Costco’s revenue model relies heavily on its membership fees rather than merchandise sales, leading to a cost advantage. With $270 billion in net sales in fiscal 2025, Costco is the world’s third-largest retailer. Despite a 7% stock decline in 2025, Costco has historically performed well, with shares up 429% over the past decade. Costco’s focus on memberships, along with its scale and limited SKU count, contribute to its success. While the stock may be expensive, its strong financial performance and stable business suggest a durable investment option.

Read more at Nasdaq.: 3 Must-Know Facts About Costco Before You Buy the Stock