Costco’s stock soared 174% in the past five years, outperforming the S&P 500 by a wide margin amid macroeconomic challenges. Its membership model, focus on high-margin fees, and unique product strategy have fueled growth. Key metrics like comps growth, warehouse count, cardholders, and renewal rates have all trended positively.

In fiscal 2025, Costco saw an 8.1% rise in adjusted comps and ended with 905 warehouses, 142.8 million cardholders, and a 90.2% global renewal rate. The company capitalized on pandemic demand and inflation spikes, raising membership fees without hindering growth. Despite a slight dip in gross margins, its EPS grew steadily.

Analysts forecast Costco’s net sales and EPS to grow at a CAGR of 8% and 10%, respectively, from fiscal 2024 to 2027. The company plans to expand warehouses, invest in e-commerce, and capitalize on ancillary services. However, its current stock valuation at 52 times earnings may indicate overly optimistic growth expectations.

If Costco meets analyst projections with a 10% EPS CAGR and a more modest forward P/E ratio, its stock price could rise to $1,140 by 2030. While a decent gain is possible, it may not match past performance. Investors should carefully evaluate Costco’s growth prospects against its current valuation and future potential.

Read more at Yahoo Finance: Where Will Costco Stock Be in 5 Years?