The stock has been a profitable investment, but it currently trades at a premium valuation.
Costco’s anti-inflation hot dog deal celebrates 40th anniversary
Costco sold more than 245 million hot dog combos in 2025, setting a new record.
costco wholesale It has become a profitable investment for investors. Early investors would have become millionaires, but even if they had bought the stock in 2015, it would still have outperformed the stock price. S&P500.
A $1,000 investment in Costco stock 10 years ago would be worth about $6,400 today, assuming you bought more shares with the dividends. That’s more than the $4,000 you could earn by investing in an S&P 500 index fund.
But what about investors who buy stocks today?Here are the returns investors can reasonably expect over the next 10 years.
Is Costco stock worth buying?
Costco has steadily expanded its membership base over the years and currently has 146 million cardholders. It could be a long road for the company to continue to grow, especially if it expands its store presence in the U.S. and abroad.
However, investors should be aware that much of the stock’s return over the past decade has been due to investors paying a higher multiple of the company’s earnings per share. Costco’s price-to-earnings ratio has increased more than 50% since 2015, and the company currently trades at 46 times trailing 12-month earnings.
The stock is currently valued at a high valuation, which could limit its upside in the coming years. Costco’s profits are up about 10% year-over-year, and analysts’ consensus forecast is for long-term profit growth to be 9%. If the stock still trades at 46 times earnings, a $1,000 investment today will be worth about $2,600 in 10 years, excluding dividends.
John Ballard has no position in any stocks mentioned. The Motley Fool has a position in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.
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