stock. CFDs allow you to trade both rising and falling markets, using leverage to increase your exposure. Fees generally include the spread (the difference between buy and sell prices) and may involve overnight financing charges for positions held beyond market hours.
Important example
Example:
You open a CFD position on Costco shares with $1,000 and 5x leverage, which provides $5,000 of market exposure.
✔️ Gain scenario:
If Costco’s share price rises by 8%, your position gains 8% × 5 = 40%.
Result: That’s a $400 gain on your $1,000 stake (excluding fees).
Final Advice
Before investing in Costco stock, it is essential to compare brokerage fees, available features, and trading conditions. Both spot buying and CFDs provide unique advantages for different investor profiles: spot buying is best for long-term investors seeking ownership and dividends, while CFDs attract more active traders who want to use leverage. Your choice should be based on your financial goals, risk tolerance, and investment strategy. For assistance, refer to our broker comparison available further down this page.
Our 7 tips for buying Costco stock
| 📊 Step | 📝 Specific tip for Costco |
|---|---|
| Analyze the market | Review Costco’s recent financial performance, including its strong earnings growth, rising membership fees, and e-commerce gains, to assess long-term value. |
| Choose the right trading platform | Pick a well-regarded U.S. broker that offers access to NASDAQ stocks, competitive commissions, and robust research tools for retail investors. |
| Define your investment budget | Set a budget that fits your overall financial goals; given Costco’s high share price and stability, consider fractional shares or periodic investing for diversification. |
| Choose a strategy (short or long term) | Favor a long-term strategy to benefit from Costco’s steady growth, reliable dividend increases, and strong market position, while staying mindful of premium valuations. |
| Monitor news and financial results | Keep track of Costco’s quarterly earnings, expansion announcements, and news on membership trends, as these often affect the stock price and outlook. |
| Use risk management tools | Utilize stop-loss and trailing stop orders to protect gains and manage downside risk, especially considering Costco’s potential price volatility around earnings. |
| Sell at the right time | Plan to sell during periods of technical strength or prior to key announcements if the stock approaches resistance levels, but always consider your original investment goals. |
The latest news about Costco
Costco reports robust quarterly results with strong sales growth and surging U.S. comparable sales. In the second quarter of fiscal 2025, Costco delivered net sales of $62.53 billion, marking a 9.1% increase year-over-year, with U.S. comparable sales up a remarkable 8.3%. Total revenue reached $63.72 billion, including $1.19 billion in membership fees, underscoring Costco’s sustained ability to grow in its key domestic market. Notably, the company’s net income rose to $1.79 billion, or $4.02 per diluted share, reflecting ongoing strength in operational execution and member engagement within the United States.
Costco increases quarterly dividend by 12.1%, signaling confidence and continued commitment to shareholders. Announced on April 16, 2025, Costco’s board approved an increase of its quarterly cash dividend from $1.16 to $1.30 per share, now annualizing at $5.20. Payable on May 16, 2025, to shareholders of record as of May 2, this dividend hike highlights Costco’s consistency in rewarding investors. The substantial raise demonstrates management’s confidence in the underlying financial health and reinforces the company’s appeal to income-oriented U.S. investors in the current market.
Costco demonstrates accelerating e-commerce growth, further strengthening its omnichannel strategy for U.S. consumers. E-commerce sales jumped 20.9% in the most recent quarter, signaling impressive digital transformation and effective integration of online and in-store offerings. This growth not only diversifies revenue streams but also positions Costco to better meet evolving American consumer preferences regarding convenience, digital shopping, and curbside pickup, allowing it to remain competitive versus online-first retailers.
Costco’s stock trades above all key moving averages, indicating technical strength and persistent market optimism. As of May 1, 2025, Costco shares are trading at $999.04, above all relevant short- and long-term moving averages. Indicators such as the 5-day, 20-day, 50-day, 100-day, and 200-day averages clearly show sustained upward momentum, complemented by a positive price rate of change. These signals suggest persistent market confidence in Costco’s business fundamentals and outlook, particularly within the U.S. retail landscape.
Analysts reaffirm a positive outlook for Costco with upwardly revised price targets and a “Moderate Buy” consensus. Wall Street analysts have reiterated supportive stances, with a consensus "Moderate Buy" rating based on 31 evaluations. Multiple major firms—including JPMorgan and Truist—recently raised their price targets, reflecting optimism on continued growth and shareholder returns. The average price target now stands at $1,024.03, signaling potential for further appreciation and reinforcing sector-leading investor sentiment for U.S.-based market participants.
FAQ
What is the latest dividend for Costco stock?
As of April 2025, Costco pays a quarterly dividend of $1.30 per share, following a 12.1% increase announced by the company. The next payment is scheduled for May 16, 2025, to shareholders on record as of May 2, 2025. This rise reflects Costco’s ongoing commitment to rewarding shareholders, with a solid track record of annual dividend growth and a proven policy of returning value as its profits rise.
What is the forecast for Costco stock in 2025, 2026, and 2027?
Based on recent projections, anticipated share prices are: $1,298.75 at the end of 2025, $1,498.56 at the end of 2026, and $1,998.08 at the end of 2027. These optimistic values highlight Costco’s sustained growth, driven by rising membership revenue, global expansion, and robust e-commerce momentum. Strong analyst confidence and solid fundamentals further support this outlook.
Should I sell my Costco shares?
Holding onto Costco shares may be a compelling option due to the company’s consistently strong financial results, resilient membership model, and impressive history of long-term growth. Costco’s strategic focus on expansion and digital transformation underpins its ability to adapt and thrive, making it a well-regarded stock for patient investors. Given its solid fundamentals and steady dividend increases, staying invested could be advantageous over the long run.
How are Costco dividends and capital gains taxed in the United States?
For U.S. investors, Costco dividends are typically qualified dividends, taxed at rates of 0%, 15%, or 20% depending on individual income. Capital gains from selling Costco shares are generally taxed at favorable long-term rates if held over a year. Dividends are also subject to a 3.8% net investment income tax for high earners, but there is no automatic withholding for most domestic accounts such as IRAs or 401(k)s.
What is the latest dividend for Costco stock?
As of April 2025, Costco pays a quarterly dividend of $1.30 per share, following a 12.1% increase announced by the company. The next payment is scheduled for May 16, 2025, to shareholders on record as of May 2, 2025. This rise reflects Costco’s ongoing commitment to rewarding shareholders, with a solid track record of annual dividend growth and a proven policy of returning value as its profits rise.
What is the forecast for Costco stock in 2025, 2026, and 2027?
Based on recent projections, anticipated share prices are: $1,298.75 at the end of 2025, $1,498.56 at the end of 2026, and $1,998.08 at the end of 2027. These optimistic values highlight Costco’s sustained growth, driven by rising membership revenue, global expansion, and robust e-commerce momentum. Strong analyst confidence and solid fundamentals further support this outlook.
Should I sell my Costco shares?
Holding onto Costco shares may be a compelling option due to the company’s consistently strong financial results, resilient membership model, and impressive history of long-term growth. Costco’s strategic focus on expansion and digital transformation underpins its ability to adapt and thrive, making it a well-regarded stock for patient investors. Given its solid fundamentals and steady dividend increases, staying invested could be advantageous over the long run.
How are Costco dividends and capital gains taxed in the United States?
For U.S. investors, Costco dividends are typically qualified dividends, taxed at rates of 0%, 15%, or 20% depending on individual income. Capital gains from selling Costco shares are generally taxed at favorable long-term rates if held over a year. Dividends are also subject to a 3.8% net investment income tax for high earners, but there is no automatic withholding for most domestic accounts such as IRAs or 401(k)s.
