- Costco’s membership-based business model encourages customer loyalty, with $270 billion in net sales in fiscal 2025. Shares have seen a 159% return over five years but are currently 17% off their peak.
- Costco’s 81 million membership households worldwide drive repeat store visits, boosting same-store sales by 5.9% in fiscal 2025. The company’s focus on quality products at low prices sustains customer demand.
- Despite Costco’s success, its stock trades at a high P/E ratio of 49.2, signaling an expensive valuation. While the market may reward the company with a premium valuation, investors should consider the lack of a margin of safety.
Read more at Nasdaq: Read This Before Buying Costco Stock